Asian Journal of Economics, Business and Accounting

Background: Tax law enforcement plays a crucial role in ensuring effective tax collection and building a fair, transparent tax system. Factors such as tax fairness, understanding, sanctions, and system quality significantly influence taxpayers’ perceptions and behavior toward tax evasion, with stronger fairness, knowledge, and enforcement reducing the likelihood of fraud.

Aims: This study aims to test and obtain empirical evidence related to the influence of tax justice, taxation system, level of understanding, tax sanctions, tax discrimination and developments in tax technology and information on the occurrence of tax avoidance by taxpayers in East Java

Study Design: This type of research is quantitative

Place and Duration of Study: The research population uses all MSMEs that are Corporate Taxpayers and registered at the East Java Pratama Tax Service Office (KPP), namely KPP Malang, South Malang, North Malang, Kediri, Pasuruan, Probolinggo, Jember, Banyuwangi, Batu, Tulungagung, Blitar, and Surabaya City in 2023 with sample criteria, namely Corporate Taxpayers and registered at the East Java Pratama Tax Service Office for at least 5 years since 2019, in the form of a PT have a minimum of 50 permanent employees, have a business in the manufacturing sector and Corporate Taxpayers who are not hereditary family businesses

Methodology: The data collection technique for this research uses literature studies and field research. The analysis technique used in this study uses Structural Equation Modeling (SEM) analysis.

Results: The conclusion of this study is that tax justice, taxation system, and tax discrimination have a significant influence on the occurrence of tax evasion or fraud. The level of tax understanding, tax sanctions, and the development of tax technology and information do not have a significant effect on tax avoidance or fraud.