THE EFFECT OF SP2DK ISSUANCE ON FINANCIAL REPORT CORRECTIONS ON TAX REVENUE WITH THE ROLE OF GOOD CORPORATE GOVERNANCE AS A MODERATING VARIABLE IN MANUFACTURING COMPANIES ON THE INDONESIA STOCK EXCHANGE (2020–2023)

Abstract

This study analyzes the effect of the issuance of Letters of Request for Explanation of Data and/or Information (SP2DK) regarding financial statement corrections on tax revenue in manufacturing companies listed on the Indonesia Stock Exchange (IDX) during the 2020-2023 period, considering the role of good corporate governance (GCG) as a moderating variable. This study is motivated by empirical inconsistencies regarding the effectiveness and contribution of SP2DK to tax revenue, as well as the limited quantitative evidence linking SP2DK to the quality of financial reporting and corporate governance. Secondary data were collected from tax administrations and financial statements and company annual reports, resulting in 48 company observations. The analysis used multiple linear regression and moderated regression analysis (MRA). The results show that the number of SP2DK has a significant positive effect, while the level of correction has a significant negative effect on tax revenue. GCG is proven to moderate the relationship between the level of correction and accuracy of financial statements with tax revenue. This finding confirms that the effectiveness of SP2DK in increasing tax revenue is not only determined by the frequency of its issuance, but is also influenced by the quality of financial statement corrections and strong corporate governance practices. This research contributes to tax revenue and provides practical insights for tax authorities and companies in optimizing SP2DK design, financial reporting practices, and governance to increase tax revenue.