Title: An Assessment of the Digitalized Tax System and Its Effectiveness in Improving Compliance of Self-Filing Taxpayers
Authors: Rustin Louis S. Santos
Ashly Joy L. Manalili
Janelle S. Patawaran
Camille C. Ubando
Christian M. Saddi Alan Y. Cabaluna
Ph.D.
Jason Y. Carreon
CPA
MBA
Volume: 10
Issue: 7
Pages: 72-82
Publication Date: 2026/07/28
Abstract:
This study assessed the quality dimensions of the Digitalized Tax System, specifically system, information, and service quality, and their effectiveness in improving the compliance of 150 self-filing individual taxpayers in the City of San Fernando, Pampanga. Utilizing a quantitative descriptive-correlational design and purposive sampling, data were gathered from sole proprietors and professionals who handle their tax obligations independently. Results revealed that respondents generally affirm the system's quality, with composite means of 2.91 for system and information quality and 2.89 for service quality, all interpreted as "Agree". Similarly, taxpayers perceived their compliance as "Effective", particularly in eliminating physical interaction and simplifying digital record-keeping. However, a critical gap was identified in system navigation and communicative clarity, which received the lowest ratings. The study concludes that while the Bureau of Internal Revenue (BIR) has established a technically reliable foundation, its ultimate effectiveness is bottlenecked by a cognitive barrier; therefore, the transition to full voluntary compliance requires the BIR to bridge the gap between technical accuracy and user comprehension through simplified interface design and real-time support mechanisms.