DIGITAL TAX COMPLIANCE CAPABILITY AND FINANCIAL RECORD QUALITY IN MSMES: AN INTEGRATED GOVERNANCE FRAMEWORK
Keywords:
Digital Tax Compliance, Financial Records, MSMEs, Data Governance, Internal ControlAbstract
Background: Digital tax services can reduce administrative friction, but MSMEs still face fragmented records, inconsistent classifications, weak reconciliation, and limited capability to translate transaction data into reliable tax and managerial information. Compliance technology cannot compensate for poor source records or unclear accountability.
Aims: This article develops an integrated capability framework connecting digital tax compliance, financial record quality, process ownership, data governance, and sustainable MSME decision-making.
Research Method: The study uses an integrative conceptual review. Peer-reviewed literature, professional standards, and official institutional sources are synthesized through construct clarification, mechanism mapping, governance analysis, and development of propositions. The article does not report fabricated respondents, database counts, or statistical estimates.
Results and Conclusion: The synthesis indicates that organizational value arises when information, decisions, controls, and performance measures operate as an integrated management system. Technology or functional activity alone is insufficient. Clear accountability, reliable data, balanced indicators, and periodic review are the principal enabling conditions.
Contribution: The paper offers a practical capability framework and testable propositions that can guide organizational assessment and subsequent empirical research.
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