Authors - Surya Anugrah, Sabo Hermawan, Christian Wiradendi Wolor, Eka Septariana Puspa, Windy Permata Suyono, Dwi Handarini Abstract - Indonesia’s bold leap toward digital tax reform culminated in the 2025 launch of its Core Tax Administration System (CTAS) a centralized platform aimed at streamlining taxpayer services, boosting compliance, and modernizing revenue administration. This study critically evaluates the early- stage implementation of CTAS using a dual-theoretical lens: the Technology Acceptance Model (TAM) and Institutional Theory. Drawing on government documents, user surveys, and media analysis, findings reveal a paradox while users widely acknowledge CTAS’s potential to simplify tax filing, technical glitches, complex interfaces, and poor system responsiveness undermine its usability and acceptance. Moreover, institutional misalignments such as inadequate training, low digital literacy, and resistance to change pose structural barriers to reform success. By integrating behavioral insights with systemic analysis, this research highlights the multilevel challenges of digital transformation in public finance. The paper concludes with actionable lessons for emerging economies navigating the tension between technological innovation and institutional readiness in the digital era.
