Unveiling complexities: a mixed methods study of investigating transfer pricing audit behaviours in indonesia

Dahlan, Muhammad 2025. Unveiling complexities: a mixed methods study of investigating transfer pricing audit behaviours in indonesia. PhD Thesis, Cardiff University. Item availability restricted.

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Abstract

This study aims to investigate the voice of multiple actors in the tax system regarding transfer pricing audit behaviours in Indonesia. A convergent mixed methods approach was employed to uncover the behavioural aspects of transfer pricing audits using the extended theoretical lens of the Theory of Planned Behaviour (TPB). A survey was circulated to the tax auditors working at specific tax units in Indonesia dealing with MNEs’ transfer pricing arrangements. At the same stage, semi-structured interviews were conducted with tax auditors, tax professionals working at MNEs, professional tax advisers, policymakers, and a tax court judge. The quantitative datasets were then analysed using the Partial Least Squares-Structural Equation Modelling (PLS-SEM), and qualitative interview outcomes were analysed using the Reflexive Thematic Analysis. The survey results revealed that the tax auditors’ behaviours regarding transfer pricing audits were associated with their behavioural intention, commitment posture, and perceived MNEs’ transfer pricing knowledge. These predictors were statistically significant in explaining transfer pricing audit behaviours using the PLS-SEM approach (p < 0.05). In contrast, disengagement posture was insignificant in explaining this behaviour. As for the qualitative outcomes, themes and subthemes were generated from the transcripts, expanding multiple participants' perceptions of transfer pricing audit behaviours. For example, the interview outcomes uncovered that the tax auditors’ intention was not a silent concept, as argued by the TPB model. Rather, it may actualise in many spectrums depending on the position in the audit teams. Finally, a mixed methods joint display was performed to integrate the two findings. This study employs a side-by-side table and a unique circular joint display during integration. The current study contributes to transfer pricing literature by proposing an extended TPB model to explain transfer pricing audit behaviours. The extended model integrates other predictors such as deference posture, perceived tax knowledge, and behavioural intention. Practically, the findings of this study offer evidence-based policy sequence strategies that may be used by the Indonesian tax authority to optimise transfer pricing compliance actions in Indonesia and tax authorities elsewhere facing similar challenges.

Item Type:	Thesis (PhD)
Date Type:	Completion
Status:	Unpublished
Schools:	Schools > Business (Including Economics)
Date of First Compliant Deposit:	16 September 2025
Last Modified:	16 Sep 2025 16:03
URI:	https://orca.cardiff.ac.uk/id/eprint/181094

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