Drawing on institutional logics perspective, this paper aims to examine the adoption process of CAATTs in the Directorate General of Taxation (DGT) of Indonesia by examining the interplay between assumptions, values and beliefs of actors of organization within the DGT institution. Examining the adoption of CAATTs in DGT is important because CAATTs holds out the promise of improving audit efficiency and effectiveness; the provisions needed by the DGT when assessing the compliance of taxpayers. In this study, secondary data analysis was conducted by evaluating tax laws and regulations pertinent to tax audit in DGT. Results indicate that the use of CAATTs for tax audit is an outcome of social construction among actors of organization within DGT institution.

Key Words : tax, audit, tools, techniques, electronics, evidences