The prolonged duration of the Covid epidemic has contributed to the challenging situation faced by land-based Micro, Small, and Medium Enterprises (MSMEs), leading to difficulties in meeting tax obligations. This study aims to identify the factors causing low tax compliance among micro, small, and medium-sized businesses. Employing quantitative methods, the research relies on primary sources and specifically focuses on small and medium-sized companies in Sidoarjo Regency. Purposive sampling was employed, resulting in the inclusion of 164 micro, small, and medium-sized firms meeting the specified criteria. Data analysis was conducted using Structural Equation Modeling Partial Least Square. The study reveals that supply chain sustainability significantly and positively influences taxpayer compliance. Additionally, supply chain sustainability, quality of staff tax services, financial attitudes, and tax comprehension all demonstrate substantial and positive impacts on taxpayer compliance. Indirectly, Supply Chain Sustainability, Tax Employee Service Quality, Financial Attitude, and Tax Understanding exert a significant influence on Development Sustainability in Sidoarjo Regency, East Java Province, Indonesia, through Taxpayer Compliance as an intervening variable for MSMEs. This research contributes to the existing literature by confirming that taxpayer compliance is influenced by Supply Chain Sustainability, Tax Employee Service Quality, Financial Attitude, and Tax Understanding. Furthermore, the study validates the application of the theory of planned behavior in exploring the moderating effect of tax compliance between Supply Chain Sustainability, Tax Employee Service Quality, Financial Attitude, and Tax Understanding on development sustainability, particularly in the context of developing countries.

MSMEs in the ceramics industry are still experiencing a difficult period even though they have entered the post-pandemic period. Will competitive advantage be created from supply chain collaboration in terms of obtaining resource information which will ultimately create innovation and increase market demand? This research involved 200 ceramic MSMEs in Bali with the condition that the perpetrators had been running their business for more than one year, analyzed with SEM-PLS with the SmartPls processing tool. The results show that the relationship between market demands has a positive effect on competitive advantage and will give a boost to the performance of ceramics SMEs. While the collaborative relationship of innovation value does not have a positive effect on performance and competitive advantage because so far ceramic SMEs, especially photocatalysts, are still relatively new and are still running their business in one small group and no organization has yet been formed to support the acquisition of information related to the innovations to be carried out. This research also shows that the mediation of competitive advantage is the perfect mediation in creating market demand in improving the performance of MSMEs.

The production of ceramic creates scrap material that is often wasted. The aims of this study are to know the influence of size and material on scrap material and the role of accounting in managing the environment. The results show that product size and material used together have an effect on scrap material. Partial testing shows that only materials used have a positive and significant effect on the emergence of scrap materials. The accounting treatment is done by debiting Cash IDR 5,258,753.99 and crediting Work in Process-Raw Material Cost IDR 5,258,753.99. The cost of goods manufactured of ceramic products after accounting treatment for scrap material is lower than before. The selling price also decreased for the same product. The operating profit will increase IDR 5,013,038.64 (use original selling price) and decrease IDR 1,272,112.67 (use selling price after treatment for scrap material). The emergence of scrap material causes environmental problems. Environmental accounting overcomes this by removing scrap material from its place. The transfer is done by selling at a price of half the standard price. The proceeds from the sale are treated as a deduction from the cost of raw materials in an account in the Work in Process-Raw Materials Cost credit.