Increasing the Level of Agreement of Taxpayers on Tax Audit Conclusions-Recommendations to Vietnamese Tax Authorities

Abstract

A person’s agreement on a decision usually attaches to their own benefits. However, in most situations, a single decision will impact on different people with different benefits, therefore, a person’s judgment regarding fairness will decide their agreement. Basing on the fact that tax audit conclusions usually impact on economic benefits of taxpayers and a theory of “awareness of fairness”, we would like to apply the quantitative method to identify and verify different drivers of taxpayer’s agreement on tax audit conclusions by assessing reliability and suitability of different scales; verifying research model and research hypothesis, and determining drivers’ impact through questionnaires given to 256 firms. As a result, we propose recommendations to Vietnamese tax authorities in terms of restructuring procedures, completing auditing method and enhancing tax supervising activities in order to increase the level of agreement of taxpayers on tax audit conclusions, improving Vietnamese tax audit effectiveness.

Keywords: Tax audit, taxpayers’ agreement, tax audit conclusions, drivers.