Intermediate Role of Trust on Tax Compliance of the Invitation of Explanation: Case of Accountants in Denizli in Turkey

Abstract

It is extremely important for tax compliance to fulfill their tax obligations on time and completely by taxpayers. Various regulations are made in order to increase tax compliance in the legislation of many countries. One of the these regulations was accepted for this purpose in Turkish Tax Law in 2016 is the institution of Invitation to Explanation. This study was written in order to evaluate whether the institution in question serves this purpose. In this study, the effect of the institution of invitation to explanation on tax compliance in the light of the survey data made to 300 people consisting of Sworn-in Certified Public Accountants, Certified Public Accountants and accounting professionals in Denizli province in Turkey; Factor analysis was applied within the framework of three variables: tax compliance, institution of invitation to explanation and trust to the institution of invitation to explanation. According to the hypothesis of the research, there is a negative relationship between the level of tax compliance and the level of not being able to adapt to the institution of invitation to explanation. Although the results confirm the proposed hypotheses, it has been determined that trust in the institution of invitation to explanation is not a moderator variable in the relationship between tax compliance and invitation to explanation.

Keywords

• tax compliance
• the invitatıon of explanation
• tax dispute