The effect of resolution methods of tax disputes at the administrative stage on voluntary tax compliance

Tax payment behavior has a complex structure comprising intrinsic motivational elements in economic and also psychological and sociological nature. The determination of these factors is highly significant in defining strategies for increasing voluntary tax compliance. As one of these factors, procedural justice represents the decision-makers' treatment of fair, respectful, and citizen's opinion-sensitive. One of the issues where procedural justice is significant in taxation is the resolution process of tax disputes in the administrative stage, where taxpayers and tax administrations establish the relationship. It is expected that the resolution methods of tax disputes in a procedurally fair structure will increase the voluntary tax compliance of taxpayers. From this point of view, this research aims to examine the effect of resolution methods of tax disputes at the administrative stage on voluntary tax compliance in terms of procedural justice. In this direction, 1020 survey data obtained from independent accountants and financial advisors in Turkey were analyzed by multivariate statistical tests and structural equation modeling. The findings indicated that procedurally fair tax-dispute resolutions at the administrative stage had a significant and positive impact on trust in the tax administration, legitimacy perception, and voluntary tax compliance. Besides, a significant mediating effect of both trust in the administration and the legitimacy perception in the relationship between procedural justice, which is adapted to the resolution process of tax disputes at the administrative stage, and voluntary tax compliance, has been determined. Based on the findings, some suggestions have been made in the study to increase voluntary tax compliance.