HOW PROFESSIONAL ACCOUNTANT S TAX MORALE AFFECTS TAXPAYER S TAX MORALE A STUDY IN BALIKESIR

Abstract

Tax morale-the intrinsic motivation to pay tax-has received increased attention in both the behavioural finance and the business ethics literature. Factors affecting the tax compliance attitudes and behaviour of taxpayers have become a significant area of research in recent years. Although there is a plethora of studies in the tax compliance literature, exploring such a subject in the developing countries is still relevant and very little is processed. Further, the effect of the professional accountants (as consultants) on taxpayers is yet to be thoroughly investigated. Certified Public Accountants (CPA) are professional accountants who keep the accounts, make out tax declarations and provide advisory services to their clients (taxpayers), and they have legal responsibility to the financial administrators. Extant literature provides empirical evidence that professional accountants do influence the intentions and behaviour of taxpayers. This influence may motivate taxpayers to comply or neglect their tax duties. The present study focuses on the analysis of tax compliance behaviour from the tax morale standpoint. In particular, the study examines how does professional accountants' ethical judgments towards taxpaying effect their clients' tax morale. A field study is conducted in Balikesir province of Turkey and data is collected from 353 conveniently selected CPA's by face to face surveys. Data analyses revealed that CPA's intention to comply with the tax rules significantly positively influence taxpayers' tax morale, while CPA's intentions to tax fraud significantly negatively influence taxpayers' tax morale. Based on these findings theoretical and managerial implications are discussed.