Tax Professionals' Responsibility for Fraud Detection: The Effects of Engagement Type and Audit Status

2012 ◽  
Vol 26 (2) ◽  
pp. 289-306 ◽  
Author(s):  
F. Todd DeZoort ◽  
Paul D. Harrison ◽  
Edward J. Schnee
Keyword(s):  
Path Analysis ◽  
Tax Compliance ◽  
Fraud Detection ◽  
Personal Control ◽  
Professional Obligation ◽  
Tax Professionals ◽  
Tax Fraud ◽  
Model Components ◽  
Advocacy Role ◽  
Client Affect

SYNOPSIS Despite a traditional advocacy role, tax professionals face growing pressure to help manage the tax fraud problem. However, the authoritative tax literature lacks explicit guidance in the area, motivating questions about the extent tax professionals perceive fraud detection responsibility. This study evaluates 236 tax professionals' perceived responsibility for tax fraud detection, and the extent that tax engagement type (planning versus compliance) and audit client status (audit client versus not an audit client) affect responsibility. We also use the triangle model of responsibility to test the extent that task clarity, professional obligation, and personal control mediate the effects of engagement type and audit client status on detection responsibility. The results indicate moderate and varied perceived detection responsibility among the participants. We also find that reported detection responsibility varies across tax engagement type and audit client status. As expected, tax professionals report higher detection responsibility in a tax compliance engagement and when the tax client is also an audit client. Subsequent path analysis results show that the triangle model components are positively related to detection responsibility, and that professional obligation and personal control mediate the effects of engagement type and audit client status on detection responsibility.

scholarly journals Tax Fraud Detection through Neural Networks: An Application Using a Sample of Personal Income Taxpayers

2019 ◽  
Vol 11 (4) ◽  
pp. 86 ◽  
Author(s):  
César Pérez López ◽  
María Delgado Rodríguez ◽  
Sonia de Lucas Santos
Keyword(s):  
Neural Network ◽  
Neural Networks ◽  
Income Tax ◽  
Fraud Detection ◽  
Personal Income ◽  
Personal Income Tax ◽  
Tax Returns ◽  
The Neural Networks ◽  
Tax Fraud ◽  
Efficiency Rate

The goal of the present research is to contribute to the detection of tax fraud concerning personal income tax returns (IRPF, in Spanish) filed in Spain, through the use of Machine Learning advanced predictive tools, by applying Multilayer Perceptron neural network (MLP) models. The possibilities springing from these techniques have been applied to a broad range of personal income return data supplied by the Institute of Fiscal Studies (IEF). The use of the neural networks enabled taxpayer segmentation as well as calculation of the probability concerning an individual taxpayer’s propensity to attempt to evade taxes. The results showed that the selected model has an efficiency rate of 84.3%, implying an improvement in relation to other models utilized in tax fraud detection. The proposal can be generalized to quantify an individual’s propensity to commit fraud with regards to other kinds of taxes. These models will support tax offices to help them arrive at the best decisions regarding action plans to combat tax fraud.

An integrative model in predicting corporate tax fraud

2014 ◽  
Vol 21 (4) ◽  
pp. 424-432 ◽  
Author(s):  
Nor Azrina Mohd Yusof ◽  
Ming Ling Lai
Keyword(s):  
Action Theory ◽  
Tax Compliance ◽  
Organizational Factors ◽  
Integrative Model ◽  
Corporate Tax ◽  
Content Type ◽  
Corporate Managers ◽  
Control Factors ◽  
Tax Fraud ◽  
The Government

Purpose – This paper aims to present an integrative model in predicting corporate tax fraud. Design/methodology/approach – This paper is grounded on three theories, namely, the theory of reasoned action, theory of planned behaviour and the “Fraud Diamond Theory”. Findings – By integrating these three theories, this paper proposes that individual cognitive factors, fraud diamond factors and organizational factors such as normative and control factors influence managers to commit corporate tax fraud. Practical implications – Practically, the proposed integrative model enables the government and tax authority to understand on why corporate managers engage in corporate tax fraud. It will also allow them to devise practical methods and strategies to prevent the corporate managers to engage in tax fraud. Originality/value – This study has merit that proposed an integrative model in predicting corporate tax fraud. Research on corporate tax fraud has been the subject of limited investigation; hence, this study contributes to the tax compliance literature by proposing an integrative model to study corporate tax fraud in a Malaysian tax setting. Future studies can be conducted to test the proposed integrative model in examining the circumstances of managers’ intention to commit corporate tax fraud.

scholarly journals EDUKASI PERPAJAKAN: UNDANG-UNDANG KETERBUKAAN INFORMASI KEUANGAN SEBAGAI SARANA MEMBANGUN KESADARAN BAYAR PAJAK MELALUI PENDIDIKAN PERGURUAN TINGGI YOGYAKARTA

2022 ◽  
Vol 18 (1) ◽  
pp. 1-25
Author(s):  
Alfiatul Maulida ◽  
Siti Sumartiah
Keyword(s):  
Path Analysis ◽  
Information Disclosure ◽  
Research Method ◽  
Tax Compliance ◽  
Financial Information ◽  
Tax Treaties ◽  
Tax Education ◽  
The Law ◽  
The Government ◽  
To Receive

The large number of people who avoid taxes has made the government look for effective and efficient alternatives to enforce an orderly and legally correct manner, namely by issuing the Law on the Disclosure of Financial Information. The Law on Financial Information Disclosure was published on 23 August 2017. Access to financial information for tax purposes includes access to receive and obtain financial information in the context of implementing the provisions of laws and regulations in the field of taxation and the implementation of international tax treaties. This study aims to analyze how much influence tax education can have on building tax awareness, to analyze how much the Financial Information Disclosure Act is known and understood by prospective taxpayers and taxpayers, and to analyze the effect of the Law on the Disclosure of Financial Information to make Personal Taxpayers. pay taxes orderly. The research method used is Path Analysis. Keywords: tax education, disclosure of financial information, tax compliance funds

The Outsourcing of Corporate Tax Function Activities

2001 ◽  
Vol 23 (2) ◽  
pp. 35-49 ◽  
Author(s):  
Amy E. Dunbar ◽  
John D. Phillips
Keyword(s):  
Transaction Costs ◽  
Economies Of Scale ◽  
Service Providers ◽  
Tax Compliance ◽  
Tax Planning ◽  
Asset Specificity ◽  
Corporate Tax ◽  
Factors Associated ◽  
Tax Professionals ◽  
The Status

This study investigates the factors associated with firms' decisions to outsource corporate tax-planning and -compliance activities. The results indicate that transaction costs relating to human-asset specificity, proprietary technology, and economies of scale, along with the status of firms' top tax professionals and recent growth, are factors that help explain variation in the proportion of 1997 tax-planning expenditures made to external service providers. In contrast, only firm size and growth help explain variation in the proportion of tax-compliance activities outsourced. Finally, the results indicate that firms with more of a tax-planning focus outsource greater (lesser) proportions of their tax-planning (-compliance) activities. These results provide the first empirical evidence relating to the economic motivations behind tax function outsourcing.

Discussion of Contextual Features of Tax Decision-Making Settings

1999 ◽  
Vol 21 (s-1) ◽  
pp. 74-77
Author(s):  
C. Bryan Cloyd
Keyword(s):  
Decision Making ◽  
Research Question ◽  
Tax Compliance ◽  
Essential Elements ◽  
Tax Planning ◽  
Professional Judgment ◽  
Contextual Features ◽  
Tax Professionals ◽  
Research Questions ◽  
Tax Practice

Tax practice has evolved over the past decade from being predominantly concerned with tax compliance to a major focus on tax planning. Significant challenges for researchers interested in tax professional judgment and decision making (JDM) are (1) understanding the current environment of tax professionals, (2) identifying research questions that are relevant to this environment, and (3) appropriately capturing the essential elements of the current environment in the experimental setting. The research question addressed in Magro (1999) is related to this first challenge—understanding the current environment or context in which tax professional JDM occurs. Specifically, the research question addressed in this study is whether experienced tax professionals perceive differences between certain contextual features of tax-planning and compliance tasks.

scholarly journals ANALISIS KESUKSESAN PENERAPAN SISTEM INFORMASI E-SPT PAJAK PENJUALAN (PPN) TERHADAP KEPATUHAN PAJAK PADA KANTOR PELAYANAN PAJAK MADYA A DAN KANTOR PELAYANAN PAJAK MADYA B

2017 ◽  
Vol 5 (1) ◽  
Author(s):  
Etik Ipda Riyani
Keyword(s):  
Information System ◽  
Information Systems ◽  
Path Analysis ◽  
User Satisfaction ◽  
Information Quality ◽  
Tax Compliance ◽  
Quality Information ◽  
Intention To Use ◽  
System Quality

Etik Ipda Riyani: This study aimed to analyze the relationship between the success of the implementation of the information system e-SPT Sales Tax (e-SPT PPN) to tax compliance. The model used in the study was the model of success of information systems updated D & M IS Success Model. This model is based on six measures of success is the quality information system (System Quality), the quality of information (Information Quality), quality of service (Service Quality), user interest (Intention to Use), the satisfaction of users (User Satisfaction), and tax compliance. The population of this research is all taxpayer is incorporated and registered in Madya Tax Office A and B. Researchers using simple random sampling in the sampling. The analytical tool used in this study were Path Analysis (Path Analysis).The results showed the successful implementation of the information system e-SPT PPN with dimensions System Quality, Information Quality, and Service Quality, Intention to Use and User Satisfaction effect on Tax Compliance.Key words: the success of information systems, e-SPT VAT, tax compliance

scholarly journals PENGARUH PERSEPSI KEGUNAAN DAN PERSEPSI KEMUDAHAN TERHADAP PENGGUNAAN E-FILING DAN DAMPAKNYA TERHADAP KEPATUHAN WAJIB PAJAK ORANG PRIBADI PADA KPP PRATAMA GAMBIR TIGA (SURVEI PADA KPP PRATAMA GAMBIR TIGA PERIODE APRIL-JULI 2017)

2019 ◽  
Vol 3 (1) ◽  
pp. 186
Author(s):  
Kristiani Natalia ◽  
Arles Parulian Ompusunggu ◽  
Jonathan Sarwono
Keyword(s):  
Path Analysis ◽  
Random Sampling ◽  
Tax Compliance ◽  
Sampling Technique ◽  
Ease Of Use ◽  
Perceived Usefulness ◽  
Quantitative Approach ◽  
Primary Data ◽  
Perceived Ease Of Use ◽  
Research Results

Penelitian ini bertujuan untuk menguji Pengaruh Persepsi Kegunaan, Persepsi Kemudahan terhadap Penggunaan e-filing dan dampaknya terhadap Kepatuhan Wajib Pajak. Penelitian ini menggunakan pendekatan kuantitatif dengan desain descrptive.Pengambilan data dilakukan dengan teknik random sampling. Data yang digunakan adalah data primer yang diperoleh dengan menggunakan kuesioner. Subyek penelitian ini adalah wajib pajak individu yang terdaftar di KPP Pratama Gambir Tiga. Sampel yang digunakan dalam penelitian ini berjumlah 390 responden. Teknik analisis data menggunakan analisis jalur  dengan dibantu menggunakan program SPSS versi 22.0 Hasil dari penelitian ini adalah Persepsi Kegunaan  berpengaruh positif dan signifikan  terhadap penggunaan e-filing, Persepsi Kemudahan berpengaruh positif dan signifikan terhadap penggunaan e-filing, Penggunaan e-filing berpengaruh positif dan signifikan terhadap kepatuhan wajib, Persepsi Kegunaan berpengaruh positif dan signifikan  terhadap kepatuhan wajib, Persepsi Kemudahan berpengaruh positif dan signifikan  terhadap kepatuhan wajib pajak. This research aims to examine the Effect of Perceived usefulness, Perceived  Ease of Use  e-filing and its impact on Taxpayer Compliance. This research uses quantitative approach with descriptive design. The data were collected using a random sampling technique. The data used are the primary data obtained by using the questionnaire. The subjects of this study are individual taxpayers registered in KPP Pratama Gambir Tiga. The sample used in this study is as much as 390 respondents. The procedure of analyisis used is Path Analysis and the calculation is done using SPSS 22. The research results show all  hypotheses are accepted. Perceived usefulness has positive and significant effect on the use of e-filing. Perceived ease of use has positive and significant effect on the use of e-filing, Perceived usefulness has positive and significant effect on tax compliance. Perceived ease of use has positive and significant effect on tax compliance. Use of e-filing has positive and significant effect on  tax compliance

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