Modeling of taxpayers' resistance to revenue administration: A different approach to tax compliance

Abstract

Resistance to revenue administration is one factor that negatively affects tax compliance. For this reason, policies should be followed to improve relations between taxpayer and revenue administration in order to increase tax compliance. Firstly, it is essential to learn taxpayer attitudes towards revenue administration. Many studies indicate that some factors can cause resistance. This study aims to determine the factors in the resistance of taxpayers to revenue administrations, their level of influence, and the relations between them. Based on previous studies on this subject, a research model has been proposed for the resistance of taxpayers to revenue administration. The research has been applied to taxpayers who give annual income returns in 26 cities of NUTS-2 statistical sub-regions of Turkey by Research Company to obtain research data. Forty-three questions were used, and the Cronbach A coefficient was 0,876 for all questions. As a result of 671 participants' responses, a structural equation model (SEM) called Resistance to Revenue Administration Model (RRAM) was developed through the LISREL 9.1 program. Goodness-of-fit statistics were suitable for analysis. According to the results of the SEM analysis, taxpayer rights are a critical factor in determining the taxpayers' perspective on the revenue administrations. Moreover, taxpayers' rights indirectly affect resistance through fairness and trust variables.