Employing A Tax Practitioner: A Different Perspective

Abstract

<p class="MsoBlockText" style="margin: 0in 32.6pt 0pt 0.5in;"><span style="font-size: 10pt; mso-bidi-font-family: 'Times New Roman'; mso-no-proof: no;"><span style="font-family: Times New Roman;">In this paper, we analyze the value of services rendered by tax practitioners,<span dir="rtl"> </span>demonstrating that the conventional single-period solution may be inconsistent with their role. We contend that the value of these services stems from tax practitioners' knowledge of the tax code and not from the signal they convey to tax authorities when they sign the returns. We take the position that taxpayers' actions may not convey a signal to the tax enforcement agent, thereby enabling the latter to set different detection rates for different taxpayers. If taxpayers' actions were to convey a signal, the solution would not be sustainable, since it would eventually lead to a self-revealing “corner solution,” in which all taxpayers would take the same action. </span></span></p><p class="MsoNormal" style="text-align: justify; margin: 0in 32.6pt 0pt 0.5in; unicode-bidi: embed; direction: ltr;"><span style="mso-bidi-font-family: 'Times New Roman'; mso-no-proof: no;"><span style="font-family: Times New Roman; font-size: x-small;"> </span></span></p><p class="MsoNormal" style="text-align: justify; margin: 0in 32.6pt 0pt 0.5in; unicode-bidi: embed; direction: ltr;"><span style="mso-bidi-font-family: 'Times New Roman'; mso-no-proof: no;"><span style="font-size: x-small;"><span style="font-family: Times New Roman;">In a single-period framework, the taxpayer’s decision to hire a practitioner is dependent upon two variables: the practitioners’ fee, which is known to the tax enforcement agent, and taxpayers' risk attitude. The tax enforcement agent can infer the latter if the taxpayers use practitioners who sign the tax returns.<span style="mso-spacerun: yes;">  </span>If taxpayers use practitioners’ services, we are able to derive the same exact solution irrespective of whether or not practitioners<strong> </strong>sign the returns.<span style="mso-spacerun: yes;">  </span>Thus, we suspect that the value of these services does not stem from the fact that the returns are signed. </span></span></span></p>

The Influence of Ethics, Current Information, and Organizational Culture on Taking the Ethical Decision by Tax Consultant

“…Analysis of the influence of ethics, current information, and organizational culture on taking the ethical decision by tax consultants could be described by multiple regression analysis. Thus the regression equation could be structured as follows: ED = 6.630 + 0.257 E + 0.057 CI -0.057 OC + e (1) Equation (1) could be explained as follows:…”

“…The taxation system with high complexity will make it difficult for taxpayers to follow the development of tax regulations and fulfil their tax obligations [1]. Tax consulting services are needed to assist taxpayers in carrying out their rights and obligations in the field of taxation in accordance with applicable laws and regulations.…”

Dampak Budaya Etis Organisasi Dan Sifat Macheavellian Pada Keputusan Etis Konsultan Pajak Di Provinsi Bali

“…Indonesia memiliki sistem perpajakan dengan kompleksitas yang tinggi baik dari banyaknya jumlah peraturan perpajakan yang berlaku dan pembaruan peraturan yang cukup sering dilakukan dari waktu ke waktu. Hal ini semakin menyulitkan wajib pajak dalam mengikuti perkembangan peraturan pajak dan memenuhi kewajiban perpajakannya (Gargalas dan Lehman, 2010). Alternatif yang seringkali menjadi pilihan bagi wajib pajak adalah dengan menggunakan jasa konsultan pajak yang dapat membantu wajib pajak dalam melaksanakan hak dan memenuhi kewajibannya di bidang perpajakan sesuai dengan peraturan perundang-undangan yang berlaku.…”

Analysis of ethical decisions of tax consultants in Southern Sumatra Region

“…Tax consultants have taxation skills and understand complete law enforcement procedures compared to taxpayers (Erard, 1993). Consultants assist in fulfilling tax rights and obligations, so consultants are said to be agents and intermediaries (tax intermediaries) between taxpayers and taxes (Gargalas & Lehman, 2010;Borrego & Lopes, 2012). The role of consultants in educating taxpayers places tax consultants in a position between the state and taxpayers.…”