Abstract

The purpose of this research is to analyze how the tax audit factors influence taxpayers'compliance behavior. In the research model established in this study, we defined the tax audits by four sub－factors：the fairness of tax audits, the efficiency of the tax audits, the possibility of uncovering tax evasion, and the neutrality of the tax audits. The analysis of survey data reveals followings. It is observed that the fairness of the tax audits have significant influence on the tax payers' compliance behavior. This result implies that in order to improve the degree of tax payers' compliance behavior, the tax audit should be fair, increase the possibility of uncovering the tax evasion and screen the external influences off from the neutrality of the audits. The efficiency of tax audits have significantly effects on tax payers'compliance behavior. This result implies that tax audits should be reinforced in order to induce the prudent reporting of taxpayers. And the neutrality of tax audits have significantly positive effects on the tax payers' compliance behavior. The implication of this result is that the neutrality of tax audits should be enforced by overhauling tax－related regulations and securing the tenure of NTS commissioner. In summary, this research shows that factors of tax audits have significantly positive effects on the tax payers' compliance behavior. We anticipate that the results of this research will have implications on tax policies, and, thus, improve tax audit systems to induce prudent and voluntary tax reporting.

Keywords

• Tax Audits
• Tax Compliance
• Fairness
• Efficiency
• Neutrality

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