SERİM, NİLGÜN Çanakkale Onsekiz Mart Üniversitesi - İ İ B F - Maliye Bölümü, Turkey

REGULATORY ROLE OF PUBLIC AUTHORITY AND IMPORTANCE OF TAXPAYERS’ CONNECTION IN INCREASING VOLUNTARY TAX COMPLIANCE: AN ORDERED PROBIT MODEL APPROACH

27432

The regulatory role of public authority and the taxpayer’s connections are both important in establishing and improving tax compliance. This paper is based on a field survey on 336 taxpayers, focused on finding the factors that affect taxpayers’ expectations of getting informed about how the taxes are used. Results can be listed as fol-lows: Insufficient participation by citizens to political decision making leads to the perception that taxpayers’ expectations are not taken into consideration in deciding where to spend taxes. This perception causes some taxpayers to be indifferent to where taxes are spent, since their opinions are not asked. Tax compliance of taxpay- ers increase if they know where taxes are spent and if the areas that taxes are spent match their expectations. Taxpayers who are less satisfied with procedural fairness of tax authority and taxpayers who are not happy with public services question the legitimacy of the authority and resist it. Family and friends of taxpayers have social influence in encouraging to contribute to tax system honestly.

141

Tax Compliance , Legitimate Power , Procedural Fairness , Social Influence , Ordered Probit Model

Afyon Kocatepe University Journal Of Economics an‎d Administrative Sciences

156