Abstract
Using a representative sample of 391 Serbian accounting practitioners, we explored the association between their perceptions, attitudes, and characteristics and the tax compliance of their small business clients. The majority of the practitioners surveyed believe they have a moderate to substantial impact on their clients’ tax compliance. However, this perceived influence diminishes as the number of clients increases, underscoring the importance of a personal relationship between practitioners and clients. The results also suggest that this influence is linked to the nature of the clients’ requests, the traits of the accounting practitioners, and whether the AP provides intermediation services. Firms led by male practitioners who have a web presence and a thorough understanding of the IFAC Code of Conduct tend to report a stronger impact. Notably, about three-quarters of the practitioners observed some level of non-compliance among their clients. Our multivariate analysis indicates that firms offering client training are less likely to report non-compliance. The study further investigates additional factors that could affect clients’ tax compliance.
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Notes
Serbian Law on Accounting classifies businesses according to operating assets, number of employees, and operating income. Micro (small) enterprises are companies that do not exceed two of the following three criteria—employ up to 10 (50) employees, have operating income up to 0.7 (8,8) EUR million, and have operating assets valued up to 0.35 (4,4) EUR million.
The survey data initially utilized a scale where respondents were asked to select either '1' or '2' to indicate their choices. To facilitate clearer interpretations, the variable was transformed into a binary format, with '0' representing one category and '1' representing the other. Specifically, the category of interest was recoded as '1' and the reference category was recoded as '0'.
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Radulović, B., Savić, M. Accounting practitioners and small business clients’ tax compliance: evidence from the survey of Serbian accountants. Eur J Law Econ (2024). https://doi.org/10.1007/s10657-024-09798-9
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DOI: https://doi.org/10.1007/s10657-024-09798-9