Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

Tax Advisors and Tax Aggressiveness: A Bargaining Model

Tax Advisors and Tax Aggressiveness: A Bargaining Model We study the bargaining game between a tax agency and a tax advisor-taxpayer team. Specifically, we focus on the factors that motivate tax aggressiveness, and the role of tax advisors in tax aggressiveness. We begin by characterizing the conditions under which tax advisors would give aggressive advice to their clients. Next, we analyze the optimal number of bargaining rounds for the tax agency. Third, we study the counteroffers that the tax agency makes in each round of the bargaining game. In addition, we investigate the conditions under which a high-tax taxpayer type would hire a reputable tax adviser. Last, we analyze when would the taxpayer accept or reject the tax advisor’s recommendation. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Accounting Auditing & Finance SAGE

Tax Advisors and Tax Aggressiveness: A Bargaining Model

Loading next page...
 
/lp/sage/tax-advisors-and-tax-aggressiveness-a-bargaining-model-d2RhVFOF8t

References (17)

Publisher
SAGE
Copyright
© The Author(s) 2021
ISSN
0148-558X
eISSN
2160-4061
DOI
10.1177/0148558x211051658
Publisher site
See Article on Publisher Site

Abstract

We study the bargaining game between a tax agency and a tax advisor-taxpayer team. Specifically, we focus on the factors that motivate tax aggressiveness, and the role of tax advisors in tax aggressiveness. We begin by characterizing the conditions under which tax advisors would give aggressive advice to their clients. Next, we analyze the optimal number of bargaining rounds for the tax agency. Third, we study the counteroffers that the tax agency makes in each round of the bargaining game. In addition, we investigate the conditions under which a high-tax taxpayer type would hire a reputable tax adviser. Last, we analyze when would the taxpayer accept or reject the tax advisor’s recommendation.

Journal

Journal of Accounting Auditing & FinanceSAGE

Published: Jan 1, 2024

Keywords: tax advisors; tax uncertainty; tax aggressiveness; incomplete-information bargaining games

There are no references for this article.