[ACC Research Seminar] Taxpayers and Tax Auditors’ Intention to use Voluntary Automated Tax Audits’
October 23rd, 2025
2:30pm – 4pm in Collines Building (L712) & on Zoom
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Speaker: Eva EBERHARTINGER, WU
coauthored with Paul BREZINA and Maximilian ZIESER
abstract
This study investigates taxpayers’ intention to use voluntary automated tax audits (VATA), and tax auditors’ intention to endorse its use. VATA allows taxpayers to upload detailed accounting data and receive a timely automatic assessment of the tax due. Following theory on e-government adoption, we hypothesize that four features (Data Privacy, Algorithm Transparency, Tax Certainty, and Independence from Tax Advisers) will increase taxpayers’ intention to use VATA. Results from an experimental survey among 331 taxpayers and 530 tax auditors indicate that taxpayers’ intention to use depends particularly on Tax Certainty, i.e., the automatic tax assessment cannot be overturned in an ex-post tax audit, but also on Data Privacy and Algorithm Transparency. Taxpayers perceive VATA as increasing tax authority’s power and reducing its trustworthiness. In contrast, VATA, particularly when connected to the waiver of future tax audits, causes concerns for tax auditors, who react with lower intention to endorse VATA and expect a loss in their power to detect tax evasion. Overall, results suggest a stark mismatch between taxpayers’ and tax auditors’ perceptions of VATA. Our study is among the first to investigate the intention to use digitalization in tax administration, and to include tax auditors’ views. Results are relevant to policymakers, suggesting that tax authorities should increase their digitalization efforts, incorporate safeguards, and educate about the importance of a trusting relationship between taxpayers and tax authorities.