The Practitioner-client role relationship: What do taxpayers really really want?

Lin Mei Tan

Massey University

Abstract:
This study focuses on one particular aspects of the taxpayer-practitioner relationship, i.e. the taxpayers’ expectations and perceptions of their practitioners’ services. A self administered mail survey is used to collect the data from a sample of business taxpayers.

The results show that taxpayers who engaged the services of tax practitioners generally have higher expectations than what they perceived they have experienced from their practitioners’ services. In particular, taxpayers expected conservative advice where the tax law is not ambiguous. It is assuring to find that, from the taxpayers’ perspectives, practitioners were providing such advice in accordance to their needs. However, where the tax law is ambiguous, some taxpayers’ expectations changed, i.e. they expected aggressive advice but they viewed their practitioners were not providing aggressive advice to the extent they expected. Taxpayers therefore have more aggressive posture than tax practitioners where tax law is ambiguous.

Inconsistencies in expectations and experiences were found to have a negative effect on taxpayers’ satisfaction with services. Taxpayers were also more likely to retain their practitioners’ services if they were satisfied with the services. Furthermore, trusts in practitioners are pertinent to a successful practitioner-client relationship. Taxpayers on the whole, valued practitioners who are honest, competent, communicative, trustworthy and have an interest in their firm’s tax affairs.