A Conceptual Model of Negotiation with Tax Auditors for Achieving Tax Agreements: A Qualitative Grounded Theory Study

Abstract

This study aimed to explain the process of negotiation with tax auditors and develop a conceptual model integrating the causal conditions, contextual and intervening factors, strategies, and consequences associated with achieving tax agreements. This qualitative study employed Strauss and Corbin’s systematic grounded theory approach. The research population comprised professionals and individuals with direct experience of interacting with tax auditors. Thirteen participants were recruited through purposive sampling in 2025, with data collection continuing until theoretical saturation was reached. Data were obtained through semi-structured interviews, recorded, transcribed, and analyzed in MAXQDA. Constant comparison and open, axial, and selective coding were applied, producing 1,984 initial codes. Maximum variation sampling, repeated code review, documentation of analytical decisions, and intercoder agreement assessment were used to enhance the credibility and dependability of the findings. Tax negotiation emerged as an interactive, multilevel process shaped by institutional, behavioral, professional, and environmental factors. Auditor independence and impartiality, professional knowledge and experience, compliance with tax regulations, organizational size and power, case complexity, and economic conditions constituted the principal causal conditions. Taxpayer knowledge, attitudes, and analytical capacity, clearly defined authority, accountability, continuous supervision, and information technology provided the context for effective negotiation. Specialized management, tax consultation, organizational support, flexibility, teamwork, and institutional capacity moderated the influence of these conditions. Planned negotiation strategies, audit-risk management, appropriate resource allocation, taxpayer education, and constructive interaction facilitated mutually beneficial agreements. The resulting conceptual model linked these strategies to reduced auditor–taxpayer tension, shorter audit duration, lower tax risks and administrative costs, greater public trust, improved access to information, and enhanced tax-system efficiency. Sustainable tax agreements depend on the coordinated development of auditors’ professional competence, taxpayers’ awareness, institutional capacity, procedural transparency, and collaborative negotiation strategies; accordingly, trust-based and systematically planned interactions can reduce disputes and improve the efficiency of the tax system.