Manuscript type: Research paper. Research aim: This paper aims to investigate the external factors that influence tax auditors' conciliatory style when dealing with tax disputes. Design/ Methodology/ Approach: A self-administered questionnaire which serves as the research instrument was used in this study. Respondents were tax auditors attached to the Inland Revenue Board of Malaysia (IRBM) in Peninsular Malaysia. Research findings: Findings show that the external factors of tax complexity and managerial control significantly influence tax auditors' conciliatory style. However, taxpayers' cooperation carries no impact. Theoretical contribution/ Originality: This study provides empirical evidence which demonstrates the influence of external factors (such as taxpayers' cooperation, tax complexity and managerial control) on tax auditors' conciliatory style. Practitioner/ Policy implications: The findings are relevant to the IRBM who can use the outcome to improve its dispute resolution process as well as to gain a better understanding of tax auditors' behaviour. Research limitation/ Implication: The findings of this study can only be generalised to the population in Peninsular Malaysia. Thus, future studies may be conducted in East Malaysia and other Asian countries so as to examine if tax auditors' behaviour differs across cultures.

The way a tax auditor deals with taxpayers can give an impact on audit settlement outcomes. Qualitative studies show that tax auditors often use the conciliatory style as a strategy to resolve disputes because it expedites audit settlement and promotes long-term compliance. However, there is no study that has empirically examined the factors that influence tax auditors' conciliatory style. This study aims to examine the influence of personal characteristics i.e. attitude towards achieving goals, experience and ethical ideology on tax auditors' conciliatory style in resolving audit settlement disputes. Six hundred and thirty-six questionnaires (63.6% of response rate) were usable for data analysis. The results revealed that all the personal characteristics surveyed significantly influenced tax auditors' conciliatory style. This study can extend the literature on tax auditors' behaviour and facilitate the Inland Revenue Board of Malaysia in better understanding their auditors.