TY - JOUR
T1 - Regulating more effectively
T2 - The relationship between procedural justice, legitimacy, and tax non-compliance
AU - Murphy, Kristina
PY - 2005/12
Y1 - 2005/12
N2 - In recent years, a significant number of middle-income taxpayers have been making use of aggressive tax planning strategies to reduce tax. In many cases, it is unclear whether these are designed and used by tax-payers to minimize tax legally or to avoid tax illegally. Those that are designed to exploit loopholes in tax law need to be dealt with in a way that restores faith and equity to the system. But how can tax authorities best manage taxpayers who may have inadvertently become involved in such illegal tax planning practices? Using longitudinal survey data, it will be shown that attempts to coerce and threaten taxpayers into compliance can undermine the legitimacy of the Tax Office's authority, which in turn can affect taxpayers' subsequent compliance behaviour. Responsive regulation, which is based on principles of procedural justice, will be discussed as an alternative enforcement strategy.
AB - In recent years, a significant number of middle-income taxpayers have been making use of aggressive tax planning strategies to reduce tax. In many cases, it is unclear whether these are designed and used by tax-payers to minimize tax legally or to avoid tax illegally. Those that are designed to exploit loopholes in tax law need to be dealt with in a way that restores faith and equity to the system. But how can tax authorities best manage taxpayers who may have inadvertently become involved in such illegal tax planning practices? Using longitudinal survey data, it will be shown that attempts to coerce and threaten taxpayers into compliance can undermine the legitimacy of the Tax Office's authority, which in turn can affect taxpayers' subsequent compliance behaviour. Responsive regulation, which is based on principles of procedural justice, will be discussed as an alternative enforcement strategy.
UR - http://www.scopus.com/inward/record.url?scp=28744440021&partnerID=8YFLogxK
U2 - 10.1111/j.1467-6478.2005.00338.x
DO - 10.1111/j.1467-6478.2005.00338.x
M3 - Review article
SN - 0263-323X
VL - 32
SP - 562
EP - 589
JO - Journal of Law and Society
JF - Journal of Law and Society
IS - 4
ER -