A conceptual map of tax rule change

Reproduced with permission from THE TAX INSTITUTE, publisher of Australian Tax Forum www.taxinstitute.com.auThe purpose of this paper is to present a conceptual map to assist tax scholars in framing their analyses of tax rule change. The map is developed in two stages; the first identifies the various factors that bring pressure to bear on the tax system to initiate rule change. The second stage observes the subsequent effect of change, or a failure to change, in terms of taxpayer response, which in turn becomes a further pressure for more change. The map is illustrated using two vignettes from different periods in time, and it is hoped that it will inspire tax scholars, from whatever disciplinary background, to embrace the complexity and hidden depths of tax as a field of enquiry

Tax risk management: evidence from the US

Author's pre-print draft. Final version published in British Tax Review. Available online at http://www.westlaw.co.uk/Tax risk management is a worldwide phenomenon with growing prominence in the discourse of both revenue authorities and corporate taxpayers. In the US, in-house tax professionals are now subject to unprecedented calls for transparency in terms of their tax risk management strategies and processes. This article discusses the findings of a study of these professionals conducted at a time at which the regulatory environment was becoming significantly more stringent. Overall, the evidence suggests a trend towards a more conservative approach to tax planning generally being adopted. There was also a strong message from the interviewees on the importance of the perceptions around the practice and processes on risk management. Both commonalities and differences are found in comparison with the position in the U

Knock, Knock:The Taxman’s at Your Door! Practice Sense, Empathy Games, and Dilemmas in Tax Enforcement

Tax administrators are empowered by the state to secure compliance with tax obligations. Enforcing compliance on the ground is complex, and street-level administrators often engage in the “art of the possible,” leading to dilemmas in the field. This paper examines tax administrators’ practices with regard to Jamaican property tax defaulters with outstanding tax liabilities in excess of 3 years. Drawing on interviews with tax administrators and other key agents, we find that tax administrators reposition themselves from objective enforcers to empathizing officials engaging in schemes of action, doing what they can do rather than what they should do. This is a practical-sense approach to securing compliance. We identify two forms of empathy, assimilated and cynical, and conclude that administrators’ empathetic identification with defaulters does not necessarily arise solely from concern for social cohesion, or inter-subjective compassion, but also sometimes from self-interest

Accounting for the stamp act crisis

In 1765, the British Parliament imposed stamp duties on the American colonies, setting in motion the chain of events which ultimately led to the American Revolution. This paper analyzes the practicalities of the Stamp Act to provide insights into the way in which a tax instrument that was successful in one setting failed to achieve similar success in another. The reasons for choosing stamp duties as an appropriate fiscal measure, the colonial reaction to the tax, and the way in which the tax was accounted for by the British government bureaucracy are examined. The paper demonstrates the value of using an accounting lens to provide a more nuanced interpretation of the Stamp Act crisis

Tax and the labour market: taxing personal services income in the UK

In March 1999, the UK Inland Revenue (now Her Majesty’s Revenue & Customs) issued a press release (IR35) announcing changes designed to counter perceived tax avoidance through the use of intermediaries to disguise employment relationships. This paper examines the implementation of these changes, demonstrating that resistance to a proposedfiscal measure can influence the way in which it is eventually enacted. Reference is made to the Welfare Reform and Pension Bill: Regulatory Impact Assessment (1999), the Professional Contractors Group, and The Queen & Commissioners of Inland Revenue ex parte (1) Professional Contractors Group Ltd (2) Ruud van Zundert (3) Square Mile Projects Ltd

Accounting for the Stamp Act crisis

In 1765, the British Parliament imposed stamp duties on the American colonies, setting in motion the chain of events which ultimately led to the American Revolution. This paper analyzes the practicalities of the Stamp Act to provide insights into the way in which a tax instrument that was successful in one setting failed to achieve similar success in another. The reasons for choosing stamp duties as an appropriate fiscal measure, the colonial reaction to the tax, and the way in which the tax was accounted for by the British government bureaucracy are examined. The paper demonstrates the value of using an accounting lens to provide a more nuanced interpretation of the Stamp Act crisis

Transfer pricing: changing views in changing times

This is the final version. Available on open access from Routledge via the DOI in this recordTransfer pricing for tax purposes has long been contentious, but recent political and public concerns about tax avoidance have energised critiques of current rules and debates about proposals for change. Transfer pricing tax rules are underpinned by the arm’s length principle and we consider how the common understanding of this principle has developed and changed, as criticism of it has grown and there have been increasing calls for change. In this qualitative study we draw on Bourdieusian concepts: we focus on the views of senior transfer pricing professionals relating to the UK and the US and consider how their views and transfer pricing practices have changed over a period of field disruption. This is important because calls for transformation of the field need to be cognizant of the extent to which existing practices are firmly embedded and thereby resilient to change. We find that over the period of our longitudinal study the senior transfer pricing professionals show a degree of adaptability to the use of the arm’s length principle, which continues to dominate.Economic and Social Research Council (ESRC

A conceptual map of tax rule change

The purpose of this paper is to present a conceptual map to assist tax scholars in framing their analyses of tax rule change. The map is developed in two stages; the first identifies the various factors that bring pressure to bear on the tax system to initiate rule change. The second stage observes the subsequent effect of change, or a failure to change, in terms of taxpayer response, which in turn becomes a further pressure for more change. The map is illustrated using two vignettes from different periods in time, and it is hoped that it will inspire tax scholars, from whatever disciplinary background, to embrace the complexity and hidden depths of tax as a field of enquiry

King John\u27s tax innovation -- Extortion, resistance, and the establishment of the principle of taxation by consent

The purpose of this paper is to present a re-evaluation of the reign of England\u27s King John (1199-1216) from a fiscal perspective. The paper seeks to explain John\u27s innovations in terms of widening the scope and severity of tax assessment and revenue collection. In particular, the paper seeks to highlight the significance of Hubert Walter as the king\u27s financial adviser. He exercised a moderating influence in the first half of John\u27s reign and was the guiding hand in the successful introduction of innovative measures designed to increase revenues. These became extreme after his death in 1205, when John lacked his counsel. It is further suggested that the Magna Carta was a direct reaction to such financial severity. Many of the clauses in Magna Carta refer specifically to John\u27s tax innovations and severity. Linked to this, the paper argues that these events were critical to the establishment of the principle of taxation by consent. As a result of the innovative and extreme nature of John\u27s fiscal measures, it is our contention that John is a significant influence in moving away from deep-rooted feudal systems to the beginnings of what we would now understand as a national taxation system. This occurred against the background of a period of transition in state finance from a domain-based to a tax-based state

Don’t worry, we are not after you! Anancy culture and tax enforcement in Jamaica

Tax administrators are agents engaged and empowered by the state, charged with upholding public governance in the public interest. They are specifically entrusted with enforcement powers to ensure that citizens are accountable to the state for compliance with tax laws and regulations. Yet in some instances, these state agents fail to do this. This paper examines tax administrators’ practices with regard to two categories of non-land-owning Jamaican citizens, renters and squatters. We find evidence of the influence of culture in the enactment of enforcement practices. Rather than regulating in order to bring about accountability, tax practice may be used to resist the established order. We conclude that Anancy culture mediates practices, in this case taxation, resulting in selective enforcement. Indeed, Anancy culture pervades the social fabric of the nation, shapes the practices of tax administrators, and profoundly influences struggles in the property tax field