Collaborative Tax Regulation

Can Consumers be Engaged as Partners in the Regulatory Craft?

Research output: Contribution to journalJournal articleResearchpeer-review

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Abstract

This article shows a new form of regulation within a tax administration where tax administrators abate tax evasion by nudging and motivating consumers to only purchase services from tax compliant businesses. This indirectly closes or forces tax evading businesses to change their practices, because their customer bases decline to commercially non-viable levels. The analysis is framed by public governance literature and argues that the regulation is an example of collaborative or interactive governance, because the tax administrators do not regulate non-compliance directly, but activate external stakeholders, i.e. the consumers, in the regulatory craft. The study is based on a qualitative methodology and draws on a unique case of regulation in the cleaning sector. This sector is at high risk of tax evasion and human exploitation of vulnerable workers operating in the informal economy. The article has implications for how tax practitioners think about collaborative and interactive regulatory initiatives. While the tax administration in the study sees the approach as effective, the analysis shows that there are a number of caveats in relation to regularity, public listing, costs and revenue focus. The article thus links a concrete case of new regulation in tax administration to broader theoretical discussions of collaboration and interactive governance within public administration, and the article problematizes this regulation. This provides a vantage point from which constructive dialogue about new regulatory practice can emerge.
Original languageEnglish
JournalJournal of Tax Administration
Volume2
Issue number2
Pages (from-to)4-23
Publication statusPublished - 2016

Cite this

@article{831fcfc9afda438180e5b9f4ac1089d9,
title = "Collaborative Tax Regulation: Can Consumers be Engaged as Partners in the Regulatory Craft?",
abstract = "This article shows a new form of regulation within a tax administration where tax administrators abate tax evasion by nudging and motivating consumers to only purchase services from tax compliant businesses. This indirectly closes or forces tax evading businesses to change their practices, because their customer bases decline to commercially non-viable levels. The analysis is framed by public governance literature and argues that the regulation is an example of collaborative or interactive governance, because the tax administrators do not regulate non-compliance directly, but activate external stakeholders, i.e. the consumers, in the regulatory craft. The study is based on a qualitative methodology and draws on a unique case of regulation in the cleaning sector. This sector is at high risk of tax evasion and human exploitation of vulnerable workers operating in the informal economy. The article has implications for how tax practitioners think about collaborative and interactive regulatory initiatives. While the tax administration in the study sees the approach as effective, the analysis shows that there are a number of caveats in relation to regularity, public listing, costs and revenue focus. The article thus links a concrete case of new regulation in tax administration to broader theoretical discussions of collaboration and interactive governance within public administration, and the article problematizes this regulation. This provides a vantage point from which constructive dialogue about new regulatory practice can emerge.",
author = "Karen Boll",
year = "2016",
language = "English",
volume = "2",
pages = "4--23",
journal = "Journal of Tax Administration",
publisher = "Tax Administration Research Centre, University of Exeter Business School, United Kingdom",
number = "2",

}

Collaborative Tax Regulation : Can Consumers be Engaged as Partners in the Regulatory Craft? / Boll, Karen.

In: Journal of Tax Administration, Vol. 2, No. 2, 2016, p. 4-23.

Research output: Contribution to journalJournal articleResearchpeer-review

TY - JOUR

T1 - Collaborative Tax Regulation

T2 - Can Consumers be Engaged as Partners in the Regulatory Craft?

AU - Boll, Karen

PY - 2016

Y1 - 2016

N2 - This article shows a new form of regulation within a tax administration where tax administrators abate tax evasion by nudging and motivating consumers to only purchase services from tax compliant businesses. This indirectly closes or forces tax evading businesses to change their practices, because their customer bases decline to commercially non-viable levels. The analysis is framed by public governance literature and argues that the regulation is an example of collaborative or interactive governance, because the tax administrators do not regulate non-compliance directly, but activate external stakeholders, i.e. the consumers, in the regulatory craft. The study is based on a qualitative methodology and draws on a unique case of regulation in the cleaning sector. This sector is at high risk of tax evasion and human exploitation of vulnerable workers operating in the informal economy. The article has implications for how tax practitioners think about collaborative and interactive regulatory initiatives. While the tax administration in the study sees the approach as effective, the analysis shows that there are a number of caveats in relation to regularity, public listing, costs and revenue focus. The article thus links a concrete case of new regulation in tax administration to broader theoretical discussions of collaboration and interactive governance within public administration, and the article problematizes this regulation. This provides a vantage point from which constructive dialogue about new regulatory practice can emerge.

AB - This article shows a new form of regulation within a tax administration where tax administrators abate tax evasion by nudging and motivating consumers to only purchase services from tax compliant businesses. This indirectly closes or forces tax evading businesses to change their practices, because their customer bases decline to commercially non-viable levels. The analysis is framed by public governance literature and argues that the regulation is an example of collaborative or interactive governance, because the tax administrators do not regulate non-compliance directly, but activate external stakeholders, i.e. the consumers, in the regulatory craft. The study is based on a qualitative methodology and draws on a unique case of regulation in the cleaning sector. This sector is at high risk of tax evasion and human exploitation of vulnerable workers operating in the informal economy. The article has implications for how tax practitioners think about collaborative and interactive regulatory initiatives. While the tax administration in the study sees the approach as effective, the analysis shows that there are a number of caveats in relation to regularity, public listing, costs and revenue focus. The article thus links a concrete case of new regulation in tax administration to broader theoretical discussions of collaboration and interactive governance within public administration, and the article problematizes this regulation. This provides a vantage point from which constructive dialogue about new regulatory practice can emerge.

M3 - Journal article

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JO - Journal of Tax Administration

JF - Journal of Tax Administration

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