An Overview: A New Era of Tax Enforcement - From 'Big Stick' to Responsive Regulation

Regulation and Governance, Vol. 2, pp. 360-380, 2008

21 Pages Posted: 10 Jan 2008 Last revised: 22 Feb 2015

See all articles by Sagit Leviner

Sagit Leviner

Ono Academic College Faculties of Law & Business Administration

Date Written: January 1, 2008

Abstract

Recent developments in regulation and tax administration in Australia inspired this article on tax compliance and responsive regulation. The Article analyzes the economics of crime and compliance as the dominant approach to tax enforcement of the past three and a half decades. It evaluates the key advantages and disadvantages of the economic approach as well as its application to tax. The Article then explores responsive regulation as an alternative method that draws on the economic paradigm but also supplements this approach with other theories, particularly those involving identity, conflict escalation, and procedural justice. Building on this analysis and a case study of Australian investors in mass marketed tax schemes, the Article suggests that the broader, more balanced, and closely tailored method of regulating responsively may enable regulators to draw on the advantages of the economic model while alleviating some of its drawbacks. Responsive regulation may therefore constitute a superior method for regulating compliance.

Keywords: Responsive Regulation, Tax Enforcement, Tax Compliance, Taxpayer Behavior, Economic Analysis, Economic Modeling

JEL Classification: A11, A12, B20, B41, C70, D80, H00, K00, K34, K42

Suggested Citation

Leviner, Sagit, An Overview: A New Era of Tax Enforcement - From 'Big Stick' to Responsive Regulation (January 1, 2008). Regulation and Governance, Vol. 2, pp. 360-380, 2008. Available at SSRN: https://ssrn.com/abstract=1082247

Sagit Leviner (Contact Author)

Ono Academic College Faculties of Law & Business Administration

104 Zahal St.
Kiryat Ono, 55000
Israel

HOME PAGE: http://works.bepress.com/sagit_leviner/

Register to save articles to
your library

Register

Paper statistics

Downloads
629
Abstract Views
2,168
rank
40,649
PlumX Metrics