of how tax law is being interpreted but also accessible explanations for these

Of how tax law is being interpreted but also

This preview shows page 294 - 295 out of 311 pages.

of how tax law is being interpreted, but also accessible explanations for these decisions, along with discussions of penalties and settlement options. In all these ventures, responsiveness to community concerns is a key feature of effective taxpayer management. Responsiveness means listening, and publicly acknowledging and resolving identified problems. Taxpayer concerns should be taken seriously and engaged with openly, inclusively and thoughtfully against the backdrop of basic system goals and principles. Sometimes, the result may be a change in tax office policy and practice. Other times, it may be insistence that the tax authority’s actions are consistent with principles that the community has and continues to endorse. In no circumstances should responsiveness be interpreted to mean appeasing special interest groups at the expense of system integrity. Investment in the human management dimension in the long term should give rise to a mutually reinforcing relationship between compliance and integrity. Increased compliance should boost the external integrity of the tax system, and the external integrity of the tax system should encourage compliance. Investment in the human management system or taxpayer culture offers a further bonus to a tax authority facing changes to the administrative and legal system. The coordination of taxpayer management strategies is not only desirable, but also practicable and relatively uncomplicated. Just as it can build cohesion in the community, it can provide a basis for unity in a tax authority as difficult trade-offs are made re- designing the legal and administrative system. The second principle to emerge is that administrative and legal adaptability is a necessary part of building internal tax system integrity, although the immediate effects on compliance can be uncertain, as can the immediate effects on both internal and external integrity. In such circumstances, tax authorities need to be strategic, taking a long-term view, and putting the infrastructure in place so as to manage unexpected outcomes. Part of being maximally responsive to the environment is having a finely tuned intelligence system and a rich network of support that can be part of the process of testing and redirecting change until an appropriate balance between needs for compliance and integrity are met. While senior managers must take responsibility for making critical decisions about balancing compliance and integrity, knowledge and understanding of how compliance might be best improved lies in the stories of field staff. It is only through drawing on these stories and opening and acting on communications from the coalface, that senior managers are able to pre-empt the trade-off costs for their organisation. Without bottom-up feedback, top-down management of administrative and legal change is likely to be fraught with difficulties and setbacks. Thus, the third principle emerges, one that involves an integration of compliance and integrity action plans. Through adopting a bottom-up approach
Image of page 294
Image of page 295

You've reached the end of your free preview.

Want to read all 311 pages?

  • Fall '16
  • tax authority, Australian Taxation Office, Tax Office, Compliance Model

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Ask Expert Tutors You can ask You can ask ( soon) You can ask (will expire )
Answers in as fast as 15 minutes