Taking the on track or achieved compliance outcomes first it is helpful to

Taking the on track or achieved compliance outcomes

This preview shows page 287 - 288 out of 311 pages.

Taking the ‘on track’ or ‘achieved’ compliance outcomes first, it is helpful to ground the discussion by considering the types of tasks undertaken by a tax authority that come closest to meeting the specified criteria of a request being made and received as intended, and being visibly acted on as intended. One such example would be declaring bank interest on an income tax return. Data matching with bank records makes it possible for tax officers to keep a close eye on interest declaration for tax purposes. For the tax officer responsible for monitoring compliance of this kind, attention is likely to focus on detail, such as the integrity of the data bases used to match records and tweaking the system to catch those few who are slipping through the net. Compliance questions are likely to take the following form: Can detection rates be improved? Can data on non-compliance be matched with data of other kinds of non-compliance? Should the taxpayer be relied upon to self-report on tax matters and self-assess his/her tax contribution? It is equally valid to ask how reliable is the official data on non-compliance that is stored by the tax authority? What kind of auditing is necessary to ensure that the standards of compliance are maintained at high levels and that the community’s standards match those expected by the tax authority? An equally relevant, but less often asked question for tax officers working with ‘on track’ or ‘achieved’ compliance, is how can the public be recognized for their cooperation? Turning to the system failure cells, compliance now has less to do with assessment and more to do with engaging with the taxpayer. System failure occurs when the tax office has not made a direct request to the taxpayer concerning her obligations. In these cases, compliance means getting people to do something that they have not been doing ‘naturally’ either because it never entered their heads or because they chose not to do it. In addressing system failure, the focus of attention is likely to be on communication of the message. The clarity of the request, the educational apparatus supporting the request, and the political intent behind the message are important issues for consideration. Whenever questions are raised about system effectiveness, reasonable doubt also is raised over the extent to which a regulatee should be held responsible for non-compliance. Compliance failure, on the other hand, is likely to be addressed in different ways from system failure. If the system appears to be working well from a communication perspective, non-compliance can be dealt with in either of two ways. One option is to listen to the community and understand the grounds of resistance so that changes can be made to policy and practice. As a result, compliance may be made easier for taxpayers, or the costs of non-compliance may be increased through greater surveillance and penalties. Another option is to change tack altogether. This option would not require taxpayers to understand the message. Technology may be used to engineer compliance that has not been
Image of page 287
Image of page 288

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

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask ( soon) You can ask (will expire )
Answers in as fast as 15 minutes
A+ icon
Ask Expert Tutors