Let's talk about tax compliance: building understanding and relationships through discourse
Date
2015
Authors
Whait, R.B.
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Journal article
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eJournal of Tax Research, 2015; 13(1):130-157
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Abstract
The Australian Taxation Office's (ATO) cooperative compliance model (CCM) has been regarded by some as an innovative method through which to improve voluntary compliance. Since its introduction in the late 1990s and early 2000s, it has been adopted in many other regulatory areas and by many other jurisdictions. Consequently the model represents a historically significant event, yet little research surrounding its development and adoption has been conducted. Prior research has focused on themes of administrative equity and efficiency and their implications for risk management. This article builds on that work by discussing more factors and themes relevant to the CCM's development and adoption, specifically discourse, relationships and understanding.The methodology employed was traditional historiographic methodology where data from a variety of written and oral sources was located, gathered, organised, and analysed using thematic analysis. An interpretative approach was used so that causes and explanations for the model’s development and adoption could be found. The research took an instrumentalist constructionist approach which focused on the model as adopted by the ATO and explained its existence by building an account of the past. This account was developed by using the themes discovered through the thematic analysis in combination with selected quotations.The analysis revealed that the CCM was adopted partly as a result of the ATO’s realisation that it needed a new approach to improve compliance in the small business segment that was based on improved understanding of that segment. To improve understanding, relationships also had to improve. Both of these could not be achieved without the ATO engaging in discourse with taxpayers and community leaders. Thus discourse was a key enabler of the adoption of the CCM and it culminated in various industry, ATO and academic representatives coming together in the Cash Economy Task Force (CETF) that recommended that CCM be adopted. A similar approach was taken as the CCM was adapted for the large business and international (LBI) segment. Discourse was also critical in the CCM gaining acceptance within the ATO in the face of some opposition. The importance of the role of discourse in improving relationships and creating mutual understanding has some implications for tax administration in the current context. These implications are discussed.
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Copyright 2015 University of New South Wales, School of Taxation & Business Law (Atax)