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1 – 10 of over 2000
Article
Publication date: 9 May 2016

Colin C Williams, Ioana Alexandra Horodnic and Lynda Burkinshaw

Conventionally, participation in the informal economy has been explained by viewing citizens as rational economic actors participating when the pay-off is greater than the…

Abstract

Purpose

Conventionally, participation in the informal economy has been explained by viewing citizens as rational economic actors participating when the pay-off is greater than the expected cost of being caught and punished, and thus tackled by raising the sanctions and risks of detection. Given that many citizens do not engage even when the benefits outweigh the costs, a new social actor approach has begun to emerge which explains the informal economy as arising when tax morality is low and seeks to foster commitment to compliance. The purpose of this paper is to provide an evidence-based evaluation of these competing policy approaches.

Design/methodology/approach

To do so, the results are reported of 1,306 face-to-face interviews undertaken during 2013 in the UK.

Findings

The finding is that raising the sanctions and risks of detection has no significant impact on the likelihood of participation in the informal sector. However, participation in the informal economy is significantly associated with tax morality. Indeed, the only time that increasing the sanctions and risks of detection reduces the level of participation in the informal economy is amongst citizens with very low tax morality.

Practical implications

Rather than continue with the current rational economic actor approach of increasing the penalties and risks of detection, this case study of the UK reveals that a new policy approach is required that seeks to improve tax morality by introducing measures to reduce the acceptability of participating in the informal economy. Whether this is more widely applicable now needs to be tested, given the dominance throughout the world of this punitive rational economic actor approach.

Originality/value

This paper provides evidence supporting a new social actor approach towards explaining and tackling participation in the informal economy.

Details

International Journal of Public Sector Management, vol. 29 no. 4
Type: Research Article
ISSN: 0951-3558

Keywords

Article
Publication date: 11 April 2017

Jan Windebank and Ioana Alexandra Horodnic

France is a model of best practice in the European Union as regards policy to combat undeclared work. The purpose of this paper is to take the country as a case study to evaluate…

Abstract

Purpose

France is a model of best practice in the European Union as regards policy to combat undeclared work. The purpose of this paper is to take the country as a case study to evaluate the competing explanations of why people engage in undeclared work which underpin such policy, namely, the dominant rational-economic-actor approach and the more recent social-actor approach.

Design/methodology/approach

To evaluate these approaches, the results of 1,027 interviews undertaken in 2013 with a representative sample of the French population are analysed.

Findings

The finding is that higher perceived penalties and risks of detection have no significant impact on the likelihood of conducting undeclared work in France. In contrast, the level of tax morale has a significant impact on engagement in the activity: the higher the tax morale, the lower is the likelihood of participation in the undeclared economy. Higher penalties and risks of detection only decrease the likelihood of participation in undeclared work amongst the small minority of the French population with very low tax morale.

Practical implications

Current policy in France to counter undeclared work is informed principally by the rational-economic-actor approach based on a highly developed infrastructure for detection and significant penalties alongside incentives to declare small-scale own-account work. The present analysis suggests that this approach needs to be supplemented with measures to improve citizens’ commitment to compliance by enhancing tax morale.

Originality/value

This case study of a country with a well-developed policy framework to combat undeclared work provides evidence to support the social-actor approach for informing policy change.

Details

International Journal of Sociology and Social Policy, vol. 37 no. 3/4
Type: Research Article
ISSN: 0144-333X

Keywords

Article
Publication date: 8 February 2024

Ahmad Farhan Alshira’h, Malek Hamed Alshirah and Abdalwali Lutfi

This study aims to determine the impact of forensic accounting, probability of detections, tax penalties, government spending, tax justice and tax ethics on value-added tax (VAT…

Abstract

Purpose

This study aims to determine the impact of forensic accounting, probability of detections, tax penalties, government spending, tax justice and tax ethics on value-added tax (VAT) evasion.

Design/methodology/approach

The study uses partial least squares-structural equation modeling to examine the connection between tax sanction, probability of detection, tax ethics, tax justice, forensic accounting and government spending on VAT evasion based on 248 responses collected from the retail industry in Jordan.

Findings

The findings also demonstrate that there is a negative correlation between tax sanctions, probability of detection, tax ethics, tax justice, forensic accounting, government spending and VAT evasion efficiency.

Practical implications

The results, considering forensic accounting and government expenditure considerations, may emphasize the importance of the tax sanction, probability of detection, tax ethics, adoption of tax justice in the public sector and tax authority. Additionally, the findings are important for regulators and decision-makers in announcing new laws and strategies for VAT evasion.

Social implications

It turns out that the tax authority and public sector can definitely improve their capacity to protect public funds and limit VAT evasion practices within SMEs by adopting increased tax sanctions, probability of detection, tax ethics, tax justice, forensic accounting and government spending.

Originality/value

Numerous studies have been conducted at the individual level in the context of income tax on the link between tax punishment, probability of detection, tax ethics, tax justice, forensic accounting and tax evasion. This study expands on the scant evidence of this connection to the retail business in the context of VAT avoidance. Additionally, it advances prior studies by integrating fresh elements, such as forensic accounting and government expenditure, that have never been considered in connection to VAT evasion in the retail sector.

Details

Journal of Financial Reporting and Accounting, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1985-2517

Keywords

Article
Publication date: 25 December 2020

Ibrahim Abdullah Al-Qartoubi and Hussein Samh Al-Masroori

This study integrates fishers’ and decision-makers’ views on the critical factors for non-compliance in the artisanal fisheries of Oman.

Abstract

Purpose

This study integrates fishers’ and decision-makers’ views on the critical factors for non-compliance in the artisanal fisheries of Oman.

Design/methodology/approach

A questionnaire survey was implemented covering all coastal governorates of Oman. The questionnaires for fishers and decision-makers contained 46 and 43 questions, respectively, divided into various sections based on the Table of Eleven. Compliance factors were divided into spontaneous factors and enforcement factors. The data were collected through 1,242 questionnaires (1,125 fishers and 117 decision-makers).

Findings

The results indicated that spontaneous compliance factors (e.g. financial/economic, level of knowledge and social norms) and enforced compliance factors (e.g. social control, sanction certainty and sanction severity) have a significant influence on fishers' motivation to comply with regulations. The chi-square test (X2) was used to show that the differences between the means of responses of fishers and decision-makers in regard to the factors that influence non-compliance in the fishery were insignificant.

Originality/value

This consistency of opinions has an essential policy inference for the regulatory institutions in that it delivers assistance and trust in fisheries management authority's efforts to create effective compliance plans for the fisheries.

Details

International Journal of Social Economics, vol. 48 no. 2
Type: Research Article
ISSN: 0306-8293

Keywords

Article
Publication date: 8 May 2018

Michael Gilbert and Alison Wakefield

Fraud has a significant effect on society. It has been estimated to cost the UK economy more than £50bn annually. The Government have signalled their determination to tackle these…

Abstract

Purpose

Fraud has a significant effect on society. It has been estimated to cost the UK economy more than £50bn annually. The Government have signalled their determination to tackle these losses through a range of preventative, enforcement and collaborative activities. Diminishing police resources allocated to fraud means that this activity will need to be delivered by both law enforcement and civilian counter fraud teams. This paper aims to establish whether UK central government organisations have the legal powers, skills and regulation needed to tackle fraud effectively.

Design/methodology/approach

This research was based upon a literature review, which included academic and other material, a semi-structured interview programme and a survey of counter fraud champions.

Findings

Empirical data suggested that the effectiveness of central government civilian counter fraud teams is hampered by a fragmented legal landscape and a lack of skills, and that further professionalisation and regulation is needed to protect professional standards and individual legal rights.

Research limitations/implications

Postal survey had 50 per cent response rate – below gold standard of 70 per cent.

Practical implications

There are no practical implications, as this is a topical research area which is intended to inform counter fraud practice and development.

Social implications

This research highlights limitations on the UK central government’s ability to tackle fraud. There is therefore a low risk that, when published, this research could inform those considering fraudulent actions.

Originality/value

This research was undertaken for a professional doctorate and has been sent to the Cabinet Office to inform their professionalisation programme. It filled a potential gap in the academic literature by looking at the perceived powers, skills and regulatory pressures in place within the UK central government and the extent of the current gap between current practice and the delivery of a fully professionalised service.

Details

Journal of Financial Crime, vol. 25 no. 2
Type: Research Article
ISSN: 1359-0790

Keywords

Article
Publication date: 13 July 2012

Harry Barton and Malcolm J. Beynon

The UK police service has a major challenge to introduce innovative ways of improving efficiency and productivity, whilst at the same time improving public opinion as to their…

Abstract

Purpose

The UK police service has a major challenge to introduce innovative ways of improving efficiency and productivity, whilst at the same time improving public opinion as to their effectiveness in the “fight against crime”. The purpose of this paper is to outline an exploratory study of the ability to cluster police forces based on their sanction detection levels over a number of different offence groups and whether these clusters have different associated public opinions towards them.

Design/methodology/approach

Using secondary data and the fuzzy c‐means clustering technique to exposit clusters of police forces based on sanction detection levels, relating them in a statistical analysis with public opinion on the police.

Findings

The clustering analysis shows how police forces can be considered relative to each other, based on their sanction detection levels of certain offence groups, including; burglary, fraud and forgery and criminal damage. Using the established clusters of police forces, in respect of independent variables relating to public opinion, including confidence in police; there does appear to be statistically significant differences amongst the clusters of police force.

Research limitations/implications

The results demonstrate the connection between the police's attempt to fight crime and public opinion. With the public opinion measures considered post the establishing of police forces’ clusters, the results show the public does notice the level of sanction detections achieved. The identified disconnect of the public with the criminal justice system is something that can be improved on in the future.

Practical implications

Demonstrates that there is a significant link in the relationship between the levels of sanction detection levels of police forces and public opinion about their ability to fight crime.

Originality/value

This paper employs fuzzy c‐means, a modern clustering technique nascent in this area of research.

Details

International Journal of Emergency Services, vol. 1 no. 1
Type: Research Article
ISSN: 2047-0894

Keywords

Article
Publication date: 31 May 2011

Harry Barton and Malcolm J. Beynon

The paper is set in the context of the impact of new public management (NPM) on the police service in the UK. Specifically, it aims to describe a modelling based approach to…

1259

Abstract

Purpose

The paper is set in the context of the impact of new public management (NPM) on the police service in the UK. Specifically, it aims to describe a modelling based approach to targeted police performance improvement within a specific area of measured operational policing namely sanction detection levels. It draws upon nationally available crime statistics, which have been utilised in a novel way in order to provide the police with an additional performance management technique.

Design/methodology/approach

The paper uses secondary data and the PROMETHEE ranking technique to exposit performance rank improvement of a police force amongst their most similar forces group.

Findings

The modelling approach is a proven tool that could be used in partnership with other police performance management techniques in their attempt to meet the public interest and Home Office demands for improvements in base sanction detection levels.

Research limitations/implications

The paper presents a theoretical approach that seeks to address a complex and multifaceted operational issue affecting all police forces. The theoretical nature in itself presents a potentially idealistic scenario.

Practical implications

The paper demonstrates that innovative modelling has the potential to add value to techniques that are currently used in the area of police performance improvement, in this case sanction detection levels. At the fundamental level this could be viewed in terms of “Where to start first, and from there?” with respect to targeting certain types of crime.

Originality/value

This paper uses a modern ranking technique previously unused in this area.

Details

International Journal of Public Sector Management, vol. 24 no. 4
Type: Research Article
ISSN: 0951-3558

Keywords

Abstract

Details

The Political Economy of Antitrust
Type: Book
ISBN: 978-0-44453-093-6

Article
Publication date: 7 October 2019

Eugene Soltes

Perceptions about the frequency of misconduct – among the public, academics and even regulators – have largely been formed by examining enforcement statistics, which rely on the…

1541

Abstract

Purpose

Perceptions about the frequency of misconduct – among the public, academics and even regulators – have largely been formed by examining enforcement statistics, which rely on the detection and sanctioning of the misconduct. This study aims to illuminate the real occurrence of corporate misconduct, much of which escapes public detection.

Design/methodology/approach

By examining confidential firm records describing misconduct within organizations, the author shows that public enforcement statistics significantly underestimate the amount of serious malfeasance that arises within firms.

Findings

Through analyzing records for several large multinational firms, the author finds that there are, on average, more than two instances of internally substantiated misconduct per week per firm.

Originality/value

Ultimately, this analysis illustrates the challenge of addressing corporate malfeasance within large organizations.

Details

Journal of Financial Crime, vol. 26 no. 4
Type: Research Article
ISSN: 1359-0790

Keywords

Article
Publication date: 12 March 2020

Eunjung Cho, Jeehong Kim and Sooin Kim

The purpose of this paper is to examine whether a negative outcome (i.e. a sanction) of an inspection by Korea’s Financial Supervisory Service for an industry-leading company…

Abstract

Purpose

The purpose of this paper is to examine whether a negative outcome (i.e. a sanction) of an inspection by Korea’s Financial Supervisory Service for an industry-leading company affects the accounting quality of other companies in the same industry. The premise is that when peer companies observe the negative results of such an inspection on a leader in their industry, they will be more concerned about their own risk during a future inspection and more likely to increase their accounting quality.

Design/methodology/approach

The authors conduct a mutivariate Oridnary Least Squares (OLS) regression using 11,476 South Korean samples from 2002 to 2016. The study uses ordinary least square regressions to test the hypotheses using discretionary accruals as a proxy for accounting quality.

Findings

The authors find that peer companies reduced their discretionary accruals in the next period and that this reduction is amplified according to the severity of the disciplinary action on the industry leader and the materiality of errors in that leader’s financial statements.

Originality/value

This finding contributes to the literature by providing the first evidence of a spillover effect of regulatory inspection on accounting quality that financial reporting sanctions not only affect the overall accounting quality of the sanctioned company but also that of its peers in the same industry. The authors expect this study to lead to future research on the effect of other regulations on industry-wide accounting quality.

Details

Managerial Auditing Journal, vol. 35 no. 5
Type: Research Article
ISSN: 0268-6902

Keywords

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