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This study examines how creditor interventions after debt covenant violations affect corporate tax avoidance. Using a regression discontinuity design, we find that creditor interventions increase borrowers' tax avoidance. This effect is concentrated among firms with weaker shareholder governance before creditor interventions and among those with less bargaining power during subsequent debt renegotiations. Our results indicate that creditors play an active role in shaping corporate tax policy outside of bankruptcy.

This paper uses two studies to examine taxpayers' knowledge of tax incentives for charitable giving and also explores the consequences of this knowledge on charitable giving decisions. The first study surveys 600 US taxpayers to establish a baseline understanding of how making a charitable contribution affects taxpayers. In the second study, we conduct an experiment with 201 US taxpayers in which we manipulate the knowledge of taxpayers by providing an educational intervention; we also measure, if, how much is donated in a hypothetical scenario under various tax deductibility conditions. The first study indicates fewer than half of participants understand the basic principles of how charitable donations affect tax liability. Our second study reveals that a short educational video is extremely effective at improving taxpayers' understanding and helping them accurately estimate the tax benefit associated with charitable giving. However, through moderated mediation analysis, we also show that participants who received this educational intervention and accurately estimated the tax benefits in turn decreased their charitable giving. We conclude that the majority of US taxpayers do not understand whether they benefit from certain deductions and may be overestimating the benefit they receive from charitable giving, resulting in giving more than they intend.

The objective was to increase earnings of the city of Prievidza from waste disposal fee by proactive communication – reminder (a letter) and leaflets with targeted framing. The quasi-experiment aims to find out which type of leaflet framing (an injunctive social norm or public good) causes the most effective change in the debtors' behaviour.

The article presents the results of a behavioural quasi-experiment, carried out on a local government level. The effectiveness of the intervention was tested in a quasi-experiment with the sample size 712, which is 35% of all waste disposal fee debtors in Prievidza.

The intervention that has proven to be the most effective was a reminder together with an injunctive social norm leaflet. It resulted in a 1.7 times higher probability for the debt to be paid. The results also indicate that a reminder is significantly more effective if targeted at debtors who only owe one payment–this group was three times more likely to pay their debt after being exposed to the intervention.

Public policy recommendation is to primarily target the group of debtors who owe one payment.

Another testing and replication of this experiment design is highly important. Nonetheless, the first testing (field quasi-experiment) shows the potential of using the notification as well as social norm framing. It also appears that self-governments should use notifications to primarily address debtors without a long history of non-payment.

Much progress has been made in public opinion regarding drug prohibition. The policy has been an utter failure, very expensive, and increasingly disliked by people around the world. As a result, several states have passed drug reform legislation that reduces penalties for the production, distribution, and consumption of previously prohibited substances such as narcotics and marijuana. Other states have placed more resources in drug treatment programs (demand reduction) instead of drug interdiction efforts (supply reduction). In North America, several states in the US and Canada have passed medical marijuana legislation to take advantage of the well-known medical benefits of marijuana (Piper, Matthew, Katherine, & Rebecca, 2003).

The authors emphasize the information role of earnings management and how it may be used to “mislead some stakeholders about the underlying economic performance of the company or to influence contractual outcomes that depend on reported accounting numbers.” Specifically, the authors examine the causal effect of tax incentives on private firms' earnings management based on a corporate tax reform in China.

In December 2001, China implemented a tax collection reform which moved the collection of corporate income taxes from the local tax bureau to the state tax bureau. This reform results in exogenous variations in the effective tax rate among similar firms established before and after 2002. The authors apply a regression discontinuity design and use the generated variation in the effective tax rate to investigate the impact of taxes on firm earnings management.

The authors find that tax reduction substantially increases private firms' incentives to manage earnings information, and such effect is particularly pronounced when tax collection intensity and government interventions are low. Further evidence shows that lower tax rates stimulate firms' investment, inventory turnover and recruitment of skilled human capital. A plausible mechanism is that private firms signal a promising outlook by managing earnings to attain greater financing and improve investment/operation levels when financial constraints are removed.

First, the authors present the causal effects of tax incentives on private firm's earnings management, which deepens the authors’ understanding on the determinants of firm's earnings information production. Second, this study also contributes to the literature on tax-induced earnings management. Third, the authors believe that this topic offers clear policy implications and would be of particular interest to regulators.

The Lagos State land use charge (LUC) 2001 represents a radical and wholesome restructuring of the entire erstwhile land‐based tax system in the state, and the first of its kind in Nigeria. The purpose of this paper is to examine how this maiden holistic intervention in property tax administration in Nigeria has fared in its first nine years.

Primary data were garnered from stakeholders through personal interviews and structured questionnaires, while secondary data include information from the enabling act and other‐related materials.

It was noted that the intervention failed to conform to best practice both in policy and administration. As a result, the reform has not ceased to generate controversies, has enjoyed limited acceptability, and achieved limited success.

Taking a cue from the experiences of countries that have demonstrated best practices in property tax reform, the paper proffers suggestions, covering both policy (e.g. extensive stakeholders' consultation) and administration (e.g. improved links between tax payment and provision of local services) that would help to sustain the reform intervention and make it sufficiently worthwhile.

This study aims to understand the interaction between tax fairness perceptions, equitable tax burden distribution and tax compliance within Morocco’s unique socio-economic context, with the goal of uncovering strategies to enhance tax compliance.

Using the Delphi method, this study engaged tax experts in the Moroccan context to explore the impact of taxpayers’ perception of fairness, tax rates and tax burden on compliance. Their responses were gathered and analyzed with the aid of IRaMuTeQ software, which helped the authors identify themes relevant to the research question.

The preliminary results indicate a positive correlation between perceptions of tax fairness and compliance behavior, corroborating earlier studies conducted in different contexts. Notably, a substantial majority of Moroccan taxpayers perceive the current tax system as inequitable, deeming tax rates too high and the tax burden unfairly distributed among various taxpayer categories. This perception potentially influences their voluntary tax compliance behavior.

The findings have significant policy implications for the Moroccan Government and stakeholders. They suggest that by improving tax fairness, particularly by aligning tax assessment and payment modalities for employees, civil servants and small to medium enterprises, policymakers can encourage higher voluntary tax compliance, thereby potentially enhancing the efficiency of the Moroccan tax system.

This study adds to the existing body of knowledge by exploring the dynamics of tax fairness and compliance behavior in Morocco, a context which has been significantly understudied.

The purpose of this paper is to demonstrate that the externality that arises from environmental tobacco smoke damage is no ordinary externality. Apart from acting to the detriment of passive smokers, tobacco smoking also affects the survival probabilities of smokers. Incorporating this into its analysis, this paper evaluates the damage caused by smoking, the appropriate design of public health policies and tax policies targeted at reducing tobacco‐related externalities.

By mathematically characterising how smoking impacts smokers and non‐smokers differently, the paper determines smokers' and non‐smokers' lifetime utility, enabling one to evaluate the impact of both health interventions and tax policies.

The paper shows that treatment as well as research and development leading to life‐prolonging health outcomes for smokers are generally oversupplied. The tax recommendations, however, are far from straightforward. Indeed, although not universally the case, it may be optimal to subsidise tobacco usage. The paper also discusses the separating conditions necessary for cigarette taxation to fall or rise with time.

It follows from the paper that ignoring the effect that smoking has on smokers' own life expectancy may lead to erroneous theoretical results and misguided policy recommendations.

The paper seeks to rectify the omission that smoking is somewhat different from other externalities. It develops a model where smoking results in both self‐harm and harm to others, enabling one to demonstrate that there is more to the theoretical study of this externality than is currently acknowledged in the literature.

Recently, a small but burgeoning literature has argued that tax non-compliance cannot be fully explained using the conventional rational economic actor approach which views non-compliance as occurring when the pay-off is greater than the expected cost of being caught and punished. Instead, a social actor approach has emerged which views tax non-compliance as higher when “tax morale”, defined as the intrinsic motivation to pay taxes, is low. To advance this social actor model, the purpose of this paper is to evaluate the individual and national heterogeneity in tax morale, which is crucial if tax compliance is to be improved.

To do this, the authors report data from the 2010 Life in Transition Survey on tax morale in 35 Eurasian countries.

Logit econometric analysis reveals, on the one hand, that there is higher tax morale among middle-aged, married, homeowners with children, with a university degree and employed, and on the other hand, that there is higher tax morale in more developed countries with stronger legal systems and less corruption, and higher levels of state intervention in the form of both taxation and expenditure.

Rather than continue with the rational actor approach, this paper reveals that how an emergent social actor approach can help to more fully explain tax non-compliance and results in a different policy approach focused upon changing country-level economic and social conditions associated with low tax morale and thus non-compliance.

These results display the specific populations with low tax morale which need targeting when seeking to tackle tax non-compliance.

This paper provides a new way of explaining and tackling tax non-compliance in Eurasian countries.

This paper qualitatively explores arguments in the UK meat tax debate, including how they align with values from specific political ideologies and perspectives on sustainable food security.

The authors conducted a scoping media analysis of articles published over 1 year in six leading UK newspapers, followed by semi-structured interviews with ten key stakeholders in late 2019. The authors identified categories of arguments, distilled the core conflicts and analysed how arguments reflected different ideas about human nature, the role of the state and solutions to food system challenges.

Arguments were categorised into five major topics: climate change and environment; human health; effects on animals; fairness; and acceptability of government intervention. Pro-meat tax arguments often aligned with modern liberal ideology, and sometimes echoed demand restraint or food system transformation perspectives on sustainable food security. Arguments against meat taxes were more likely to align with the efficiency perspective or classical liberal ideology.

To the authors’ knowledge, this is one of the first interpretive analyses of this controversial suggested policy. Despite having similarities with other debates around taxation – particularly taxes on sugar sweetened beverages – the meat tax debate contains unique complexities due to the prominence of environmental arguments, and differing values pertaining to animal welfare and rights. This study highlights the need for policy research exploring values, in addition to quantitative evidence.