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Tax compliance involves complying with the tax rules and regulation, which encompasses the filing, reporting and payment of tax. The two aspects of tax non-compliance are tax evasion and tax avoidance. While the ethicality of tax evasion as an illegal act of reducing tax is clear, the consensus regarding the morality of tax avoidance as a legal act of minimizing tax is mixed. This chapter will discuss the ethical perspective of tax (non)compliance.

We approach this topic by discussing the two important terms of tax non-compliance namely tax evasion and tax avoidance from the ethical point of view. The tax evasion and tax avoidance were critically evaluated to justify whether it is ethical or not. The tax non-compliance is also associated to the corporate governance which if do effectively help to protect the interest of larger stakeholder.

In a nutshell, tax non-compliance such as tax avoidance and tax evasion is unethical act and these acts of non-compliance go against the spirit of contemporary corporate governance which sought to protect the interest of the stakeholders.

Tax non-compliance could enhance shareholders wealth (in terms of reduced tax); it affects the distribution of wealth (public benefits financed by tax revenues) among the society at large as another stakeholder affected by such act. Future research may be conduct to investigate this to the larger sample.

Firms should avoid engaging in non-compliance activities such as engaging in tax evasion and aggressive tax avoidance as part of its social obligation to the society in line with the spirit espoused in the contemporary corporate governance.

This paper argues that tax non-compliance is unethical and highlights the importance of having efficient corporate governance for larger stakeholder’s interest.

Construction enterprises increase their competitive advantage by joining the project ecosystem, but the dual nature of the enterprise’s niche has attracted attention, and existing research has gaps in understanding niche and ecosystem governance issues. This study aims to promote ecosystem compliance governance by exploring the impact of the niche of the key role of construction enterprises on compliance behavior.

First, the study proposes a model on the impact of the enterprise's niche on its compliance behavior and the mediating role of the enterprise's perception of sanctions and the moderating role of a shared vision for compliance of ecological partners within these relationships. Second, we used 205 samples, who were Chinese contractors with international construction project experience through a questionnaire survey. Third, the study conducted a hierarchical regression to test the hypothesis.

The results show that construction enterprises with a wider niche or with a higher degree of niche overlap are more inclined to performance compliance. Enterprises' perception of sanctions plays a part in mediating the enterprise's niche and compliance behavior. The relationship between enterprises' perception of sanctions and compliance behavior can be moderated by the shared vision for compliance of ecological partners. Given a low compliance shared vision of ecological partners, the impact of enterprise perception of sanctions on compliance behavior is positively stronger.

The findings provide valuable evidence upon which ecosystem governance needs to focus and leverage the role of key members, using the advantageous resources of key members as a fulcrum to leverage a larger governance scope. Construction enterprises should keep improving their niche and the shared vision for partners' compliance to promote the evolution and upgrading of cooperation to an ecosystem model that creates greater value.

This study provides new insights for future compliance governance in the project ecosystem by introducing the concept of niche and answering whether construction enterprises with a higher niche in the project ecosystem are more willing to implement compliance behavior.

This paper aims to examine the antecedents of the Automated VAT Solution (AVS) and its eventual consequence on value-added tax (VAT) compliance costs among the small and medium enterprises (SMEs) in Gulf Cooperation Countries (GCC), with the United Arab Emirates (UAE) as context.

A quantitative research design was deployed through a survey of 576 SMEs in the UAE. The data was analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM).

The findings revealed that technological factors (IT complexity and IT competency) and organizational factors (management support and size of SME) significantly influence AVS adoption. However, only consumer pressure was found to be significant among the environmental factors, and AVS adoption was found to have a significant negative effect on the VAT compliance cost.

A lower coefficient of determination for the effect of AVS adoption on VAT compliance cost meant that there may be other accounting-related technologies that improve operational efficiency and process automation and, in the long run, lower the cost of VAT compliance. These technologies should be included in future studies.

The findings imply that the adoption of AVS among SMEs is highly desirable, as it reduces VAT compliance costs. Increased regulatory pressure by the UAE’s policymakers is also desirable to accelerate AVS adoption for enhanced cost reduction and revenue maximization from the perspectives of both the government and SMEs.

To the best of the authors’ knowledge, this study could be the first to expand the Technology-Organization-Environmental (TOE) Framework through the integration of determinants of AVS adoption and VAT compliance costs among SMEs in GCC countries.

Compliance risk management in the banking sector is crucial because of its multifaceted nature and its potential repercussions on reputation and financial stability. This study aims to present a systematic approach to mapping compliance risks, leveraging the risk self-control assessment (RSCA) method. Integrating quantitative and qualitative assessment techniques and drawing on human expertise and industry best practices.

The authors followed a methodology that involves conducting semistructured interviews with banking compliance professionals and analyzing professional frameworks to gather pertinent information. This comprehensive approach allows to obtain a holistic view of the risks involved and to refine the risk analysis process.

A step-by-step guide to map compliance risk within banks is proposed. The authors offer a rigorous process to enhance compliance risk management practices within the banking sector, providing actionable insights to effectively navigate regulatory complexities and safeguard financial stability.

The insights from this paper will guide compliance officers and risk managers to better assess and monitor compliance risk within their organizations.

To the best of the authors’ knowledge, this may be the first thorough paper that tackles the topic of mapping compliance risk in banks, from identifying areas of risk to corrective measures after drawing up the risk map, using the RSCA approach.

This research aims to examine the relations between Shariah compliance and earnings quality.

The authors study three Shariah features: Shariah compliance status, level of Shariah compliance (H-Score) and Shariah compliance persistence. The sample consists of 463 firms from the Middle East and North Africa from 2011 to 2018. A variable determining the level of Shariah compliance was created in accordance with the methodology of S&P 500 Shariah and its underlying index, S&P 500. Then, a probate relapse study was created to identify the link between Shariah compliance and earnings quality.

Results show that Shariah-compliant firms engage in lower earnings management compared to their Shariah-non-compliant counterparts. This paper reveals that Shariah compliance status and high level of Shariah compliance have significant positive association with earnings quality. The authors also find novel evidence that persistence of the Shariah-compliant status has a significant negative association with earnings quality.

This study only examines firms listed on MENA stock markets. It is recommended to further study different markets in addition to the emerging Arab markets in order to compare and contrast the results. Further, larger sample observations from a greater date range can be used.

Few studies have examined the earnings management behavior of Shariah-compliant firms vs Shariah-non-compliant ones in emerging markets; however, no study has focused on Shariah-compliant firms and their level of Shariah compliance. To the best of our knowledge, this is the first study which uses all four proxies for earnings quality in association with Shariah compliance and used new Shariah variables such as Level of Shariah Compliance and Persistent Shariah Compliance status.

To summarize the Municipal Securities Rulemaking Board’s 2017 Compliance Advisory for brokers, dealers and municipal securities dealers.

Summarizes several Municipal Securities Rulemaking Board (MSRB) rules that the Compliance Advisory highlights as presenting key compliance risks for brokers, dealers and municipal securities dealers. Discusses the factors included in the Compliance Advisory that dealers should consider when evaluating compliance procedures and controls.

By highlighting some key compliance risks and providing considerations tailored to those risks, the Compliance Advisory can be used as a tool to aid dealers in developing and assessing effective compliance programs.

Dealers should consider reviewing their firm’s existing compliance policies and procedures in light of the considerations discussed in the Compliance Advisory.

Practical guidance from experienced securities and financial services regulatory lawyers.

To gauge the extent to which the global financial system is anti‐money laundering (AML)/countering the financing of terrorism (CFT) prepared by analysing and comparing the AML/CFT systems of Financial Action Task Force (FATF) members with countries belonging to regional AML organisations.

Mutual evaluation data of 16 FATF members and 21 non‐FATF countries is analysed and compared using Kruskal‐Wallis and paired‐t tests to determine similarities and differences across the two groups of countries.

AML/CFT systems of FATF members and non‐FATF countries are poor. The lack of compliance with global AML/CFT standards leaves so many holes in these countries' regulatory, financial, and legal systems that money laundering with or without any relationship to the financing of terrorism, would be relatively easy to achieve.

In using an analytical approach it has been necessary to put numerical values on compliance levels used by the FATF. Given that these are very broad, substituting a single value for each compliance level will provide only a crude measure of compliance for comparisons to be made. The results should therefore be used as a guide to the ranking and compliance of countries rather than some exact measurement of compliance.

There will need to be follow‐up visits to this round of mutual evaluations to evaluate country responses to their poor assessments.

Publication of mutual evaluations by the FATF and a number of regional bodies has enabled a comparison of AML/CFT systems from countries around the world. Lack of data has not enabled this to be done before.

To summarize the Municipal Securities Rulemaking Board’s 2016 Compliance Advisory for brokers, dealers and municipal securities dealers.

Summarizes several Municipal Securities Rulemaking Board (MSRB) rules that the Compliance Advisory highlights as presenting key compliance risks for brokers, dealers and municipal securities dealers. Discusses the factors included in the Compliance Advisory that dealers should consider when evaluating compliance procedures and controls.

By highlighting some key compliance risks and providing considerations tailored to those risks, the Compliance Advisory can be used as a tool to aid dealers in developing and assessing effective compliance programs.

Dealers should consider reviewing their firms’ existing compliance policies and procedures in light of the considerations discussed in the Compliance Advisory.

Practical guidance from experienced securities and financial services regulatory lawyers.

The increasing use of cost‐benefit analysis (CBA) in financial regulation is bringing a sharper focus on the benefits conferred by regulation. This paper addresses the impact of that sharper focus on the compliance culture of regulated firms. Why focus on the benefits of regulation? What does CBA have to offer to the compliance culture of authorised firms? How does the introduction of CBA fit in with other developments in the regulatory arena? This paper offers some tentative answers to these questions.

The Basel Committee on Banking Supervision under the auspices of the Bank for International Settlements (BIS) published a consultation paper in late 2003 on the compliance function in banks. The aim of the consultation paper is to set out the views of banking supervisors and provide basic guidance for banks. Whereas there is no attempt to prescribe a uniform approach, a clear set of general principles is laid down for the role of the compliance function within banking organisations. Furthermore, recognition is given to the fact that diversity exists between banks with respect to their internal organisation of the compliance function and also to diversity in the legal and regulatory environment affecting the compliance function across jurisdictions. The core objectives of this paper are to examine the BIS approach to the compliance function and look at how this is likely to evolve. The authors draw on experience from the UK life assurance industry where substantial inroads have been made to embed a compliance competent culture within such types of financial institutions. A partnership approach is highlighted as essential to achieving a viable and meaningful compliance function. Finally, an ethical approach is explored as the possible future direction for banks. The first section reviews the new principles for the compliance function; the second section describes issues that arise; the third section analyses a partnership approach and explores an ethical approach; and the final section provides a summary and conclusion.