Law and Social Norms: The Case of Tax Compliance

Posner, Eric A.

doi:10.2307/1073829

Cited by 222 publications

(126 citation statements)

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“…Once individuals realize they can avoid true compliance in one arena they may do so in another, breeding a culture in which creative compliance is acceptable. Lastly, the presence of illegitimate laws may reduce the extent to which an individual's disobedience sends a signal to others about an individual's latent propensity for law-breaking (Posner 2000).…”

Section: The Rule Of Law and Compliancementioning

confidence: 99%

How European Union Membership Can Undermine the Rule of Law in Emerging Democracies

Slapin¹

2015

West European Politics

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Section: The Rule Of Law and Compliancementioning

confidence: 99%

How European Union Membership Can Undermine the Rule of Law in Emerging Democracies

Slapin¹

2015

West European Politics

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“…Posner (2000) discusses the impact of social norms on income tax compliance, and Weisbach (2002) considers this idea for corporate tax compliance as well. However, he dismisses the idea that social norms are able to explain the absence of more tax avoidance and concludes with a 'undersheltering puzzle'.…”

Section: Previous Literaturementioning

confidence: 99%

Corporate tax competition between firms

Loretz

Moore

2012

Int Tax Public Finance

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Firms' tax planning decisions, similar to their other operational decisions, are made in a competitive environment. Various stakeholders observe the tax payments and evaluate these against the relevant peer group, which creates interdependencies in the tax planning activities of firms. Introducing the concept of reputational loss we show the positive interdependence in a theoretical model and test it in a spatial econometric model. Empirical evidence suggests that benchmarking takes place both within countries and within industries, however for the latter it is important to include firms in large non-EU OECD countries. Further, the analysis shows that spatial interdependence is stronger for the largest firms and if they have an average effective tax rate above the statutory tax rate.JEL Codes: H25, M40

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“…For instance, we might think of actions like smoking in 13 Another interesting example concerning tax compliance can be found in Posner (2000). 14 In many instances, protest may be a more powerful vehicle of opinions than actions and thus prove to be a more effective way of combating unfair laws.…”

Section: The Modelmentioning

confidence: 99%