Theories Of Compliance Research Articles

The Effect of Social Norms on Value Added Tax Compliance among Small and Medium Enterprises in Embu Town

Despite the increasing need to raise the level of revenue collection, Kenya still faces the challenges of low tax compliance. The broad objective of the study was to determine the effect of social norms on value tax compliance among small and medium enterprises in Embu town, Kenya. The study was guided by social influence theory. The study adopted an explanatory research design and targeted a population was 1050 small and medium enterprises in Embu town. A sample size of 290 was drawn from this population and the response rate was 74%. Primary data collection was employed using closed structured questionnaires from study's objective. The data was analyzed using descriptive, inferential statistics and multiple linear regression analysis. A correlation analysis conducted before testing for coefficients shows that there was a positive and significant linear relationship between social norms and value tax compliance r=0.696. The coefficient table indicates that social norms have a positive effect on VAT compliance β= 0.138 (p=0.006<0.05). Based on the findings the study recommends that Kenya Revenue Authority integrate insights from behavioral economics into tax compliance theories. Explore how psychological factors such as social norms can be incorporated into models predicting taxpayer behavior. Further research may be conducted to investigate the effect of technology on VAT compliance.

СИСТЕМНИЙ АНАЛІЗ МЕТАЛУРГІЙНОГО ВИРОБНИЦТВА ЯК ПІДҐРУНТТЯ ФОРМУВАННЯ СИСТЕМИ КОМПЛАЄНС

The purpose of the study is to determine modern approaches to the strategy of applying the compliance system at metallurgical enterprises. From the standpoint of the theory of hypercomplex dynamic systems, the components of the metallurgical enterprise are considered. Hypercomplexity is provided by the variety of sub-sectors included in the research object. The system properties of metallurgical production are highlighted, in particular, hypercomplexity (S1), dynamism (S2) and structurality (S3). It is shown that one of the latest global scientific developments regarding the procedure for compliance with obligations in the financial and industrial spheres is the theoretical concept of Compliance. It is advisable to provide advisory functions to the Compliance system at the enterprise, when the final decision on the implementation of its recommendations is taken by the management of the enterprise at the appropriate level. It is shown that common to all theories of Compliance is finding a balance between such categories as "compliance" with established requirements and "risks" from inappropriate fulfillment of obligations. The ratio of financial risks and the probability of compliance with these risks of business entities is given. It is shown that Compliance should acquire the status of not only a controlling body, but also take into account the elements of psychology in the implementation of its activities.

Authoritarian Sovereignization: Russia’s Way out of the Council of Europe

Abstract Russia’s war against Ukraine and departure from the Council of Europe (CoE) in 2022 raises numerous questions about the effect of norm-diffusion in wider Europe. While inclusion in the CoE has provided litigation opportunities for Russian citizens, the process of “sovereignization” pursued by the regime has brought Russia into a downward spinning spiral of authoritarian illiberalism. This study discusses expectations derived from the hybrid regime model (containment of the domestic opposition as a driver towards full-blown authoritarianism) and from spiral theories of human rights compliance; it argues that the Putin regime has sought to seal Russia off from normative pressures from international organizations in pursuit of sovereign norms and values, and construed a separate legal space aimed at maintaining authoritarian rule indefinitely.

How and Why Do Economic Operators Comply With EU Law? Analysis of Firm‐Level Responses to the EU Timber Regulation in Germany

AbstractThe European Union (EU) Timber Regulation (EUTR) formally requires EU operators to conduct due diligence along their supply chains to prevent illegally sourced timber products from entering the European market. Little is known about the regulatory behaviour and motivations of operators to comply with this regulation. We explore the regulatory behaviour of companies by applying a synthesis of behavioural theories of regulatory compliance and transnational market regulation. Informed by qualitative and quantitative mixed methods, this study finds that EUTR compliance is influenced by operators' regulative, economic, normative and cultural‐cognitive motivations. The empirical analyses reveal that larger, publicly exposed companies are driven to comply through social pressure and the deterrence effect of sanctions and control. Operators' perceptions of the costs and benefits do not explain compliance behaviour in a significant, quantitative way. The Internal values to abide by the law are found to be a stronger motivator than economic cost–benefit calculations.

Unravelling Factors Influencing the Mutually Agreed Solution in International Trade Disputes: An Empirical Exploration Based on WTO Disputes

Abstract This study explores the factors influencing the achievement of a mutually agreed solution (MAS) in international trade disputes, drawing insights and patterns from the WTO dispute experience. Through an in-depth examination of prevailing literature and compliance theories, the research pinpoints various factors that impact the achievement of MAS in WTO disputes, including the dynamics of economic size, experience in WTO litigation, reputation as a respondent, and costs in time. The results, obtained through a probit model, reveal the significance of economic size in achieving MAS, where the complainant’s GDP surpasses that of the respondent but not the per capita GDP and trade ratio. Originally, this study discloses that experience in WTO litigation as a disputing party and reputation as the respondent also influence the willingness to settle amicably. While this research primarily centres on the WTO, its findings, derived from WTO data, have broader implications. The identified factors are not only pertinent to WTO members but also hold relevance for solving trade disputes between states. Recognizing these factors is crucial for policymakers across different trade platforms to devise strategies that bolster collaboration and elevate the efficacy of their respective dispute-resolution mechanisms. By illuminating the complexities of the decision-making processes in achieving MAS, this study offers invaluable insights. These insights are instrumental for all stakeholders involved in trade disputes, guiding them towards forging consensus-driven solutions that uphold the principles of just and balanced international trade.

Determining the Level of Tax Awareness and Factors Affecting Tax Compliance of Ready-to-Wear Businesses in Solano, Nueva Vizcaya 3709

The paper explored the intricacies of tax awareness and compliance among Ready-to-Wear (RTW) businesses that fall under the category of micro enterprises in Solano, Nueva Vizcaya, Philippines. The study employed theories of compliance and awareness as its conceptual framework, aiming to identify the factors that influence tax compliance and awareness among these businesses. It considered various demographic variables such as age, educational attainment, gender, and years in business operation as potential influencers. The study utilized a descriptive-comparative research design and collected data through a survey questionnaire. The findings indicate that the respondents have a high level of awareness of their tax rights and responsibilities, particularly regarding issuing receipts and invoices. However, they may need more understanding of tax return filing dates and timely tax payments. The factors influencing tax compliance include fines and penalties, the probability of being audited, financial constraints, tax knowledge, and peer influence. Non-compliance reasons include unawareness of laws, financial burden, and high tax rates. Recommendations include simplifying procedures, reducing tax rates, and improving tax education through socialization efforts. The study also highlights the importance of fines and penalties in promoting tax compliance. The paper is significant not just for tax authorities but also for the businesses themselves, offering them a clearer understanding of the importance of tax compliance and the implications of non-compliance. Overall, the paper serves as a multi-faceted exploration into the realm of taxation among micro enterprises, with a specific focus on the RTW businesses in Solano, Nueva Vizcaya.

Upaya Pemerintah Provinsi Riau dalam Menangani Kasus Kebakaran Hutan Riau berdasarkan ASEAN Agreement on Transboundary Haze Pollution

This research discusses the efforts of the Riau Provincial Government in raising awareness among the local community to prevent forest and land fires, which have become a serious issue in the Southeast Asian region. Grounded in the theories of compliance, neoliberal institutionalism, and the concept of international regimes, this study reveals that Indonesia, as the main actor in the ASEAN Agreement on Transboundary Haze Pollution (AATHP), has made efforts to comply with the agreement. Preventive measures against forest and land fires involve the central and local governments, as well as the active participation of local communities. Education and socialization programs about the dangers of forest and land fires, relevant regulations, and their negative impacts are crucial components of the prevention strategy. Furthermore, private companies such as Asian Agri and PT SRL play a significant role in supporting these prevention programs. The research findings indicate that despite numerous efforts, the issues of forest fires and transboundary air pollution remain serious concerns in the Southeast Asian region. AATHP, as a binding legal framework for Indonesia, requires more extensive and sustainable efforts to achieve the desired goals of preventing transboundary air pollution. Community awareness and cooperation between government, private entities, and NGOs will be key to addressing this issue.

Factors influencing Voluntary Tax Compliance Among Small and Medium sized Enterprises in Kenya

Tax compliance is essential for generating revenue to fund government activities and public services. Despite the efforts of the Kenyan Revenue Authority (KRA), compliance remains a challenge due to factors such as complex tax systems, high compliance costs, and negative taxpayer attitudes. The study examines the factors that influence voluntary tax compliance, including information availability, tax compliance costs, and individual attitudes and perceptions. It delves into tax compliance theories, such as the Contingency Theory of Taxation and the Ability to Pay Theory, shedding light on their impact on organizational behavior and financial performance. Empirical evidence from previous studies is discussed, highlighting the importance of tax education and the perception of tax fairness in promoting compliance. The study also identifies challenges specific to Kenya, such as a complex tax system, high compliance costs, and negative attitudes toward taxation, which hinder compliance, particularly among SMEs. It underscores the efforts made by the Kenyan Revenue Authority (KRA) to enhance compliance but acknowledges the persistence of challenges. The abstract concludes by emphasizing the need for a comprehensive understanding of tax compliance to ensure an equitable and efficient tax system that supports economic growth and national development in Kenya and other developing nations.

Offer money, they will accept: linkages between authoritarian tendencies and clientelist targeting in Africa

ABSTRACT Understanding clientelist practices is one of the core issues to unravel to ensure the proper functioning of electoral institutions. This article focuses on the decision of patrons/brokers on who to target, introducing a new norm into the picture – authoritarianism. Building on the theories of norm-based compliance, I argued that authoritarian individuals should be more frequently targeted, as they should be more likely to comply with brokers demands without external monitoring. I posit that this is true because authoritarian individuals should be more willing to submit to the will and demands of authorities (brokers), and because they are likely to evaluate clientelism as morally acceptable and a legitimate electoral strategy. Furthermore, the rate of authoritarian targeting should be higher in institutional settings that limit the overall reach of clientelism. Utilizing Afrobarometer (2011-2013) data for 34 countries, through multilevel regression modelling I show that authoritarian individuals do have a higher chance of being targeted with the strength of this association increasing as the district magnitude rises. This article opens a new avenue of research that introduces individual level authoritarianism into the literature on clientelist targeting and complements the norm-based compliance approach with a focus on a new and potentially influential norm.

Online but unlawful sales of unapproved and misbranded prescription drugs: Internet pharmacy compliance with Food and Drug Administration warning letters

AbstractConsumers increasingly use online pharmacies. However, illicit online pharmacies endanger consumer welfare with unapproved and counterfeit drugs. By linking Food and Drug Administration (FDA) warning letter content with observations of the 1108 websites cited in those letters, we identify factors associated with FDA‐requested compliance and active/inactive website status. One in five online pharmacies failed to comply with FDA recommendations. Findings support the cost/benefit, social norm, and instrumental theories of compliance. Compliance declines with cost (e.g., when the FDA requests changes to more drug categories). Organized crime's social norms encourage law breaking; thus, illicit pharmacies comply less than other online pharmacies. Instrumental theory suggests perceived severity and certainty of penalties influences compliance. In support, when political will and attention focused on the opioid crisis, the FDA cited primarily opioid‐related violations and these opioid‐related letters increased compliance and website closures. Finally, we recommend improved consumer protection efforts to address internet pharmaceutical distribution challenges.

Examining the Tax Administration Law of Ethiopia in Light of the Tax Compliance Theories

The problem of tax non-compliance is a serious global phenomenon, especially in developing and least developed countries. In this regard, states design their tax administration laws and tax compliance rules in light of the two most dominant tax compliance theories: deterrence theory and behavioural theory of tax compliance. These theories are ideals or indexes of a good tax administration system. It is thus important to examine the base or policy of tax compliance rules of the tax administration laws of Ethiopia. This Article examines when and in what forms the tax administration law of Ethiopia is designed to embody the tax compliance theories. Doctrinal research method is used and the major findings show that –like many countries– the tax administration proclamation of Ethiopia is largely designed in consideration of the economic deterrence model to achieve taxpayers’ compliance which depends on audit and penalties when tax is evaded. However, this approach is criticized due to its administrative inefficiency and its inability to build equitable tax system. Aside from tax penalties, tax administration policies and practice in Ethiopia should give much attention to changing individual taxpayers’ attitudes toward the tax system. This requires improving its perceived fairness and equity, making government expenditure in the best interest of the taxpayers, improving procedural justice, tax education, establishing the culture of mutual respect between tax authorities and taxpayers, and making it easy to comply with the tax laws.

Attitudes and behaviors for understanding compliance in Greenland's Atlantic salmon (Salmo salar) fishery

AbstractNoncompliance is a central challenge for conservation, but in settings with limited access to behavioral data, it can be difficult to evaluate what drives compliance. Conservationists can measure and evaluate resource users' attitudes, and in so doing, leverage a complementary, nonbehavioral measure for evaluating compliance. In Greenland, wild Atlantic salmon (Salmo salar) fishers are under increasing regulatory pressure to report salmon catch because the majority of North Atlantic salmon stocks are classified as suffering. The objective of this study is to measure salmon catch reporting compliance, reporting behavior, and attitudes toward Greenland's salmon management. We surveyed Greenland's licensed salmon fishers, used an unmatched count technique to estimate the incidence of underreporting salmon catch, and linked salmon fishers' actual catch reports to their survey responses. In 2019, more than 84% of salmon fishers reported their catch and demonstrating high levels of compliance. We also found that salmon fishers did not indicate strong instrumental motivations for reporting, but exhibited moral obligations and normative, legitimacy‐based motivations to report catch. Salmon fishers found regulations to be fair, and that regulatory authorities were professional and acted honestly. Catch underreporting was also remarkably low, with 90–94% of respondents stating that they report all their catch. Joining together individuals' attitudinal and behavioral responses to conservation rules illustrates the benefits and limitations of expanding actor‐based theories of compliance. This case of already high levels of compliance offers empirical evidence for further improving fisheries compliance, and it also illustrates the limitations that fishery managers face when conserving a highly migratory species.

A Network Approach to Compliance: A Complexity Science Understanding of How Rules Shape Behavior

To understand how compliance develops both in everyday and corporate environments, it is crucial to understand how different mechanisms work together to shape individuals’ (non)compliant behavior. Existing compliance studies typically focus on a subset of theories (i.e., rational choice theories, social theories, legitimacy theories, capacity theories, and opportunity theories) to understand how key variables from one or several of these theories shape individual compliance. The present study provides a first integrated understanding of compliance, rooted in complexity science, in which key elements from these theories are considered simultaneously, and their relations to compliance and each other are explored using network analysis. This approach is developed by analyzing online survey data (N = 562) about compliance with COVID-19 mitigation measures. Traditional regression analysis shows that elements from nearly all major compliance theories (except for social theories) are associated with compliance. The network analysis revealed groupings and interconnections of variables that did not track the existing compliance theories and point to a complexity overlooked in existing compliance research. These findings demonstrate a fundamentally different perspective on compliance, which moves away from traditional narrow, non-network approaches. Instead, they showcase a complexity science understanding of compliance, in which compliance is understood as a network of interacting variables derived from different theories that interact with compliance. This points to a new research agenda that is oriented on mapping compliance networks, and testing and modelling how regulatory and management interventions interact with each other and compliance within such networks.

Perception and Process: Towards a Behavioural Theory of Compliance

ABSTRACT Nowhere is the integration of behavioural insights into international legal theory more important than in relation to compliance. Such insights offer the potential to give us a more accurate understanding of how states behave, permitting both the development of more effective, empirically grounded normative propositions for legal and institutional change, as well as the creation of more convincing theories of compliance. Drawing on theoretical, empirical and experimental studies from political science and international relations, the article suggests that we need to understand compliance decision-making as a broader process that requires analysis of how and why decision-makers perceive new information the way that they do, and how the process by which they make decisions, such as their style of reasoning, might affect decision outcomes. To develop this point, the article uses data from international financial institutions and a novel sentiment analysis of Argentinian parliamentary debates to test empirically hypotheses generated by realist, liberal, and constructivist theories of compliance, the results of which demonstrate the benefit of adopting a behavioural approach to compliance.

Advancing Applied Research in Conservation Criminology Through the Evaluation of Corruption Prevention, Enhancing Compliance, and Reducing Recidivism

Concomitant with an increase in the global illegal wildlife trade has been a substantial increase in research within traditional conservation-based sciences and conservation and green criminology. While the integration of criminological theories and methods into the wildlife conservation context has advanced our understanding of and practical responses to illegal wildlife trade, there remain discrepancies between the number of empirical vs. conceptual studies and a disproportionate focus on a few select theories, geographical contexts, and taxonomic groups. We present three understudied or novel applications of criminology and criminal justice research within the fields of fisheries, forestry, and wildlife conservation. First, we highlight criminological research on the application of corruption prevention in combating the illegal wildlife trade. Corruption has increasingly been getting attention from the non-governmental sector; however, there has been limited research aimed at understanding institutional opportunity structures, local conceptualizations of corruption, and the corresponding prevention strategies within conservation contexts. Second, we discuss the pre-emptive application of compliance theories when designing and monitoring Community-Based Conservation (CBC) programs such as community forestry, non-timber forest products, and community patrol programs. Applying opportunity theory and social development strategies are two suggestions to improve the effectiveness of CBCs in forestry and beyond. Finally, we present a discussion on recidivism (i.e., repeat offending) and non-instrumental or novel responses, utilizing illegal fishing as a case study. We present two alternative methods to traditional forms of punishment: restorative justice and community-based approaches. Lastly, we will present a diversity of priority research agendas within each of these topics.

Unimplementable by design? Understanding (non‐)compliance with International Monetary Fund policy conditionality

AbstractWhy do governments fail to implement policy commitments in contractual agreements with international organizations? While scholars have scrutinized domestic factors as obstacles to compliance, we argue that reform programs may beunimplementable by design. We study this hypothesis in the context of International Monetary Fund (IMF) programs, in which borrowing countries must commit to far‐reaching economic policy reforms for access to credit. We collect detailed compliance data on individual policy conditions to assess the determinants of compliance failures of IMF programs from 1980 to 2009. Controlling for a host of borrower‐specific variables, features of the loan, unexpected shocks during implementation, donor influence, and bureaucratic interest, we find that the number of conditions is a robust predictor of implementation failure. Our theoretical explanation for these findings is that over‐ambitious program designs are the result of intra‐organizational bargaining within the IMF bureaucracy. While an area department within the IMF drafts the initial reform program, functional departments use their amendment power to include policy conditions that they care about, without due consideration of local circumstances, which leads to over‐ambitious programs. These findings have important implications for theories of compliance as well as for policymaking in international organizations.

Calling for Compliance. Transnational Advocacy Networks in the Mediterranean Sea. A Case Study on Norm Compliance at Europe’s Liquid Borders

The paper observes compliance theories on transnational advocacy networks in the Mediterranean Sea; a multinational border region being widely considered as the “deadliest border” in the world. This situation has led to a measurable “rush to the sea” of organisations which belong to Transnational Advocacy Networks (TAN) or define themselves as “humanitarians”. Part of today’s theory on the impact of transnational advocacy networks is that consistent and continuous engagement of TAN leads to increased norm commitment and even norm compliance in states with strong institutions. However, after the implementation of a system of bilateral treaties (2017 Italy - Libya, 2016 Turkey and European Union (EU))1 by the EU, the number of travellers reaching EU soil has significantly decreased. Additionally, changing political circumstances in Libya and internal policies of EU member states have contributed to lowering the number of arrivals.

Giving ‘teeth’ to the African Union towards advancing compliance with data privacy norms

ABSTRACT That international organizations have always played a pivotal role in the development and advancement of data privacy norms is now beyond doubt. With regard to advancing compliance specifically, the role of international organizations cannot be overemphasized. Although data privacy is no longer new to Africa, compliance with data privacy norms has been significantly lower compared to other jurisdictions. A (possible) explanation for this is that the primary regional organization on the continent – the African (AU) – has played an insignificant role in this regard. Related to this explanation is the usual contention that the absence of a settled normative standard is a reason for the low level of compliance. Since there is now a continental data privacy standard in Africa - the AU Data Protection Convention - the question remains why is compliance still low. Therefore, using insights from the normative and institutional theories of state compliance with international norms, the article examines why there is still a low compliance rate. The article then suggests how to strengthen the AU towards advancing compliance with data privacy norms on the continent.

Theories of tax compliance as a basis of tax control strategies

The relevance of the problems of tax compliance and tax control is due to the character of tax relations and the versatility of the subjects of these relations. Tax control strategies
 determine the behavior of taxpayers. This study makes it possible to determine the uncertainty
 regarding various types of tax compliance in the formation of state tax control strategies. The
 article substantiates the priority of theories of tax compliance in relation to various strategies of
 state tax control. This study is based on the institutional-tort approach, systematization and
 comparative analysis. Tax control is considered as a mechanism for influencing the behavior
 of taxpayers through economic and non-economic deterrence. The results reflect the specifics
 of the theoretical basis of each type of tax control strategy. Three key theoretical concepts
 have been singled out: containment theory, behaviorism theory, signal theory. And their corresponding tax control strategies are enforcement strategy, service strategy, trust strategy. Similar features and peculiarities, pluses, minuses of motivational approaches are disclosed. The
 necessity of their productive combination in modern conditions is determined. The complex
 combination of the considered theoretical basis in a unified strategy of state tax control allows
 you to take into account the maximum range of factors of tax compliance, tax tort to prevent
 and exclude opportunistic behavior. The substantiated priority of tax compliance theories as
 the basis of various tax control strategies in tax administration creates the basis for the search
 for new motivational tools in improving tax relations at different stages of society development.

Measuring norms using social survey data

AbstractThis paper proposes a novel measure of civic norm compliance. We combine the literature on norm compliance from institutional economics and social philosophy. Institutional economics draws on survey data to measure civic norms, whereas social philosophy offers a theoretical framework that proves fruitful when used to operationalize civic norms. This paper shows that significantly different results emerge when the operationalization of civic norms in institutional economics draws on the theoretical framework that social philosophy offers. Furthermore, this study is relevant for social philosophy too, as it shows the potential of survey data as a test-bed for philosophical theories of norm compliance.