JOURNAL OF MANAGEMENT POLICY AND PRACTICE
Risk Classification as an Incentive to Taxpayers’ Compliance
Author(s): Eduardo Almeida Mota, Luciano Quinto Lanz
Citation: Eduardo Almeida Mota, Luciano Quinto Lanz, (2018)"Risk Classification as an Incentive to Taxpayers’ Compliance ," Journal of Management Policy and Practice, Vol. 19, Iss. 2, pp. 10-24
Article Type: Research paper
Publisher: North American Business Press
Abstract:
Managing and improving tax compliance is a main challenge for tax administrations. They seek
compliance through monitoring, auditing and punishing penalties. This paper proposes a model based on trustworthy, transparency and incentives. The proposal is a classification of tax liability risk of
companies and incentives to consistent compliance behavior. These incentives include simplified
monitoring and auditing procedures, and self-regularization options. It can improve companies’
reputation, credit access, transparency and align interest with the taxpayers. The theoretical foundations are tax segmentation and compliance models, interorganizational trust and local productive clusters. The article presents the main challenges and opportunities for further research.