The Resource Tax and corruption : is sunlight the best disinfectant? A New Zealand case study

Tax and corruption : is sunlight the best disinfectant? A New Zealand case study

Label
Tax and corruption : is sunlight the best disinfectant? A New Zealand case study
Title
Tax and corruption : is sunlight the best disinfectant? A New Zealand case study
Creator
Subject
Language
eng
Summary
This article focuses on the connection between tax systems and corruption. Countries benefit in multiple ways from the perception of low levels of corruption. Thus, greater focus is visible in many jurisdictions on increasing regulation to address corrupt activity. This article questions whether international pressure or national concerns are more likely to generate regulatory change in relation to the role of the tax system in facilitating corrupt activities. A historical institutionalist framework is used for analytical purposes. New Zealand is used as a case study to examine this issue. This article explores two activities: the tax treatment of facilitation payments made to overseas public officials; and the tax treatment and disclosure requirements of foreign trusts. Facilitation payments made to overseas public officials are deductible for tax purposes in New Zealand. Current practice is showing no sign of change, despite perceptions that this practice denotes a permissive attitude towards corruption and is no longer tolerated in most other comparable tax jurisdictions. The tax treatment and disclosure requirements of foreign trusts together with the link between tax and corruption in New Zealand was highlighted with the release of the Panama Papers. This event generated international media interest with the suggestion that New Zealand was acting as a tax haven. The Panama Papers release resulted in an immediate inquiry, rapid production of a report with multiple recommended changes to extant practice and government agreement to act on all recommendations. The article concludes that sunlight is indeed the best disinfectant for addressing corrupt activities. However, protecting a country's international reputation is likely to be a greater catalyst in achieving change than a country's domestic concerns
Citation source
In: eJournal of Tax Research. - Sydney. - Vol. 15 (2017), no. 2 ; p. 262-289
http://library.link/vocab/creatorName
Marriott, L
Geographic coverage
Pacific Islands
Language note
English
http://library.link/vocab/subjectName
  • corruption
  • tax system
  • trust
  • disclosure
Label
Tax and corruption : is sunlight the best disinfectant? A New Zealand case study
Instantiates
Publication
Label
Tax and corruption : is sunlight the best disinfectant? A New Zealand case study
Publication

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