Coercion or persuasion? Making large corporations tax compliant in Bangladesh

Akhand, MD Zakir Hossain (2012). Coercion or persuasion? Making large corporations tax compliant in Bangladesh. University of Birmingham. Ph.D.

Preview

Akhand_12_PhD.pdf
PDF - Accepted Version
Download (8MB)

Abstract

To induce tax compliance, two opposite approaches are used: the coercive and the persuasive: firm action versus collaboration. Little attention has been paid to the comparative success of these two approaches – a situation this thesis seeks to remedy by investigating the effectiveness of three coercive and three persuasive instruments among large corporate taxpayers registered with the LTU of Bangladesh. Following an analysis of survey data using binary and multilevel logit and CHAID models, and an analysis of elite interviews employing an interpretivist approach, the findings suggest that coercion or persuasion are less likely to improve tax compliance when used separately than when used in combination, although coercion seems the more powerful of the two. Factors underlying the power of the coercive approach are the rationality and regularity of its application, along with its legal and financial imperatives. Reasons contributing to the appeal of the persuasive approach are a reduction in tax compliance costs, an improvement in accountability and a reduction in knowledge gaps between taxpayers and tax administrators, and coordination of the various tax laws.

Type of Work:

Thesis (Doctorates > Ph.D.)

Award Type:

Doctorates > Ph.D.

Supervisor(s):