Kantian–Nashian interaction and petty tax corruption in developing countries

Purpose This paper attempts to develop a simple, static model of tax administration that is capable of explaining the widespread collusive petty tax administration corruption observed in developing countries. Design/methodology/approach This paper utilizes a positivist research framework and adopts...

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Bibliographic Details
Published inFulbright Review of Economics and Policy Vol. 3; no. 2; pp. 244 - 261
Main Author Tran-Nam, Binh
Format Journal Article
LanguageEnglish
Published Bingley Emerald Group Publishing Limited 06.12.2023
Emerald Publishing
Subjects
Auditors
Bribery
Corruption
Developing countries
Economics
Enforcement
Fiscal policy
Kantian
LDCs
Management
Nashian
Petty tax corruption
Power
Public sector
Research methodology
Simplification
Tax administration
Tax evasion
Taxation
Vietnam
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Summary:Purpose This paper attempts to develop a simple, static model of tax administration that is capable of explaining the widespread collusive petty tax administration corruption observed in developing countries. Design/methodology/approach This paper utilizes a positivist research framework and adopts a theoretical method of analysis, although secondary data will also be mentioned to support theoretical arguments whenever it is appropriate to do so. Findings A high rate of collusive tax corruption is inevitable in developing countries. Research limitations/implications The model is static and needs to be extended into a dynamic model. Practical implications Traditional enforcement tools such as higher audits or a higher penalty regime against tax evasion do not work. Tax simplification can lessen the incidence of tax corruption. Social implications Fighting tax corruption requires significant changes in the attitudes of taxpayers and tax auditors. Originality/value This paper combines the literature on Kantian economics and tax compliance in an innovative fashion.
ISSN:2635-0173
2635-0181
DOI:10.1108/FREP-05-2023-0018