Procedural justice and tax compliance

Throughout the 1990s, tens of thousands of Australian taxpayers invested in mass-marketed tax effective schemes. They enjoyed generous tax breaks until the Australian Taxation Office (ATO) told them in 1998 that they abused the system. This study examines the circumstances surrounding taxpayers' decision to invest in scheme arrangements. It also explores investors' perceptions of the way the ATO handled the schemes issue and, perhaps more importantly, why such a large number of investors defied the ATO's demands that they pay back taxes. Data were taken from in-depth interviews conducted with 29 scheme investors. Consistent with the procedural justice literature, the findings revealed that many of the scheme investors interviewed defied the ATO's demands because the procedures the ATO used to handle the situation were perceived to be unfair. Given these findings, it will be argued that to effectively shape desired behaviour, regulators will need to move beyond enforcement strategies linked purely to deterrence. A strategy that aims to emphasise the procedural justice aspects of a regulatory encounter will be discussed.

Regulating more effectively : the relationship between procedural justice, legitimacy and tax non-compliance

In recent years, a significant number of middle-income taxpayers have been making use of aggressive tax planning strategies to reduce tax. In many cases, it is unclear whether these are designed and used by tax- payers to minimize tax legally or to avoid tax illegally. Those that are designed to exploit loopholes in tax law need to be dealt with in a way that restores faith and equity to the system. But how can tax authorities best manage taxpayers who may have inadvertently become involved in such illegal tax planning practices? Using longitudinal survey data, it will be shown that attempts to coerce and threaten taxpayers into compliance can undermine the legitimacy of the Tax Office's authority, which in turn can affect taxpayers' subsequent compliance behaviour. Responsive regulation, which is based on principles of procedural justice, will be discussed as an alternative enforcement strategy.

Procedural justice and Australian environment : the case of the Wonthaggi water desalination plant

Drier conditions in Australia have compelled governments to implement various projects to address current or impending water shortages. Such projects have not always been popular with the local community who are directly affected by this infrastructure, with 'procedural justice' emerging as a critical issue. This paper analyses issues of public perceptions of 'procedural justice' in implementing environmental projects in regional areas, in the context of the recently approved desalination plant in the regional Victorian town of Wonthaggi. Drawing on both qualitative and quantitative data from a survey of 316 Wonthaggi residents, we show that one of the major predictors of residents' resistance toward accepting the building of the desalination plant was explained by perceptions of procedural injustice. We further argue that inadequate attention to the particular political history of the region has compounded the sense that the plant implementation has been unfair. Attention to such political histories is vital to avoiding conflict with local stakeholders and to the successful and ethical implementation of development projects in regional areas.

Damming the flow: cultural barriers to perceived ‘procedural justice’ in Wonthaggi, Victoria

 Drier conditions in Australia have compelled governments to implement projects such as the desalination plant in the South Gippsland town of Wonthaggi. The desalination plant is still under construction, but South Gippsland is already host to wind turbines and marine protected areas, reflecting public pressure to develop renewable energy sources and conserve resources. However, all projects have been met with vocal opposition. Using the desalination project as a case study, this paper will address public concerns about a perceived lack of procedural justice in implementing such projects. Drawing on data from a pilot survey of 320 residents, we argue that procedural shortcomings of the project include inattention to past political disputes in the region and to the culturally entrenched sense of division between city and country. Attention to political and cultural histories is vital to the successful and ethical implementation of projects in regional areas.

Police legitimacy, ideology and qualitative methods: a critique of procedural justice theory

I argue that there are unconsidered complexities to police legitimacy and use examples from my study of police–public consultation forums in Edinburgh, Scotland to illustrate. I make a number of conceptual and methodological critiques by drawing upon Steven Lukes’ social theory on power to show how legitimacy can be a product of authority relations as much as it is a cause of authority relations. This view finds support from systems-justification theory. I also tackle Beetham’s conception of legitimacy and argue that there is evidence from police studies that the police breach his key antecedents to legitimacy without incurring the expected consequences. Furthermore, I take an original methodological approach to studying police legitimacy which reveals additional insights. For instance, Bottoms and Tankebe suggest legitimacy addresses multiple ‘audiences’; I would also add that it addresses multiple recipients as legitimacy is shown to vary among officers and positions of rank.

The impact of LMX differentiation on perceptions of team conflict and procedural justice climate

The fundamental tenet of Leader Member Exchange (LMX) theory is that leaders develop different quality relationships with each of their employees; however, to our knowledge, no study has investigated the impact of LMX differentiation on teams. Drawing upon the justice literature, we suggest that fostering different quality LMX relationships runs counter to principles of equality' and consistency, which are important for maintaining social harmony in groups, and perceptions of procedural fairness. We therefore propose that differential treatment of employees by the leader (as indicated by within-team variability in LMX relationships) will have a negative effect on team reladons, and percepdons of procedural jusdce climate. Two samples of employed individuals are used to invesdgate the hypothesized reladonships. Sample A consists of 74 individuals from a variety of occupadonal and organisadonal backgrounds, and Sample B consists of 152 individuals from an Australian organisadon dealing in the sale and service of heavy machiner)'. In both samples, high LMX variability within teams is associated with higher reports of team reladonal conflict, and lower reports of procedural jusdce climate. The results suggest that leaders may need to be caudous about fostering special relationships with only a select subset of employees.