The employers' perspective of the impact of RICS education reform on building surveying

Purpose: This paper seeks to present the second part of research funded by the RICS Education Trust to investigate the impact of the 2001 education reforms on Building Surveying. The first part of the research involved the collection of data from university course leaders.

Design/methodology/approach: This research involved the collection of data from large national, mainly London-based, employers of building surveyors at a focus group meeting.

Findings: The paper finds that issues of concern to these employers include the extent of construction technology knowledge of graduates, the delivery of contract administration, the placement year, post-graduate conversion courses and the high referral rate for the Assessment of Professional Competence (APC). Recommendations include advice to universities on the design of building surveying undergraduate and conversion courses, a call for further research on the high APC referral rate, and greater liaison between industry and universities.

Research limitations/implications: The main limitation of the research is that the employers from whom data were collected were mainly large, national firms. Further research would be required to elicit the views of smaller regional organisations.

Practical implications: Both parts of this RICS Education Trust funded research provides a foundation for the Building Surveying Faculty of the RICS to complete their review of the education and training of building surveyors.

Originality/value: The research provides useful data on the impact of RICS education reform on building surveying, but mainly large, national firms.

An examination of taxpayers' attitutes towards the Australian Tax System : findings from a survey of tax scheme investors

In recent years, the number of taxpayers involved in aggressive tax planning has more than doubled, posing a serious threat to the integrity of Australia's tax system. To deal with the problem, the Australian Taxation Office (ATO) implemented a number of initiatives aimed at combating aggressive tax planning. Part of the ATO's crackdown involved issuing amended assessments to the 42,000 Australians who invested in mass marketed tax schemes. The majority of investors, however, resisted the ATO's attempts to recover scheme related tax debts. This paper discusses the findings of an empirical study that shows that the resistance was due partly to the manner in which the ATO dealt with the schemes issue. Using survey data collected from 2301 tax scheme investors, and 2040 taxpayers from the general population, it will be shown that those who invested in tax schemes are more disillusioned with the tax system, are more hostile and resistant toward the ATO, and are more likely to resent paying tax as a result.

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.

Aggressive tax planning : differentiating those playing the game from those who don't

The study reported in this paper examined a group of Australian taxpayers who have expressed a preference for a creative and aggressive tax agent. The study attempted to understand how high-risk taxpayers and high-risk practitioners form their partnerships by examining aggressive taxpayers' attitudes and perceptions of the Australian tax system. Data were taken from 2040 Australian taxpayers who had responded to a national survey on tax issues. Results from a series of independent sample t-tests revealed that there are a number of important differences between 'aggressive' and 'non-aggressive' taxpayers. Finally, a logistic regression analysis was used to determine which variables most effectively differentiated aggressive taxpayers from non-aggressive taxpayers. The findings are discussed in a regulatory context and possible solutions for how tax authorities might deal with this high-risk group of taxpayer are suggested.

The role of trust in nurturing compliance : a study of accused tax avoiders

Why an institution’s rules and regulations are obeyed or disobeyed is an important question for regulatory agencies. This paper discusses the findings of an empirical study that shows that the use of threat and legal coercion as a regulatory tool—in addition to being more expensive to implement — can sometimes be ineffective in gaining compliance. Using survey data collected from 2,292 taxpayers accused of tax avoidance, it will be demonstrated that variables such as trust need to be considered when managing noncompliance. If regulators are seen to be acting fairly, people will trust the motives of that authority, and will defer to their decisions voluntarily. This paper therefore argues that to shape desired behavior, regulators will need to move beyond motivation linked purely to deterrence. Strategies directed at reducing levels of distrust between the two sides may prove particularly effective in gaining voluntary compliance with an organization’s rules and regulations.

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.

Tax morale in Australia : what shapes it and has it changed over time?

Why taxpayers pay their taxes voluntarily is an important question for tax administrations worldwide. Some believe it is because taxpayers are deterred from tax evasion out of a fear of being caught or penalized. Others, in contrast, suggest that factors such as the level of tax morale one has (ie, the intrinsic motivation one has to pay their tax) affects compliance behaviour. While there have been numerous empirical studies published that have explored the role of deterrence on tax compliance behaviour, very few studies have explored the concept of tax morale in any detail. This article therefore attempts to rectify this gap in the literature. If tax morale is important in determining compliance behaviour, as several researchers have suggested, then it is also important to understand what might affect one’s level of tax morale. The specific aim of this article will be to identify factors that shape or have an impact on tax morale. Using data collected from the Australian waves of the 1981 and 1995 World Values Survey, this study will demonstrate that factors such as trust and moral beliefs plan an important role in shaping tax morale in Australia. Further, it will be shown that tax morale has increased significantly in Australia since the early 1980s, and that it has done so at a faster rate than many other OECD countries. Possible explanations for this increase will be discussed.

The impact of RICS education reform on building surveying

Purpose – It is of major concern to the surveying profession that the seven years between 1994 and 2001 witnessed a decline in the numbers of UK student surveyors of nearly 50 per cent. This was significant, especially when considered in the context of rising student numbers overall. The RICS decided to implement an education policy with the aim of increasing graduate quality. Changes were introduced in UK universities from September 2001. A number of universities saw their professionally accredited courses withdrawn as the RICS imposed  academic entry standards and research output based on the UK Government's Research Assessment Exercise (RAE) criteria on which to base their “partnership” relationships. Figures released by the RICS in 2003 indicated that surveying student numbers increased by 17 per cent in all areas except building surveying, where they fell by just under 25 per cent to 445 in 2001. The paper seeks to answer a number of questions. Why were building surveying courses failing to recruit students whereas other surveying courses have increased their numbers? If the figures continue to decline or remain at these low levels, what is the future for the BS? In short, could building surveying become an endangered profession?
Design/methodology/approach – All UK university BS course leaders were approached by questionnaire and approximately half responded. The study was partly funded by the RICS Education Trust.
Findings – The small amount of quantitative data collected suggests that recruitment is static at a time when other built environment courses are recruiting well. Course leaders expressed strong views about the impact of the education reforms.
Research limitations/implications – Failure by some BS course leaders to provide some statistical data prevented completion of the quantitative part of the study.
Originality/value – Key recommendations have been made to the BS Faculty Board of the RICS about the future of BS education.