Professional Documents
Culture Documents
A B S T R A C T
The
global
financial
crisis
led
to
a
shift
in
the
fight
against
tax
evasion.
While
many
actors
and
institutions
were
blamed
for
the
crisis,
some
tax
experts
formulated
models
aimed
at
preventing
and
addressing
the
crisis.
Using
a
sociology
of
translation
approach,
I
analyse
how
despite
the
shift,
several
actors
are
constantly
engaged
in
negotiations
about
the
concept
of
tax
compliance.
The
Enhanced
Relationship
Model,
was
formulated
by
the
OECD
to
improve
economic
and
social
well-being
of
their
member
countries.
In
the
midst
of
the
crisis,
the
OECD
strategically
positioned
itself
as
the
leading
advisor
and
policymaker.
Using
Callons
study
of
the
Scallops,
I
focus
on
unveiling
how
the
knowledge
is
produced
accepted
as
facts
within
member
countries
that
adopt
the
policy.
My
essay
will
be
concerned
on
how
STS
can
contribute
to
an
understanding
of
transfer
of
knowledge
in
the
global
realm
of
producing
and
sharing
knowledge.
1. I NTRODUCTION
2.
T AX
C OMPLIANCE
Tax
compliance
is
defined
as
the
degree
to
which
taxpayers
comply
with
the
tax
law (Boll
2011).
How
can
researchers
and
academics
in
STS
study
the
concept
and
process
of
tax
compliance?
Karen
Boll
(2011)
employed
an
ANT
approach
to
see
how
the
phenomenon
of
tax
compliance
is
assembled
within
various
networks
of
actors
(Boll
2011).
While
this
has
been
very
important
in
understanding
how
new
actors
are
constantly
being
made,
I
felt
like
it
did
not
provide
explanations
or
demonstrate
how
knowledge
about
tax
compliance
is
produced
and
made
into
a
fact
that
is
accepted
and
replicated
in
the
global
sphere.
My
approach
is
centred
on
how
the
processes
of
translation
can
reveal
how
the
network
of
the
knowledge
production
in
tax
compliance
is
built
and
maintain
through
interactions
between
tax
experts,
advisors,
administrators
and
taxpayers.
I
aim
to
analyse
how
actors
have
positioned
themselves
to
become
very
relevant
in
the
global
fight
against
tax
evasion.
I
analyse
how
the
knowledge
has
been
translated
through
its
networks
and
actors
creating
new
forms
of
networks
and
actors.
2.1 T H E C O N C E P T O F T A X C O M P L IA N C E
Tax
policies
are
political
and
shifts
in
political
leadership
are
followed
with
revised
taxation
policies.
The
right
wing
governments
are
known
to
favour
large
multinational
companies
while
the
left
wings
give
tax
reliefs
to
the
common
citizens (D'Arcy 2011).
Tax
compliance
is
therefore
related
to
the
political,
social
and
economical
dynamics
at
play
in
the
country.
However
as
with
many
concepts,
tax
compliance,
is
translated
in
different
arrays
based
on
the
above-mentioned
dynamics.
It
could
be
translated
as
a
law
enforcement
approach,
an
economic
model
devised
to
increase
tax
compliance
or
even
as
behavioural
psychological
approach
that
aims
to
get
tax
payers
to
behave
or
perform
in
a
compliant
way
(James
&
Alley
2010).
However
there
are
many
factors
that
determine
tax
compliance
because
the
state
and
the
citizen
are
in
constant
negotiations
about
taxation.
These
negotiations
happen
vertically
between
the
state
and
the
citizens
based
on
the
services
delivered
in
exchange,
horizontally
based
on
the
extent
on
the
citizens
national
consciousness
and
trust
of
the
government
and
thirdly
comparatively
based
on
the
equal
treatment
of
the
citizens
by
the
state
(D'Arcy
2011).
These
relationships
mentioned
above
differ
from
state
to
state
making
it
difficult
to
have
symmetrical
results
from
one
compliance
model
like
the
enhanced
dialogue.
The
Enhanced
Relationship
model,
states
that
revenue
authorities
have
two
methods
of
obtaining
information
from
taxpayers.
They
could
either
use
their
statutory
powers
or
obtain
it
voluntarily
(Heber
2011,20).
However,
the
OECD
recommended
creating
an
environment
of
trust
and
transparency
would
urge
the
taxpayers
to
voluntarily
declare
their
taxes.
What
happens
when
the
taxpayers
do
not
comply
with
the
model?
In
Sweden,
the
Swedish
tax
agency,
Skatteverket,
introduced
this
notion
in
2012
with
an
objective
of
improving
compliance
among
large
companies.
However
it
changed
the
name
from
enhanced
relationships
to
enhanced
dialogue
(fordjupat
dialog)
highlighting
guidelines
for
the
dialogue
agreement.
viii
The
reason
that
was
cited
was
that
the
taxpayers
would
take
dialogue
more
seriously
as
the
notion
of
relationship
made
the
interactions
very
informal.
Although
the
model
was
based
on
volunteer
membership,
the
taxpayer
needed
to
be
reminded
that
they
had
a
legal
responsibility
to
comply
with
the
administration.
In
the
Netherlands,
the
tax
administration
renamed
the
model
to
horizontal
monitoring.
This
would
appeal
to
the
trust
and
national
consciousness
of
the
citizens
in
the
Netherlands.
The
model
expected
the
taxpayer
to
conduct
itself
well
in
order
to
receive
assistance
from
the
administration.
In
the
US,
the
IRS
(Internal
Revenue
Service)
adopted
the
model
naming
it
Anchoring
change
(Heber 2011).
The
model
in
the
US
was
aimed
at
strengthening
the
current
tax
compliance
strategies
rather
than
create
new
models.
Just
like
the
scientists
they
study,
they
divided
by
continuing
controversies
(Callon,
1988,
199).
Actor-Network
Theory
(ANT)
is
an
approach
to
social
theory
and
research
that
builds
on
the
relationship
between
human/non-human
actors
and
networks.
ANT
network
is
conceived
as
a
heterogeneous
combination
of
textual,
social,
conceptual
and
technical
actors.
(Sismondo
2010).
The
actor,
in
ANT,
is
any
agent,
collective
or
individual
who
can
associate
or
disassociate
with
other
agents.
The
actors
and
the
network
in
my
case
include
the
concept
of
tax
compliance,
the
OECD
network,
the
member
state
tax
administrations,
the
tax
experts
and
the
taxpayers.
I
chose
this
approach
because
ANT
suggests
that
the
work
of
science
is
not
fundamentally
different
from
other
social
activities
asserting
that
science
is
a
process
of
heterogeneous
engineering
in
which
the
social
technical,
conceptual
and
textual
are
puzzled
together
and
transformed
(translated) (Sismondo 2010).
The
activity
of
techno-science
is
to
understand
the
interests
of
a
variety
of
actors
and
translate
those
interests
so
that
actors
can
work
in
agreement.
By
bringing
all
actors
together,
we
change
the
ways
in
which
they
act
in
translating
their
interests.
Michel
Callon
(1986)
argues
that
the
sociology
of
translation
contributes
to
a
new
approach
in
the
study
of
power
(Callon
1986,
196).
Translation,
which
is
rooted
in
ANT,
describes
the
process
in
which
particular
controversies
get
constructed
and
negotiated.
For
them
(social
scientists)
nature
is
uncertain
but
society
is
not
(Callon
1986,
196).
Callon
argues
that
previous
methods
of
sociological
analysis
are
not
adequate
to
explain
matters
of
science
and
technology
in
stylistic
ways
because
sociologists
censor
actors;
theoretical
ways
because
social
scientists
act
as
if
agnosticism
that
is
applied
to
natural
science
and
technology
is
not
applicable
to
society
as
well
and
methodological
ways
as
the
identities
of
actors
is
problematic
and
needs
to
address
as
such
(Callon,
1986,s.198-199).
He
writes:
When
the
society
described
by
sociologists
confronts
nature
(no
matter
which
description
they
give),
society
always
has
the
last
word.
If
the
norms
are
removed,
the
science
collapses.
If
the
existence
of
social
classes
and
their
interests
is
denied
or
if
the
battle
waged
against
scientists
to
increase
their
personal
capital
of
credibility
disappears,
then
science
and
technology
comes
to
a
halt,
deprived
of
any
outlet.
(Callon
1986,
197)
Callon
argues
that
social
scientists
need
tools
that
can
explain
the
emergence,
development
and
eventual
closures
of
controversies.
He
argues
that
sociologists
have
dedicated
numerous
studies
to
controversies
without
understanding
why
and
in
what
conditions
controversies
occur
or
even
how
they
end
(Callon,
1986,
s.211).
Callon
proposes
faithfully
following
three
methodological
principles.
Agnosticism
(impartiality
between
actors
engaged
in
the
controversy,
generalised
symmetry
(the
commitment
to
explain
conflicting
viewpoints
in
the
same
term)
and
free
association
(the
abandonment
of
all
a
priori
distinctions
between
the
natural
and
the
social)(Callon,
1988,s.196).
Callon
sought
to
use
the
principles
and
moments
of
translation
to
problematize
how
scallops,
which
had
become
highly
appreciated
by
French
consumers,
progressively
dwindled
in
two
cities,
St
Brieuc
Bay
and
Brest.
Callon
(1988)
uses
this
case
study,
about
the
attempts
by
the
fishing
community
and
the
scientific
researchers
to
increase
of
scallop
population,
to
examine
the
development
of
new
social
relationships
in
the
vast
network
of
actors
all
engaged
in
the
conservation
process
(Callon,
1988,s.201).
3.1
F O U R
M O M E N T S
O F
T R A N S L A T IO N
Callon
argues
that
10
years
later,
after
the
interventions
had
begun,
scientific
knowledge
was
generated
and
certified,
a
social
group
was
formed
and
a
community
of
specialists
were
organised
in
order
to
study
the
scallops
and
promote
their
cultivation.
To
examine
this
development,
Callon
(1988)
outlines
four
moments
of
translation:
Problematization,
interessement,
enrolment,
and
mobilization.
3.1.1
P R O B L E M A T I Z A T I O N
O R
H O W
T O
B E C O M E
I N D I S P E N S A B L E
The
first
moment,
problematization,
describes
how
the
researchers,
determined
a
set
of
actors
and
defined
their
identities
in
such
way
as
to
establish
themselves
as
an
obligatory
passage
point
(OPP)
in
the
network
of
relationships
they
were
creating.
They
studied
the
technique
in
Japan
and
concluded
that
it
could
be
replicated
in
St.
Breiuc
Bay.
However
despite
the
species
being
cultivate
in
Japan
and
France,
their
views
were
never
presented
as
an
illusion
or
an
error
of
judgement.
The
OECD,
recognizing
the
challenged
faced
by
revenue
authorities,
developed
a
tax
compliance
model
was
unchallenged.
This
is
because
they
labelled
themselves
the
market
leader
in
developing
tax
standards
and
guidelines (Wouters och Meuwissen 2001).
They
became
indispensable
in
the
global
fight
against
tax
evasion
that
was
sighted
to
be
at
the
forefront
of
the
global
economic
crisis.
The
model,
enhancing
relationships,
was
aimed
to
curb
tax
evasion
and
increase
tax
basesix
among
its
members
and
networks
through
transparency
and
dialogue.
The
OECDs
created
an
obligatory
passage
point
for
itself
and
they
problematized
the
global
financial
crisis
as
something
that
could
be
avoided
by
boosting
tax
responsibility
and
behaviour.
The
OECD
managed
to
include
several
actors
in
its
attempt
to
close
the
tax
gap
of
its
member
states.
Similar
to
the
researchers
in
St.Brieuc
who
presented
the
fishermen
as
a
homogenous
group
of
people
excluding
their
individual
contributions
and
understandings
of
the
controversy,
The
OEDC
has
presented
the
member
states
as
homogenous
entities
excluding
their
own
local
challenges
and
strengthens
in
the
fight
against
tax
evasion.
3.1.2
D E V I C E S
O F
I N T E R E S S E M E N T
During
their
problematization,
the
scallops,
the
fishermen
and
their
colleagues
join
forces
in
order
to
achieve
a
certain
goal
(Callon,
1988).
They
carefully
define
their
identity
and
goals
or
the
inclinations
of
their
allies.
Callon
hereby
argues
that
the
allies
are
tentatively
implicated
in
the
problematization
of
other
actors.
However,
Callon
argues
that
in
order
to
interest
other
actors,
devices
have
to
be
built
in
order
to
placed
between
them
and
other
entities
that
want
to
define
their
identities
otherwise.
The
researchers
use
collectors
to
ensure
that
the
crustaceans
are
protected
from
predators
and
anchorage.
For
the
fishermen
and
the
researchers
the
interessement
is
founded
on
a
certain
interpretation
of
what
the
yet
to
be
enrolled
actors
are
and
want
as
well
as
what
entities
these
actors
are
associated
with.
For
all
the
groups
involved
the
interessement
helps
corner
the
entities
to
ne
enrolled
and
construct
a
system
of
alliance.
The
OECD
redesigned
the
Australian
model
to
the
enhanced
model
creating
a
device
for
reducing
global
tax
evasion.
Their
allies
in
this
global
fight
of
tax
evasion
include
the
tax
administrations
from
their
member
and
non-member
countries.
They
represent
what
they
think
the
taxpayer
needs
and
even
formulate
plans
for
changing
their
tax
behaviour.
The
OECD
has
managed
to
secure
itself
a
position
in
this
network
and
their
alliance
is
now
based
on
a
common
interest
of
fighting
tax
evasion
3.1.3
E N R O L M E N T
Callon
(1988)
argues
that
no
matter
how
constraining
the
trapping
devices,
or
how
convincing
the
argument
success
is
never
guaranteed.
Enrolment
describes
how
the
group
of
multilateral
negotiations,
trials
of
strength
and
trick
accompany
interessement
and
enable
them
to
succeed
(Callon,
1988,206).
However,
Callon
argues
that
if
the
actors
are
to
be
enrolled
they
have
to
be
willing.
The
scallops
had
to
be
willing
to
anchor
themselves
to
the
collectors
(Callon,
1988,
206).
Since
its
inception,
OECD
had
been
trying
to
establish
coordinated
responses
to
international
tax
evasion.
It
enrolled
willing
senior
tax
experts
and
tax
administrations
to
draft
a
report,
that
legitimized
the
process
of
establishing,
coordinated
tax
compliance
processes.
Once
the
tax
administrations
endorsed
the
enhanced
relationship
program,
it
was
then
easy
to
recruit
lawmakers
in
their
respective
countries
to
adopt
the
model.
Once
the
lawmakers
adopted
the
model,
they
needed
to
recruit
willing
members
who
could
pilot
the
program.
The
tax
administrations
gave
the
large-scale
companies
who
volunteered
incentives
such
as
free
advice
on
different
issues
especially
risk
management.
3.1.4
M O B I L I Z A T I O N
A N D
R E P R E S E N T A T I O N
Who
speaks
on
behalf
of
whom?
Who
represents
whom?
These
questions
according
to
Callon
must
be
answered
if
the
researchers
are
to
be
successful.
(Callon 1986).
Power
is
demonstrated
through
representation.
Some
voices
are
silenced
through
representation
empowering
the
spokesmen.
The
few
larvae
who
do
anchor
themselves
have
the
power
to
represent
the
anonymous
mass
of
larvae;
the
few
representatives
of
the
fishermen
who
accept
without
argument
the
proposals
of
the
researchers
have
the
power
to
make
decisions
on
behalf
of
the
fishermen:
the
authors
of
the
research
in
Japan
who
represent
the
wider
scientific
community,
have
the
power
to
influence
the
work
of
the
researchers.
Callons
study
of
the
mode
of
mobilization
reveals
the
power
relations
within
the
networks.
The
OECD
has
created
an
opportunity
passage
point
to
represent
all
global
economic
research
especially
on
tax
issues.
Their
knowledge
is
accepted
by
a
few
tax
administrations
that
have
the
power
to
now
represent
global
tax
administrations.
The
companies
who
are
recruited
to
the
pilot
project
generate
knowledge
that
influences
tax
policy
for
other
large
companies
globally.
4.
C ONCLUSION
The
larvae
failed
to
anchor
itself
to
the
collector;
the
fishermen
no
longer
wanted
to
be
represented
and
made
the
decision
to
harvest
the
few
scallops
that
had
anchored
and
the
researchers
who
had
an
obligatory
passage
point
were
now
faced
with
a
controversy.
Their
scientific
community
now
doubted
their
project
and
they
were
forced
to
take
on
new
measures
that
included
civic
education
about
the
project
and
its
benefits.
The
OECD
released
a
report
in
2013,
introducing
the
reformulation
and
renaming
of
the
enhanced
relationship
project.x
The
new
approach,
co-operative
compliance
states
that
it
is
still
has
the
same
principles
as
the
previous
approach
and
included
cooperation
as
an
important
tenet.
The
OECD
cited
that
some
taxpayers
experienced
the
approach
as
exclusive
to
some
taxpayers
and
name
change
would
help
achieve
this.
Heber
(2011)
explains
that
the
tax
compliance
is
measured
by
the
size
of
the
tax
gap
in
the
country.
This
approach
failed
to
reduce
the
tax
gap
as
expected
because
of
the
tenets
that
were
used,
trust
and
transparency.
She
argues
that
for
such
values
to
be
used
they
have
to
existed
strongly
in
the
countries.
She
argues
that
the
focus
should
not
be
in
strengthening
the
compliant
taxpayers
rather
focus
more
resources
and
research
to
understanding
tax
havens.
This
would
help
understand
the
controversy
of
the
ever-rising
tax
W ORKS
C ITED
Boll,
Karen.
Tax
Assemblages:Laborious
and
Meticoulous
achievements
of
tax
compliance.
Copenhagen:
IT
University
of
Copenhagen,
2011.
Callon,
Michel.
"Some
elements
in
the
sociology
of
translstion.domestication
of
the
scallops
and
the
fisherman
of
St.Brieuc."
Power,Action
and
Belief:A
New
Sociology
of
Knowledge,
1986:
196-223.
D'Arcy,
Michelle.
"Why
do
citizens
comply?
Legitimacy,Taxation
and
the
African
State."
AfroBarometer,
January
2011.
Gemmell,
Norman,
and
John
Hasseldine.
Working
Paper
09/12.
Victoria
Business
School,
Victoria:
Victoria
Business
School,
2012.
Heber,
Caroline.
"The
OECD
Enhanced
Relationship
Model
and
Its
improvement
towards
an
International
Dialogue
between
Revenue
Bodies."
www.business.auckland.au.
01
01,
2011.
docs.business.auckland.au/dr.caroline.heber.
McCulloch,
Tracy.
"Beyond
Compliance:Participation,Co-production
and
Change
in
Justice
Sanctions."
European
Journal
of
Probation
7
(2015):
40-57.
Oudshoorn,
Nelly,
and
Trevor
Pinch.
How
Users
Matter:The
Co-Constructions
of
Users
and
Technologies.
Mass:
MIT
Press,
2003.
Sismondo,
Sergio.
An
Introduction
to
Science
and
Technology
Studies.
Second
Edition.
West
Sussex:
Wiley/Blackwell,
2010.
Wouters,
Jan,
and
Katrien
Meuwissen.
"Global
Tax
Governance:Work
in
Progress."
Leuven
Center
for
Global
Governance
Studies:Working
Paper
59,
February
1,
2001.
N OTES
i
The
OECD
stands
for
the
Organisation
for
Economic
Cooperation
and
Development.
ii
The
Forum
on
Tax
Administration
(FTA)
was
created
in
2002
and
is
a
unique
forum
on
tax
administration
for
Commissioners
from
46
OECD
and
non-OECD
countries,
including
every
member
of
the
G20.
Our
vision
is
to
create
a
forum
through
which
Commissioners
can
identify,
discuss
and
influence
relevant
global
trends
and
develop
new
ideas
to
enhance
tax
administration
around
the
world.
iii
http://www.oecd.org/tax/administration/39882938.pdf
iv
The
Tax
gap
is
the
difference
between
the
amount
of
tax
that
should
in
theory
be
collected
against
c7b1442f256bae6751.html
ix
Tax
base
is
the
assessed
amount
of
an
entity's
assets
or
income
that
are
subject
to
taxation.
The
concept
is
used
to
derive
the
tax
income
of
a
government
entity.
x
http://www.oecd.org/ctp/administration/Co-operative-Compliance-Preliminary.pdf