Premium
INDUSTRY CULTURE AND INDUSTRY ECONOMY: CORRELATES OF TAX NONCOMPLIANCE IN SWEDEN *
Author(s) -
BARNETT HAROLD C.
Publication year - 1986
Publication title -
criminology
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 3.467
H-Index - 139
eISSN - 1745-9125
pISSN - 0011-1384
DOI - 10.1111/j.1745-9125.1986.tb00390.x
Subject(s) - bankruptcy , incentive , audit , corporate tax , business , accounting , differential effects , tax evasion , public economics , economics , industrial organization , tax credit , tax avoidance , market economy , finance , medicine
Industry culture and industry economy have been used, with mixed results, to explain violations of law by corporate enterprise. The purpose of this paper is to use these theoretical concepts to examine differential noncompliance with tax law across Swedish industry in the early 1980s. A measure of noncompliance by industry is developed using tax audit data. The impact of audit policy on measured noncompliance is evaluated. Differences in industry culture are indicated by information on the presence and diffusion of techniques for noncompliance. Differences across industries in incentives to violate are indicated by bankruptcy rates and opportunities to gain through noncompliance. A hypothetical model is offered that explains the dynamic interaction of these factors and that could generate the static results reported. The paper concludes with a discussion of industry‐level analysis in predicting corporate violations.