The Mechanisms for Defeating Tax Avoidance and Acts of Non-Compliance: The Obligation of the State and the International Community to Legitimate Reasonable Taxpayer Choices

In this article, the authors comment on the tax contract between the state and taxpayers, i.e. the idea that citizens comply with tax law as part of a “bargain” between the state and the populace. The authors outline the conditions that can lead to a high compliance environment. They highlight the OECD approach that all states should be included in international exchange and how this may interfere with the operation of the tax contract mechanism.