HM Revenue and Customs

About: HM Revenue and Customs is a government organization based out in London, United Kingdom. It is known for research contribution in the topics: Value-added tax & Indirect tax. The organization has 82 authors who have published 92 publications receiving 1763 citations. The organization is also known as: HMRC & Her Majesty's Revenue and Customs.

Unwilling or Unable to Cheat? Evidence From a Tax Audit Experiment in Denmark

Abstract: This paper analyzes a tax enforcement field experiment in Denmark. In the base year, a stratified and representative sample of over 40,000 individual income tax filers was selected for the experiment. Half of the tax filers were randomly selected to be thoroughly audited, while the rest were deliberately not audited. The following year, threat-of-audit letters were randomly assigned and sent to tax filers in both groups. We present three main empirical findings. First, using baseline audit data, we find that the tax evasion rate is close to zero for income subject to third-party reporting, but substantial for self-reported income. Since most income is subject to third-party reporting, the overall evasion rate is modest. Second, using quasi-experimental variation created by large kinks in the income tax schedule, we find that marginal tax rates have a positive impact on tax evasion for self-reported income, but that this effect is small in comparison to legal avoidance and behavioral responses. Third, using the randomization of enforcement, we find that prior audits and threat-of-audit letters have significant effects on self-reported income, but no effect on third-party reported income. All these empirical results can be explained by extending the standard model of (rational) tax evasion to allow for the key distinction between self-reported and third-party reported income.

Analysis of seized drugs using portable Raman spectroscopy in an airport environment: a proof of principle study

Abstract: The rapid identification for drugs-of-abuse in airports is of critical importance. In this study we demonstrate the viability of Raman spectroscopy for the rapid identification of illicit substances in their containers in an airport environment. Raman spectra of drugs-of-abuse in situ were collected using portable Raman spectrometers; this technique offers distinct advantages to government agencies, first responders and forensic scientists working in the security field. We have demonstrated that the spectrometers are able to collect the spectra of suspect powders, including cocaine HCl and d-amphetamine sulphate with unknown constituents rapidly and with a high degree of discrimination. Copyright © 2008 John Wiley & Sons, Ltd.

Culture Change in Three Taxation Administrations: From Command‐and‐Control to Responsive Regulation

Abstract: Law and policy is one thing, but their implementation and administration is affected by organizational cultures. Meidinger has argued that knowledge of regulatory and organizational cultures assists understanding of how law and policy work in practice. This article examines three revenue administrations that are moving from a command-and-control style of regulation to a more persuasive and responsive style of regulation. The central argument is that there is a determining step in the process of clarification, reconciliation, responsiveness, and design of a tax system. That step is the extent to which organizational culture can be changed to embrace inclusive discussion and creative solutions to the administration of tax law and policy.

Service guarantees: A strategic mechanism to minimise customers' perceived risk in service organisations

Abstract: Service offerings are largely intangible in nature. Customers are thus unable to assess the purchase outcome prior to experience, rendering the risk of possible customer dissatisfaction very high. It is argued that the concept of service guarantees proposed by services management theory can be effectively utilised to reduce the perceived risk of dissatisfaction for the customer in service organisations. Additionally, it is suggested that service guarantees force management to undertake activities which elevate the superiority of the organisation in the eyes of the customer and, thus, the opportunity to transform one‐time customers into loyal ones. The purpose of this paper is twofold: first, to illustrate how customers’ behavioural intentions can be influenced by the use of a service guarantee; and second, to outline a systematic process that can help service business managers to develop and implement an effective service guarantee. This research highlights the numerous benefits available to service organisations by utilising the service guarantee as a strategic tool. Some of the important management implications are also outlined.