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Regulating havens: The role of hard and soft governance of tax experts in conditions of secrecy and low regulation

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  • Sheila Killian
  • Philip O'Regan
  • Ruth Lynch
  • Martin Laheen
  • Dionysios Karavidas

Abstract

International tax governance is significant societally as it impacts both inequality and the capacity of governments to deliver on their social contracts. Tax experts forma key, under‐researched, heterogeneous element of the tax ecosystem, subject to a range of hard and soft governance influences. While problematic tax regimes are appropriately identified by reference to lax regulation or financial opacity, few empirical studies explore how operating in these jurisdictions affects the governance of tax experts individually. Using international survey data, we find that the influence of soft governance on tax experts varies across conditions of secrecy or lax regulation. Soft governance, including that of the workplace and the profession, is most influential in challenging regimes. Beyond a tipping point of economic freedom, regulatory knowledge and the threat of sanction become less influential. Elements along the continuum between hard and soft governance interact in a non‐homogenous way that indicates a role for professional bodies and firms in tax governance.

Suggested Citation

  • Sheila Killian & Philip O'Regan & Ruth Lynch & Martin Laheen & Dionysios Karavidas, 2022. "Regulating havens: The role of hard and soft governance of tax experts in conditions of secrecy and low regulation," Regulation & Governance, John Wiley & Sons, vol. 16(3), pages 722-737, July.
    • Handle: RePEc:wly:reggov:v:16:y:2022:i:3:p:722-737
    DOI: 10.1111/rego.12347
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    2. Petr Janský & Markus Meinzer & Miroslav Palanský, 2022. "Is Panama really your tax haven? Secrecy jurisdictions and the countries they harm," Regulation & Governance, John Wiley & Sons, vol. 16(3), pages 673-704, July.
    3. Fatemi, Darius & Kim, Jang-Chul, 2024. "Information asymmetry in non-US stocks: The compounding and mitigating effects of tax havens and corruption," Global Finance Journal, Elsevier, vol. 59(C).

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