An examination of tax policy participation in practice: The case of Irish corporation tax policy
Qualter, Hilary
Qualter, Hilary
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Publication Date
2022-02-22
Type
Thesis
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Abstract
The purpose of this study is to obtain an understanding of participation in tax policy development in practice. Given the importance of tax for society and for governments as a significant source of revenue, an enhanced understanding of tax policy participation has benefits and implications for taxpayers and policymakers. Situated in the Irish corporation tax context, the four questions posed in this study address: the landscape of tax policy participation, the motivation for participation, its organisation and management by the various actors involved, and the practice of participation in a specific important tax policy context, namely the Irish research and development tax credit. While this study addresses this practice in an Irish environment it also takes account of the importance of the transnational context and its influence on Irish tax policy. In line with a qualitative interpretive approach, this study is informed by face-to-face interviews which were conducted with key actors in the Irish tax field, and by relevant publicly available documentation. A conceptual framework was developed which combined core themes and theoretical constructs from relevant public policy and tax literature, and Bourdieusian concepts. This framework provides a powerful explanatory lens through which the findings are interpreted. This study unveils that participation in the Irish tax policy development field is a relatively stable environment, which has been captured by key actors within the field, resulting in a boundary which is secured and excludes others. The field is defined by a number of recognised powerful and influential actors engaging through well-defined paths to participation in tax policy development. The findings also acknowledge some actors operate in the shadows through covert paths to participation. Economic capital and significant resources are used by some actors in their participation. Transnational and economic pressure has been capitalised on by actors within the field to persuade policymakers to change tax policy. Social capital is central to facilitating participation in tax policy development, formed through the shared experiences in both a tax and non-tax environment. A strategic long-term relational approach to participation taken by some actors is evident. This study clearly demonstrates unfettered access to policy makers for some. The findings reveal how pervasive the tax elites are in participation not only in their own right but by driving the agendas of many other actors. The shared cultural and social capital of actors may go some way to explaining the homogeneity of participation among many of the more well-resourced actors in this study and points to a lack of alternative perspectives, tax policies or proposals. This study contributes to the tax literature by examining in detail the practice of tax policy participation demonstrating that tax policy participation is shaped by the actions and interactions of actors in the field, conditioned by their experiences, whereby they mobilise resources to influence tax policy. The study also develops a conceptual framework to facilitate an understanding of tax policy participation in practice.
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Publisher
NUI Galway