Advertisement

Sustainable Tax Behavior on Future and Current Emerging Markets: The Case of Romania and Brazil

  • Larissa BatranceaEmail author
  • Anca Nichita
  • Ioan Batrancea
  • Ana Maria Roux Valentini Coelho Cesar
  • Denis Forte
Chapter
Part of the Accounting, Finance, Sustainability, Governance & Fraud: Theory and Application book series (AFSGFTA)

Abstract

Taxes are an important element in amending the economic, social, and environmental sustainability levels of societies across the world. The chapter brings into discussion the concept of sustainable tax behavior in Romania and Brazil, both connected to the realities of emerging markets. We establish that a tax compliant behavior may be regarded as sustainable tax behavior, since not only it promotes fair taxpaying which finances the quality of living conditions, but it also supports sustainable well-being. With data provided by international organizations and country-specific sources, we analyze the attributes of sustainable tax behavior by addressing aspects like adherence to sustainability principles, sustainability levels, characteristics of tax systems, compliance requirements, and green taxation. As shown by the analyses, both countries have taken steps forward on the way to encouraging sustainable economic activity, with Brazil registering noticeable progress especially in sustainability levels and green taxation. The assessment of tax systems (total tax rate; time to comply; number of payments) reveals that authorities in both countries need to make additional progress in incentivizing citizens to display a sustainable tax behavior, particularly Brazil which requires a considerable simplification of its tax requirements.

Keywords

Tax behavior Compliance Sustainability Emerging markets Romania Brazil Citizens Tax authorities 

Notes

Acknowledgements

This work was supported by a grant of the Babes-Bolyai University through the Grants for Young Researchers Program, project no. GTC 31780/01.04.2016.

References

  1. Afionis S, Stringer LC, Favretto N, Buckeridge M (2014) Unpacking Brazil’s leadership in the global biofuels arena: Brazilian ethanol diplomacy in Africa. Sustainability Research Institute, Paper no. 74Google Scholar
  2. Amman E, Baer W (2002) The development of Brazil’s technology capabilities in the post war period. Lat Am Bus Rev 3(1):1–29Google Scholar
  3. Avallone IV, de Giraldi JME, de Oliveira SVWB (2012) Conscious consumption: a study on plastic bags’ consumers in Brazil. Int J Psychol Stud 4(1):122–134CrossRefGoogle Scholar
  4. Brazil tax guide. Volume 1: strategic and practical information. International Business Publications, Washington, DCGoogle Scholar
  5. Carroll AB, Buchholtz AK (2014) Business and society: ethics, sustainability, and stakeholder management, 9th edn. Cengage Learning, Stamford, CTGoogle Scholar
  6. Clusener-Godt M, Sachs I (1995) Brazilian perspectives on sustainable development of the Amazon region, vol 15. United Nations Educational, Scientific and Cultural Organization, ParisGoogle Scholar
  7. Deloitte (2012) Tax data management: a foundation for sustainable tax compliance, planning, and examination supportGoogle Scholar
  8. Franzoni L (2000) Tax evasion and tax compliance. In: Bouckaert B, De Geest G (eds) Encyclopedia of law and economics, vol 14. Edward Elgar Publishing, Cheltenham, pp 51–94Google Scholar
  9. Freitas Azevedo C, Marsiglia Fasolo A (2015) Effective tax rates on consumption and factor incomes: a quarterly frequency estimation for Brazil. In: Banco Central do Brasil Working Paper 398Google Scholar
  10. Frieders DM (2015) Foundations of sustainable development: law, regulation, and planning. ABA Publishing, Chicago, ILGoogle Scholar
  11. Garcia-Diaz D, Raidbard N (2016) Promising practices for tax initiatives that address sustainable development goals: A U.S. case study from the GAO audit of the low-income housing tax credit program (LIHTC). In: Paper presented at the 30th annual international training conference, Miami, FLGoogle Scholar
  12. Godfrey BJ (1999) Revisiting Rio de Janeiro and São Paulo. Geograph Rev 89(1):94–121CrossRefGoogle Scholar
  13. Goldin I, Winters LA (1995) The economics of sustainable development. Cambridge University Press, CambridgeCrossRefGoogle Scholar
  14. Grubb M (2014) Planetary economics: energy, climate change and the three domains of sustainable development. Routledge, New York, NYGoogle Scholar
  15. https://www.google.com/trends. Accessed 1 July 2016
  16. http://www.happyplanetindex.org. Accessed 10 June 2016
  17. https://treaties.un.org. Accessed 8 Sept 2016
  18. International Monetary Fund, Organisation for Economic Co-operation and Development, United Nations, World Bank (2011) Supporting the development of more effective tax systems: a report to the G-20 development working group by the IMF, OECD, UN and World Bank. International Monetary Fund, Organisation of Economic Co-operation and Development, United Nations, Washington DC/Paris/New YorkGoogle Scholar
  19. Kirchler E (2007) The economic psychology of tax behaviour. Cambridge University Press, CambridgeCrossRefGoogle Scholar
  20. Kirchler E, Hoelzl E, Wahl I (2008) Enforced versus voluntary tax compliance: the “slippery slope framework”. J Econ Psychol 29(2):210–225CrossRefGoogle Scholar
  21. KPMG (2013) The KPMG green tax index 2013. An exploration of green tax incentives and penaltiesGoogle Scholar
  22. Kreiser L, Yábar Sterling A, Herrera P, Milne JE, Ashiabor H (eds) (2012a) Green taxation and environmental sustainability: critical issues in environmental taxation, vol XII. Edward Elgar Publishing, CheltenhamGoogle Scholar
  23. Kreiser L, Yábar Sterling A, Herrera P, Milne JE, Ashiabor H (eds) (2012b) Carbon pricing, growth and the environment, 1st edn. Edward Elgar Publishing, CheltenhamGoogle Scholar
  24. Law no. 6938/31.08.1981. Dispõe sobre a Política Nacional do Meio Ambiente, Seus Fins e Mecanismos de Formulação e Aplicação, e dá Outras Providências. Legislação Federal, Controle de Poluição Ambiental. Série Documentos. São Paulo: CETESBGoogle Scholar
  25. Law no. 137/29.12.1995. Environmental Protection Law. Published in the Official Gazette no. 304/30.12.1995Google Scholar
  26. Manning C (2009) The psychology of sustainable behavior: tips for empowering people to take environmentally positive actions. Minnesota Pollution Control Agency, Saint Paul, MNGoogle Scholar
  27. McKenzie-Mohr D (2011) Fostering sustainable behavior: an introduction to community-based social marketing, 3rd edn. New Society Publishers, Gabriola IslandGoogle Scholar
  28. Murty MN (2009) Environment, sustainable development, and well-being: valuation, taxes, and incentives. Oxford University Press, OxfordGoogle Scholar
  29. Nelson J, Jenkins B, Gilbert R (2015) Business and the sustainable development goals: building blocks for success at scaleGoogle Scholar
  30. New Economics Foundation (2006) The happy planet index: an index of human well-being and environmental impactGoogle Scholar
  31. New Economics Foundation (2009) The happy planet index 2.0: why good lives don’t have to cost the earthGoogle Scholar
  32. New Economics Foundation (2012) The happy planet index: 2012 report. A global index of sustainable well-beingGoogle Scholar
  33. Nordhaus WD (2010) Carbon taxes to move toward fiscal sustainability. Econ Voice 7:1–3Google Scholar
  34. OECD (2006) The political economy of environmentally related taxes. OECD Publications, Paris CedexGoogle Scholar
  35. OECD (2008) Promoting sustainable consumption: good practices in OECD countries. OECD Publications, Paris CedexGoogle Scholar
  36. OECD (2010) Taxation, innovation and the environment: executive summary. OECD Publications, Paris CedexGoogle Scholar
  37. OECD (2014) Tax revenues as a motor for sustainable development. In: Development co-operation report 2014: mobilising resources for sustainable development. OECD Publishing, Paris CedexGoogle Scholar
  38. OECD (2015) Brazil. In: Taxing energy use 2015: OECD and selected partner economies. OECD Publishing, ParisGoogle Scholar
  39. OECD (2016) OECD employment outlook: how does Brazil compare? OECD Publishing, Paris CedexGoogle Scholar
  40. Pearce D (1991) The role of carbon taxes in adjusting to global warming. Econ J 101:938–948CrossRefGoogle Scholar
  41. PricewaterhouseCoopers, World Bank, International Finance Corporation (2006) Paying taxes 2007: the global pictureGoogle Scholar
  42. PricewaterhouseCoopers, World Bank, International Finance Corporation (2007) Paying taxes 2008: the global pictureGoogle Scholar
  43. PricewaterhouseCoopers, World Bank, International Finance Corporation (2008) Paying taxes 2009: the global pictureGoogle Scholar
  44. PricewaterhouseCoopers, World Bank, International Finance Corporation (2009) Paying taxes 2010: the global pictureGoogle Scholar
  45. PricewaterhouseCoopers, World Bank, International Finance Corporation (2010) Paying taxes 2011: the global pictureGoogle Scholar
  46. PricewaterhouseCoopers, World Bank, International Finance Corporation (2011) Paying taxes 2012: the global pictureGoogle Scholar
  47. PricewaterhouseCoopers, World Bank, International Finance Corporation (2012) Paying taxes 2013: the global pictureGoogle Scholar
  48. PricewaterhouseCoopers, World Bank, International Finance Corporation (2013) Paying taxes 2014: the global pictureGoogle Scholar
  49. PricewaterhouseCoopers, World Bank, International Finance Corporation (2014) Paying taxes 2015: the global picture. The changing face of tax compliance in 189 economies worldwideGoogle Scholar
  50. PricewaterhouseCoopers, World Bank, International Finance Corporation (2015) Paying taxes 2016. Ten years of in-depth analysis of tax systems in 189 economies. A look at recent developments and historical trendsGoogle Scholar
  51. Schratzenstaller M (2015) Sustainable tax policy. Concepts and indicators beyond the tax ratio. Revue de l’OFCE, pp 557–577Google Scholar
  52. Stancil JL (2010) Taxes and sustainability. In: Stoner JAF, Wankel C (eds) Global sustainability as a business imperative. Palgrave MacMillan, New York, NY, pp 147–164Google Scholar
  53. United Nations (2015) UNCTAD: investing in sustainable development goals. Action plan for private investments in SDGs. United Nations PublicationGoogle Scholar
  54. United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) (2016). The Asia-Pacific tax forum for sustainable development (AP-TFSD): a proposal. First high-level follow-up dialogue on financing for development in Asia and the Pacific, Incheon, Republic of Korea, 30–31 Mar 2016, Discussion PaperGoogle Scholar
  55. United Nations Global Compact (2014) Guide to corporate sustainability: shaping a sustainable futureGoogle Scholar
  56. van der Enden E, Baisalbayeva K (2015) The relevance and sustainability of co-operative compliance models for tax in African countries. In: Paper presented at the African Tax Research Network (ATRN), 1st annual congress, Contemporary Tax Challenges for African Countries, Cape Town, South AfricaGoogle Scholar
  57. Von Weizsacker EU, Jesinghous J (1992) Ecological tax reform: a policy proposal for sustainable development. Zed Books, LondonGoogle Scholar
  58. World Bank (2005) Where is the wealth of nations? Measuring capital for the 21st century. World Bank Publications, Washington, DCCrossRefGoogle Scholar
  59. World Bank (2012) Inclusive green growth: the pathway to sustainable development. Washington, DCGoogle Scholar
  60. Zhou R, Segerson K (2012) Are green taxes a good way to help solve state budget deficits? Sustainability 4(6):1329–1353CrossRefGoogle Scholar

Copyright information

© Springer Nature Singapore Pte Ltd. 2018

Authors and Affiliations

  • Larissa Batrancea
    • 1
    Email author
  • Anca Nichita
    • 1
  • Ioan Batrancea
    • 2
  • Ana Maria Roux Valentini Coelho Cesar
    • 3
  • Denis Forte
    • 4
  1. 1.Faculty of BusinessBabes-Bolyai UniversityCluj-NapocaRomania
  2. 2.Faculty of Economics and Business AdministrationBabes-Bolyai UniversityCluj-NapocaRomania
  3. 3.Graduate School of Accounting, Applied Social Sciences CenterMackenzie Presbyterian UniversitySão PauloBrazil
  4. 4.Ph.D. Program, Strategic Finance DepartmentMackenzie Presbyterian UniversitySão PauloBrazil

Personalised recommendations