Valerie Braithwaite is well known among tax academics for her interdisciplinary work in regulation and governance. This, most recent, work by Valerie Braithwaite expands on her previous research, adopting a focus on defiance; the “micro response of individuals to macro‐social conditions that are harmful and destructive of the qualities that are important to individuals' self definition and self‐worth”. The book traces the foundations of two forms of defiance: resistant and dismissive. Resistant defiance occurs when individuals have an aversion to the demands or the rules of an authority and consequently proceed to challenge the rules, or the administration of the rules. Dismissive defiance is when “individuals assert their freedom against an authority”: it is the outcome of an individual's preference, regardless of the desires of the state. In the context of tax, dismissive defiance may be deliberate non‐compliance with the tax system and resistant defiance may manifest itself in the form of protests against tax policy. As such, dismissive defiance poses a greater threat to authority than resistant defiance. The book analyses these two concepts of defiance, demonstrating how institutional influences can impact on each dimension.
The purpose of the research is to provide an understanding of defiance of individuals in the context of taxation. Furthermore, it aims to show how individuals establish relationships with authority that may be different from the authority's view of the same relationship. Braithwaite notes the difficulty associated with relationship building in large bureaucracies and how the “social side of regulation” has historically been afforded little attention by tax administrators. The traditional “command and control” approach is now being challenged by external forces such as globalisation, which are forcing review of historically accepted practices; hence the need for increased cooperation between authorities and individuals.
Braithwaite suggests that people respond to authority by “motivational postures” (classified as commitment, capitulation, resistance, disengagement and game playing). Motivational postures are “markers of a community's defiance against a regulatory regime”: signals that indicate how an individual feels about the demands of an authority. These five motivational postures form the basis for the two supra‐postures (resistant and dismissive defiance). Following the theme of defiance, Braithwaite emphasises that authorities need to understand and appreciate motivational postures in order to get more socially productive outcomes. Commitment and capitulation are cooperative signals. The others (resistance, disengagement and game‐playing) are defiant signals: it is possible, and indeed desirable, for taxpayers to move from the latter to the former.
Institutional responses to these motivational postures provide the opportunity to build integrity into the system which, in turn, may increase individual cooperation with the system, and thereby ease the task of regulation. Thus, Braithwaite suggests that authorities should engage with motivational postures to improve decision‐making, for example, arguing that authority investment in persuasion and education, social networking, bridge building or in sanctions should represent the authority's interpretations of the motivational postures occurring in the community, as the response of the authority has implications for society as a whole.
The data used in the study is collected at three points. In a 2000 survey the “psychological infrastructure” of taxpayers was measured; institutional integrity was measured in 2002; and defiance after reforms was measured in 2005. Throughout the book, models of resistant and dismissive defiance are elaborated, utilising different assumptions, and ultimately telling different stories. The data is used to develop an integrated model of resistant and dismissive defiance, showing the evolution and consequences of each type of behaviour.
This review cannot adequately cover the many topics addressed in this book – a selection is outlined below:
the distinctive features of resistant and dismissive defiance and the common features that allow individuals to switch from one to the other;
exploration of the psychological drivers and the primary differences of resistant and dismissive defiance;
investigation of perceptions of integrity (with high levels of trust leading to low levels of defiance);
analysis of the meaning of engagement in defiant behaviour;
exploration of the different ways people manage the “threat” of taxation and how this shapes motivational postures (i.e. defiance);
investigation of how globally tax authorities have addressed public criticism; and
empirical tests of the aforementioned motivational postures.
A recurring theme in the book is the importance placed on authorities listening to those expected to follow “the rules” and the management of conflict through understanding people's expectations of the tax authority. Braithwaite suggests that tax authorities can improve their public profile by critically evaluating their own integrity and gaining increased understanding of how people respond to the tax system.
This book provides a significant contribution to the behavioural literature. Braithwaite highlights the components of resistant and dismissive defiance in the context of tax, and provides a link between resistant defiance and perceptions of institutional performance (e.g. the tax authority not doing its job well or lacking in integrity). Braithwaite also finds a link between dismissive defiance and personal preferences, as well as a link between dismissive defiance and perceptions of what other people are doing. Braithwaite notes the importance of integrity in the tax authority system: the perception of a lack of integrity leading to resistant defiance. In highlighting the importance of integrity, Braithwaite also observes the importance of the grievance process and the need for an “alternative” authority, such as that held by the tax planning industry, in relation to dismissive defiance.
Braithwaite merges her considerable knowledge of a wide range of disciplines (psychology, public policy, political science and sociology, among others) to produce an exemplar of interdisciplinary research. The use of the taxation system as the basis for analysis of how people manage their relationship with authority is effective and produces a much needed addition to the behavioural literature. While the book is primarily about defiance in taxation, many instances of non‐taxation related defiance are included, which provides excellent support and extension of the tax based arguments.
Braithwaite has produced an excellent example of a book that is grounded in the extant literature, while expanding our understanding of the importance of understanding the behaviours that drive defiance. The aim of the book is to “show how authorities can live symbiotically with defiance” and she achieves this superbly, illustrating how improved satisfaction with “the process” can minimise defiance.
The focus in the book is more so on the experiences of “the regulated” rather than rigid measures of compliance, thereby contributing greatly to a deeper understanding of taxpayer behaviour. Behavioural studies, such as this one, are still few and far‐between in the field of taxation. Yet, it is hard to imagine a field that could benefit more from greater understanding of taxpayer behavioural responses.
