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Informal entities and the tax unit: The impact of social institutions on tax design

Published on 01 Nov 09 by "AUSTRALIAN TAX FORUM" JOURNAL ARTICLE

Douglass C. North presented the seminal work on institutions and their relationship to economic performance. Essentially, institutions are “humanly devised constraints that shape human interaction”. An institution may be created by the state on the one hand (for example, statute law) or on the other hand by norms of social interaction, custom, traditions and codes of conduct. The former are formal institutions while the latter are informal or social institutions. To elucidate a social institution can be defined as “a complex of positions, roles, norms and values lodged in particular types of social structures and organising relatively stable patterns of human activity with respect to fundamental problems in producing life-sustaining resources, in reproducing individuals, and in sustaining viable societal structures within a given environment.”.

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Nolan SHARKEY
Current at 28 January 2015 Click here to expand/collapse more articles by Nolan SHARKEY.
 

 

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