The Informality Trap : Tax Evasion, Finance, and Productivity in Brazil

The Informality Trap : Tax Evasion, Finance, and Productivity in Brazil

This Note highlights the adverse consequences of informality for private sector development and explains what governments can do about it. It uses new data from the World Bank's Investment Climate Survey in Brazil that show for the first time...

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Bibliographic Details
Main Authors: Kapaz, Emerson, Kenyon, Thomas
Format: Viewpoint
Language:English
Published: World Bank, Washington, DC 2012
Subjects:
ACCURATE INFORMATION
AFFILIATED ORGANIZATIONS
COMPANY
COMPETITORS
CUSTOMS AUTHORITIES
DEVICES
ELECTRONICS
EMPLOYMENT
ENTREPRENEURS
FEDERAL TAXES
FIRM SIZE
FIRMS
GOVERNMENT REGULATIONS
INNOVATIONS
INTERNAL REVENUE
INVESTMENT CLIMATE
INVESTMENT CLIMATE ASSESSMENT
LAWYERS
MANUFACTURERS
PROFITABILITY
PUBLIC POLICY INNOVATIONS
REGULATORY BURDEN
SALES TAX
SHOPS
SMALL BUSINESS
SMALL ENTERPRISES
TAX ADMINISTRATION
TAX AUTHORITIES
TAX BANDS
TAX BASE
TAX BURDEN
TAX COLLECTION
TAX COMPLIANCE
TAX ENFORCEMENT
TAX EVASION
TAX OBLIGATIONS
TAX RATES
TAX REFORM
TAXATION
TELECOMMUNICATIONS
TRANSPARENCY
Online Access:http://documents.worldbank.org/curated/en/2005/12/6567442/informality-trap-tax-evasion-finance-productivity-brazil
http://hdl.handle.net/10986/11201
Description
Summary:This Note highlights the adverse consequences of informality for private sector development and explains what governments can do about it. It uses new data from the World Bank's Investment Climate Survey in Brazil that show for the first time the extent of tax evasion and confirm that informal firms are less productive and less likely to access financial markets than other firms. It also provides some advice on how to tackle the problem-by emphasizing the benefits of regulatory compliance, reducing the costs of going formal, and tightening up enforcement.

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