Tax Administration Practices and Firms’ Perceptions of Corruption : Evidence from Europe and Central Asia
Two competing conceptualizations of corruption in the literature allow viewing it either as efficient or burdensome from firms' perspective. Using data on the prevalence and nature of firms' interactions with tax authorities in 28 countri...
| Main Authors: | , , |
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| Format: | Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2017
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/838671498572946394/Tax-administration-practices-and-firms-perceptions-of-corruption-evidence-from-Europe-and-Central-Asia http://hdl.handle.net/10986/27625 |
| Summary: | Two competing conceptualizations of
corruption in the literature allow viewing it either as
efficient or burdensome from firms' perspective. Using
data on the prevalence and nature of firms'
interactions with tax authorities in 28 countries in Europe
and Central Asia, this paper contributes to the evaluation
of competing ideas in the literature about firms’ experience
of corruption in tax administration. The findings presented
in the paper provide provisional support for the second line
of reasoning, that corruption in taxation is a burden,
rather than a type of efficiency. Special emphasis is given
to examination of taxation-related determinants of
corruption prevalence (frequency and magnitude of bribery),
as well as the effect of the interaction with tax
authorities on perception of tax and overall corruption.
Regardless of country context, it appears that, more than
anything else, perceived corruption in tax administration
and actual experiences with bribery during interactions with
tax officials, affect the overall perceptions of corruption. |
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