Bribes and Business Tax Evasion
AbstractThis paper investigates the role of governance, in particular bribes to tax officials, in shaping business tax compliance behavior in transition economies. The empirical results show that business noncompliance rises with the frequency of tax related bribes. More specifically, the findings from 27 economies suggest that tax evasion thrives when bribes to tax officials are commonplace. These findings are robust to a number of specifications that control for firm and country attributes as well as address the potential endogeneity of bribes.
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Bibliographic InfoArticle provided by Cattaneo University (LIUC) in its journal The European Journal of Comparative Economics.
Volume (Year): 6 (2009)
Issue (Month): 2 (December)
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Tax Evasion; Firm Behavior; Corruption;
Find related papers by JEL classification:
- H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
- H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion
- H32 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Firm
- D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
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