Strategic tax collection and fiscal decentralization: the case of Russia
AbstractIn a centralized federation, where tax rates and taxation rules are set by the federal government, manipulating the thoroughness of tax auditing and the effectiveness of tax collection could be attractive for regional authorities because of a variety of reasons. These range from tax competition to principal-agent problems, state capture and benefits of fiscal equalization. In this paper we discuss strategic tax auditing and collection from the perspective of fiscal federalism and test for strategic tax collection empirically using data of the Russian Federation. Russia’s regional authorities in the 1990s have always been suspect of tax auditing manipulations in their favor. However, in the 2000s increasing bargaining po¬wer of the centre seems to induce tax collection bodies in the regions to manipulate tax auditing in favor of the federal centre. Our findings confirm the existence of strategic tax collection for the Yeltsin period after exclusion of outliers; the results for the Putin period are however rather ambiguous.
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Bibliographic InfoPaper provided by Institut d'Economia de Barcelona (IEB) in its series Working Papers with number 2009/11.
Length: 66 pages
Date of creation: 2009
Date of revision:
fiscal federalism; tax arrears; transition economies;
Other versions of this item:
- Lars P. Feld & Alexander Libman, 2007. "Strategic Tax Collection and Fiscal Decentralisation: The Case of Russia," CESifo Working Paper Series 2031, CESifo Group Munich.
- Alexander Libman & Lars P. Feld, 2007. "Strategic Tax Collection and Fiscal Decentralisation: The Case of Russia," CREMA Working Paper Series 2007-09, Center for Research in Economics, Management and the Arts (CREMA).
- H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion
- H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
This paper has been announced in the following NEP Reports:
- NEP-ACC-2009-10-31 (Accounting & Auditing)
- NEP-ALL-2009-10-31 (All new papers)
- NEP-CIS-2009-10-31 (Confederation of Independent States)
- NEP-PBE-2009-10-31 (Public Economics)
- NEP-PUB-2009-10-31 (Public Finance)
- NEP-TRA-2009-10-31 (Transition Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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- Bönke, Timm & Jochimsen, Beate & Schröder, Carsten, 2011. "Fiscal equalization and regions' (un)willingness-to-tax: Evidence from Germany," Economics Working Papers 2011,06, Christian-Albrechts-University of Kiel, Department of Economics.
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