Is It Really so Hard to Tax the Hard-to-Tax? The Context and Role of Presumptive Taxes
AbstractThis paper is concerned with the extent to which “presumptive taxation” can be an effective tool to cope with what are commonly called the “hard-to-tax”. While the HTT category is seldom very clearly defined -- often, for example, it excludes those at the top of the power pyramid who manage to save themselves from the full fury of the taxman in accepted (or at least untouchable) ways -- it appears to encompass much of the so-called “informal” (“hidden” “shadow” “underground”) economy that is such a prominent feature of economic reality in many developing and transition countries. Although much of the discussion in this paper covers the use (and abuse) of presumptive taxes in general, our specific focus is on the special simplified tax regimes that have been put into place recently in a number of transitional countries, with special attention to Ukraine and Russia. We analyze the implications of these special regimes in terms of their impact on economic efficiency, equity, and overall tax administration and compliance. We conclude with a brief discussion of the critical problems of developing an “exit strategy” from such special regimes as well as some alternative policies that may prove more promising paths to taxing the HTT.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by International Tax Program, Institute for International Business, Joseph L. Rotman School of Management, University of Toronto in its series International Tax Program Papers with number 0307.
Length: 36 Pages
Date of creation: Dec 2003
Date of revision:
Hard to tax; presumptive tax; VAT; HTT; tax administration; tax evasion; Ukraine; Russia;
Find related papers by JEL classification:
- O23 - Economic Development, Technological Change, and Growth - - Development Planning and Policy - - - Fiscal and Monetary Policy in Development
- O57 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
- H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion
- P31 - Economic Systems - - Socialist Institutions and Their Transitions - - - Socialist Enterprises and Their Transitions
This paper has been announced in the following NEP Reports:
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.:
- Friedrich Schneider & Christopher Bajada, 2003. "The Size and Development of the Shadow Economies in the Asia-Pacific," Economics working papers 2003-01, Department of Economics, Johannes Kepler University Linz, Austria.
- Olivier P. Benon & Katherine Baer & Juan Toro R., 2002. "Improving Large Taxpayers' Compliance: A Review of Country Experience," IMF Occasional Papers 215, International Monetary Fund.
- Vito Tanzi & Parthasarathi Shome, 1993. "A Primer on Tax Evasion," IMF Staff Papers, Palgrave Macmillan, vol. 40(4), pages 807-828, December.
- Slemrod, Joel & Yitzhaki, Shlomo, 2002.
"Tax avoidance, evasion, and administration,"
Handbook of Public Economics,
in: A. J. Auerbach & M. Feldstein (ed.), Handbook of Public Economics, edition 1, volume 3, chapter 22, pages 1423-1470
- Bird, Richard M., 1989. "Taxation in Papua New Guinea: Backwards to the future?," World Development, Elsevier, vol. 17(8), pages 1145-1157, August.
- Vito Tanzi & Parthasrathi Shome, 1993. "A Primer on Tax Evasion," IMF Working Papers 93/21, International Monetary Fund.
- Sally Wallace, 2002. "Imputed an Presumptive Taxes: International Experiences and Lessons for Russia," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0203, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
- Efraim Sadka & Vito Tanzi, 1992. "A Tax on Gross Assets of Enterprises as a Form of Presumptive Taxation," IMF Working Papers 92/16, International Monetary Fund.
- Khan, Mahmood Hasan, 2001. "Agricultural taxation in developing countries: a survey of issues and policy," Agricultural Economics, Blackwell, vol. 24(3), pages 315-328, March.
- Dominik H. Enste & Friedrich Schneider, 2000. "Shadow Economies: Size, Causes, and Consequences," Journal of Economic Literature, American Economic Association, vol. 38(1), pages 77-114, March.
This item has more than 25 citations. To prevent cluttering this page, these citations are listed on a separate page. reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Richard Bird).
If references are entirely missing, you can add them using this form.