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Shifting tax burdens through exemptions and evasion - an empirical investigation of Uganda

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Author Info
Gauthier, Bernard
Reinikka, Ritva

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Abstract

The authors look at how prevalent tax exemptions, and evasion are among businesses in Uganda, how they translate into actual tax burdens for firms of different sizes, and how the tax administration attempts to ensure compliance. Despite tax reforms undertaken in 1995-97 to increase the efficiency, and equity of the tax system, and its administration, exemptions, and evasion during this three-year period remained widespread, and the dispersion of the tax burden did not decrease. The analysis shows that tax evasion is more prevalent among smaller firms, that taxexemptions are more common among larger firms, and that medium-size firms tend to shoulder a disproportionate share of the total tax burden.

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Paper provided by The World Bank in its series Policy Research Working Paper Series with number 2735.

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Date of creation: 31 Dec 2001
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Handle: RePEc:wbk:wbrwps:2735

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Related research
Keywords: Small Scale Enterprise; Public Sector Economics&Finance; Tax Policy and Administration; Small and Medium Size Enterprises; Microfinance; Public Sector Economics&Finance; Tax Policy and Administration; National Governance; Taxation&Subsidies; Small Scale Enterprise;

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References listed on IDEAS
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.:
  1. Steel, William F & Webster, Leila M, 1992. "How Small Enterprises in Ghana Have Responded to Adjustment," World Bank Economic Review, Oxford University Press, vol. 6(3), pages 423-38, September.
  2. Shleifer, Andrei & Vishny, Robert W, 1993. "Corruption," The Quarterly Journal of Economics, MIT Press, vol. 108(3), pages 599-617, August. [Downloadable!] (restricted)
    Other versions:
    • Andrei Shleifer & Robert W. Vishny, 1993. "Corruption," NBER Working Papers 4372, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  3. Duanjie Chen & Ritva Reinikka-Soininen & John Matovu, . "A Quest for Revenue and Tax Incidence in Uganda," IMF Working Papers 01/24, International Monetary Fund.
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Cited by:
(explanations, 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.)

  1. Bernard Gauthier & Jean-Paul Azam & Jonathan Goyette, 2004. "The Effect of Fiscal Policy and Corruption Control Mechanisms on Firm Growth and Social Welfare: Theory and Evidence," Cahiers de recherche 04-10, HEC Montréal, Institut d'économie appliquée. [Downloadable!]
  2. Matthews, Alan & Claquin, Pierre & Opolot, Jacob, 2007. "Distortions to Agricultural Incentives in Uganda," Agricultural Distortions Working Paper 48549, World Bank. [Downloadable!]
  3. Odd-Helge Fjeldstad, 2005. "Corruption in Tax Administration: Lessons from Institutional Reforms in Uganda," CMI Working Papers WP 2005: 10, CMI (Chr. Michelsen Institute), Bergen, Norway. [Downloadable!]
  4. Kappel, Robert & Lay, Jann & Steiner, Susan, 2005. "Uganda : no more pro-poor growth?," Proceedings of the German Development Economics Conference, Kiel 2005 31, Verein für Socialpolitik, Research Committee Development Economics. [Downloadable!]
  5. Warlters, Michael & Auriol, Emmanuelle, 2005. "The marginal cost of public funds in Africa," Policy Research Working Paper Series 3679, The World Bank. [Downloadable!]
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