IDEAS home Printed from https://ideas.repec.org/p/qeh/qehwps/qehwps129.html
   My bibliography  Save this paper

Tax Evasion, Tax Avoidance and Development Finance

Author

Listed:
  • Alex Cobham (QEH)

Abstract

Domestic revenue mobilisation is key to sustainable development finance - only self-sufficiency will allow the development of fully-functioning states with flourishing systems of political representation and economies reflecting societies' expressed preferences in regard to, for example, inequality. Tax evasion and tax avoidance are important insofar as they affect both the volume and nature of government finances. This paper estimates the total cost to developing countries of these leakages as US$385 billion annually, dwarfing any potential increase in aid. An additional result suggests that doubling aid to low income countries may have little positive revenue effect but damage the strength of political representation, if full trade liberalisation is simultaneously required.

Suggested Citation

  • Alex Cobham (QEH), "undated". "Tax Evasion, Tax Avoidance and Development Finance," QEH Working Papers qehwps129, Queen Elizabeth House, University of Oxford.
  • Handle: RePEc:qeh:qehwps:qehwps129
    as

    Download full text from publisher

    File URL: http://www3.qeh.ox.ac.uk/RePEc/qeh/qehwps/qehwps129.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Pallage, Stephane & Robe, Michel A, 2001. "Foreign Aid and the Business Cycle," Review of International Economics, Wiley Blackwell, vol. 9(4), pages 641-672, November.
    2. Robert Lensink & Oliver Morrissey, 2000. "Aid instability as a measure of uncertainty and the positive impact of aid on growth," Journal of Development Studies, Taylor & Francis Journals, vol. 36(3), pages 31-49.
    3. Alkire, Sabina, 2002. "Dimensions of Human Development," World Development, Elsevier, vol. 30(2), pages 181-205, February.
    4. Richard M. Bird, 2005. "Value-Added Taxes in Developing and Transitional Countries: Lessons and Questions," International Tax Program Papers 0505, International Tax Program, Institute for International Business, Joseph L. Rotman School of Management, University of Toronto.
    5. Ross, Michael L., 2004. "Does Taxation Lead to Representation?," British Journal of Political Science, Cambridge University Press, vol. 34(02), pages 229-249, April.
    6. Emran, M. Shahe & Stiglitz, Joseph E., 2005. "On selective indirect tax reform in developing countries," Journal of Public Economics, Elsevier, vol. 89(4), pages 599-623, April.
    7. Friedrich Schneider, 2005. "Shadow Economies of 145 Countries all over the World: What Do We Really Know?," CREMA Working Paper Series 2005-13, Center for Research in Economics, Management and the Arts (CREMA).
    8. Baunsgaard, Thomas & Keen, Michael, 2010. "Tax revenue and (or?) trade liberalization," Journal of Public Economics, Elsevier, vol. 94(9-10), pages 563-577, October.
    9. Howell H Zee, 2005. "Personal Income Tax Reform; Concepts, Issues, and Comparative Country Developments," IMF Working Papers 05/87, International Monetary Fund.
    10. Richard M. Bird, 2005. "Value-Added Taxes in Developing and Transitional Countries: Lessons and Questions (2005)," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0505, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    11. Jorge Martinez-Vazquez, 2001. "Mexico: An Evaluation of the Main Features of the Tax System," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0112, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bethencourt, Carlos & Kunze, Lars, 2013. "Tax evasion, social norms and economic growth," MPRA Paper 48427, University Library of Munich, Germany.
    2. Ali, Merima & Fjeldstad, Odd-Helge & Sjursen, Ingrid Hoem, 2014. "To Pay or Not to Pay? Citizens’ Attitudes Toward Taxation in Kenya, Tanzania, Uganda, and South Africa," World Development, Elsevier, vol. 64(C), pages 828-842.
    3. Alex Reuben Kira, 2017. "An Evaluation of Governments’ Initiatives in Enhancing Small Taxpayers’ Voluntary Tax Compliance in Developing Countries," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 7(1), pages 253-267, January.
    4. Jayati Ghosh, 2007. "Macroeconomics and Growth Policies," Policy Notes 2, United Nations, Department of Economics and Social Affairs.
    5. European Commission, 2011. "Tax Reforms in EU Member States 2011: tax policy challenges for economic growth and fiscal sustainability," Taxation Papers 28, Directorate General Taxation and Customs Union, European Commission.
    6. Ortiz, Isabel, & Cummins, Matthew. & Karunanethy, Kalaivani., 2015. "Fiscal space for social protection and the SDGs options to expand social investments in 187 countries," ILO Working Papers 994877663402676, International Labour Organization.
    7. Jozef Pacolet & Joris Vanormelingen, 2015. "Illicit Financial Flows: concepts and first macro estimates for Belgium and its 18 preferred partner countries," BeFinD Working Papers 0110, University of Namur, Department of Economics.
    8. Santiago Tobón Zapata & Juan Carlos Muñoz-Mora, 2013. "Impuesto predial y desarrollo económico. Aproximación a la relación entre el impuesto predial y la inversión de los municipios de Antioquia," REVISTA ECOS DE ECONOMÍA, UNIVERSIDAD EAFIT, June.
    9. Ramón E. López & Eugenio Figueroa, 2011. "Fiscal policy in Chile: Hindering sustainable development by favoring myopic growth," Working Papers wp346, University of Chile, Department of Economics.
    10. Duccio Gamannossi degl’Innocenti & Matthew D. Rablen, 2017. "Tax avoidance and optimal income tax enforcement," IFS Working Papers W17/08, Institute for Fiscal Studies.
    11. Shari Spiegel, 2007. "Macroeconomics and Growth Policies," Policy Notes 1, United Nations, Department of Economics and Social Affairs.
    12. Nikopour, Hesam & Shah Habibullah, Muzafar, 2010. "Shadow Economy and Poverty," MPRA Paper 23599, University Library of Munich, Germany.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:qeh:qehwps:qehwps129. See general 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: (IT Support). General contact details of provider: http://edirc.repec.org/data/qehoxuk.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.