Research Topics

Publications

The U4 Blog

Learning & events

About Us

U4 Helpdesk Answer

Exploring the Relationships between Corruption and Tax Revenue

A review of literature indicates that corruption has a significant negative impact on the levels of tax revenue collected in a country. The current understanding of the correlation between corruption and tax revenue however is incomplete since there is insufficient information available on the impact of taxation on corruption. Corruption not only lowers the tax-GDP ratio but also causes long-term damage to the economy by detracting investment, increasing the size of the underground economy, distorting tax structures and corroding the tax morality of taxpayers. All of these in turn further reduces the long term revenue generating potential of the economy. The impact of taxation on corruption is less explored in the existing research literature. The little information that was found indicates that higher tax rates can induce more corruption in an economy by incentivising tax evasion. It is recommended that more imperical research is carried out to better understand the impacts o

12 January 2010
Read onlineDownload PDF
Loading PDF…

This publication is from 2010. Newer material may be available. Please search related topics and keywords.

Cite this publication


(2010) Exploring the Relationships between Corruption and Tax Revenue. Bergen: U4 Anti-Corruption Resource Centre, Chr. Michelsen Institute (U4 Helpdesk Answer )

Read onlineDownload PDF

Disclaimer


All views in this text are the author(s)’, and may differ from the U4 partner agencies’ policies.

This work is licenced under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International licence (CC BY-NC-ND 4.0)

Keywords


public financial management, public financial management, taxation