Hidden Bibliographic Details
| Other authors / contributors: | Gradstein, Mark, author.
Miryugin, Fedo, author.
International Monetary Fund, issuing body.
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| ISBN: | 1513522442
9781513522449
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| Notes: | Online resource; title from PDF title page (IMF, viewed Sept. 14, 2020).
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| Summary: | The extent of tax compliance has important implications for revenue yield, efficiency and the fairness of any tax system. Tax evasion undermines revenue collection, distorts competition, and undermines a country's development prospects. In this paper, we investigate whether higher productivity causally leads to lower tax evasion. We first present stylized facts consistent with this view and develop a model that illustrates one potential transmission channel. Second, we test the model predictions at the firm level using the self-reported share of declared income as proxy for tax evasion for a large sample of emerging and developing economies. Our results suggests that productivity improvements by firms can lead to lower tax evasion.
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