Tax Administration and Compliance

Image credit: © Uganda Revenue Authority, Vanessa van den Boogaard

Many of the challenges low-income countries face in mobilising domestic resources are related to tax administration as much as tax policy. Our research on this theme encompasses all aspects of tax administration, from technology adoption, to data management and strategies for collecting revenue from different types of taxpayers. Tax compliance is a key focus, as low-income countries struggle with widespread evasion, corruption, and limited administrative capacity. Our research on compliance includes survey-based studies of taxpayers’ perceptions and attitudes, case studies, and large-scale field experiments.

Publications:

Tax in Development: Towards a Strategic Aid Approach
by Olav Lundstøl

Raising a higher share of the value added in an economy for the public purpose is associated with state building, modern economic growth and development. From 2002-3 to date, low- and lower-middle income countries raised total tax and non-tax revenue from 11-12 per cent and 18-19 per cent of GDP up to 17-18 per cent…

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Taxing Africa: Coercion, Reform and Development
by Mick Moore, Wilson Prichard & Odd-Helge Fjeldstad

Taxing Africa is a forthcoming publication, available to pre-order from 1st July 2018. Taxation has been seen as the domain of charisma-free accountants, lawyers and number crunchers – an unlikely place to encounter big societal questions about democracy, equity or good governance. Yet it is exactly these issues that pervade conversations about taxation among policymakers, tax…

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May 2018
Linking Beneficial Ownership Transparency to Improved Tax Revenue Collection in Developing Countries
by Wilson Prichard

Recent years have witnessed an accelerating push to expand access to information on the beneficial ownership of corporate entities, in an effort to bring greater transparency to multinational corporation (MNC) tax strategies, identify personal tax-evading wealth held overseas and combat global networks of criminality and corruption. This effort remains in its infancy, but has made…

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Regulatory Burdens in Tax Administration and Firms’ Compliance Costs in Africa
by Merima Ali

This paper examines the effect of regulatory burdens related to tax administration on firms’ compliance costs in Africa. Using cross-country firm-level data, the results show that regulatory burdens related to tax administration significantly increase firms’ compliance costs compared to burdens related to other kinds of government regulations. The results further show that firms’ relationships with…

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What is the Role of Taxpayer Education in Africa?
by Giulia Mascagni & Fabrizio Santoro

The ICTD’s African Tax Administration Papers (ATAPs) are research papers that will be of specific interest to people working in tax administration in Africa. This paper, the first in the new ATAP series, reviews existing initiatives on taxpayer education in Africa, an area that has been largely under-researched in the literature. We start by providing…

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March 2018
Forest Taxation and REDD+: An Analysis of Potential Impacts in Cameroon, Ghana and Sierra Leone
by Stephen Spratt, Philip Kargbo, Emmanuel Marfo, Emmanuel Ngungoh & Sabaheta Ramcilovik-Suominen

This research explores the impacts that REDD+ could have on forest tax systems in three countries in sub-Saharan Africa, and considers how policy could be designed to increase the chances that these impacts are positive. To assess this, a methodological framework is identified and adapted. The framework has been used to explore how the implementation…

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March 2018
Semi-Autonomous Revenue Authorities in sub-Saharan Africa: Silver Bullet or White Elephant?
by Roel Dom

A major component of tax administration reform in sub-Saharan Africa over the last thirty years has been the creation of semi-autonomous revenue authorities (SARAs). These operate at arm’s length from the ministry of finance, which is different to conventional tax administrations. They have an independent legal status, and usually integrate both customs and tax functions….

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February 2018
Taxing High Net Worth Individuals: Lessons from the Uganda Revenue Authority’s Experience
by Jalia Kangave, Susan Nakato, Ronald Waiswa, Milly. I. Nalukwago & Patrick Lumala Zzimbe

This brief examines the experience of Uganda in increasing tax compliance from wealthy individuals, compares its approach to that of other countries’ tax authorities, and draws lessons that they can learn from each other.

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January 2018
What Can We Learn from the Uganda Revenue Authority’s Approach to Taxing High Net Worth Individuals?
by Jalia Kangave, Susan Nakato, Ronald Waiswa, Milly Nalukwago & Patrick Lumala Zzimbe

This paper examines the experience of Uganda in increasing tax compliance from wealthy individuals, compares its approach to that of other countries’ tax authorities, and draws lessons that they can learn from each other.

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January 2018
How Do We Research Tax Morale at the Subnational Level?
by Jalia Kangave, Giulia Mascagni & Mick Moore

One of the most effective ways of increasing voluntary tax compliance is by improving tax morale. Several studies have been undertaken to examine why some individuals pay taxes while others do not. While many of these studies have been conducted at the national level, there is an increasing body of research at the subnational level. Three…

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Blogs:

May 2018
by Eric Zolt & Jason Oh

Interest in wealth taxes has spiked recently due to disclosures of tax-haven abuses by the ultra-wealthy (the Panama Papers in April 2016 and the Paradise Papers in November 2017) and new empirical work on rising wealth inequality in countries around the world. These developments have led many to consider comprehensive wealth taxes as a potential…

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October 2017
by Kyle McNabb

The increasing focus on domestic resource mobilization in developing countries means that, for researchers and policy makers, access to accurate and timely data is more important than ever. The Government Revenue Dataset (GRD) — developed by the International Centre for Tax and Development and now maintained by UNU-WIDER — remains the most complete source of…

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November 2016
by Anzetse Were

Last week I participated in a panel discussion at the Kenya Revenue Authority (KRA) Tax Summit on tax policy and economic development. Current fiscal policy is defined by a widening gap between expenditure and revenue generation putting a spotlight on the country’s tax regime and how to expand tax collection. While there are steps that…

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