Showing 121 - 132 of 145 publications
November 2014

Unitary Taxation of the Finance Sector

by Kerrie Sadiq

Multinational financial institutions (MNFIs) play a significant role in financing the activities of their clients in developing nations. Consistent with the ‘follow-the-customer’ phenomenon which explains financial institution expansion, these entities are increasingly profiting from activities associated with this growing market. However, not only are MNFIs persistent users of tax havens, but also, more than other…

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September 2014

Electoral Competitiveness, Political Budget Cycles and Taxation in Developing Countries

by Wilson Prichard

Despite significant evidence of ‘political budget cycles’ affecting public expenditure, studies of the impact of elections on tax collection have reached mixed conclusions. Drawing on significantly improved government revenue data, this paper finds, contrary to earlier research, that when we focus on all executive elections in developing countries there is no significant effect on levels of tax…

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September 2014

Taxation, Non-Tax Revenue and Democracy: New Evidence Using New Cross-Country Data

by Wilson Prichard, Paola Salardi & Paul Segal

A large body of cross-country econometric research has investigated the possibility of a political resource curse, by which access to extensive natural resources reduces the extent of democracy and accountability. However, this literature has been plagued by problematic data and correspondingly inappropriate model specification. Dominant theories of the political resource curse focus on the political consequences…

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September 2014

Tax Structures, Economic Growth and Development

by Kyle McNabb & Philippe LeMay-Boucher

This paper investigates the relationship between tax structures and economic growth in a panel of developed and developing countries. In order to raise revenue, low-income countries have historically relied more heavily on international trade taxes, whilst richer nations employ comparatively more consumption and income taxes. Using the new Government Revenue Dataset (GRD) from the International…

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September 2014

Aid and Taxation: Exploring the Relationship Using New Data

by Oliver Morrissey, Wilson Prichard & Samantha Torrance

This paper examines cross-country evidence concerning the relationship between aid and taxation using a new dataset compiled by the International Centre for Tax and Development (ICTD), and including some extensions to the empirical specification common in the literature. We are unable to replicate the key findings of Gupta et al. (2004) and Benedek et al….

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September 2014

Foreign Aid and Domestic Taxation: Multiple Sources, One Conclusion

by Paul Clist

There are genuine concerns that foreign aid may crowd out domestic tax revenue. In the short run this would have negative consequences for the recipient government’s revenue, and over a longer period could corrode governance through breaking the social contract. In recent years, two papers have presented empirical results that suggest while aid loans are…

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September 2014

The ICTD Government Revenue Dataset

by Wilson Prichard, Alex Cobham & Andrew Goodall

A major obstacle to cross-country research on the role of revenue and taxation in development has been the weakness of available data. This paper presents a newGovernment Revenue Dataset (GRD), developed through the International Centre for Tax and Development (ICTD). The dataset meticulously combines data from several major international databases, as well as drawing on data…

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June 2014

Beyond BEPS: A Tax Policy Agenda for Developing Countries

by Michael C. Durst

As the Organisation for Economic Co-operation and Development (OECD) moves to the final stages of its work on base erosion and profit shifting (BEPS), this paper reflects on the most promising directions for legislative changes and other action which developing countries might take to protect their corporate tax bases. The paper observes that the barriers…

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January 2014

Top Income Shares, Business Profits, and Effective Tax Rates in Contemporary Chile

by Tasha Fairfield & Michel Jorratt

This paper contributes to the burgeoning research on inequality and top incomes around the globe by presenting the first available estimates of top income shares and effective income tax rates in contemporary Chile based on analysis of anonymous income tax return microdata. We pay special attention to business income, which dominates at the top of…

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November 2013

The Political Economy of Tax Reform in Bangladesh: Political Settlements, Informal Institutions and the Negotiation of Reform

by Mirza Hassan & Wilson Prichard

This paper explores the political economy of tax reform in Bangladesh over several decades, shedding light on the complex factors that account for unusually effective and sustained resistance to significant reform. We contend that it is necessary to understand both deep-seated formal and informal institutions and the micro-level incentives that shape the negotiation of short-term…

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Revenue Reform and Statebuilding in Anglophone Africa

by Mick Moore

Within the development field, tax administration reform is an area of relative success. Over the past two decades, the national revenue systems of most countries in anglophone Africa have undergone major reforms. These comprise, in particular, the introduction of Value Added Tax (VAT), the adoption of ‘advanced’ tax administration practices, and the creation of semi-autonomous…

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