Showing 25 - 36 of 127 publications
September 2019

Tax Evasion and Missing Imports: Evidence From Transaction-Level Data

by Andualem T. Mengistu, Kiflu G. Molla & Giulia Mascagni

It is well documented in the literature that developing countries raise less tax revenue as a share of their economy than their developed counterparts. Part of this gap can be explained by the relatively higher tax evasion in the former. Recent literature shows that increasing the availability of information reduces evasion, by increasing the probability…

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August 2019

Safe Harbour Regimes in Transfer Pricing: An African Perspective

by Alexander Ezenagu

Applying transfer pricing rules in Africa poses great difficulties. There are few reliable comparables to benchmark prices and terms fixed by related entities in their transactions with each other. This means that jurisdictions struggle with applying the arm’s length principle in intra-firm dealings, as prescribed by tax treaties and domestic laws. Furthermore, the requirement for…

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July 2019

The Economics of Tobacco Control in Nigeria: Modelling the Fiscal and Health Effects of a Tobacco Excise Tax Change

by Precious C. Akanonu, Joseph Ishaku & Chukwuka Onyekwena

This paper examines the potential for changes in the tobacco tax to contribute to raising government revenues, reducing tobacco use, and improving public health in Nigeria. Specifically, it estimates the impact of a change in the excise tax structure and level on cigarette consumption, government revenue, smoking prevalence, net-of-tax (NOT) revenue, and the excise tax…

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June 2019

Democratisation in Tanzania: No Elections Without Tax Exemptions

by Ole Therkildsen & Dr Ane Karoline Bak

A demand-supply framework has been developed and applied to Tanzania to explore the link between democratisation, economic liberalisation and the use of tax exemptions to fund political parties’ electoral campaigns. In Tanzania, the demand for this type of money has increased since one-party rule was abolished in 1992. This led to reduced state subsidies to…

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April 2019

Local Government Property Tax Administration and Collaboration with Central Government: Case Studies of Kiambu, Laikipia and Machakos Counties, Kenya

by Rose Wanjiru, Anne Wanyagathi Maina & Eldah Onsomu with Graeme Stewart-Wilson

Property taxes are a major source of revenue at sub-national levels in most countries, but their administration is complex, and in most cases the process involves both national and sub-national governments. In Kenya, county governments have legislative authority to levy property taxes and the responsibility to finance some of the cost of the services they…

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April 2019

Where the Gap Lay: Presumptive Income Tax Assessment for Small and Micro Enterprises in Addis Ababa City Administration

by Amanuel Mekonnen Workneh & Endalkachew Mulugeta Baileyegn with Graeme Stewart-Wilson

This study is focused on the presumptive tax reassessment of small and micro enterprises (SMEs) in Addis Ababa City Administration that took place in 2017. The reassessment process was based on average daily revenue estimates calculated by teams of assessors and validated by a series of committees. The release of the reassessment results in 2017…

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March 2019

Expensive To Be a Female Trader: the Reality of Taxation of Flea Market Traders in Zimbabwe

by Waziona Ligomeka

The proportion of economic activities that are categorised as informal or small-scale is unusually high in Zimbabwe. Given the depressed state of the economy over an extended period, it is logical that the government is more actively taxing small-scale business activities. Specifically, in 2005 the government introduced a presumptive tax (a tax on gross income),…

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March 2019

An Analysis of Discrepancies in Taxpayers’ VAT Declarations in Rwanda

by Giulia Mascagni, Denis Mukama & Fabrizio Santoro

This report provides a descriptive analysis of discrepancies resulting from matching different value added tax (VAT) data sources in the Rwanda Revenue Authority database. VAT returns are declared by businesses of all sizes and types, from companies to individual traders. Internal discrepancy is the gap between different data sources, namely VAT declaration and VAT annexes,…

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February 2019

Teach to Comply? Evidence from a Taxpayer Education Programme in Rwanda

by Giulia Mascagni, Fabrizio Santoro & Denis Mukama

The role of taxpayer education in improving tax compliance has been largely unexplored in the literature. This paper starts to fill this gap by providing the first rigorous evaluation of the effectiveness of taxpayer education on knowledge, perceptions, and compliance, which took place in Rwanda. Our analysis is based on a unique dataset that combines…

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January 2019

Property Tax in African Secondary Cities: Insights from the Cases of Kisumu (Kenya) and M’Bour (Senegal)

by Liza Rose Cirolia & James Christopher Mizes

This working paper adopts an urban lens on property tax. It focuses specifically on how property tax operates in two African secondary cities, Kisumu (Kenya) and M’Bour (Senegal). The paper identifies three factors shaping the low levels of property tax collection in the two case cities. These are the misalignment between the spatial scale of…

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