Publications

Showing 12-23 of 362 publications

Using administrative data to assess the impact of the pandemic in low-income countries: An application with VAT data in Rwanda

by Giulia Mascagni & Adrienne Lees

This paper uses administrative data from Value Added Tax (VAT) returns to provide insights on the impact of the COVID-19 pandemic in Rwanda. We show that the lockdown in Rwanda had a severe impact on the domestic economy, despite relatively low case numbers. However, the economy quickly rebounded after restrictions were lifted, with overall sales…

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March 2021

Profit Shifting of Multinational Corporations Worldwide

by Javier Garcia-Bernardo & Petr Janský

Multinational corporations (MNCs) avoid taxes by shifting their profits from countries where real activity takes place towards tax havens, depriving governments worldwide of billions of tax revenue. Earlier research investigating the scale and distribution of profit shifting has faced methodological and data challenges, both of which we address. First, we propose a logarithmic function to…

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March 2021

Explaining Informal Taxation and Revenue Generation: Evidence from south-central Somalia

by Vanessa van den Boogaard & Fabrizio Santoro

Most people in low-income countries contribute substantially to the financing of local public goods through informal revenue generation (IRG). However, very little is known about how IRG works in practice. We produce novel evidence on the magnitude and regressivity of IRG and its relationship with the state in a fragile context, Somalia. We rely on…

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January 2021

Tax Compliance in Rwanda: Evidence from a Message Field Experiment

by Giulia Mascagni & Christopher Nell

In early 2016 the Rwanda Revenue Authority sent messages to 9,000 taxpayers, aimed to encourage compliance. Each taxpayer was randomly allocated to a treatment group, or to a control group that received no message. Treatment messages varied in terms of content (deterrence, fiscal exchange, reminder) and delivery method (letter, email, SMS). Our RCT evaluates the…

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January 2021

The VAT in Practice: Equity, Enforcement and Complexity

by Giulia Mascagni, Roel Dom & Fabrizio Santoro

The value added tax (VAT) is supposed to be a tax on consumption that achieves greater economic efficiency than alternative indirect taxes. It is also meant to facilitate enforcement through the ‘self-enforcing mechanism’ – based on opposed incentives for buyers and sellers, and because of the paper trail it creates. Being a rather sophisticated tax,…

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January 2021

Tax Certainty? The Private Rulings Regime in Uganda in Comparative Perspective

by Samuel Kahima, Solomon Rukundo & Victor Phillip Makmot

Taxpayers sometimes engage in complex transactions with uncertain tax treatment, such as mergers, acquisitions, demergers and spin-offs. With the rise of global value chains and proliferation of multinational corporations, these transactions increasingly involve transnational financial arrangements and cross-border dealings, making tax treatment even more uncertain. If improperly structured, such transactions could have costly tax consequences….

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December 2020

Simulating the Impact of COVID-19 on Formal Firms in South Africa

by Adrienne Lees, Giulia Mascagni & Michael Kilumelume

This note uses administrative tax data for formal firms to measure the direct impact of lockdown restrictions on firms’ profitability, employment, and exit rates. The authors separate the economy into three categories, according to the size of the shock experienced, and consider two lockdown scenarios: one lasting three months and one lasting five months. These…

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December 2020

At the Table, Off the Menu? Assessing the Participation of Lower-Income Countries in Global Tax Negotiations

by Rasmus Corlin Christensen, Martin Hearson & Tovony Randriamanalina

For half a century, the most influential international rules and standards for taxing multinational corporations have been formulated by a select group of developed countries, the OECD, with lower-income countries on the outside. Since 2013, this has changed: decision making at the OECD has moved to the ‘Inclusive Framework’ (IF), which today encompasses 137 jurisdictions….

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December 2020

At the Table, Off the Menu? Assessing the Participation of Lower-Income Countries in Global Tax Negotiations

by Rasmus Corlin Christensen, Martin Hearson & Tovony Randriamanalina

Since 2013, the formal structure of global corporate tax policymaking at the OECD has changed. Decisions are no longer made by 37 OECD members, but by 137 countries from all regions and levels of development through the ‘Inclusive Framework’ (IF). Official documentation emphasises that all countries participate on an ‘equal footing’, but some participants and…

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Tax Amnesties in Africa: An Analysis of the Voluntary Disclosure Programme in Uganda

by Solomon Rukundo

Tax amnesties have taken centre stage as a compliance tool in recent years. The OECD estimates that since 2009 tax amnesties in 40 jurisdictions have resulted in the collection of an additional €102 billion in tax revenue. A number of African countries have introduced tax amnesties in the last decade, including Nigeria, Namibia, South Africa…

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December 2020

How Effective has the TADAT Framework Been in Improving Tax Administration in Uganda?

by Doris Akol, Margaret Magumba, Patrick Loke, Milly Nalukwago Isingoma & Tina Kaidu

Like several other revenue administrations, prior to the introduction of the Tax Administration Diagnostic Assessment Tool (TADAT) in Uganda, there was no comprehensive standard tool for assessing revenue administration against internationally recognised good practices. Detailed assessment was spread across different facets of revenue administration and indicators were not standardised. The first TADAT assessment of Uganda’s…

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December 2020

Gender and Tax Compliance: Firm Level Evidence from Ethiopia

by Seid Yimam & Fissha Asmare

Many Sub-Saharan African countries, characterised by government budget deficits, have been undergoing reforms and improvements to enhance tax revenue collection. However, such improvements often fall short of expectations and do not yield the expected revenue. These economies are highly vulnerable to tax avoidance and tax evasion, mainly due to the lack of a strong, modernised…

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