A State Capacity Results-based Approach to Reduce Tax Evasion
Peer Reviewed
Date issued
Jan 2020
Subject
Taxpayer;
Tax Revenue;
Tax Compliance;
Taxation;
Results Framework;
Auditing;
Small Business;
Monitoring and Evaluation;
Tax Evasion;
Economy;
Fiscal Policy;
Tax Administration;
Tax Rate
JEL code
D02 - Institutions: Design, Formation, Operations, and Impact;
H11 - Structure, Scope, and Performance of Government;
C93 - Field Experiments;
H30 - Fiscal Policies and Behavior of Economic Agents: General;
H26 - Tax Evasion and Avoidance;
H43 - Project Evaluation • Social Discount Rate;
D04 - Microeconomic Policy: Formulation, Implementation, and Evaluation
Category
Discussion Papers
The objective of this discussion paper is to propose a Results Based Framework for programs which aim to increase tax compliance. We pose setting state capacity as a specific project result, as opposed to tax evasion, may enhance monitoring and promote effectiveness. We pose such focus may allow managers to demonstrate results in shorter periods of time. We apply the framework to the tax evasion literature to find most studies focus on understanding tax evasion assuming the state can carry out all its functions without limitations. Our review suggests a stronger focus on state capacity may benefit the many states faced by tax evasion.
