This paper examines the role of tax administration in developing countries from an economic perspective. The traditional separation of tax policy and tax administration in the literature is shown to break down in developing countries, where tax administrators decide in what manner complicated...

The paper presents a comparative study of systems for withholding income tax on wages and identifies those that can be used in developing countries and countries in transition. The withholding system should be simple and reduce the need for return filing as much as possible. Collection of social...

The term ‘hard-to-tax' (HTT), in tax evasion literature, refers to farmers, small and medium-sized enterprises (SMEs), and professionals. However, research on the hard-to-tax in low and middle income countries (LMICs) has primarily focussed on farmers and SMEs. Professionals are rarely...

Turnover (sales) is frequently used in developing countries as a presumptive income tax base, to economize on the costs of tax administration and taxpayer compliance. We construct a simple model where a size threshold separates firms paying turnover tax from those paying profit tax (regular...