Measures of corruption are based on the concept of bribes as extra business costs. Drawing evidence from corruption surveys of business and tax service in Bulgaria, this paper looks at the bribe as a price paid by the taxpayer in exchange for income-maximizing services supplied by corrupt tax...

The paper studies the challenges of raising tax compliance in the small business sector in transition economies, drawing from the experience of Bulgaria. It identifies the elements of tax design and enforcement that discriminate against the small business and drive non-compliance. It argues that...