Although corruption and tax evasion are distinct and separate problems, they can easily become intertwined and reinforcing. A society that is more corrupt may enable more tax evasion as corrupt officials seek more income via bribes; conversely, higher levels of tax evasion may drive corruption...

It is hard for tax administrations to levy and collect taxes anywhere and anytime. However, taxing certain kinds of activities, sectors, or individuals – the so-called “informal sector” – is an additional challenge for tax administrations in both developing and developed countries, and...

There are by now vast academic literatures on both tax compliance and the underground economy. These literatures provide estimates of the overall degrees of non-compliance and shadow (or hidden) activity as well as numerous insights into their causes and consequences. However, we believe it is...