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Tax Evasion and the Business Environment in Uganda
Author(s) -
Mawejje Joseph,
Okumu Ibrahim Mike
Publication year - 2016
Publication title -
south african journal of economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.502
H-Index - 31
eISSN - 1813-6982
pISSN - 0038-2280
DOI - 10.1111/saje.12132
Subject(s) - tax evasion , bureaucracy , evasion (ethics) , outlier , business , double taxation , quality (philosophy) , public economics , business environment , test (biology) , economics , microeconomics , accounting , business administration , political science , computer science , immune system , immunology , biology , paleontology , philosophy , epistemology , artificial intelligence , politics , law
This paper examines the interaction between the different indicators of the business environment and tax evasion. First, we develop a simple theoretical model linking tax evasion to the business environment. Second, we test the model predictions using the World Bank Enterprise Survey data for Uganda. Findings indicate that the extent of tax evasion is associated with bureaucratic bribery, the quality and efficiency of the legal systems, and the inadequate provision of public capital. Our results are robust to alternative estimation strategy, choice of instruments, treatment of outliers, and missing data.

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