Shifting Tax Burdens through Exemptions and Evasion: An Empirical Investigation of Uganda

bibliographic database
Line

Periodical article

Title:	Shifting Tax Burdens through Exemptions and Evasion: An Empirical Investigation of Uganda
Authors:	Gauthier, Bernard Reinikka, Ritva
Year:	2006
Periodical:	Journal of African Economies
Volume:	15
Issue:	3
Period:	September
Pages:	373-398
Language:	English
Geographic term:	Uganda
Subjects:	taxation enterprises fiscal policy tax evasion Economics and Trade
External link:	https://jae.oxfordjournals.org/content/15/3/373.full.pdf
Abstract:	This paper investigates the impacts of tax reforms implemented in Uganda in the mid-1990s on the prevalence of tax evasion and exemptions among firms, and their effects on the distribution and dispersion of tax burdens. Based on firm-level data collected from 243 firms, the authors find that evasion and exemptions were widespread and that their prevalence actually increased during tax reforms. They use three-stage least squares to simultaneously estimate tax burdens, evasion and exemption patterns in 1995 and 1997. They conclude that tax exemptions benefit large businesses to a disproportionate degree, while evasion is more common among small businesses. This creates a situation in which medium-sized firms shoulder a disproportionate tax burden. App., bibliogr., notes, ref., sum. [Journal abstract]