Resource title

Strategic tax collection and fiscal decentralisation: the case of Russia

Resource image

image for OpenScout resource :: Strategic tax collection and fiscal decentralisation: the case of Russia

Resource description

In a centralized federation, where tax rates and taxation rules are set by the federal government, manipulating the thoroughness of tax auditing and the effectiveness of tax collection could be attractive for regional authorities because of a variety of reasons. These range from tax competition to principal-agent problems, state capture and benefits of fiscal equalisation. In this paper we discuss strategic tax auditing and collection from the perspective of fiscal federalism and test for strategic tax collection empirically using data of the Russian Federation. Russia s regional authorities in the 1990s have always been suspect of tax auditing manipulations in their favour. However, in the 2000s increasing bargaining power of the centre seems to induce tax collection bodies in the regions to manipulate tax auditing in favour of the federation. We find partial evidence in favour of both of these hypotheses.

Resource author

Alexander Libman, Lars P. Feld

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/26076

Resource license

Adapt according to the presented license agreement and reference the original author.