You are here

Home » Content

tAXING AWAY cOrrUptION: empIrIcAL eVIDeNce ON tHe reLAtIONSHIp betWeeN cOrrUptION AND SpecIFIc eLemeNtS OF tHe tAX SYStem

Korrupsiyadankənar vergitutma: korrupsiya və vergi sisteminin spesifik elementləri arasındakı əlaqə üzrə empirik dəlil

Journal Name:

  • Azerbaycanın Vergi Jurnali

Publication Year:

  • 2013

Key Words:

Keywords (Original Language):

Author Name
Abstract (2. Language): 
Tədqiqatda 2006-2012-ci illər üçün 28 Şərqi Avropa və Mərkəzi Asiya ölkəsindən toplanmış panel məlumatlarından istifadə edərək vergi sistemi ilə korrupsiya arasındakı əlaqə qiymətləndirilməyə çalışılmışdır. Biz tədqiqatda nəinki korrupsiya səviyyəsi (“Transparensi İnternəşnl”ın Korrupsiya Qavrama İndeksi reytinqi) ilə vergi sisteminin inkişafı arasında tərs əlaqə olduğunu müəyyən etmişik, həmçinin də vergi sisteminin iki xüsusi elementinin korrupsiya səviyyəsi üzərində ciddi təsiri olduğunu da ortaya çıxarmışıq ki, bunlar da elektron vergi bəyannaməsi sisteminin mövcudluğu və mənfəət vergisi dərəcəsidir. OLS reqressiyasını hesabladıqdan sonra bəlli oldu ki, elektron vergi bəyannaməsi sisteminin qəbul edilməsi 0.423 əmsala malikdir ki, bu da 1% səviyyəsində əhəmiyyətlidir. Əmsalın müsbət olması onu göstərir ki, Korrupsiya Qavrama İndeksində artış korrupsiyanın azalması ilə nəticələnir. Aydındır ki, bu əlaqə yetərli dərəcədə əhəmiyyətlidir, çünkü Korrupsiya Qavrama İndeksi yalnız 0-10 arasında dəyişir. Bu, həmçinin onu göstərir ki, mənfəət vergisi dərəcəsi korrupsiya ilə ikinci dərəcəli çoxhədli əlaqəyə malikdir. Həmin əlaqə 5% səviyyəsində əhəmiyyətlidir. Belə ki, mənfəət vergisi dərəcəsi 11,07%-ə qədər olduqda Korrupsiya Qavrama İndeksi ilə pozitiv əlaqəyə malikdir və korrupsiyanı mühüm dərəcədə azaldır. Mənfəət vergisi dərəcəsi 11,07% səviyyəsini keçdikdə isə Korrupsiya Qavrama İndeksində azalma baş verir. Beləliklə, deyə bilərik ki, əgər ölkələr korrupsiyanı məhdudlaşdırmaq istəyirlərsə, elektron vergi bəyannaməsi sistemini tətbiq etməli və mənfəət vergisi dərəcəsini təxminən 11% səviyyəsində saxlamalıdırlar.
Bookmark/Search this post with
Abstract (Original Language): 
Using panel data collected from 28 ECA countries for the years 2006-2012, we attempt to quantify corruption’s relationship with the tax system. Not only do we establish that corruption levels (as measured by Transparency International’s CPI rating) are inversely related to tax system improvements, we also identify two specific elements within the tax system that significantly impact corruption ratings: the presence of an electronic tax filing system and profit tax rates. After conducting OLS regressions, we find that the adoption of an electronic filing system has a coefficient of 0.423 that is significant at the 1% level; the positive sign of this coefficient indicates that an increase in the CPI rating results in a decrease in corruption. This relationship is clearly substantively significant, since the CPI score only ranges from 0 to 10. We also find that profit tax levels have a second degree polynomial relationship with corruption. This relationship is significant at the 5% level. Up to 11.07% profit tax rates are positively associated with the CPI, signifying a decrease in corruption. Increases in the profit tax rate above 11.07%, however, result in a decreased CPI score. Therefore, we suggest that countries seeking to curb corruption make every effort to encourage the adoption of electronic tax filing and keep profit tax levels at approximately 11%.
FULL TEXT (PDF): 
PDF icon arastirmax-taxing-away-corruption-empirical-evidence-relationship-between-corruption-and-specific-elements-tax-system.pdf
  • 1
179
196
  • English

JEL Codes:

REFERENCES

References: 

1. Al-Kasim, F., Soreide, T., and Williams, A. (2013). Corruption and reduced oil production:
an additional resource. Energy Policy: 137-147.
2. Apergis, N., Dincer, O., and Payne, J., (2012). Live free or bribe: on the causal dynamics
between economic freedom and corruption in U.S. states. European Journal of Political
Economy: 215-226.
3. Alesina, A. (2003). Fractionalization Data. Available at: http://www.nsd.uib.no/macrodataguide/
set.html?id=16&sub=.
4. Arezki., R and Bruckner, M., (2011). Oil rents, corruption, and state stability: Evidence
from panel data regressions. European Economic Review: 955-963.
5. Azerbaijan Business Center. (2012). 2012 Tax Revenue. Available at:
http://abc.az/eng/news/70895.html.
6. Azerbaijan Business Center. (2013). In January Azerbaijan collected 11.7% of tax target
for 2013, including 16.7% from oil sector. Available at: http://abc.az/eng/news/
71674.html.
7. Becker, J., Fuest, C., and Riedel, N. ( 2012). Corporate tax effects on the quality and
quantity of FDI. European Economic Review: 1495-1511.
8. Chen, C. (2010). Impact of quality antecedents on taxpayer satisfaction with online taxfiling
systems - an empirical study. Information and management: 308-315.
9. Chowdhury, S. (2004). The effect of democracy and press freedom on corruption: an
empirical test. Economics Letters: 93-101.
10.Deliotte. (2008). Guide on taxation and investment in Azerbaijan. Available at:
ht tp: / /www.deloi t te.com/view/en_GX/global /services/ tax/cross-bordertax/
international-tax/taxation-and-investment-guides/80af6c11aaefd110VgnVCM
100000ba42f00aRCRD.htm.
11.Dreher, A, McCorriston, S and Kotsogiannis, C. (2009). How do institutions affect corruption
and the shadow economy?. International Tax and Public Finance 16: 773-796.
12.Ekapija. (2010). DINKIC: Radical tax administration reform as of January. Available at:
http://www.ekapija.com/website/en/page/650185/DINKIC-Radical-tax-adminis...
as-of-January
13.Estonian Tax and Customs Board. (2012). Strategic Plans. Available at:
http://www.emta.ee/index.php?id=2224
14.Freedom House. (2013). Central and Eastern Europe (Eurasia). Available at:
http://www.freedomhouse.org/regions/central-and-eastern-europeeurasia
15.Fugazza, M. and Jacques, J. (2004). Labor market institutions, taxation and the underground
economy. Journal of Public Economics 88(1-2):395-418.
16.Glaeser., E. and Saks, R. (2006). Corruption in America. Journal of Public Economics:
1053-1072.
17.Goel, R., and Nelson, M. (2005). Economic freedom versus political freedom: crosscountry
influence on corruption. Australian Economic Papers: 121-132.
18.Hacibeyoglu, C. (2009). How to create a world-class taxation system from scratch: the
story of tax reform in Azerbaijan. Doing Business. Available at: http://www.doingbusiness.
org/~/media/fpdkm/doing%20business/documents/reforms/case-studies/2009/db09-
5/2013
c.Finnegan
TAxIng AWAY CORRUPTIOn: EMPIRICAl EVIDEnCE On THE RElATIOnSHIP...
193
cs-azerbaijan.pdf.
19.International Finance Corporation. (2013). Doing Business. Available at: http://www.doingbusiness.
org/data/exploreeconomies/azerbaijan/paying-taxes/.
20.International Monetary Fund. (2012). Republic of Azerbaijan: selected issues. IMF Country
Report 12/6: 8-14. Available at: http://www.imf.org/external/pubs/
ft/scr/2012/cr1206.pdf.
21.Kim, J. Opening Remarks by World Bank Group President Jim Yong Kim at Fiscal Policy,
Equity and long-term growth in developing countries conference. (World Bank/IMF
Spring Meetings 2013, Washington, DC, United States, April 21, 2013).
22.Limun.HR. (2007). E-Porezna (e-taxation service) enables easier communication with
tax payers. Available at: http://www.limun.hr/en/main.aspx?id=209547.
23.Martinez-Vazquez, J., and McNab, R. (1997). The tax reform experience in transitional
countries. GSU Andrew Young School of Policy Studies, Working Paper No. 97-106.
24.Mataj, E. (2011). The role of ICT in Albanian reform process. Electronic South Eastern
Europe initiative high level meeting on information society development. November 8.
25.Ministry of Finance of the Czech Republic. (2013). Czech Tax Administration.
http://www.mfcr.cz/cps/rde/xchg/mfcr/xsl/en_tax_affairs.html.
26.Ministry of Finance of the Slovak Republic. (2005). The Fundamental Tax Reform, December
2004. Available at: http://www.finance.gov.sk/en/Default.aspx?CatID=118.
27.Ministry of Public Finance of Romania. Available at: http://anaf.mfinante.ro/
public/wps/portal/ANAF.
28.Organization for economic cooperation and development. (2007). OECD e-Government
studies: hungary 2007. Available at: http://www.oecd-ilibrary.org/governance/oecd-egovernment-
studies-hungary-2007_9789264030527-en.
29.PwC. 2013. Paying Taxes (2013). Available at:http://www.pwc.com/gx/en/payingtaxes/
download-order.jhtml.
30.Schneider, F., and Torgler, B. (2009). The impact of tax morale and institutional quality
on the shadow economy. Journal of Economic Psychology 30(2): 228-245.
31.Schneider, F., and Torgler, B. (2009). The impact of tax morale and institutional quality
on the shadow economy. Journal of Economic Psychology 30(2): 228-245.
32.The Heritage Foundation. 2013. Index of Economic Freedom. Available at:
http://www.heritage.org/index/country/azerbaijan.
33.The Micro Data Guide. (2011). Fractionalization data. Available at:
http://www.nsd.uib.no/macrodataguide/set.html?id=16&sub=1.
34.The World Bank. (2012). World Governance Indicators. Available at: http://info.worldbank.
org/governance/wgi/index.asp.
35.The World Bank. (2012). Fuel exports. Available at: http://data.worldbank.org/ indicator/
TX.VAL.FUEL.ZS.UN.
36.The World Bank. (2012). Tax revenue as a percentage of GDP. Available at:http://databank.
worldbank.org/data/views/reports/tableview.aspx.
37.Toye, J., and Moore, M. (1998). Taxation, corruption and reform. The European Journal
of Development Research 10(1):60-84.
38.Trading Economics. (2012). Total tax rate in Azerbaijan. Available at:
http://www.tradingeconomics.com/azerbaijan/total-tax-rate-percent-of-pro...
5/2013
c.Finnegan
TAxIng AWAY CORRUPTIOn: EMPIRICAl EVIDEnCE On THE RElATIOnSHIP...
194
data.html.
39.Transparency International. (2010). Exploring the relationships between corruption and
tax revenue. U4 Expert answer. Available at: https://docs.google.com/file/d/1cNOWpTdWX9iX5CYAgXm3Asj0pQ-
1eoXXolFiM80dPZbwEty1LckxJ7J2Hjpi/edit?usp=sharing.
40.Transparency International. (2012). Corruption Perception Index 2012. Available at:
http://www.transparency.org/cpi2012/.
41.Treisman, D. (2000). The causes of corruption: a cross-national study. Journal of Public
Economics: 399-457.
42.United Nations. (2010). World population prospects: the 2010 revision from the United
Nations population division. Available at: http://esa.un.org/unpd/wpp/index.htm.
43.Wang, Y. (2002). The adoption of electronic tax filing systems: an empirical study. Government
Information Quarterly: 333-352.

Thank you for copying data from http://www.arastirmax.com