Poor Numbers – How We Are Misled by African Development Statistics and What to Do About It (Uzuazo Etemire)

Abstract

During the past decade, diverse developing countries have introduced radical reforms in their collection of taxes. In more than 15 countries traditional tax departments have been granted the status of semi-autonomous revenue authorities (ARAs). This paper investigates the design and impact of ARAs in Latin America, arguing that politicians create ARAs in order to signal a credible commitment to taxpayers that tax administration will be more effective, fair, and competent. Using survey data from corporate taxpayers and tax professionals in Bolivia, Mexico, Peru, and Venezuela, the paper presents econometric analyses and performance indicators that support the hypothesis that there is a link between perceptions of credibility, performance, and agency autonomy. © 2003 Elsevier Ltd. All rights reserved.