1 research outputs found
Taxing the Informal Economy: The Current State of Knowledge and Agendas for Future Research
This paper reviews the literature on taxation of the informal economy, taking stock of key debates
and drawing attention to recent innovations. Conventionally, the debate on whether to tax has frequently focused
on the limited revenue potential, high cost of collection, and potentially adverse impact on small firms. Recent
arguments have increasingly emphasised the more indirect benefits of informal taxation in relation to economic
growth, broader tax compliance, and governance. More research is needed, we argue, into the relevant costs and
benefits for all, including quasi-voluntary compliance, political and administrative incentives for reform, and
citizen-state bargaining over taxation