Political connections, corruption and tax evasion: a cross-country investigation

Hichem Khlif and Ines Amara

Journal of Financial Crime, 2019, vol. 26, issue 2, 401-411

Abstract: Purpose - This paper aims to examine the association between political connections and tax evasion and test whether corruption level affects this relationship. Design/methodology/approach - Tax evasion measure is based onSchneideret al.(2010), while country’s political connection trend is based onFaccio (2006). Findings - Using a sample of 35 countries, the authors document that political connections are positively associated with tax evasion and this relationship becomes stronger for high corrupt environment. Originality/value - The findings have policy implications for countries aiming to combat tax evasion as political connection trends in one country reduce the level of tax compliance. In addition, political connections and corruption play a complimentary role in increasing tax evasion practices.

Keywords: Corruption; Tax evasion; Political connections (search for similar items in EconPapers)
Date: 2019
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (text/html)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (application/pdf)
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eme:jfcpps:jfc-01-2018-0004

DOI: 10.1108/JFC-01-2018-0004

Access Statistics for this article

Journal of Financial Crime is currently edited by Dr Li Hong Xing and Prof Barry Rider

More articles in Journal of Financial Crime from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().