The complex and critical relationship between tax and corruption

Tax and corruption are global phenomena. No society is immune from corruption,1 and within any society taxation plays a pivotal role in relation to such activity – which can be both positive and negative. Positively the tax system can provide the kind of regulatory framework and institutional foundations which can help to eradicate or constrain corrupt practices. On the negative side, corruption reduces tax compliance.2 Even perceptions of corruption, whether ‘grand’ or ‘petty’, seriously undermine taxpayers’ intentions to report actual income or sales.3 The relationship between tax and corruption is therefore both complex and critical.https://www.business.unsw.edu.au/research/publications/atax-journalam2018Taxatio