| Western historical experience with taxation has been | | | | administrative reforms of the tax system;ii) ii) the |
| that a government's increased financial dependency on | | | | democratic accountability of the tax reforms was |
| tax revenues may generate governance benefits, | | | | analyzed by assessing whether the tax reforms |
| because it encourages the accountability of the state | | | | created closer links between governments and their |
| to its citizens. Explicit or implicit agreement about who | | | | citizens; and iii) we also studied to what extent external |
| should pay tax, at what rates and for what purposes | | | | accountability relations between governments and |
| was reached through bargaining between the ruler and | | | | international donors affected domestic accountability |
| the potential taxpayers. In contemporary OECD | | | | relations. |
| countries issues of taxation remain central and | | | | In this part of the research project I emphasized the |
| important - especially around elections. | | | | ongoing tax reforms in Albania, Bulgaria, Bosnia, and |
| In contrast, taxation is not high on the domestic political | | | | Serbia where reforms were introduced as part of the |
| agenda in Balkan countries. With the exception of | | | | economic restructuring agreements with the |
| Greece, the politics of taxation are, in general, limited to | | | | international donor community. |
| involve a few specialized interest groups, and tend to | | | | The research has found that generally, the tax |
| take place in non-public arenas. Small lobby groups | | | | reforms have only to a limited extent succeeded in |
| pressure for exemptions, for rate reductions on | | | | widening the tax net. Only formal business |
| imports, or bargain with officials or ministers about tax | | | | corporations appear visibly affected by the central |
| liabilities. | | | | government tax reforms. However, our research |
| Local government taxation is, however, a major | | | | suggests that a voice and an organized response to |
| exception to this. Around election time, this form of | | | | the new revenue policies are developing within the |
| taxation is often high on the political agenda of both | | | | business communities in the specific countries. The fact |
| national and local politicians. | | | | that these issues are being treated through formal, |
| But, this politicization of local government taxes does | | | | public organizations, rather than through bribery and |
| not increase tax compliance among citizens. To the | | | | public deals may indicate the beginning of a link |
| contrary, it often undermines local government tax | | | | between economic elites and government in issues of |
| collection efforts. The main reason why issues of | | | | revenue generation. |
| taxation has not entered the political agenda in those | | | | My research indicates that it is not easy to introduce |
| countries is that only a minority of citizens pay direct | | | | democratic accountability through externally imposed |
| taxes to the state and the failure of revenue-raising | | | | tax reforms. The tax reforms carried out in were to a |
| seems most acute in countries that receive large | | | | large extent formulated and imposed by the |
| amounts of aid. Partly as a result of this, donors are | | | | international donor community. To meet the targets set |
| increasingly directly involved in recipient country tax | | | | by the IMF and Ministry of Finance, the revenue |
| policy making and administration. Typically, donors push | | | | authorities in have focused on increasing collection and |
| for ambitious overall revenue targets. This may, in | | | | compliance from existing taxpayers rather than |
| some contexts, have significant but unintended | | | | attempting the more complicated task of widening the |
| negative influences on (i) taxpayers' rights through | | | | tax base. Attempts to meet externally set tax-to-GDP |
| coercive tax enforcement, and (ii) accountability by | | | | targets may undermine democratic accountability if |
| empowering the bureaucracy at the expense of | | | | legal processes and taxpayers' rights are set aside in |
| elected politicians. | | | | order to comply with external accountability demands. |
| As part of the research programme, I have analyzed | | | | The semi-military operations to prevent smuggling and |
| the relationship between taxation and accountability in | | | | tax evasion in Uganda illustrate this concern. Our |
| the context of tax reforms carried out in a number | | | | findings suggest that if coercion is accepted as an |
| Balkan countries. I focused on three interrelated issues | | | | integral part of tax collection it is unlikely that |
| affecting the relationship between taxation and | | | | state-society relations can become more accountable |
| accountability:i) The internal accountability of the tax | | | | and democratic. |
| system was assessed with reference to | | | | |