Complexidade tributária e corrupção: análise em países da América Latina

Abstract

Using the Theory of Fiscal Illusion as a lens, the aim of this study was to identify the relationship between tax complexity and corruption in Latin American countries. Through a sample comprised between 2005 and 2019, consisting of 42 Latin countries, representative factors of the various forms of corruption were formulated, and the GMM models were adopted to investigate this relationship. The results suggest that countries that show an average increase in levels of tax complexity have higher levels of corruption. Evidence was found that countries with higher tax rates on profit had higher rates of corruption. The findings also indicated that the total amount of taxes was the variable that had the greatest influence among the Tax Complexity metrics, being positively and directly related to higher levels of corruption. Additionally, the relationship between the adoption and extension of IFRS and IPSAS, associated to tax complexity and corruption, was also investigated in a Latin American context. This investigation demonstrated that the variables were not significant in the Fisher’s Test, and, therefore, did not show stationarity. Thus, with a view to suppressing endogeneity, an investigation was carried out using panel data to investigate the relationship between the adoption of both standards and corruption. The results suggested that Latin American countries that adopt IFRS standards have higher levels of corruption. In addition, it was also concluded that countries that require the adoption of IFRS for publicly traded companies and for foreign companies have lower corruption rates.