Abstract : The objective of this paper is to analyze the contribution of illicit financial flows to the differences in tax rates in sub-Saharan Africa. Our sample contains 18 cooperative countries and 12 non-cooperative countries with respect to the Anti-Money Laundering / Countering the Financing of Terrorism. Using the Oaxaca-Blinder decomposition, we find that the difference in illicit financial flows explains the differences in tax burden.
Keywords : tax burden, illicit financial flows, VAT gap.
JEL Classification : H20, F21, H25.
DOI: https://doi.org/10.18559/RIELF.2021.1.3