{
  "title": "Tax Evasion from Cross-Border Fraud: Does Digitalization Make a Difference?",
  "publication": "IMF Working Papers, November 13, 2020",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2020/11/13/tax-evasion-from-cross-border-fraud-does-digitalization-make-a-difference-49857",
  "canonical": "https://www.imf.org/en/publications/wp/issues/2020/11/13/tax-evasion-from-cross-border-fraud-does-digitalization-make-a-difference-49857",
  "overlayPath": "/en/publications/wp/issues/2020/11/13/tax-evasion-from-cross-border-fraud-does-digitalization-make-a-difference-49857/index.md",
  "summary": "How can governments reduce the prevalence of cross-border tax fraud? This paper argues that the use of digital technologies offers an opportunity to reduce fraud and increase government revenue.",
  "sections": [
    {
      "heading": "Summary",
      "content": "- The paper examines how the use of digital technologies can reduce cross-border tax fraud and increase government revenue.\n- Uses data on intra-EU and world trade transactions to evaluate prevalence of trade tax fraud and effects of border digitalization.\n- Core claims:\n  - Cross-border trade tax fraud is non-trivial and prevalent in many countries.\n  - Use of digital technologies at the border can alleviate such fraud.\n  - Potential revenue gains from digitalization could be substantial."
    },
    {
      "heading": "Key findings",
      "content": "- Empirical evidence indicates cross-border trade tax fraud is widespread across many countries.\n- Digitalization at the border is correlated with reductions in trade-related tax fraud.\n- Quantified impact:\n  - Halving the distance to the digitalization frontier could raise revenues by over 1.5 percent of GDP in low-income developing countries."
    },
    {
      "heading": "Scope and data",
      "content": "- Data sources: intra-EU and world trade transactions.\n- Subject areas: Digitalization, Imports, International trade, Revenue administration, Tariffs, Tax evasion, Taxes, Technology, Value-added tax.\n- Keywords include: carousel fraud, digitalization index, e-government, transaction data, VAT revenue, tariff revenue, tax authority."
    },
    {
      "heading": "Policy implications",
      "content": "- Enhancing border digitalization is a promising avenue for reducing cross-border tax fraud.\n- Digital technology investments at border administration could yield substantial fiscal returns, especially in low-income developing countries where gains are estimated to be sizable."
    },
    {
      "heading": "Publication metadata (selected)",
      "content": "- Authors: Emmanouil Kitsios, João Tovar Jalles\n- Date: November 13, 2020\n- Series: IMF Working Papers, Working Paper No. 2020/245\n- Pages: 16\n- DOI: https://doi.org/10.5089/9781513561189.001\n\nTax Evasion from Cross-Border Fraud: Does Digitalization Make a Difference? By Emmanouil Kitsios and João Tovar Jalles. IMF Working Paper No. 2020/245, November 13, 2020.\n\n---\n\n Content in this bundle\n\n- Working Paper\n  - Working Paper (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Working Paper (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2020/11/13/tax-evasion-from-cross-border-fraud-does-digitalization-make-a-difference-49857"
    }
  ],
  "bullets": [
    "[Markdown version](/en/publications/wp/issues/2020/11/13/tax-evasion-from-cross-border-fraud-does-digitalization-make-a-difference-49857/index.md)",
    "[Structured JSON version](/en/publications/wp/issues/2020/11/13/tax-evasion-from-cross-border-fraud-does-digitalization-make-a-difference-49857/index.json)",
    "[Bundle manifest](/en/publications/wp/issues/2020/11/13/tax-evasion-from-cross-border-fraud-does-digitalization-make-a-difference-49857/bundle-manifest.json)",
    "Authors: Emmanouil Kitsios, João Tovar Jalles",
    "Published: November 13, 2020",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781513561189.001",
    "The paper examines how the use of digital technologies can reduce cross-border tax fraud and increase government revenue.",
    "Uses data on intra-EU and world trade transactions to evaluate prevalence of trade tax fraud and effects of border digitalization.",
    "Core claims:",
    "Empirical evidence indicates cross-border trade tax fraud is widespread across many countries.",
    "Digitalization at the border is correlated with reductions in trade-related tax fraud.",
    "Quantified impact:",
    "Data sources: intra-EU and world trade transactions.",
    "Subject areas: Digitalization, Imports, International trade, Revenue administration, Tariffs, Tax evasion, Taxes, Technology, Value-added tax.",
    "Keywords include: carousel fraud, digitalization index, e-government, transaction data, VAT revenue, tariff revenue, tax authority.",
    "Enhancing border digitalization is a promising avenue for reducing cross-border tax fraud.",
    "Digital technology investments at border administration could yield substantial fiscal returns, especially in low-income developing countries where gains are estimated to be sizable.",
    "Authors: Emmanouil Kitsios, João Tovar Jalles",
    "Date: November 13, 2020",
    "Series: IMF Working Papers, Working Paper No. 2020/245",
    "Pages: 16",
    "DOI: https://doi.org/10.5089/9781513561189.001",
    "**Working Paper**"
  ],
  "related": [
    {
      "title": "Working Paper",
      "role": "paper",
      "sourceUrl": "https://www.imf.org/-/media/files/publications/wp/2020/english/wpiea2020245-print-pdf.pdf",
      "summary": {
        "path": "/-/media/files/publications/wp/2020/english/wpiea2020245-print-pdf.pdf.md",
        "mime": "text/markdown"
      },
      "binary": {
        "path": "/-/media/files/publications/wp/2020/english/wpiea2020245-print-pdf.pdf",
        "mime": "application/pdf"
      }
    }
  ],
  "alternates": {
    "markdown": "/en/publications/wp/issues/2020/11/13/tax-evasion-from-cross-border-fraud-does-digitalization-make-a-difference-49857/index.md",
    "json": "/en/publications/wp/issues/2020/11/13/tax-evasion-from-cross-border-fraud-does-digitalization-make-a-difference-49857/index.json",
    "bundleManifest": "/en/publications/wp/issues/2020/11/13/tax-evasion-from-cross-border-fraud-does-digitalization-make-a-difference-49857/bundle-manifest.json"
  },
  "generatedAtUtc": "2026-09-16T18:31:04.673Z"
}