CorruptionFiscal corruption is exte

Corruption
Fiscal corruption is extensive in local authorities.20 It takes many forms and varies
by types of taxes, methods of tax collection and location. It cuts across all levels of
the local government, from the villages to the councils’ headquarters. The
magnitudes in terms of the amounts of money involved seem to rise in step with the
administrative level of the council.
Although many cases of collusion between taxpayers and collectors are reported,
our findings show that the most common type of corruption is embezzlement of
revenues by tax collectors and administrators. Three factors may have led to
widespread theft of tax revenues within the local authorities (Prud’homme, 1992):
- the low level of wages paid to staff;
- the complex nature of the tax structure; and
- inadequate control