Tax evasion from cross-border fraud: Does digitalization make a difference?

Emmanouil Kitsios, João Tovar Jalles, Geneviève Verdier

Research output: Contribution to journalArticlepeer-review

5 Citations (Scopus)


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. Using data on intra-EU and world trade transactions, we present evidence that (i) cross-border trade tax fraud is non-trivial and prevalent in many countries; (ii) such fraud can be alleviated by the use of digital technologies at the border; and (iii) potential revenue gains of digitalization from reducing trade fraud could be substantial. Halving the distance to the digitalization frontier could raise revenues by over 1.5% of GDP in low-income developing countries.

Original languageEnglish
Pages (from-to)1400 - 1406
JournalApplied Economics Letters
Issue number10
Publication statusPublished - 2023


  • carousel fraud
  • digitalization
  • e-government
  • fiscal policy
  • Panel data
  • tax evasion
  • taxation
  • technology


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