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Abstract
Bad resource tax administration is not the biggest risk faced by resource-rich countries. Badly designed resource tax policy and mismanaged expenditure of resource revenues, for example, have probably been far more damaging. But bad resource tax administration is still a significant risk, both in its own right – incompetence and corruption can cause serious damage to government revenues and reputations, and serious problems for investors – and because it magnifies other major risks: for example, resource revenues are more likely to be wasted or misappropriated if tax administrators do not properly account for them, and poor administrative capacity can lead to bad tax policy choices.
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