ABSTRACT
In the mid-1970s and until the mid-1990s Latin American countries began to implement a set of tax reforms, involving the simplification of tax structures and the removal of exemptions and special privileges, the replacement of trade taxes by value-added taxes and an emphasis on improved tax administration (Shome 1992, 1995, 1999; Tanzi 2000; Lledo et al. 2004). Reforms were significantly influenced by foreign experts and by international financial institutions that promoted a fairly homogeneous set of tax changes, often in the context of macroeconomic stabilization programs. The first goal of these reforms has been to enhance revenue collection and provide more stability in the revenue systems (OECD 2006a).
