ABSTRACT
Economies in transition seem to be at least as vulnerable to corruption of their tax administration as any other economies. The economic, social and political reengineering which comprises the process of transition creates many uncertainties and many opportunities for exploitation by the unscrupulous. The institutions intended to generate the financial flows from taxation on which the state depends are usually given strong powers and the temptation for bureaucrats and politicians to abuse these powers for personal gain may be very great. This is potentially a very destabilizing force because abuse on the part of those inside the system may well lead citizens to become disenchanted with the activities of the state and weaken their own will to support the state and pay the taxes on which it depends. Taxation of alcoholic drinks has been a popular source of tax revenue in many countries for a long time.
