With the financial markets remaining jittery, many countries are taking measures to lower their unsustainably high public debt levels. A recent review of 28 countries shows that most countries are generally relying more on spending cuts than tax increases, and indeed several of them have been reducing their corporation tax burdens to stimulate their economies. VAT is widely seen as the least bad tax to raise, and many countries have been actively seeking to close their tax gaps – which is easier said than done.
