High corporate taxes do not always lead to higher revenue, but a simpler tax regime and transparency can help increase collections, a World Bank and PricewaterhouseCoopers report has said.

Tax revenues of economies worldwide are greatly reduced by complex tax systems and a lack of awareness about the total tax paid by businesses, the two global agencies said in a joint study released on Tuesday.

The report, titled 'Paying Taxes -- The Global Picture,' says high corporate income tax rates do not always lead to higher overall revenues. Moreover, when considering rates, the focus should be on the total business taxes raised, not just the corporate income tax rate.

The government and the industry could achieve a win-win situation by working together to help simplify tax systems and improve revenue collection. This was especially true in developing countries where much of the economy operates informally and tax evasion is a major problem, it said.

"Straight forward tax administration and a simpler tax collection process are fundamental to an effective tax system. There are benefits both for governments, by increasing tax revenues, and for business, by making it easier to comply," World Bank's program manager and co-founder for doing business project Caralee McLiesh said.

The report quoted a previous World Bank study which estimates that tax reforms in India can increase the country's productivity by up to 60 per cent.