In this model firms seek to minimise their tax liabilities by purchasing rent seeking services from a provider who also sells legitimate public services to the government. The provider enjoys economies of scope — its two outputs are produced jointly. Tax reform in this setting can increase both government revenue and the efficiency of the economy because a type of Laffer curve is operational and because such reform can lead to resources being moved out of rent-seeking activity. Later this partial equilibrium framework will be embedded within a conventional general equilibrium model.