scholarly journals Tax Compliance Costs: A Review of Cost Burdens and Cost Structures

2014 ◽  
Author(s):  
Sebastian Eichfelder ◽  
Frannois Vaillancourt
Keyword(s):  
Tax Compliance ◽  
Compliance Costs ◽  
Cost Structures

scholarly journals Tax Compliance Costs: A Review of Cost Burdens and Cost Structures

2014 ◽  
Vol 210 (3) ◽  
pp. 111-148 ◽  
Author(s):  
Sebastian Eichfelder ◽  
François Vaillancourt
Keyword(s):  
Tax Compliance ◽  
Compliance Costs ◽  
Cost Structures

scholarly journals The Study on the Reduction of Tax Compliance Costs in Korea

2015 ◽  
Vol null (44) ◽  
pp. 1-21
Author(s):  
이진수 ◽  
김정호
Keyword(s):  
Tax Compliance ◽  
Compliance Costs

Administrative and Compliance Costs of Value Added Tax (VAT): A Review

2021 ◽  
pp. 097226612110588
Author(s):  
S. Vishnuhadevi
Keyword(s):  
Small Businesses ◽  
Tax Compliance ◽  
Value Added ◽  
Operating Costs ◽  
Tax Revenue ◽  
Compliance Cost ◽  
Compliance Costs ◽  
Factors Associated ◽  
Administrative Costs ◽  
Decision Factors

This article surveys the existing literature on the compliance and administrative costs of VAT incurred by the businesses and the governments respectively. The review focuses on the concepts and components of VAT operating costs, the link between the tax compliance costs and the tax compliance decision, factors associated with compliance costs and the steps taken by various countries to mitigate these costs. The major studies of VAT compliance cost since 1980 and the methodologies adopted are summarised. The review of the studies shows that the VAT compliance costs are higher and significant in both absolute money terms and relative to tax revenue in developed as well as developing countries than the administrative costs and the compliance costs are highly regressive in nature which disproportionately affects the small businesses. Further, the psychological costs are underexplored in the VAT compliance cost literature due to the difficulty in measuring them. This article also highlights the understudied area of VAT compliance costs in India and the importance of exploring the compliance burden in India.

The Income Tax Compliance Costs of Private Households: Empirical Evidence from Germany

2019 ◽  
Vol 47 (5) ◽  
pp. 925-966 ◽  
Author(s):  
Kay Blaufus ◽  
Frank Hechtner ◽  
Janine K. Jarzembski
Keyword(s):  
Income Tax ◽  
International Comparisons ◽  
Tax Compliance ◽  
Cost Burden ◽  
Compliance Costs ◽  
Private Households ◽  
Self Employment ◽  
Upper Bound Estimate ◽  
Total Burden ◽  
Appeal Procedure

Using a survey of more than 18,000 taxpayers in North Rhine-Westphalia (Germany), we estimate the income tax compliance costs of German households and study the determinants of these costs. We find that taxpayers need between 9.13 and 10.23 hours and spend €106 to meet their income tax obligations. The average total burden is between €228 (lower bound estimate) and €321 (upper bound estimate). The aggregate cost burden ranges between 2.03 percent and 2.92 percent of the German income tax revenues of tax year 2015. Although these costs have decreased significantly over recent years (mainly for self-preparers without self-employment income), international comparisons illustrate that the German burden is still located in the upper middle. The five most important cost drivers that increase individual costs are the use of tax advice, the appeal procedure, income, return complexity, and education. We cannot confirm that e-filing reduces taxpayers’ compliance costs.

scholarly journals A Survey of Tax Compliance Costs of Flemish SMEs: Magnitude and Determinants

2011 ◽  
Vol 29 (4) ◽  
pp. 605-621 ◽  
Author(s):  
Bilitis Schoonjans ◽  
Philippe Van Cauwenberge ◽  
Catherine Reekmans ◽  
Gudrun Simoens
Keyword(s):  
Tax Compliance ◽  
Compliance Costs

Tax Compliance Costs: Research Methodology and Empirical Evidence from Australia

2000 ◽  
Vol 53 (2) ◽  
pp. 229-252 ◽  
Author(s):  
Binh Tran-Nam ◽  
Chris Evans ◽  
Michael Walpole ◽  
Katherine Ritchie
Keyword(s):  
Empirical Evidence ◽  
Research Methodology ◽  
Tax Compliance ◽  
Compliance Costs

scholarly journals Income Tax Compliance Cost of Corporations in India, 2000–01

2006 ◽  
Vol 31 (4) ◽  
pp. 9-30
Author(s):  
Arindam Das-Gupta
Keyword(s):  
Cash Flow ◽  
Tax Evasion ◽  
Income Tax ◽  
Tax Compliance ◽  
Postal Survey ◽  
Legal Compliance ◽  
Compliance Cost ◽  
Convenience Sample ◽  
Compliance Costs ◽  
Corporation Tax

This is the first study of compliance costs of income taxation of corporations in India. Compliance costs are the costs of meeting obligations under the income tax law and in planning to save taxes. Opportunity costs such as when tax refunds are delayed are also included. Social compliance costs, gross versus net private costs, and mandatory versus voluntary cost can be distinguished. Gross private compliance costs include both legal and illegal expenses (such as bribes paid), employee costs, the cost of tax advice, and also other non-labour expenses. Estimates in this paper are for the year 2000-01 based on a postal survey of 45 companies throughout India in August-September 2001. Estimated gross compliance costs, excluding bribe costs, are between 5.6 and 14.5 per cent of corporation tax revenues. These are similar to estimates for other countries near the lower limit but are a cause for concern near the upper limit. Tax deductibility of legal expenses and cash flow benefits from the timing difference between taxable income and payment of tax result in net compliance costs between minus 0.7 and plus 0.6 per cent of corporation tax revenue. Both gross and net compliance costs are regressive. Among other findings, five are noteworthy: First, around 25 per cent of sampled companies knowingly paid excess tax (median value: 46%) since tax evasion penalty cannot be levied under Indian law if assessed taxes have already been paid. Second, 70 per cent of companies, especially small companies, used external assistance to prepare tax returns accounting for 39 per cent of the legal compliance costs. Third, voluntary costs associated with tax planning contribute 19 to 43 per cent of total compliance costs. Fourth, the average sample company had 10 to 11 assessment years locked in disputes for tax or penalty in addition to around two years for which assessments were incomplete. Statistical analysis suggested that one extra disputed assessment year raises legal compliance costs by 5.7 per cent. Fifth, it was found to be fairly common for incorrect application of tax laws by tax officials in areas where they have high discretion to cause tax assessments to be revisited. Among reform suggestions is streamlining of 22 legal and procedural �hot spots� which add to compliance costs. Since the response rate was a disappointing 1.15 per cent, the stratified random sample design degenerated into a convenience sample with over-representation of large firms and under-representation of loss-making and zero-profit companies. Therefore, results should be viewed as preliminary and tentative. Other problems are that there were only qualitative questions about in-house cost components; assumed opportunity cost of funds to value cash flow benefits were used; and, as in earlier studies, there can possibly be a bias due to incorrect apportionment of fixed costs and the value of time of company management

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