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

Eichfelder, Sebastian; Vaillancourt, François

doi:10.7866/hpe-rpe.14.3.5

Cited by 14 publications

(5 citation statements)

References 62 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…First, non-disclosing firms are smaller, on average. This fits well with the finding of the literature that the compliance costs of taxes and bookkeeping have large economies of scale (see the review of Eichfelder and Vaillancourt 2014 ). Therefore, smaller firms have a stronger incentive to reduce compliance costs by simplifying financial reporting.…”

Section: Methodssupporting

confidence: 90%

Does IFRS information on tax loss carryforwards and negative performance improve predictions of earnings and cash flows?

2023

Self Cite

View full text Add to dashboard Cite

We analyze the usefulness of accounting information on tax loss carryforwards and negative performance to predict earnings and cash flows. We use hand-collected information on tax loss carryforwards and corresponding deferred taxes from the International Financial Reporting Standards tax footnotes for listed firms from Germany. Our out-of-sample tests show that considering accounting information on tax loss carryforwards does not enhance performance forecasts and typically even worsens predictions. The most likely explanation is model overfitting. Besides, common forecasting approaches that deal with negative performance are prone to prediction errors. We provide a simple empirical specification to account for that problem.

show abstract

Section: Methodssupporting

confidence: 90%

Does IFRS information on tax loss carryforwards and negative performance improve predictions of earnings and cash flows?

2023

Self Cite

View full text Add to dashboard Cite

show abstract

“…It adds up to additional costs in professional fees, audit fees, consultation charges etc. (Eichfelder & Vaillancourt, 2014; Hanefah et al, 2002; Sandford et al, 1989). A comparative study done in Australia by (Pope & Mohdali, 2010; Tran-Nam, 2000) observed that under the GST tax regime, tax compliance cost is higher in comparison to the VAT and sales tax system.…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

Effect of Goods and Service Tax System on Business Performance of Micro, Small and Medium Enterprises

2023

View full text Add to dashboard Cite

Tax and economy go hand in hand, and whenever any overhaul in tax structure takes place, it becomes essential to evaluate its effect on its sector and concerned businesses. The present study examines the effect of Goods and Service Tax (GST) on Indian Micro, Small and Medium Enterprises (MSMEs) business performance. Data were collected through a structured questionnaire from 404 registered MSMEs. The partial least square equation modeling results emphasized an overall positive impact of GST on business performance. The path model demonstrated that determinants of GST- change in the tax system, technology transition, and tax awareness and knowledge have enhanced the performance in terms of ease of doing business, operational efficiency, and increased profitability and have reduced the working capital blockage of funds. However, in contrast, the GST compliance system has increased the compliance burden on the firms, which harmed their performance. Further, the study examined that MSMEs’ size, turnover, and form impact the performance through the GST compliance system of the enterprises. The results may benefit the policymakers and other emerging economies in focusing on the tax reform factors which enhance the performance leading to better economic growth in the future with the support of MSMEs’ better performance. JEL Code: H20; M10; O33; C30

show abstract

“…There have been various discussions as to what constitutes compliance cost (Ariff & Pope, 2002;Blaufus & Hoffmann, 2020;Blaufus et al, 2019;Eichfelder & Hechtner, 2018;Eichfelder & Vaillancourt, 2014;Lignier & Evans, 2012;Sapiei, 2012;Schutte & Van der Zwan, 2019), the measurement of these costs (Shaw et al, 2008), and conceptual issues (Tran-Nam et al, 2000). The challenges facing TCC research have to do with how TCC should be defined and how to measure it (Sapiei, 2012).…”

Section: Literature Reviewmentioning

confidence: 99%

Tax Compliance Costs for SMEs: A Survey of Tax Professionals in Ghana on External Cost of Compliance

Bruce-Twum,

P. Schutte,

Dlamini

2023

TMP

View full text Add to dashboard Cite

The study sought to ascertain the magnitude of the external tax compliance costs incurred by SMEs in Ghana from the perspective of the tax professionals who provide the service. Tax professional firms were selected from the Institute of Chartered Accountants and the Chartered Institute of Taxation for the study. The study distinguished between the average annual costs for small, medium and larger firms to compute and file returns, deal with tax authorities, implement changes in tax laws, and maintain records for tax purposes on behalf of their clients. The cost was found to be regressive in nature, indicating that the burden was relatively higher for small businesses.

show abstract

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

Cited by 14 publications

References 62 publications

Does IFRS information on tax loss carryforwards and negative performance improve predictions of earnings and cash flows?

Does IFRS information on tax loss carryforwards and negative performance improve predictions of earnings and cash flows?

Effect of Goods and Service Tax System on Business Performance of Micro, Small and Medium Enterprises

Tax Compliance Costs for SMEs: A Survey of Tax Professionals in Ghana on External Cost of Compliance

Contact Info

Product

Resources

About