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The Compliance Costs of Taxation in Australia and Tax Simplification: The Issues

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  • Jeff Pope

    (Department of Economics, Curtin Univeristy of Technology, PO Box U1987, Perth WA 6001.)

Abstract

This paper identifies six phases in the development of the compliance costs of taxation, in an Australian context. Estimates of the compliance costs of personal and public companies' income taxation are presented, and an international comparison cautiously made. Major policy issues related to compliance costs are considered. Cost-reducing measures are identified and classified. Specific proposals for Australia's income-tax system are considered. The paper concludes that the compliance costs of income taxation in Australia are high, and that simplification of income tax is likely to lead to significant economic resource savings. The prognosis for reform is mixed, but the overall view is not optimistic.

Suggested Citation

  • Jeff Pope, 1993. "The Compliance Costs of Taxation in Australia and Tax Simplification: The Issues," Australian Journal of Management, Australian School of Business, vol. 18(1), pages 69-89, June.
    • Handle: RePEc:sae:ausman:v:18:y:1993:i:1:p:69-89
    DOI: 10.1177/031289629301800104
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    References listed on IDEAS

    as
    1. Joel Slemrod, 1992. "Did the Tax Reform Act of 1986 Simplify Tax Matters?," Journal of Economic Perspectives, American Economic Association, vol. 6(1), pages 45-57, Winter.
    2. J. Pope & C. Dongling, 1993. "Determinants of the Time Taken to Deal with Personal Income Tax Affairs in Australia," Economics Discussion / Working Papers 93-11, The University of Western Australia, Department of Economics.
    3. Joel Slemrod, 1989. "The Return To Tax Simplification: an Econometric Analysis," Public Finance Review, , vol. 17(1), pages 3-27, January.
    4. Blumenthal, Marsha & Slemrod, Joel, 1992. "The Compliance Cost of the U.S. Individual Income Tax System: A Second Look After Tax Reform," National Tax Journal, National Tax Association;National Tax Journal, vol. 45(2), pages 185-202, June.
    5. Blumenthal, Marsha & Slemrod, Joel, 1992. "The Compliance Cost of the U.S. Individual Income Tax System: A Second Look After Tax Reform," National Tax Journal, National Tax Association, vol. 45(2), pages 185-202, June.
    6. Joel Slemrod & Nikki Sorum, 1984. "The Compliance Cost of the U.S. Individual Income Tax System," NBER Working Papers 1401, National Bureau of Economic Research, Inc.
    7. J. Pope & R. Fayle, 1993. "The Compliance Costs of Taxation in Australia and Tax Simplification," Economics Discussion / Working Papers 93-25, The University of Western Australia, Department of Economics.
    8. Marc Lombard, 1991. "Income Distribution In Australia 1983–1989," Economic Papers, The Economic Society of Australia, vol. 10(3), pages 52-63, September.
    9. Slemrod, Joel, 1990. "Optimal Taxation and Optimal Tax Systems," Journal of Economic Perspectives, American Economic Association, vol. 4(1), pages 157-178, Winter.
    10. J. Pope, 1989. "The Compliance Costs of Personal Income Taxation - a Review of the Lessons," Economics Discussion / Working Papers 89-03, The University of Western Australia, Department of Economics.
    11. J. Pope & R. Fayle, 1991. "The Compliance Costs of Public Companies' Income Taxation in Australia 1986/87: Empirical results," Economics Discussion / Working Papers 91-09, The University of Western Australia, Department of Economics.
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    Cited by:

    1. Sofie De Schoenmaker & Philippe Van Cauwenberge & Heidi Vander Bauwhede, 2014. "Effects of local fiscal policy on firm profitability," The Service Industries Journal, Taylor & Francis Journals, vol. 34(16), pages 1289-1306, December.
    2. Das-Gupta, Arindam, 2004. "Compliance cost of the personal income tax in India, 2000-01: Preliminary estimates," Working Papers 04/9, National Institute of Public Finance and Policy.
    3. J. Pope & R. Fayle, 1993. "The Compliance Costs of Taxation in Australia and Tax Simplification," Economics Discussion / Working Papers 93-25, The University of Western Australia, Department of Economics.

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    Keywords

    TAXATION; COMPLIANCE; COSTS;
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