IDEAS home Printed from https://ideas.repec.org/p/fpb/wpaper/1009.html
   My bibliography  Save this paper

Working Paper 09-10 - Shifting of red tape? The impact of authority behavior on tax compliance costs

Author

Listed:
  • Sebastian Eichfelder
  • Chantal Kegels

Abstract

The compliance costs of private taxpayers are not only affected by the tax law itself but also by its implementation through the tax authorities. In the following paper we analyze the effect of administrative actions on the compliance costs of private businesses. We demonstrate in a theoretical model that compliance costs may partially be interpreted as externalities of authority behavior. As a result we expect a ”shifting” of administrative cost burdens from the tax administration to private taxpayers, what implies an economically inefficient outcome. Based on Belgian survey data, we find empirical evidence for the elucidated relationship. We give an quantitative estimate for the accordant effects and demonstrate, which activities of the administration are the most important cost drivers. Furthermore, we find empirical support that the effect of administrative issues is independent from the impact of the tax law itself.

Suggested Citation

  • Sebastian Eichfelder & Chantal Kegels, 2010. "Working Paper 09-10 - Shifting of red tape? The impact of authority behavior on tax compliance costs," Working Papers 1009, Federal Planning Bureau, Belgium.
  • Handle: RePEc:fpb:wpaper:1009
    as

    Download full text from publisher

    File URL: https://www.plan.be/admin/uploaded/201005110835260.wp201009.pdf
    File Function: english version
    Download Restriction: no

    More about this item

    Keywords

    Administrative burdens; Compliance costs; Quality of tax administration;

    JEL classification:

    • K29 - Law and Economics - - Regulation and Business Law - - - Other
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • M20 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fpb:wpaper:1009. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dominique van der Wal). General contact details of provider: http://edirc.repec.org/data/plagvbe.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.