Can E-Filing Reduce Tax Compliance Costs in Developing Countries?
The purpose of this study is to investigate the association between electronic filing (e-filing) and the total tax compliance costs incurred by small and medium size businesses in developing countries, based on survey data from South Africa, Ukrain...
| Main Authors: | , |
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2014
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2013/10/18365604/can-e-filing-reduce-tax-compliance-costs-developing-countries http://hdl.handle.net/10986/16861 |
| Summary: | The purpose of this study is to
investigate the association between electronic filing
(e-filing) and the total tax compliance costs incurred by
small and medium size businesses in developing countries,
based on survey data from South Africa, Ukraine, and Nepal.
A priori, most observers expect that use of e-filing should
reduce tax compliance costs, but this analysis suggests that
the assumption should be more nuanced. In particular,
policies that require business taxpayers to submit
paper-based information in addition to their e-filing
roughly negate savings that would otherwise be realized. In
addition, adoption of e-filing requires an up-front
investment by the business not only in capital assets, but
also in the time, effort, and resources required to learn
how to use e-filing properly and efficiently. Small
businesses, in particular, are likely to face a steep
"learning curve" and should probably not be forced
to use e-filing before the majority of them have access to
computers (with reliable electricity service) and have had a
chance to become familiar with both computer use and the Internet. |
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