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Why the tax compliance costs of large companies in Indonesia are low compared to other countries: Empirical evidence

Published on 01 Apr 14 by "AUSTRALIAN TAX FORUM" JOURNAL ARTICLE

This article argues that the magnitude of tax compliance costs in one country compared with those in other countries does not necessarily reflect the relative complexity of the tax system. Specifically, the low compliance costs for large corporate taxpayers in Indonesia compared with those in both developed and developing countries do not imply that the tax system in Indonesia is less complex than that in those countries. Rather, it is the relative size of the companies and the low wage rates in Indonesia that influence the tax compliance costs more than the complexity of the tax system itself. The difficulties in making international comparisons of tax systems are fully recognised.

Author profiles

Prof Jeffrey Pope
Jeff is Professor and Director of the Tax Policy Research Unit , school of Economics and Finance, Curtin University. - Current at 22 February 2013
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Prof Jeffrey Pope
Jeff is Professor and Director of the Tax Policy Research Unit , school of Economics and Finance, Curtin University. - Current at 22 February 2013
Click here to expand/collapse more articles by Budi Susila.

 

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