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.
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Budi is a Doctoral Candidate at the School of Economics and Finance, Curtin University, Western Australia and an officer at the Directorate General of Taxes, Ministry of Finance, Republic of Indonesia.
Current at 1 April 2014
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