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Regulatory Burdens in Tax Administration and Firms’ Compliance Costs in Africa

Authors: Ali, Merima;

Regulatory Burdens in Tax Administration and Firms’ Compliance Costs in Africa

Abstract

This paper examines the effect of regulatory burdens related to tax administration on firms' compliance costs in Africa. Using cross-country firm-level data, the results show that regulatory burdens related to tax administration significantly increase firms' compliance costs compared to burdens related to other kinds of government regulations. The results further show that firms' relationships with tax officials affect their compliance costs. While firms that are frequently inspected by tax officials have higher compliance costs, firms that are requested to pay bribes by tax officials, on the other hand, have lower compliance costs. These results, which remain robust after accounting for other firm-, sector- and country-specific factors, highlight that regulatory burdens related to taxation play a bigger role in increasing overall compliance costs in Africa than other forms of regulatory burdens, and that firms may look to informal ways to reduce the burden by paying bribes to tax officials.

Country
Norway
Related Organizations
Keywords

Compliance Costs, Regulatory Burden, Firms, Africa, Tax Administration

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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
0
Average
Average
Average
Green