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

Budi Susila

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

More by Budi Susila

• The tax compliance costs of large corporate taxpayers in Indonesia - 01-December-2012

Click here to expand/collapse more articles by Budi Susila.

Prof Jeffrey Pope

Jeff is Professor and Director of the Tax Policy Research Unit , school of Economics and Finance, Curtin University. - Current at 01 April 2014

More by Jeff POPE

• Estimating the compliance costs of Australia’s carbon pricing scheme - 01-April-2014
• The tax compliance costs of large corporate taxpayers in Indonesia - 01-December-2012
• The economic costs of taxation: An assessment of the Henry Tax Review - 01-March-2011
• The role of religiosity in tax morale and tax compliance - 01-December-2010
• The compliance costs of Australia’s emissions trading scheme: An exploratory analysis - 01-November-2009
• Improving opportunities and equity in home ownership through the tax system - 01-December-2008
• The effects of the self-assessment system on the tax compliance costs of small and medium enterprises in Malaysia - 01-September-2008
• Personal income tax reform: consensus, outliers, specifics and some sensitive issues - 01-July-2007
• The Compliance Costs of the Superannuation Surcharge Tax - 01-October-2003
• Start-up Tax Compliance Costs of the GST: Empirical Evidence from Western Australian Small Businesses - 01-October-2002

Click here to expand/collapse more articles by Jeff POPE.