Details
| Original language | English |
|---|---|
| Pages (from-to) | 800-829 |
| Number of pages | 30 |
| Journal | Public Finance Review |
| Volume | 42 |
| Issue number | 6 |
| Early online date | 30 May 2013 |
| Publication status | Published - Nov 2014 |
Abstract
We analyze the compliance costs of individual taxpayers resulting from the German income tax (tax year 2007). Using survey data that have been raised between December 2008 and April 2009, we find evidence for a considerably higher cost burden of self-employed taxpayers. Taxable income and a higher education (university degree) are positively correlated with compliance costs, while the time effort of female taxpayers is significantly lower. By contrast, joint filing of married couples reduces the burden of tax compliance. The aggregate cost estimate of German income taxpayers amounts to €6 to €9 billion, respectively, 3.1 to 4.7 percent of the income tax revenue in 2007. This estimate is higher than latest projections in a number of other European countries like Spain and Sweden, but lower than estimates for the United States and Australia.
Keywords
- compliance burden, personal income tax, tax complexity, tax compliance costs
ASJC Scopus subject areas
- Economics, Econometrics and Finance(all)
- Finance
- Economics, Econometrics and Finance(all)
- Economics and Econometrics
- Social Sciences(all)
- Public Administration
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In: Public Finance Review, Vol. 42, No. 6, 11.2014, p. 800-829.
Research output: Contribution to journal › Article › Research › peer review
}
TY - JOUR
T1 - Income Tax Compliance Costs of Working Individuals
T2 - Empirical Evidence from Germany
AU - Blaufus, Kay
AU - Eichfelder, Sebastian
AU - Hundsdoerfer, Jochen
N1 - Funding Information: In our contribution, we analyze the time effort and the monetary expenses of German self-employed persons and wage earners resulting from the personal income tax. Our investigation is based on survey information raised between December 2008 and April 2009 within a project that was funded by the German Ministry of Finance. The data include cost estimates as well as socioeconomic information on private taxpayers and allow us to approximate the aggregate income tax compliance burden of German households. Furthermore, we investigate for the first time the key cost drivers of the compliance burden in Germany.
PY - 2014/11
Y1 - 2014/11
N2 - We analyze the compliance costs of individual taxpayers resulting from the German income tax (tax year 2007). Using survey data that have been raised between December 2008 and April 2009, we find evidence for a considerably higher cost burden of self-employed taxpayers. Taxable income and a higher education (university degree) are positively correlated with compliance costs, while the time effort of female taxpayers is significantly lower. By contrast, joint filing of married couples reduces the burden of tax compliance. The aggregate cost estimate of German income taxpayers amounts to €6 to €9 billion, respectively, 3.1 to 4.7 percent of the income tax revenue in 2007. This estimate is higher than latest projections in a number of other European countries like Spain and Sweden, but lower than estimates for the United States and Australia.
AB - We analyze the compliance costs of individual taxpayers resulting from the German income tax (tax year 2007). Using survey data that have been raised between December 2008 and April 2009, we find evidence for a considerably higher cost burden of self-employed taxpayers. Taxable income and a higher education (university degree) are positively correlated with compliance costs, while the time effort of female taxpayers is significantly lower. By contrast, joint filing of married couples reduces the burden of tax compliance. The aggregate cost estimate of German income taxpayers amounts to €6 to €9 billion, respectively, 3.1 to 4.7 percent of the income tax revenue in 2007. This estimate is higher than latest projections in a number of other European countries like Spain and Sweden, but lower than estimates for the United States and Australia.
KW - compliance burden
KW - personal income tax
KW - tax complexity
KW - tax compliance costs
UR - http://www.scopus.com/inward/record.url?scp=84911963063&partnerID=8YFLogxK
U2 - 10.1177/1091142113488162
DO - 10.1177/1091142113488162
M3 - Article
AN - SCOPUS:84911963063
VL - 42
SP - 800
EP - 829
JO - Public Finance Review
JF - Public Finance Review
SN - 1091-1421
IS - 6
ER -