Article

Determinants of external tax compliance costs: Evidence from South Africa

Published in: South African Journal of Accounting Research
Volume 31 , issue 2 , 2017 , pages: 134–150

DOI: 10.1080/10291954.2016.1160175

Author(s): Sharon Smulders Taxation Department, South Africa , Madeleine Stiglingh Taxation Department, South Africa , Riel Franzsen African Taxation Institute, University of Pretoria, South Africa , Lizelle Fletcher Department of Statistics, South Africa

Keywords: Small business , Tax compliance burden , Tax compliance costs , External tax compliance costs , Regression analysis , Small business , Tax compliance burden , Tax compliance costs , External tax compliance costs , Regression analysis

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Abstract

Small businesses tend to rely on external service providers (tax practitioners, accountants, lawyers and bookkeepers) for assistance with their tax affairs. Payments to external service providers clearly affect a small business’s tax compliance costs. This study uses multiple regression analyses to investigate the key drivers of small business external tax compliance costs. This will assist Revenue Services in understanding what factors (determinants) could increase a small business’s external tax compliance costs and might assist in managing tax compliance behaviour and contribution.

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