Tax Administration Costs in Transition Economies and the OECD : A Comparative Study

Paying taxes is a cost of doing business. The looters (or public servants, depending on your perspective) must be paid and tax proceeds must be distributed to various groups and individuals, both worthy and unworthy. But tax expense includes more than just the amount of taxes that must be paid. Before taxes can be paid, a determination must be made as to how much is owed. That involves paying the salaries of accountants, bookkeepers and clerks and perhaps an occasional law firm. This study examines the level of tax administration burden, not from a monetary perspective but rather from the perspective of annual hours required to comply with the tax laws. Comparisons are made of the tax administration burden of 29 transition economies. A comparison is then made of the tax administration burden in transition economies and OECD countries