Small Businesses in South Africa : Who Outsources Tax Compliance Work and Why?
The authors use firm-level survey data on 998 small and medium enterprises registered for tax in South Africa regarding tax compliance costs to investigate the use of outsourcing to complete tax compliance tasks. Overall, about 43 percent of the en...
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| Format: | Policy Research Working Paper |
| Language: | English |
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2012
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| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090323132017 http://hdl.handle.net/10986/4068 |
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okr-10986-40682021-04-23T14:02:15Z Small Businesses in South Africa : Who Outsources Tax Compliance Work and Why? Coolidge, Jacqueline Ilic, Domagoj Kisunko, Gregory ACCOUNTANT AUDITS BALANCE SHEET BALANCE SHEETS BANK POLICY BUSINESS SERVICES BUSINESS TAX BUSINESS TAXES CAPITAL TAXES CERTIFICATE CLIENT BASE COMPANY TAX COMPETITIVENESS COMPLIANCE BURDEN COMPLIANCE COST COMPUTERS CORE BUSINESS CORE BUSINESS ACTIVITIES CORPORATE INCOME TAX DATA ANALYSIS DEDUCTIONS DEVELOPING COUNTRIES DUMMY VARIABLE DUMMY VARIABLES ECONOMIC ACTIVITY EXCHANGE RATE EXTERNAL CONSULTANT FINANCIAL INSTITUTIONS FINANCIAL STATEMENTS FINANCIAL SUPPORT FOREIGN INVESTMENT IMPUTATION INCOME TAX INFORMATION SYSTEMS INSPECTION INSPECTIONS INTERNATIONAL BANK INVESTMENT CLIMATE LARGE TAXPAYERS LATE PAYMENTS MANUFACTURING MEDIUM ENTERPRISES MICRO ENTERPRISES MICRO-ENTERPRISES MISSING VALUES NATIONAL TREASURY OUTSOURCING PAYMENT OF TAX PAYROLL TAXES PDF PHONE POSITIVE COEFFICIENTS PRODUCTIVITY PUBLIC FINANCE QUERIES REAL ESTATE REGRESSIVE TAX RESTRICTED SHARE RESULT RESULTS RETAIL TRADE SAVINGS SENSITIVITY ANALYSIS SMALL BUSINESS SMALL BUSINESSES TAX TAX ACCOUNTING TAX ADMINISTRATION TAX ADVISORS TAX ASSESSMENTS TAX AUTHORITIES TAX BREAKS TAX BURDEN TAX CHANGES TAX COMPLIANCE TAX COMPLIANCE COSTS TAX FORMS TAX FREE TAX LAW TAX LAWS TAX LEGISLATION TAX POLICY TAX REFORM TAX REGIME TAX RESEARCH TAX RETURN TAX RETURNS TAX SYSTEMS TAXABLE INCOME TAXATION TAXPAYERS TECHNICAL KNOWLEDGE TRANSITION COUNTRIES TREASURY TURNOVER TURNOVER TAX USE TAX USERS USES WEB WORKING HOURS The authors use firm-level survey data on 998 small and medium enterprises registered for tax in South Africa regarding tax compliance costs to investigate the use of outsourcing to complete tax compliance tasks. Overall, about 43 percent of the enterprises do all their tax compliance work in-house, 11 percent outsource all their tax compliance work, and the remaining 46 percent use a combination of both ("partial outsourcing"). The data display an inverted-U shape for outsourcing of tax compliance tasks: the smallest firms (those under R 300,000 turnover or well under US$50,000) tend not to outsource, due to a combination of relatively higher cost-burden and less complexity. Relatively larger firms (those with more than R 14 million turnover or about US$2 million) report that they have sufficient in-house capacity and therefore do not need to outsource. Those in the middle are most likely to outsource at least some of their tax compliance work, mostly because tax is a specialist field and they presumably lack sufficient capacity in-house. The survey data show that the costs of tax compliance are clearly the highest for those who engage in partial outsourcing, as it appears there is likely duplication of effort. Most such firms could reduce their tax compliance costs (and probably minimize the incidence of post-filing problems) by moving from partial to full outsourcing of all tax compliance work. 2012-03-19T19:09:26Z 2012-03-19T19:09:26Z 2009-03-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090323132017 http://hdl.handle.net/10986/4068 English Policy Research working paper ; no. WPS 4873 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper Africa Africa Southern Africa |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ACCOUNTANT AUDITS BALANCE SHEET BALANCE SHEETS BANK POLICY BUSINESS SERVICES BUSINESS TAX BUSINESS TAXES CAPITAL TAXES CERTIFICATE CLIENT BASE COMPANY TAX COMPETITIVENESS COMPLIANCE BURDEN COMPLIANCE COST COMPUTERS CORE BUSINESS CORE BUSINESS ACTIVITIES CORPORATE INCOME TAX DATA ANALYSIS DEDUCTIONS DEVELOPING COUNTRIES DUMMY VARIABLE DUMMY VARIABLES ECONOMIC ACTIVITY EXCHANGE RATE EXTERNAL CONSULTANT FINANCIAL INSTITUTIONS FINANCIAL STATEMENTS FINANCIAL SUPPORT FOREIGN INVESTMENT IMPUTATION INCOME TAX INFORMATION SYSTEMS INSPECTION INSPECTIONS INTERNATIONAL BANK INVESTMENT CLIMATE LARGE TAXPAYERS LATE PAYMENTS MANUFACTURING MEDIUM ENTERPRISES MICRO ENTERPRISES MICRO-ENTERPRISES MISSING VALUES NATIONAL TREASURY OUTSOURCING PAYMENT OF TAX PAYROLL TAXES PHONE POSITIVE COEFFICIENTS PRODUCTIVITY PUBLIC FINANCE QUERIES REAL ESTATE REGRESSIVE TAX RESTRICTED SHARE RESULT RESULTS RETAIL TRADE SAVINGS SENSITIVITY ANALYSIS SMALL BUSINESS SMALL BUSINESSES TAX TAX ACCOUNTING TAX ADMINISTRATION TAX ADVISORS TAX ASSESSMENTS TAX AUTHORITIES TAX BREAKS TAX BURDEN TAX CHANGES TAX COMPLIANCE TAX COMPLIANCE COSTS TAX FORMS TAX FREE TAX LAW TAX LAWS TAX LEGISLATION TAX POLICY TAX REFORM TAX REGIME TAX RESEARCH TAX RETURN TAX RETURNS TAX SYSTEMS TAXABLE INCOME TAXATION TAXPAYERS TECHNICAL KNOWLEDGE TRANSITION COUNTRIES TREASURY TURNOVER TURNOVER TAX USE TAX USERS USES WEB WORKING HOURS |
| spellingShingle |
ACCOUNTANT AUDITS BALANCE SHEET BALANCE SHEETS BANK POLICY BUSINESS SERVICES BUSINESS TAX BUSINESS TAXES CAPITAL TAXES CERTIFICATE CLIENT BASE COMPANY TAX COMPETITIVENESS COMPLIANCE BURDEN COMPLIANCE COST COMPUTERS CORE BUSINESS CORE BUSINESS ACTIVITIES CORPORATE INCOME TAX DATA ANALYSIS DEDUCTIONS DEVELOPING COUNTRIES DUMMY VARIABLE DUMMY VARIABLES ECONOMIC ACTIVITY EXCHANGE RATE EXTERNAL CONSULTANT FINANCIAL INSTITUTIONS FINANCIAL STATEMENTS FINANCIAL SUPPORT FOREIGN INVESTMENT IMPUTATION INCOME TAX INFORMATION SYSTEMS INSPECTION INSPECTIONS INTERNATIONAL BANK INVESTMENT CLIMATE LARGE TAXPAYERS LATE PAYMENTS MANUFACTURING MEDIUM ENTERPRISES MICRO ENTERPRISES MICRO-ENTERPRISES MISSING VALUES NATIONAL TREASURY OUTSOURCING PAYMENT OF TAX PAYROLL TAXES PHONE POSITIVE COEFFICIENTS PRODUCTIVITY PUBLIC FINANCE QUERIES REAL ESTATE REGRESSIVE TAX RESTRICTED SHARE RESULT RESULTS RETAIL TRADE SAVINGS SENSITIVITY ANALYSIS SMALL BUSINESS SMALL BUSINESSES TAX TAX ACCOUNTING TAX ADMINISTRATION TAX ADVISORS TAX ASSESSMENTS TAX AUTHORITIES TAX BREAKS TAX BURDEN TAX CHANGES TAX COMPLIANCE TAX COMPLIANCE COSTS TAX FORMS TAX FREE TAX LAW TAX LAWS TAX LEGISLATION TAX POLICY TAX REFORM TAX REGIME TAX RESEARCH TAX RETURN TAX RETURNS TAX SYSTEMS TAXABLE INCOME TAXATION TAXPAYERS TECHNICAL KNOWLEDGE TRANSITION COUNTRIES TREASURY TURNOVER TURNOVER TAX USE TAX USERS USES WEB WORKING HOURS Coolidge, Jacqueline Ilic, Domagoj Kisunko, Gregory Small Businesses in South Africa : Who Outsources Tax Compliance Work and Why? |
| geographic_facet |
Africa Africa Southern Africa |
| relation |
Policy Research working paper ; no. WPS 4873 |
| description |
The authors use firm-level survey data
on 998 small and medium enterprises registered for tax in
South Africa regarding tax compliance costs to investigate
the use of outsourcing to complete tax compliance tasks.
Overall, about 43 percent of the enterprises do all their
tax compliance work in-house, 11 percent outsource all their
tax compliance work, and the remaining 46 percent use a
combination of both ("partial outsourcing"). The
data display an inverted-U shape for outsourcing of tax
compliance tasks: the smallest firms (those under R 300,000
turnover or well under US$50,000) tend not to outsource, due
to a combination of relatively higher cost-burden and less
complexity. Relatively larger firms (those with more than R
14 million turnover or about US$2 million) report that they
have sufficient in-house capacity and therefore do not need
to outsource. Those in the middle are most likely to
outsource at least some of their tax compliance work, mostly
because tax is a specialist field and they presumably lack
sufficient capacity in-house. The survey data show that the
costs of tax compliance are clearly the highest for those
who engage in partial outsourcing, as it appears there is
likely duplication of effort. Most such firms could reduce
their tax compliance costs (and probably minimize the
incidence of post-filing problems) by moving from partial to
full outsourcing of all tax compliance work. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Coolidge, Jacqueline Ilic, Domagoj Kisunko, Gregory |
| author_facet |
Coolidge, Jacqueline Ilic, Domagoj Kisunko, Gregory |
| author_sort |
Coolidge, Jacqueline |
| title |
Small Businesses in South Africa : Who Outsources Tax Compliance Work and Why? |
| title_short |
Small Businesses in South Africa : Who Outsources Tax Compliance Work and Why? |
| title_full |
Small Businesses in South Africa : Who Outsources Tax Compliance Work and Why? |
| title_fullStr |
Small Businesses in South Africa : Who Outsources Tax Compliance Work and Why? |
| title_full_unstemmed |
Small Businesses in South Africa : Who Outsources Tax Compliance Work and Why? |
| title_sort |
small businesses in south africa : who outsources tax compliance work and why? |
| publishDate |
2012 |
| url |
http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090323132017 http://hdl.handle.net/10986/4068 |
| _version_ |
1764389773237026816 |