BUSINESS TAXATION: A TRANSACTION COST THEORY PERSPECTIVE
|Economic theory of law;|
|2018 - № 1 (32)||
Type of articles
|In the paper, the relevance of using transaction cost theory for analysis of different aspects of business taxation is demonstrated. In particular, the transaction cost framework is used for explaining the economic essence of taxes and for analyzing transaction costs arising from the interaction between business and government in the tax sphere. The importance of measuring tax transaction cost is shown and methodological implications are discussed. The results of the Doing Business cross-country surveys related to the relative ease of paying taxes in different economies are analyzed and compared with data of the in-depth country-specific survey «The Costs of Tax Compliance in Ukraine». The relationship between the ease of paying taxes and country’s economic performances is established. Problems underlying the development of a congruent and efficient tax system, meeting the needs and priorities of a certain society are discussed.|
|tax, transaction cost theory, tax transaction costs, compliance costs, government regulation.|
Article in PDF
|Arrow, K. J. (1969). The Organization of Economic Activity: Issues Pertinent to the Choice of Market versus Non-Market Allocation. In The Analysis and Evaluation of Public Expenditures: The PBB-System, Joint Economic Committee, 91st Congress, 1st session, Washington, DC: US Government Printing Office.
Barbuta, N. (2011). A Review of Factors for Tax Compliance. Annals of Dunarea de Jos University of Galati, Fascicle I, Economics and Applied Informatics, 69–76.
Benham, A., & Benham, L. (2000). Measuring the Costs of Exchange. In C. Menard (Ed.), Institutions, Contracts and Organizations: Perspective from New Institutional Economics. Cheltenham, UK: Edward Elgar.
Besley, T. (2015). Law, Regulation, and the Business Climate: The Nature and Influence of the World Bank Doing Business Project. Journal of Economic Perspectives, 29(3), 99–120.
Coase, R. H. (1937). The Nature of the Firm. Economica, New Series, 4(16), 386–405.
Coolidge, J. (2012). Findings of Tax Compliance Cost Surveys in Developing Countries. eJournal of Tax Research, 10(2), 250–287.
De Soto, H. (1989). The Other Path: the Invisible Revolution in the Third World. New York: Harper & Row Publishers, Inc.
Eichfelder, S., & Vaillancourt, F. (2014). Tax compliance costs: A review of cost burdens and cost structures. Arqus Discussion Paper, 178, Paderborn, Germany.
Eichfelder, S., & Vaillancourt, F. (2016). Tax Compliance Costs: Cost Burden and Cost Reliability. Arqus Discussion Paper, 212, Paderborn, Germany.
Engelschalk, M., & Loeprick, J. (2016). The Taxation of Micro and Small Businesses in Transition Economies: Country Experience of the Introduction of Special Tax Regimes. Journal of Tax Administration, 2(1), 1–53.
European Commission (2013). A Review and Evaluation of Methodologies to Calculate Tax Compliance Costs. Taxation Papers. FWC TAXUD/2012/116. Luxembourg: Publications Office of the European Union.
Evans, C., Hansford, A., Hasseldine, J., Lignier, P., Smulders, S., & Vaillancourt, F. (2014). Small Business and Tax Compliance Costs: A Cross-Country Study of Managerial Benefits and Tax Concessions. eJournal of Tax Research, 12(2), 453–482.
Hansford, A., & Hasseldine, J. (2012). Tax Compliance Costs for Small and Medium Enterprises: the Case of the UK. eJournal of Tax Research, 10(2), 288–303.
IFC, International Finance Corporation (2009). The Costs of Tax Compliance in Ukraine. Retrieved December 10, 2017, from http://www.ifc.org/wps/wcm/connect/725f0b804b5f7ae59f06bf6eac26e1c2/UTCCS_eng.pdf?MOD=AJPERES&CACHEID=725f0b804b5f7ae59f06bf6eac26e1c2.
IFC, International Finance Corporation (2013). The Enterprise Surveys: What Businesses experience. Ukraine Country Profile. Retrieved December 10, 2017, from http://www.enterprisesurveys.org/~/media/GIAWB/EnterpriseSurveys/Documents/Profiles/English/Ukraine-2013.pdf.
Klaes, M. (2000). The history of the concept of transaction costs: neglected aspects. Journal of the History of Economic Thought, 22(2), 191–216.
Kuzminov, Ya. I., Bendukidze, K. A., & Yudkevich, M. M. (2006). The course of institutional economics: institutions, networks, transaction costs, contracts [Institutional Economics Course: Institutions, Networks, Transaction Costs, Contracts]. Moscow: HSE [in Russian].
Nashchekina, O. N., & Timoshenkov, I. V. (2004). Hard to Bear, Hard to Measure: The Costs of Small Business Legalization in Ukraine. In Institutions and Economic and Political Behavior: 8th Annual Conference of International Society for New Institutional Economics, Tucson, Arizona, USA. Retrieved December 10, 2017, from http://repository.kpi.kharkov.ua/handle/KhPI-Press/21080.
Polski, M. M. (2003). The Invisible Hands of U. S. Commercial Banking Reform: Private Action and Public Guarantees. Boston, MA: Springer US.
OECD, The Organisation for Economic Co-operation and Development (2013). Action Plan on Base Erosion and Profit Shifting. Retrieved December 10, 2017, from http://www.oecd-ilibrary.org/taxation/action-plan-on-base-erosion-and-profitshifting_9789264202719.
OECD, The Organisation for Economic Co-operation and Development (2017). Base Erosion and Profit Shifting Definition. Retrieved December 10, 2017, from http://www.oecd.org/tax/beps/.
Pope, J. (1998). The Administrative and Compliance Costs of International Taxation: An Introduction for Research Students. Curtin University Working Paper, Perth, Australia.
Schneider, F. (2015). Size and Development of the Shadow Economy of 31 European and 5 Other OECD Countries from 2003 to 2014: Different Developments? Journal of Self-Governance and Management Economics, 3(4), 7–29.
Smith, A. (1776). Inquiry into the Nature and Causes of the Wealth of Nations (Printing 1976). Oxford, UK: Oxford University Press.
Timoshenkov, I. V., & Nashchekina, O. N. (2006). How Good Are We at Estimating Barriers to Business? A Close Look at the Ukrainian Business Environment. In Institutions: Economic, Political and Social Behavior: 10th Annual Conference of International Society for New Institutional Economics, Boulder, Colorado, USA. Retrieved from http://s3.amazonaws.com/zanran_storage/cniss.wustl.edu/
The World Bank Group (2006). Doing Business 2006: Creating Jobs. Washington, DC: World Bank.
The World Bank Group (2017a). Doing Business 2017: Equal Opportunity for All. Washington, DC: World Bank.
The World Bank Group (2017b). GNI per capita ranking, Atlas method and PPP based. Retrieved December 10, 2017, from https://data.worldbank.org/data-catalog/GNIper-capita-Atlas-and-PPP-table
The World Bank Group and PwC, PricewaterhouseCoopers (2009). Paying Taxes 2009. The global picture. Retrieved December 10, 2017, from https://www.pwc.com/gx/en/paying-taxes/assets/paying-taxes-2009.pdf.
The World Bank Group and PwC, PricewaterhouseCoopers (2017a). Paying Taxes. Retrieved December 08, 2017, from http://www.doingbusiness.org/~/media/WBG/DoingBusiness/Documents/Special-Reports/Paying-Taxes-2017.pdf.
The World Bank Group and PwC, PricewaterhouseCoopers (2017b). Paying Taxes: 2007–2017. Retrieved December 08, 2017, from https://www.pwc.com/gx/en.
United Nations, & CIAT, Inter-American Center of Tax Administrations (2014). Measuring tax transaction costs in small and medium enterprises. New York: United Nations: CIAT.
Wallis, J. J., & North, D. C. (1986). Measuring the Transaction Sector in the American Economy, 1870–1970. In Engermann, S., & Gallman, R. (Eds.), Long-Term Factors in American Economic Growth. Chicago: University of Chicago Press.
Zylbersztajn, D., Faccioli, F., & Frota da Silveira, R. (2007). Measuring the Start Up Costs in Brazilian Small Firms. R. Adm., São Paulo, 42(3), 293–301.
455total visits,2visits today