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Tax Administration and the Small Taxpayer
Author:
Mr. Parthasarathi Shome
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Series:
IMF Policy Discussion Papers
Volume/Issue:
Volume 2004: Issue 002
Language:
English
Publication Date:
01 May 2004
DOI:
https://doi.org/10.5089/9781451974577.003
ISBN:
9781451974577
ISSN:
1564-5193
Pages:
33
Keywords:
PDP; small taxpayer; tax administration; tax evasion; tax structure; administration measure; GDP ratio; Tax policy; tax administration; small taxpayers; large taxpayer units; services sector; tax administration and the small taxpayer; taxpayer base; tax simplification; taxpayer group; tax statute; tax administrator; tax practice; revenue productivity; taxpayer size; taxpayer separation; tax calculation; Income tax systems; Value-added tax; Tax administration core functions; Small and medium enterprises; Social security contributions; Asia and Pacific; Australia and New Zealand; Eastern Europe; North America; Northern Europe
Legal-disclaimer:
This Policy Discussion Paper should not be reported as representing the views of the IMF. The views expressed in this Policy Discussion Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Policy Discussion Papers describe research in progress by the author(s) and are published to elicit comments and to further debate.
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Small taxpayers should pay their appropriate revenue share while their compliance costs should be reduced. This assumes importance as restructuring in emerging markets has meant rapid growth in services through self-employed small entrepreneurs, who have good revenue potential. Administrative facilitators such as a single tax covering income tax, VAT, and social security tax, at a reduced rate, do not lower tax evasion. They increase vertical and horizontal inequity, and lead to adverse resource allocation. A strategy is needed, extending modernization achieved in large taxpayer units (LTUs) to small taxpayers, including rationalization of collection and reporting of revenue data for policy formulation.
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Cover IMF Policy Discussion Papers
IMF Policy Discussion Papers
ISSN:
1564-5193
Publisher:
International Monetary Fund