The income tax compliance costs of private households empirical evidence from Germany Kay Blaufus, Frank Hechtner and Janine K. Jarzembski
By: Blaufus, Kay
.
Contributor(s): Hechtner, Frank | Jarzembski, Janine K.
Material type: 
ArticlePublisher: 2019Subject(s): RENTA | IMPUESTOS | COSTES DE CUMPLIMIENTO | ALEMANIAOnline resources: Click here to access online
In:
Public Finance Review v. 47, n. 5, September 2019, p. 925-966Summary: Using a survey of more than 18,000 taxpayers in North Rhine-Westphalia
(Germany), we estimate the income tax compliance costs of German
households and study the determinants of these costs. We find that taxpayers
need between 9.13 and 10.23 hours and spend €106 to meet their
income tax obligations. The average total burden is between €228 (lower
bound estimate) and €321 (upper bound estimate). The aggregate cost
burden ranges between 2.03 percent and 2.92 percent of the German
income tax revenues of tax year 2015. Although these costs have decreased
significantly over recent years (mainly for self-preparers without selfemployment
income), international comparisons illustrate that the German burden is still located in the upper middle. The five most important cost drivers that increase individual costs are the use of tax advice, the
appeal procedure, income, return complexity, and education. We cannot confirm that e-filing reduces taxpayers’ compliance costs.
| Item type | Current location | Home library | Call number | Status | Date due | Barcode |
|---|---|---|---|---|---|---|
| Artículos | IEF | IEF | OP 581/2019/5-5 (Browse shelf) | Available | OP 581/2019/5-5 |
Disponible también en formato electrónico en la Biblioteca del IEF.
Bibliografía.
Using a survey of more than 18,000 taxpayers in North Rhine-Westphalia
(Germany), we estimate the income tax compliance costs of German
households and study the determinants of these costs. We find that taxpayers
need between 9.13 and 10.23 hours and spend €106 to meet their
income tax obligations. The average total burden is between €228 (lower
bound estimate) and €321 (upper bound estimate). The aggregate cost
burden ranges between 2.03 percent and 2.92 percent of the German
income tax revenues of tax year 2015. Although these costs have decreased
significantly over recent years (mainly for self-preparers without selfemployment
income), international comparisons illustrate that the German burden is still located in the upper middle. The five most important cost drivers that increase individual costs are the use of tax advice, the
appeal procedure, income, return complexity, and education. We cannot confirm that e-filing reduces taxpayers’ compliance costs.
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