Tax Administration and the Small Taxpayer

May 1, 2004

Preview Citation

Format: Chicago

Parthasarathi Shome. Tax Administration and the Small Taxpayer, (USA: International Monetary Fund, 2004) accessed October 6, 2024

Disclaimer: This Policy Dicussion Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

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.

Subject: Economic sectors, Income tax systems, Revenue administration, Small and medium enterprises, Social security contributions, Tax administration core functions, Taxes, Value-added tax

Keywords: Administration measure, Asia and Pacific, Australia and New Zealand, Eastern Europe, GDP ratio, Income tax systems, Large taxpayer units, North America, Northern Europe, PDP, Revenue productivity, Services sector, Small and medium enterprises, Small taxpayer, Small taxpayers, Social security contributions, Tax administration, Tax administration, Tax administration and the small taxpayer, Tax administration core functions, Tax administrator, Tax calculation, Tax evasion, Tax policy, Tax practice, Tax simplification, Tax statute, Tax structure, Taxpayer base, Taxpayer group, Taxpayer separation, Taxpayer size, Value-added tax

Publication Details

Pages:

33
Volume:

---
DOI:

---
Issue:

---
Series:

Policy Discussion Paper No. 2004/002
Stock No:

PPIEA0022004
ISBN:

9781451974577
ISSN:

1564-5193

FACTSHEETS

RESOURCES

TOPICS

Flagship Publications

Other Publications

IMF reports and publications by country

Regional Offices

All News

See Also

For Journalists

Press Center

RESOURCES

FLAGSHIPS

KEY SERIES

IMF NOTES

IMF Policy Discussion Papers