Publication: The Costs of Tax Compliance in Armenia
Loading...
Date
2011
ISSN
Published
2011
Author(s)
Editor(s)
Abstract
The report represents the main results of IFC's 2010 survey of private sector companies and individual entrepreneurs in Armenia. Its findings evaluate the cost of compliance with tax legislation and supervisory bodies to fulfill tax liabilities by legal entities (companies) and individual entrepreneurs in 2009. The survey report examines the cost of tax compliance in terms of time and money. The number of man hours spent working on tax compliance can also be expressed in terms of money, as the cost to businesses includes staff wages as well as any lost productivity. Thus, from the business' perspective, the time required to comply with tax regulation is an additional cost associated with paying taxes. The study shows that tax compliance in Armenia is a burden on private businesses, especially for small companies and individual entrepreneurs, which spend an additional 10 percent of income on tax administration. Despite the fact that most survey respondents reported that the quantity of taxes is the main concern for Armenian businesses (39), other characteristics of the tax system - such as tax inspections, corruption associated with paying taxes, tax accounting procedures, tax reports and frequency of filing - are also worrisome for a lot of taxpayers. Therefore, the survey focused on assessment costs of tax compliance and particularly on those that are the costliest and problematic for Armenian business, such as maintaining book of registration of revenues, tax inspections and book of shipment of inventory holdings.
Link to Data Set
Citation
“World Bank Group. 2011. The Costs of Tax Compliance in Armenia. © International Finance Corporation. http://hdl.handle.net/10986/26559 License: CC BY-NC-ND 3.0 IGO.”
Associated URLs
Associated content
Other publications in this report series
Journal
Journal Volume
Journal Issue
Collections
Related items
Showing items related by metadata.
Publication Tax Compliance Cost Burden and Tax Perceptions Survey in Ethiopia(World Bank, Washington, DC, 2016-03)This study attempts to estimate tax compliance costs and assess views of taxpayers on aspects of the tax system in Ethiopia. The study uses evidence mainly from a survey of both formal and informal businesses in Addis Ababa and four major cities (Adama, Hawassa, Mekele, and Bahir Dar) in the four largest regional states. The survey covered 1003 formal businesses and 499 informal businesses. Survey questionnaires were informed by the results of four focus group discussions conducted in Addis Ababa and Adama. The findings of the study are expected to offer tax policy makers and tax administrators an opportunity to pinpoint specific problems to help reduce the cost of complying with tax policies and procedures, thus improving the revenue performance and also the efficiency and business-friendliness of the tax system. The report is organized in four sections. The first part presents an overview of the Ethiopian tax system and recent reform initiatives; second section discusses the research objectives and the methods employed. Section three presents results of the survey while section four presents conclusions and recommendations.Publication Tax Compliance Cost Surveys : Using data to design targeted reforms(World Bank, Washington, DC, 2010-02)Businesses especially small ones often face heavy costs in the process of preparing, filing, and paying taxes in addition to the burden of tax payments. These compliance costs, added to fines, penalties, and the risks of onerous inspections and demands for bribes, often deter business creation and growth in developing and transition countries. A tax compliance cost survey can provide useful information for the design of reforms to reduce compliance costs and risks for small businesses. This note highlights key findings of tax compliance cost surveys conducted in South Africa, the Republic of Yemen, Ukraine, and Peru that measured the burdens on business. These surveys helped fine-tune the design of reforms to lower costs for businesses and improve their competitiveness.Publication Tax Compliance Perceptions and Formalization of Small Businesses in South Africa(2009-07-01)This paper is based on large-scale surveys of formal and informal small businesses in South Africa, including questions about their experiences and perceptions about tax compliance, tax morale, and related variables. The survey findings suggest that formalization is more likely to take place in urban areas, involving relatively larger firms, and those who already use proper bookkeeping. Informal firms who said they were likely to register for tax in the near future were more likely than other informal firms to report higher satisfaction with government services, and to believe most businesses pay their taxes. The most-cited advantages of being registered for tax included better access to government services, better access to financing, and better opportunities for growth.Publication Republic of Kazakhstan Tax Administration Reform and Modernization : Volume 2. Tax Strategy Paper(Washington, DC, 2008-06)This study focuses on the tax system for non-subsurface users in Kazakhstan. It takes as given the tax reform package that the authorities and stakeholders are designing, but proposes a number of additional steps to be taken over the next 2-3 years aimed at maximizing the benefits of tax neutrality on competitiveness. The first volume of this report mainly focuses on tax policy: taxes on labor, capital, and consumption. A draft report on administration was also produced for discussion, which includes an initial assessment for organization, planning and staffing, a large taxpayers unit, anti-corruption issues, taxpayer services and education, audit and inspections, collection activities, and legal issues and appeal. The second volume of the tax strategy paper examines tax administration issues, and identifies functional areas that require attention in the short, medium and longer-term. This examination represents an initial diagnostic and is not a final blueprint for modernization. The nine areas diagnosed are: organizational structure, human resource and training; anti-corruption; taxpayer service and education; large taxpayers; audit/inspection; collection; information technology; and legal and appeals.Publication Tax Morale and Compliance : Review of Evidence and Case Studies for Europe(2011-12-01)This paper provides an overview of the literature on tax morale and tax compliance. Most of the material here is based on research that I have conducted together with my co-authors over the last 10 years. Europe has a dominant place in this paper. Sometimes results derived from other countries are discussed that could be relevant for Europe. The overall findings show the importance of accountability, democratic governance, efficient, and transparent legal structures and therefore trust within the society to enforce tax compliance and tax morale.
Users also downloaded
Showing related downloaded files
Publication The Journey Ahead(Washington, DC: World Bank, 2024-10-31)The Journey Ahead: Supporting Successful Migration in Europe and Central Asia provides an in-depth analysis of international migration in Europe and Central Asia (ECA) and the implications for policy making. By identifying challenges and opportunities associated with migration in the region, it aims to inform a more nuanced, evidencebased debate on the costs and benefits of cross-border mobility. Using data-driven insights and new analysis, the report shows that migration has been an engine of prosperity and has helped address some of ECA’s demographic and socioeconomic disparities. Yet, migration’s full economic potential remains untapped. The report identifies multiple barriers keeping migration from achieving its full potential. Crucially, it argues that policies in both origin and destination countries can help maximize the development impacts of migration and effectively manage the economic, social, and political costs. Drawing from a wide range of literature, country experiences, and novel analysis, The Journey Ahead presents actionable policy options to enhance the benefits of migration for destination and origin countries and migrants themselves. Some measures can be taken unilaterally by countries, whereas others require close bilateral or regional coordination. The recommendations are tailored to different types of migration— forced displacement as well as high-skilled and low-skilled economic migration—and from the perspectives of both sending and receiving countries. This report serves as a comprehensive resource for governments, development partners, and other stakeholders throughout Europe and Central Asia, where the richness and diversity of migration experiences provide valuable insights for policy makers in other regions of the world.Publication Argentina Country Climate and Development Report(World Bank, Washington, DC, 2022-11)The Argentina Country Climate and Development Report (CCDR) explores opportunities and identifies trade-offs for aligning Argentina’s growth and poverty reduction policies with its commitments on, and its ability to withstand, climate change. It assesses how the country can: reduce its vulnerability to climate shocks through targeted public and private investments and adequation of social protection. The report also shows how Argentina can seize the benefits of a global decarbonization path to sustain a more robust economic growth through further development of Argentina’s potential for renewable energy, energy efficiency actions, the lithium value chain, as well as climate-smart agriculture (and land use) options. Given Argentina’s context, this CCDR focuses on win-win policies and investments, which have large co-benefits or can contribute to raising the country’s growth while helping to adapt the economy, also considering how human capital actions can accompany a just transition.Publication Lebanon Economic Monitor, Fall 2022(Washington, DC, 2022-11)The economy continues to contract, albeit at a somewhat slower pace. Public finances improved in 2021, but only because spending collapsed faster than revenue generation. Testament to the continued atrophy of Lebanon’s economy, the Lebanese Pound continues to depreciate sharply. The sharp deterioration in the currency continues to drive surging inflation, in triple digits since July 2020, impacting the poor and vulnerable the most. An unprecedented institutional vacuum will likely further delay any agreement on crisis resolution and much needed reforms; this includes prior actions as part of the April 2022 International Monetary Fund (IMF) staff-level agreement (SLA). Divergent views among key stakeholders on how to distribute the financial losses remains the main bottleneck for reaching an agreement on a comprehensive reform agenda. Lebanon needs to urgently adopt a domestic, equitable, and comprehensive solution that is predicated on: (i) addressing upfront the balance sheet impairments, (ii) restoring liquidity, and (iii) adhering to sound global practices of bail-in solutions based on a hierarchy of creditors (starting with banks’ shareholders) that protects small depositors.Publication Classroom Assessment to Support Foundational Literacy(Washington, DC: World Bank, 2025-03-21)This document focuses primarily on how classroom assessment activities can measure students’ literacy skills as they progress along a learning trajectory towards reading fluently and with comprehension by the end of primary school grades. The document addresses considerations regarding the design and implementation of early grade reading classroom assessment, provides examples of assessment activities from a variety of countries and contexts, and discusses the importance of incorporating classroom assessment practices into teacher training and professional development opportunities for teachers. The structure of the document is as follows. The first section presents definitions and addresses basic questions on classroom assessment. Section 2 covers the intersection between assessment and early grade reading by discussing how learning assessment can measure early grade reading skills following the reading learning trajectory. Section 3 compares some of the most common early grade literacy assessment tools with respect to the early grade reading skills and developmental phases. Section 4 of the document addresses teacher training considerations in developing, scoring, and using early grade reading assessment. Additional issues in assessing reading skills in the classroom and using assessment results to improve teaching and learning are reviewed in section 5. Throughout the document, country cases are presented to demonstrate how assessment activities can be implemented in the classroom in different contexts.Publication World Development Report 2006(Washington, DC, 2005)This year’s Word Development Report (WDR), the twenty-eighth, looks at the role of equity in the development process. It defines equity in terms of two basic principles. The first is equal opportunities: that a person’s chances in life should be determined by his or her talents and efforts, rather than by pre-determined circumstances such as race, gender, social or family background. The second principle is the avoidance of extreme deprivation in outcomes, particularly in health, education and consumption levels. This principle thus includes the objective of poverty reduction. The report’s main message is that, in the long run, the pursuit of equity and the pursuit of economic prosperity are complementary. In addition to detailed chapters exploring these and related issues, the Report contains selected data from the World Development Indicators 2005‹an appendix of economic and social data for over 200 countries. This Report offers practical insights for policymakers, executives, scholars, and all those with an interest in economic development.