The Tax Complexity Index – A Survey-Based Country Measure of Tax Code and Framework Complexity
Bibliographic Data
| ID | 19447014 |
|---|---|
| Authors | Thomas Hoppe (0000-0002-0770-4858, Taxation, Accounting and Finance, Paderborn University, Paderborn, Germany), Deborah Schanz (0000-0001-5134-7539, LMU Munich School of Management, Munich, Germany), Susann Sturm (0000-0002-9976-7134, LMU Munich School of Management, Munich, Germany), Caren Sureth-Sloane (0000-0002-8183-5901, Taxation, Accounting and Finance, Paderborn University, Paderborn, Germany, corresponding author) |
| Year | 2023 |
| Volume | 32 |
| Issue | 2 |
| Pages | 239-273 |
| Publication date | 2023-03-15 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | European Accounting Review (JOURNAL) |
| Journal identifiers | ISSN: 0963-8180 • E-ISSN: 1468-4497 |
| Publisher | Informa UK Limited (PUBLISHER • GB) |
| DOI | 10.1080/09638180.2021.1951316 |
| OpenAlex | W3187487399 |
| Language | EN |
| Citations received | 5 |
| References cited | 80 |
This paper introduces the Tax Complexity Index (TCI). The TCI comprehensively measures the complexity of countries’ corporate income tax systems faced by multinational corporations. It builds on surveys of highly experienced tax consultants of the largest international tax services networks. The TCI is composed of a tax code subindex covering tax regulations and a tax framework subindex covering tax processes and features. For a sample of 100 countries, we find that tax complexity varies considerably across countries, and tax code and framework complexity also vary within countries. Among others, tax complexity is strongly driven by the complexity of transfer pricing regulations in the tax code and tax audits in the tax framework. When analyzing the associations with other country characteristics, we identify different patterns. For example, we find a positive association of GDP with tax code complexity and a negative association with tax framework complexity, suggesting that highly economically developed countries tend to have more complex tax codes and less complex frameworks. Overall, the tax complexity measures can serve as valuable proxies in future research and supportive tools for a variety of firm decisions and national and international tax policy discussions
Ad valorem tax · Business · Economics · Indirect tax · Public economics · State income tax · Tax avoidance · Tax credit · Tax reform · Value-added tax · Corporate Taxation and Avoidance · Fiscal Policy and Economic Growth · Taxation and Compliance Studies
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| Unique citing works | 5 |
|---|---|
| Citations per year | 2,5 |
| Citation span | 2024 - 2026 (3) |
| Citation velocity | current |
| Highly cited | No |
| Citation types | Neutral: 5 |