Synthesis documents

Cape Town Conference: Tax Compliance, WB/ IFC, 2010 (J. Coolidge, Day 2, Fishbowl 3)

    This pages contains two papers related to the third 'fishbowl' discussion at the Cape Town Conference. The theme of this session is 'How To Support Business Environment Reforms that Promote the Formalisation of the Informal Economy.

    The papers are:

    1. Coolidge, Jacqueline, Tax Compliance Cost Surveys: Using Data to Design Targeted Reforms, Investment Climate in Practice Series Note 8, IFC, 2010.
    A tax compliance cost survey can provide useful information for the design of reforms to reduce compliance costs and risks for small businesses. This Practice 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.

    2. Coolidge, Jacqueline and Domagoj Ilic, Tax Compliance Perceptions and Formalization of Small Business in South Africa, World Bank Policy Research Working Paper 4992, Washington: World Bank Group, 2009.
    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 finance, and better opportunities for growth.

    Associated Activities and Documents
    Synthesis documents
    »Donor Committee Conference: Business Environment Reform and the Informal Economy, Cape Town, South Africa, 12-15 April 2010