COSTS OF TAX COMPLIANCE FOR ENTREPRENEURS

Abstract

Research in the area of tax compliance costs has started in 20th centaury and is advanced in a number of countries. It resulted from belief that costly tax compliance is a waste of economic resources and increases tax burden of the enterprises without additional benefits to state budgets. As research shows, tax compliance costs are high, especially for small enterprises which may create barrier to their growth and as a consequence slow down economic growth of countries.
The article outlines research in the area of tax compliance costs incurred by enterprises. It allows the reader to get acquainted with basic terms in this area, scope, methodology and major outcomes of research. The article also describes problems that researchers face when undertaking research in the area of the tax compliance costs.