The aim was to calculate taxation costs in Croatia in 2001/2002. We researched a) administrative costs of the Tax Administration and the Customs Administration and b) compliance costs (taxpayers’ costs). The costs of the following taxes were analysed: personal income tax, corporate income tax, VAT, excise and custom duties. We conducted separate research for: (a) individuals, (b) small businesses, and (c) companies. The research project was one of the first attempts of this research in transitional countries.
The research showed that the aggregate operating costs of taxation in Croatia in 2001/2002 amounted to 3.13% of GDP. Compliance costs of taxation amounted to 2.66% of GDP and administrative costs of taxation 0.47% of GDP. The research also proved repressiveness of these costs. In the conducted survey, the taxpayers argued that the tax system is changing too often. At the end of the research, several important policy recommendations for the Tax and Customs Administrations were proposed.
The results of this project were published in:
- Financijska teorija i praksa, No. 3/2004
- Carinski vjesnik, No. 1/2004
- Newsletters
- Occasional Paper Series
- Proceedings of the 6th International Conference on Tax Administration - Challenges of Globalising Tax Systems. Sydney: The University of New South Wales, 2004.