Cas van Haperen

  School of Business and Economics | Bachelor Fiscal Economics 

Compliance costs of taxation: Analysis of compliance costs and their relation to direct and indirect taxes

Cas's elevator pitch
My thesis explores the often-overlooked “hidden costs” of taxation — the time, money, and effort taxpayers spend to comply with tax laws. Through an extensive literature review, I analyse how these compliance costs differ between direct taxes, such as income and corporate taxes, and indirect taxes like VAT. The findings reveal that compliance costs are generally high, regressive, and persistent over time, particularly burdening smaller firms. By highlighting these inefficiencies, my research underscores the importance of designing simpler tax systems that reduce compliance burdens for both individuals and businesses — an increasingly relevant challenge for policymakers worldwide.