The administrative burden of any tax system is a part of the inefficiency it creates.

Question

Quizplus · Accepted Answer

The administrative burden of a tax system refers to the time, effort, and resources required for taxpayers to comply with the tax laws, rules, and regulations. This burden represents a cost for taxpayers, as they have to spend time and money to collect, process, and report tax information, file tax returns, and respond to audits and inquiries from tax authorities. The administrative burden also creates a cost for governments, as they have to allocate resources to collect, verify, and enforce tax compliance, and to administer tax benefits and refunds. Therefore, the administrative burden is a part of the inefficiency that a tax system creates, as it reduces the economic efficiency, productivity, and competitiveness of taxpayers, and increases the complexity, cost, and uncertainty of tax administration.

The Administrative Burden of Any Tax System Is a Part