Advisors’ Understanding of Tax Compliance for Choice of Business Form

Global Review of Accounting and Finance, Vol 4, No.1, March 2013, pp. 1-12

4 Pages Posted: 2 Apr 2013

See all articles by Brett Freudenberg

Brett Freudenberg

Griffith University - Griffith Business School; Griffith University - Griffith Law School

Multiple version iconThere are 2 versions of this paper

Date Written: April 1, 2013

Abstract

Choosing an appropriate business form is important for those commencing business, as making the wrong choice may result in economic inefficiencies for both the business and the broader economy. Given the life-cycle of businesses and regressive nature of compliance costs for small enterprises, to what extent are tax compliance cost considered by advisors and are they aware of the relevant empirical evidence? This paper details a study in 2007 that explored 81 advisors’ understanding of the tax compliance cost issues that can arise in terms of business forms. The findings suggest that advisors have limited knowledge of the empirical evidence about tax compliance cost which may adversely impact their advice on business formation leading to long-term adverse economic implications.

Keywords: Tax, Compliance cost, advisor, business form, trusts

JEL Classification: H22, H23, K34

Suggested Citation

Freudenberg, Brett, Advisors’ Understanding of Tax Compliance for Choice of Business Form (April 1, 2013). Global Review of Accounting and Finance, Vol 4, No.1, March 2013, pp. 1-12, Available at SSRN: https://ssrn.com/abstract=2243194

Brett Freudenberg (Contact Author)

Griffith University - Griffith Business School ( email )

Brisbane, Queensland 4111
Australia

Griffith University - Griffith Law School ( email )

Nathan Campus, GU
Nathan 4111
Australia

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