Paper by: Duncan Bentley
In 2003, Messere, De Kam and Heady identified major trends in taxation and benefits during the second half of the 20th Century. The trends included: increased social security contributions; the adoption and expansion of Value Added Tax (’VAT’); structural changes to personal income tax, corporate income tax and taxes on capital; changes to the tax/benefit treatment of families; and changes in the tax mix, in part to make tax systems more efficient and more effective. The reforms to implement these trends were associated with significant improvements in tax administration. The tax law was increasingly used to facilitate tax administration; new management techniques and computerisation changed the way the system was administered; and voluntary compliance completely transformed the approach to tax administration….