This statement is made in my individual capacity and expresses my personal views. Nothing in this statement should be attributed to KPMG or to any of its clients. Tax Complexity and Simplification Inordinate tax complexity creates serious systemic costs. Focusing on the taxpayer side of the equation, the most obvious is the cost of compliance. Complex rules and requirements mean that affected taxpayers need to take more time to understand, prepare, and substantiate tax returns.
Complexity also affects planning and certainty.
Time is required to master the rules so that the consequences of anticipated acts or transactions can be evaluated. If complex rules are also viewed as unfair or unnecessary, respect for the system is undermined. But the story does not end with taxpayers. Complex rules also affect the administration of the tax system, requiring more guidance, training, and enforcement. That, however, is not the case.