Viva simplicity! The role of tax advisory services in a simple tax system: Evidence from South Africa

Nadine Riedel, Franziska Sicking and Ida Zinke

No wp-2026-87, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: This paper examines the role of professional tax advisors in a personal income tax system characterized by relatively low complexity. Using population-wide administrative data from South Africa and a matched difference-in-differences design, we estimate the causal effect of using a tax advisor for the first time on individual tax outcomes. We find that using a tax advisor leads to a persistent reduction in reported tax liabilities of about 3.5%, consistent with reduced information and compliance frictions and the improved take-up of tax deductions and credits.

Keywords: Personal income tax; Administrative data; Tax compliance; South Africa (search for similar items in EconPapers)
Date: 2026
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