<![CDATA[Background: Tax compliance among small firms is influenced by more than enforcement. The cost of understanding rules, keeping records, managing cash flow and using digital systems can be material for a business whose owner is also the main salesperson and operator. Aims: This article examines the mechanisms that connect the topic to organizational or policy performance and identifies the conditions that make those mechanisms stronger or weaker. Research Method: A structured narrative review integrates peer-reviewed research with authoritative policy, statistical, and professional sources, including OECD (2024b); OECD (2025). Sources are coded by outcome, mechanism, boundary condition, and practical implication. Results and Conclusion: The synthesis indicates that outcomes are heterogeneous. Simplification does not mean the absence of control. A system that is easy to use but perceived as unfair or weakly enforced can reduce voluntary compliance, while aggressive enforcement can discourage formalization when obligations are unclear. Six recurring themes show that implementation quality, information, capability, and institutional context frequently matter as much as the headline policy or technology. Contribution: The article offers an evidence- based framework for micro and small enterprises and tax administrators that translates the literature into decision principles without claiming primary data that were not collected.]]>
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