Published on 01 Oct 02
by "AUSTRALIAN TAX FORUM" JOURNAL ARTICLE
The burden of tax compliance is claimed by businesses to be an onerous task. In the time since the pioneering 'Hidden Costs of Taxation' study was published by Cedric Sandford in 1973, the field has developed to the extent that there now exists a widespread research and professional interest in the magnitude, determinants and consequences of tax compliance costs.
This study uses recent UK survey data (1,449 usable questionnaires) to test the influence of eight hypothesised variables, identified from prior literature, on VAT
compliance costs. We extend the work of previous researchers by reporting separate results for (i) mandatory or core VAT compliance costs, and (ii) total VAT compliance
The findings from the study suggest that increased compliance costs are associated, inter alia, with increased turnover, newly registered businesses, increased complexity
and higher perceived psychological costs.