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14 Austl. Tax F. 125 (1997)
Minimising the Compliance Costs of a GST

handle is hein.journals/austraxrum14 and id is 121 raw text is: 










Minimising the


Compliance Costs


of a GST


Cedric Sandford*






This  paper considers the disadvantage inherent in a GST   (or
VAT as it   is more generally called) of relatively high compliance
costs. It describes the reasons for these higher compliance costs
and,  with particular emphasis on small business, it suggests what
can  be done, in the tax system, to control these high costs.

Introduction
The  compliance costs of a GST (or VAT as it is more generally called)
tend to be disproportionately high and constitute a major disadvantage
to set against its significant merits.
   A  GST  necessarily generates high compliance costs for a number of
 reasons.
 (1) It is a transactions-based tax; unlike income tax, where the resulting
    tax base is a residual from a range of transactions, each transaction



*   Cedric Sandford is Emeritus Professor of Political Economy of the University of
   Bath, UK. He was formerly Director of the Bath University Centre for Fiscal Stud-
   ies. He has published widely, especially on subjects of capital taxation, tax policy-
   making and the compliance costs of taxation.

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