The hidden compliance cost of VAT: An exploration of psychological and corruption costs of VAT in a developing country

Faridy, Nahida and Freudenberg, Brett and Sarker, Tapan ORCID: https://orcid.org/0000-0002-0682-2940 and Copp, Richard (2016) The hidden compliance cost of VAT: An exploration of psychological and corruption costs of VAT in a developing country. eJournal of Tax Research, 14 (1). pp. 166-205. ISSN 1448-2398


Abstract

A Value Added Tax (VAT) is seen as critical in providing the tax revenue base for governments, especially developing nations. However, prior research about VAT compliance costs has largely occurred in developed nations and has generally excluded psychological and corruption costs. This article reports a study which measures and reflects upon the psychological costs both in quantitative and qualitative terms for small and medium enterprises in a developing nation, Bangladesh. The cost of corruption is also considered. The findings of this study provide valuable insights as to what is the true compliance cost for VAT in a developing country.


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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Additional Information: Files associated with this item cannot be displayed due to copyright restrictions.
Faculty/School / Institute/Centre: No Faculty
Faculty/School / Institute/Centre: No Faculty
Date Deposited: 28 Apr 2022 04:45
Last Modified: 16 May 2022 02:02
Uncontrolled Keywords: Tax compliance; psychological and corruption costs; VAT; developing country; Bangladesh; Compliance cost; Small business
Fields of Research (2020): 35 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 3502 Banking, finance and investment > 350205 Household finance and financial literacy
35 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 3502 Banking, finance and investment > 350299 Banking, finance and investment not elsewhere classified
Socio-Economic Objectives (2020): 13 CULTURE AND SOCIETY > 1303 Ethics > 130306 Workplace and organisational ethics (excl. business ethics)
URI: http://eprints.usq.edu.au/id/eprint/48023

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