Complexity, Compliance Costs and Non-Compliance with VAT by Small and Medium Enterprises (Smes) in Bangladesh: Is There a Relationship?
Complexity, Compliance Costs and Non-Compliance with VAT by Small and Medium Enterprises (SMEs) in Bangladesh: Is there a Relationship? Author Faridy, Nahida Published 2016 Thesis Type Thesis (PhD Doctorate) School Griffith Business School DOI https://doi.org/10.25904/1912/1553 Copyright Statement The author owns the copyright in this thesis, unless stated otherwise. Downloaded from http://hdl.handle.net/10072/367891 Griffith Research Online https://research-repository.griffith.edu.au Complexity, Compliance Costs and Non-Compliance with VAT by Small and Medium Enterprises (SMEs) in Bangladesh: Is there a Relationship? Nahida Faridy Bachelor in Economics (Hons), Dhaka University Masters in Economics, Dhaka University Masters in Taxation Policy and Management, Keio University Department of Accounting, Finance and Economics Griffith Business School Griffith University Submitted in Fulfilment of the Requirements of the Degree of Doctor of Philosophy September 2015 Abstract The Value Added Tax (VAT), which has existed for 24 years in Bangladesh, has contributed some 37% on average to total tax revenue over the last 15 years (Saleheen, 2012; National Board of Revenue, 2014). Although, the introduction of a VAT has increased tax revenues and expanded the tax base in Bangladesh, many small and medium enterprise (SME) taxpayers do not comply with the VAT legislation, not only failing to register with the tax authorities as taxpayers but also failing to pay the VAT (Faridy et al., 2014; The Centre for Policy Dialogue, 2014). This non-compliance by SMEs could be intentional or unintentional (NBR, 2011; McKerchar, 2003). Also it may be due to excessive compliance costs (Abdul-Jabbar & Pope, 2009; Governance Institutes Network International, 2014), which could be a result of real or perceived legislative or administrative complexity (Yesegat, 2009), to inefficient VAT administration (Barbone et al., 2012), or to other factors.
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