A compliance cost is expenditure of time or money in conforming with government requirements such as legislation or regulation. For example, people or organizations registered for value added tax have the extra burden of having to keep detailed records of all input tax and output tax to facilitate the completion of VAT returns. This may necessitate them having to employ someone skilled in this field, which would be regarded a compliance cost.
Compliance costs normally include all costs associated with obeying the law, including planning and administration, in addition to the direct time and money spent filing paperwork.
Read more about Compliance Cost: Tax Compliance, See Also
Famous quotes containing the words compliance and/or cost:
“Discipline isnt just punishing, forcing compliance or stamping out bad behavior. Rather, discipline has to do with teaching proper deportment, caring about others, controlling oneself and putting someone elses wishes before ones own when the occasion calls for it.”
—Lawrence Balter (20th century)
“Now that is the wisdom of a man, in every instance of his labor, to hitch his wagon to a star, and see his chore done by the gods themselves. That is the way we are strong, by borrowing the might of the elements. The forces of steam, gravity, galvanism, light, magnets, wind, fire, serve us day by day and cost us nothing.”
—Ralph Waldo Emerson (18031882)