VCR – taxpayer level

To estimate the VCR at the taxpayer level, we determine the number of taxpayers that voluntarily comply with all obligations, and then divide this by the number of taxpayers required to be registered under the law.

The calculation is represented as:

This image shows the equation for the VCR at the taxpayer level.

We also calculate an ‘adjusted VCR’ at the taxpayer level, which is not as strict as the above test. In the adjusted VCR calculation, taxpayers are assumed to be compliant if:

  • they have no total business income in the year (that is, all business activity statements are nil)
  • they only have one late lodgment of a business activity statement (BAS) and/or one late payment through the year.
    Last modified: 05 Nov 2015QC 47278