Question 1: Compliance Costs Sandford and Hasseldine, The Compliance Costs of Business Taxes in New Zealand (IPS, Victoria University of Wellington, 1992), reached the following conclusions with respect to compliance costs: (1) They are very large and cumulative in their impact; they are several times the administrative costs of the IRD and, in total, equivalent to about 2.5% of GDP; (2) They are very regressive, individually and collectively, falling with disproportionate severity on smaller businesses, which are put at a state-created disadvantage compared with larger firms. and recommended: (3) Compliance cost assessments should be made for all new tax legislation, and should be published to ensure full recognition of the importance of compliance costs in tax policy-making ... (Sandford & Hasseldine, p.3) Required: (i) What is meant by the term compliance cost'? (ii) What principles of a good' tax need to be considered in the light of these comments, and why? (iii) Provide three examples of compliance costs that businesses face in meeting their tax obligations, justifying, for each example, why it is a compliance cost