This paper concerns the use of presumptive taxation methods in taxing the hard to tax, which is a subset of presumptive taxation more generally. Since other papers are concerned with the concept of the "hard to tax", I will not dwell on it, beyond noting that it is rooted in the practicalities of tax administration, and has to do with groups of taxpayers whose tax amounts are quite low compared with the administrative costs that would have to be incurred by the tax administration to assess the proper amount of tax. The term is commonly used to refer to small farmers and small businesses (self-employed persons), and I will take the concept to refer to these groups for purposes of this paper. The following factors contribute to their being hard to tax.
Working Paper Number 03-25.