Diagnostic tool for Tax Administrations

1. Diagnostic tool for Tax Administrations Matthijs Alink

2. Diagnostic tool • Diagnostic tool is aimed to provide an instrument for tax administrations to assess and measure their institutional, strategic and operational ability to adequately implement, administer and enforce the tax laws and other tasks instructed to them by law • To provide a tool for tax administrations to identify strengths and weaknesses of their organizations • To benchmark their performance compared to their peers and during time • To identify areas for improvement by training and development

3. Design of diagnostic tool • Web based instrument • Self assessment by tax administrations • Forms downloaded from website • Forms (partly) pre-filled based on historical information and input based on research by Operating and Maintenance Institute (OMI) • Verification information provided by TAs by OMI • Benchmark information automatically adjusted based on filled out forms • Automatic country reporting • Annual aggregated reporting by OMI

4. Organization Interactions Data base Tax Administrations Operational and Maintenance Institute

5. Reports on 25 dimensions and numerous sub-dimensions

6. Roadmap (1) • Identification of a set of key institutional, strategic, and operational areas of tax administration crucial for the effectiveness of Tax Administrations. • Identification of a set of key indicators per area. • Developing a survey instrument to collect benchmark information from Tax Administrations on these key areas of tax administration to identify best practices • Doing a pilot survey among a selected number of Tax Administrations

7. Pilot survey • To test the survey instrument on its feasibility and relevance • To identify good or best practises enabling the development of norms facilitating the design and implementation of a scoring system supporting the methodology of the diagnostic tool

8. Roadmap (2) • Based on the outcomes of the pilot survey further developing a preliminary set of key indicators including assessing the weight or relative importance of the different indicators and identifying good or best practises as a reference for survey research • Doing a more extensive survey among a wider population of tax administrations • Using the outcome of the survey and additional research to review the used key indicators and their relative weight, to identify best practises and to complete the data base for the diagnostic tool

9. Road map (3) • Designing and building website technology • Creating Operational and Maintenance Institute (ownership, funding, accessibility of information, rules on transparency and confidentiality)

10. Keyareas (1) • 1. Revenue performance • 2. Tax system, tax policy and mandate of the Tax Administration • 3. The extend of autonomy of a Tax Administration • 4. Integrity, values and ethical standards • 5. Taxpayer rights and complaints handling • 6. Organizational structure • 7. Staff allocation • 8. Human resource management • 9. Cost of collection or administration costs • 10. Compliance Risk Management • 11. Compliance measurement • 12. Identification and registration of taxpayers

11. Key areas (2) • 13. Tax Identification Number (TIN) • 14. Return filing and assessment • 15. Withholding regimes • 16. Provisional assessments, advance payments and final assessment • 17. Enforced debt collection • 18. Verification and audit • 19. Penalties and interest • 20. Appeals (administrative and with courts) • 21. Taxpayer service • 22. Information technology (IT) • 23. Tax fraud and avoidance • 24. Administrative cooperation and mutual assistance • 25. External factors

12. Example of key indicators

13. Examples of key indicators (2)

14. Examples of key indicators (3)

15. Examples of key indicators (4)

16. Questions and comments? ?