Romania: Technical Assistance Report-Enabling the Large Taxpayer Office to Reduce the Tax Gap
IMF Staff Country Reports, September 1, 2016
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- Romania: Technical Assistance Report-Enabling the Large Taxpayer Office to Reduce the Tax Gap
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Bibliographic details
- Published: September 1, 2016
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781475531886.002
Overview / Core findings
- The report discusses measures for enabling Romania’s Large Taxpayer Office (LTO) to reduce the tax gap.
- It recommends changing the criteria for inclusion of taxpayers in the LTO so that it is primarily based on turnover.
- The criteria should apply to taxpayers throughout Romania and should be the primary mechanism to establish whether a taxpayer is “in or out.”
- Despite a potential significant reduction in the LTO taxpayer population under the new criteria, it is important to maintain or increase the current number of employees in the LTO.
- Although the taxpayer population will be lower, its importance in terms of revenue that needs to be protected will increase.
Policy recommendations
- Change LTO inclusion criteria to be primarily turnover-based.
- Apply the turnover-based criteria uniformly to taxpayers throughout Romania.
- Use the turnover-based criteria as the primary mechanism for determining LTO membership (“in or out”).
- Maintain or increase LTO staffing levels even if the taxpayer population declines under the new criteria.
Operational implications and priorities
- A shift to turnover-based inclusion will likely reduce the LTO taxpayer population but raise the revenue concentration and protection priority of the remaining population.
- LTO staffing should not be reduced in response to a smaller taxpayer population because the revenue-at-risk per taxpayer will increase.
- The report places emphasis on protecting revenue through targeted LTO oversight and capacity.
Publication and metadata (as provided)
- Pages: 45
- Volume: 2016
- Issue: 284
- Series: Country Report No. 2016/284
- DOI: https://doi.org/10.5089/9781475531886.002
- Stock No: 1ROUEA2016001
- ISBN: 9781475531886
- ISSN: 1934-7685
- Publication date shown on landing page: September 1, 2016
- Subject tags: Auditing, Large taxpayer office, Public financial management (PFM), Revenue administration, Revenue performance assessment, Tax administration core functions, Tax gap, Tax refunds
- Keywords included on the page: audit program, Auditing, CR, Europe, ISCR, Large taxpayer office, LTO audit culture, LTO audit resource, LTO audit result, LTO audit work, LTO auditor, LTO industry sector, LTO taxpayer population, refund claim, risk assessment, Tax administration core functions, Tax gap, Tax refunds, value-added tax, VAT refund audit
International Monetary Fund. Fiscal Affairs Dept. "Romania: Technical Assistance Report-Enabling the Large Taxpayer Office to Reduce the Tax Gap", IMF Staff Country Reports 2016, 284 (2016).
Content in this bundle
- IMF FAD Mission Report on Romania — Large Taxpayer Office
- _cr16284r