Republic of Slovenia: Technical Assistance Report-Revenue Administration Gap Analysis Program- Corporate Income Tax Gap
IMF Staff Country Reports, March 10, 2023
Source details
- Canonical URL
- Republic of Slovenia: Technical Assistance Report-Revenue Administration Gap Analysis Program- Corporate Income Tax Gap
Other formats
Bibliographic details
- Published: March 10, 2023
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400236457.002
Methodology and Scope
- Applies the IMF’s Revenue Administration – Gap Analysis Program (RA-GAP) methodology for corporate income tax (CIT) for nonfinancial corporations in Slovenia.
- RA-GAP methodology for CIT gap is based on a top-down approach, which estimates the potential tax base and liability from macroeconomic data.
- The top-down estimation of the CIT gap provides an initial evaluation of the level and change in taxpayers’ compliance.
- Further work in some areas is needed to improve the application of the methodology and reliability of results.
Key Findings — Aggregate and Temporal Patterns
- Assessed CIT for nonfinancial corporations dropped from 2011 to 2012 then rose until 2020; potential CIT roughly followed the same pattern.
- The estimates for the assessment gap for nonfinancial corporations indicate there may have been an increase in 2012, and then a decline back to the 2011 levels.
- Under either method, the bulk of the assessment gap appears to be in the manufacturing sector.
Implications for Compliance and Revenue Administration
- The top-down RA-GAP estimates provide an initial evaluation of taxpayer compliance trends but are not definitive without further refinements.
- The concentration of the assessment gap in the manufacturing sector suggests sector-targeted compliance and audit strategies may be warranted.
Recommendations and Next Steps (implied by analysis)
- Undertake further work to improve the application of the RA-GAP methodology in areas identified as needing refinement to enhance reliability of results.
- Focus analytical and enforcement resources on the manufacturing sector where the bulk of the assessment gap appears to originate.
- Use the top-down estimates as an initial diagnostic to guide more detailed, possibly bottom-up, investigations of CIT compliance for nonfinancial corporations.
International Monetary Fund. Republic of Slovenia: Technical Assistance Report-Revenue Administration Gap Analysis Program- Corporate Income Tax Gap, March 10, 2023.