How to Collaborate Effectively to Improve Data Quality and Use in Revenue Administration and Official Statistics

IMF How To Notes, May 10, 2021

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Outlines the interest of Revenue Administrations (RAs) and National Statistical Offices (NSOs) in the quality of data at their disposal, and how collaboration between these organizations can contribute to improving data quality.
Emphasizes that the similarities between the data collection and processing steps in revenue administration and in the production of economic statistics underlie meaningful information and data sharing.
Delineates concrete steps to engender sustainable and meaningful interchange of information and data between the RA and NSO.

Mutually beneficial collaboration between RAs and NSOs can be achieved, particularly in efforts to:
- improve the coverage of registers and to update register information;
- classify economic activity; and
- analyze joint data to address data shortcomings.
Since there are differences in concepts and definitions used in revenue administration and official statistics, dialogue is necessary to ensure the effective use of data from the partner organization.
Collaboration can improve the quality of data available to both institutions:
- For RAs, this can assist in realizing improved taxpayer compliance and revenue mobilization.
- For NSOs, tax-administrative data sources may enable expanded coverage of the economy in official statistics and reduce timeframes required for publishing economic time series and national accounts.
Together, these outcomes can enhance the policy formulation, planning, and service delivery capability of governments.

Foster structured dialogue between RAs and NSOs to reconcile differences in concepts and definitions before data exchange.
Prioritize joint work on:
- coverage and updating of registers to improve base data quality;
- harmonization or mapping of economic classification systems; and
- joint analysis of combined datasets to diagnose and remediate data shortcomings.
Design collaboration arrangements that are sustainable and meaningful, balancing legal, confidentiality, and operational constraints while maximizing data utility for both institutions.

For Revenue Administrations:
- improved taxpayer compliance;
- better revenue mobilization.
For National Statistical Offices:
- expanded coverage of the economy in official statistics;
- reduced timeframes for publishing economic time series and national accounts.
For governments:
- enhanced policy formulation, planning, and service delivery capability.

Subject: Data collection, Economic and financial statistics, Economic classification, Economic sectors, Financial crises, Information for taxpayers, Public financial management (PFM), Revenue administration, Tax administration core functions
Keywords: Africa, assessment tool, Data collection, data quality, Economic classification, Information for taxpayers, quality challenge, RA-NSO engagement, Tax administration core functions, taxpayer information