The Revenue Administration–Gap Analysis Program: An Analytical Framework for Excise Duty Gap Estimation

Technical Notes and Manuals, April 13, 2017

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The Revenue Administration–Gap Analysis Program: An Analytical Framework for Excise Duty Gap Estimation

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Bibliographic details

• Authors: Mick Thackray
• Published: April 13, 2017
• Series: Technical Notes and Manuals
• DOI: https://doi.org/10.5089/9781475584875.005

Overview

• Author: Mick Thackray
• Publication date: April 13, 2017
• Series: Technical Notes and Manuals No. 2017/005
• Issue: 005
• Summary:
  • The IMF Fiscal Affairs Department’s Revenue Administration Gap Analysis Program (RA-GAP) assists revenue administrations from IMF member countries in monitoring taxpayer compliance through tax gap analysis.
  • The RA-GAP analytical framework for estimating excise gaps sets out the steps and data required for comprehensive top-down gap estimates based on a comparison of actual collections to potential collections, which is estimated from consumption (or use) and expenditure of excise commodities.
  • The note outlines the motivation for, and different approaches to, excise gap estimation; and identifies the design criteria for robust gap estimates.
  • The note was jointly produced by the RA-GAP team and the Slovak Republic’s Institute for Financial Policy, piloting the framework for the mineral oils excise gap in Slovakia.

Analytical framework and methodological approach

• Purpose:
  • Provide a structured analytical framework to estimate excise duty gaps using top-down methods.
• Core approach:
  • Compare actual excise collections to potential collections estimated from consumption (or use) and expenditure of excise commodities.
• Analytical components and emphases:
  • Steps and data required for comprehensive top-down gap estimates.
  • Motivation for excise gap estimation and different methodological approaches.
  • Identification of design criteria for producing robust gap estimates.

Pilot application

• Implementation:
  • Framework piloted for the mineral oils excise gap in Slovakia.
• Collaboration:
  • Joint production by the RA-GAP team and the Slovak Republic’s Institute for Financial Policy.

Subjects and keywords (as presented)

• Subject: Consumption, Excises, Expenditure, National accounts, Revenue administration, Revenue performance assessment, Tax administration core functions, Tax gap, Taxes
• Keywords: compliance risk, Consumption, Cross-Border Shopping, Excise, excise collection, excise gap, excise goods, excise rate, Excise Smuggling, Excises, gap analysis, gap estimate, gap study, Non-Observed Economy, rate change, Shadow Economy, Tax Administration, Tax administration core functions, Tax Avoidance, Tax Compliance, Tax Evasion, Tax Gap, TNM, understanding excise transaction

Content in this bundle

• Model Specification for Excise Gaps
  • Model Specification for Excise Gaps (Markdown version)
  • Model Specification for Excise Gaps (PDF)