The Revenue Administration Gap Analysis Program

Publication Date:

August 27, 2021

Electronic Access:

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Disclaimer: This Technical Guidance Note should not be reported as representing the views of the IMF. The views expressed in this Note are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary:

It is generally difficult to measure revenue not collected due to noncompliance, but a growing number of countries now regularly produce and publish estimated revenue losses. Good tax gap analysis enables the detection of changes in taxpayer behavior by consistent estimates over time. This Technical Note sets out the theoretical concepts for personal income tax (PIT) gap estimation, the different measurement approaches available, and their implications for the scope and presentation of statistics. The note also focuses on the practical steps for measuring the PIT gap by establishing a random audit program to collect data, and how to scale findings from the sample to the population.

Series:

Technical Notes and Manuals No. 2021/009

Subject:

Frequency:

occasional

English

Publication Date:

August 27, 2021

ISBN/ISSN:

9781513577173/2075-8669

Stock No:

TNMEA2021009

Pages:

37

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