Corporate Income Tax Gap Estimation by using Bottom-Up Techniques in Selected Countries: Revenue Administration Gap Analysis Program

Technical Notes and Manuals, October 31, 2023

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Corporate Income Tax Gap Estimation by using Bottom-Up Techniques in Selected Countries: Revenue Administration Gap Analysis Program

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Bibliographic details

• Authors: Patricio A Barra, Eric Hutton, Polina Prokof'yeva
• Published: October 31, 2023
• Series: Technical Notes and Manuals
• DOI: https://doi.org/10.5089/9798400246265.005

Overview

• Authors: Patricio A Barra, Eric Hutton, Polina Prokof'yeva
• Date: October 31, 2023
• Series: Technical Notes and Manuals No. 2023/006
• Purpose: Describe bottom-up corporate income tax (CIT) gap estimation techniques applied by revenue administrations with extensive experience in this approach.

Countries covered

• Australia
• Brazil
• Canada
• Denmark
• Sweden
• The United Kingdom
• The United States

Main contents described

• Techniques applied for bottom-up CIT gap estimation.
• CIT gap results reported by the featured revenue administrations.
• Advantages and disadvantages of different available bottom-up estimation options.
• Future developments and recommendations for revenue administrations initiating bottom-up CIT gap estimation programs without prior experience.

Key themes and emphases

• Focus on bottom-up technique as implemented by highly experienced RA-GAP members.
• Discussion spans methodological choices, operational practices (including Random Audit Program and Risk-Based Audits), and sectoral considerations such as Small and medium enterprises.
• Emphasis on practical guidance for Revenue Administration Gap Analysis Program (RA-GAP) participants and other tax administrations seeking to build capacity in tax gap estimation.

Policy recommendations and future developments (as described)

• Guidance intended for any revenue administration interested in starting bottom-up CIT gap estimation programs having no prior experience.
• Comparative assessment of options to inform choice of technique based on trade-offs (advantages and disadvantages) highlighted in the note.

Subject tags and keywords (as provided)

• Subjects: Auditing, Corporate income tax, Economic sectors, Expenditure, Public financial management (PFM), Revenue administration, Revenue Administration Gap Analysis Program (RA-GAP), Revenue performance assessment, Small and medium enterprises, Tax gap, Taxes
• Keywords: Auditing, bottom-up technique, CIT gap, Corporate Income Tax, gap definition, members of the Revenue Administration Gap Analysis Program, Ra-GAP team, Random Audit Program, Revenue Administration Gap Analysis Program (RA-GAP), Risk-Based Audits, Small and medium enterprises, Tax Administration, Tax Compliance, Tax Evasion, Tax Gap

Content in this bundle

• Annex 1. Corporate Income Tax in Selected Countries: A Brief Overview
  • Annex 1. Corporate Income Tax in Selected Countries: A Brief Overview (Markdown version)
  • Annex 1. Corporate Income Tax in Selected Countries: A Brief Overview (PDF)