IMF Working Papers

Managing Income Tax Compliance through Self-Assessment

By Andrew Okello

March 11, 2014

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Andrew Okello. Managing Income Tax Compliance through Self-Assessment, (USA: International Monetary Fund, 2014) accessed December 11, 2024
Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

Modern tax administrations seek to optimize tax collections while minimizing administration costs and taxpayer compliance costs. Experience shows that voluntary compliance is best achieved through a system of self-assessment. Many tax administrations have introduced self-assessment principles in the income tax law but the legal authority is not being consistently applied. They continue to rely heavily on “desk” auditing a majority of tax returns, while risk management practices remain largely underdeveloped and/or underutilized. There is also plenty of opportunity in many countries to enhance the design and delivery of client-focused taxpayer service programs, and better engage with the private sector and other stakeholders.

Subject: Auditing, Income tax systems, Public financial management (PFM), Revenue administration, Tax administration core functions, Taxes, Taxpayer services

Keywords: A number of country, Auditing, Business taxpayer, East Asia, Global, Income tax, Income tax self-assessment system, Income tax systems, Middle East, Risk management, Self-assessment, Self-assessment implementation, Self-assessment practice, Self-assessment system, Service implementation plan, South Asia, Sub-Saharan Africa, Tax administration, Tax administration core functions, Tax compliance, Tax liability, Tax revenue, Taxpayer assessment, Taxpayer certainty, Taxpayer effort, Taxpayer self-assessment practice, Taxpayer service, Taxpayer services, WP

Publication Details

  • Pages:

    38

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

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  • Series:

    Working Paper No. 2014/041

  • Stock No:

    WPIEA2014041

  • ISBN:

    9781475515237

  • ISSN:

    1018-5941