Denmark: Technical Assistance Report-Revenue Administration Gap Analysis Program-The Value-Added Tax Gap
IMF Staff Country Reports, February 23, 2016
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- Denmark: Technical Assistance Report-Revenue Administration Gap Analysis Program-The Value-Added Tax Gap
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Bibliographic details
- Published: February 23, 2016
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781498369633.002
Summary overview
- Report presents estimates of the tax gap for Denmark for the period 2008–12.
- Primary objective: estimate the compliance gap—the difference between potential VAT that could have been collected given the current policy framework and actual accrued VAT collections.
- Report will also provide estimates for other tax gap measures and compare and contrast them with the compliance gap.
Methodology
- RA-GAP (Revenue Administration Gap Analysis Program) methodology for estimating the VAT gap has two main components:
1. Estimate the potential VAT collections for a given period. 2. Determine the accrued VAT collections for that period.
- VAT gap = potential VAT collections − accrued VAT collections.
- Approach for estimating potential VAT base: top-down methodology using statistical data on value-added generated in each sector.
- Accrued VAT collections constructed from tax record data.
- The report focuses on the compliance gap but recognizes that alternative methods for determining potential VAT produce other tax gap measures useful for understanding factors affecting current collections.
Key points and definitions
- VAT gap definition: the difference between estimated potential VAT collections and accrued VAT collections for a period.
- Compliance gap definition: difference between potential VAT under the current policy framework and actual accrued VAT collections.
- Alternative gap measures: derived by using different methods for determining potential VAT; these measures help interpret the influence of factors beyond compliance (methodological choices, policy scope, exemptions, measurement differences).
Scope and metadata
- Pages: 57
- Volume: 2016
- Issue: 059
- Series: Country Report No. 2016/059
- DOI: https://doi.org/10.5089/9781498369633.002
- ISBN: 9781498369633
- ISSN: 1934-7685
- Subjects: Auditing, Public financial management (PFM), Revenue administration, Revenue Administration Gap Analysis Program (RA-GAP), Revenue performance assessment, Tax efficiency, Tax gap, Taxes, Value-added tax
- Keywords: Auditing, compliance gap, CR, efficiency gap, Europe, gap analysis, gap estimate, ISCR, Ra-gap VAT gap model, Tax efficiency, tax gap, Tax gap, value-added tax, Value-added tax
International Monetary Fund. Fiscal Affairs Dept. "Denmark: Technical Assistance Report-Revenue Administration Gap Analysis Program-The Value-Added Tax Gap", IMF Staff Country Reports 2016, 059 (2016).
Content in this bundle
- _cr1659 — Executive Summary