## Legislating for Fair and Effective Tax Collection

_Tax Law Technical Note, March 18, 2025_

## Source details

**Canonical URL:** [Legislating for Fair and Effective Tax Collection](https://www.imf.org/en/publications/tax-law-technical-note/issues/2025/03/17/legislating-for-fair-and-effective-tax-collection-565223)

## Other formats

- [Markdown version](/en/publications/tax-law-technical-note/issues/2025/03/17/legislating-for-fair-and-effective-tax-collection-565223/index.md)
- [Structured JSON version](/en/publications/tax-law-technical-note/issues/2025/03/17/legislating-for-fair-and-effective-tax-collection-565223/index.json)
- [Bundle manifest](/en/publications/tax-law-technical-note/issues/2025/03/17/legislating-for-fair-and-effective-tax-collection-565223/bundle-manifest.json)

## Bibliographic details
- Authors: Irving Aw, Brendan Crowley, Cory Hillier, Rose A Nyongesa, Lydia E Sofrona, Christophe J Waerzeggers
- Published: March 18, 2025
- Series: Tax Law Technical Note
- DOI: https://doi.org/10.5089/9798229004756.008

---

### Summary
- Fair and effective tax collection is critical to the success of any tax system in raising revenue and should be properly legislated.
- Voluntary payment of taxes by taxpayers is always preferred and should be encouraged and supported by the tax procedure legal framework.
- The law should provide for protective measures to prevent taxpayers from frustrating tax collection efforts by taking either themselves or their assets out of the tax administration’s reach.
- As a last resort, the tax administration should be able to compel the recovery of outstanding tax debts from taxpayers or certain third parties through different legislative measures.
- Such powers should be complemented by adequate safeguards for taxpayers.
- This note focuses on the key issues that should be taken into consideration in designing tax law provisions to support fair and effective tax collection.

### Key issues and concepts addressed
- Protective Measures to prevent removal of taxpayers or assets from tax administration reach.
- Compelled Recovery mechanisms enabling tax administrations to recover outstanding tax debts from taxpayers or certain third parties.
- The role of the tax procedure legal framework in encouraging voluntary payment.
- Balancing enforcement powers with adequate safeguards for taxpayers.
- Specific procedural and legal instruments referenced in keywords:
  - clearance certificate, clearance mechanism
  - Collateral
  - Compelled Recovery
  - Crisis Events
  - Installment Arrangements
  - IT system
  - Legislation
  - penalties regime
  - Protective Measures
  - Tax administration core functions
  - Tax arrears management
  - Tax Collection
  - Tax law
  - tax law provision
  - Tax Liens
  - tax procedure
  - tax rulings regime

### Policy implications and recommendations (as emphasized by the note)
- Design tax law provisions that prioritize voluntary compliance through supportive tax procedure frameworks.
- Include legal safeguards to prevent taxpayers from placing themselves or assets beyond the reach of tax administrations.
- Provide legislative grounds for compelled recovery from taxpayers and certain third parties as a last resort.
- Ensure that enforcement powers are balanced with adequate taxpayer protections.
- Consider specific mechanisms—such as clearance mechanisms, installment arrangements, and tax liens—within the legislative design to support effective collection.

---

## Content in this bundle

- **Tltnea2025001**
  - [Tltnea2025001 (Markdown version)](/-/media/files/publications/tltn/2025/english/tltnea2025001.pdf.md){rel="alternate" type="text/markdown"}
  - [Tltnea2025001 (PDF)](/-/media/files/publications/tltn/2025/english/tltnea2025001.pdf){rel="external" type="application/pdf"}

---

_Source: https://www.imf.org/en/publications/tax-law-technical-note/issues/2025/03/17/legislating-for-fair-and-effective-tax-collection-565223_