{
  "title": "The Revenue Administration Gap Analysis Program: An Analytical Framework for Personal Income Tax Gap Estimation",
  "publication": "Technical Notes and Manuals, August 27, 2021",
  "sourceUrl": "https://www.imf.org/en/publications/tnm/issues/2021/08/27/the-revenue-administration-gap-analysis-program-460749",
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  "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.",
  "sections": [
    {
      "heading": "Summary and purpose",
      "content": "- 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.\n- Good tax gap analysis enables the detection of changes in taxpayer behavior by consistent estimates over time.\n- 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.\n- The note focuses on 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."
    },
    {
      "heading": "Theoretical concepts for PIT gap estimation",
      "content": "- Defines the conceptual basis for estimating the personal income tax (PIT) gap.\n- Discusses implications of different conceptual choices for the scope and presentation of PIT gap statistics.\n- Emphasizes consistency of methodology over time to detect changes in taxpayer behavior."
    },
    {
      "heading": "Measurement approaches and implications",
      "content": "- Presents different measurement approaches available for PIT gap estimation.\n- Explains implications of each approach for the scope of the estimate and how statistics should be presented.\n- Highlights the role of taxpayer registry data and considerations related to the Non-Observed Economy and the Shadow Economy."
    },
    {
      "heading": "Practical steps: Random Audit Program and scaling",
      "content": "- Recommends establishing a Random Audit Program to collect representative data for PIT gap estimation.\n- Describes how to scale findings from the random-audit sample to the population to produce aggregate PIT gap estimates.\n- Notes relevance for auditing, tax compliance measurement, and revenue performance assessment."
    },
    {
      "heading": "Key subjects and keywords (as listed)",
      "content": "- Subjects: Auditing, Expenditure, Personal income tax, Public financial management (PFM), Revenue administration, Revenue Administration Gap Analysis Program (RA-GAP), Revenue performance assessment, Tax gap, Taxes\n- Keywords: Auditing, gap estimate, Non-Observed Economy, Personal Income Tax, Personal Income Tax gap estimation, PIT gap, publication order, Random Audit Program, Revenue Administration Gap Analysis Program (RA-GAP), Shadow Economy, Tax Administration, Tax Avoidance, Tax Compliance, Tax Evasion, Tax Gap, taxpayer registry data\n\n---\n\n Content in this bundle\n\n- Appendix 1  Random Sample Designs\n  - Appendix 1  Random Sample Designs (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Appendix 1  Random Sample Designs (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/tnm/issues/2021/08/27/the-revenue-administration-gap-analysis-program-460749"
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    "Published: August 27, 2021",
    "Series: Technical Notes and Manuals",
    "DOI: https://doi.org/10.5089/9781513577173.005",
    "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 focuses on 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.",
    "Defines the conceptual basis for estimating the personal income tax (PIT) gap.",
    "Discusses implications of different conceptual choices for the scope and presentation of PIT gap statistics.",
    "Emphasizes consistency of methodology over time to detect changes in taxpayer behavior.",
    "Presents different measurement approaches available for PIT gap estimation.",
    "Explains implications of each approach for the scope of the estimate and how statistics should be presented.",
    "Highlights the role of taxpayer registry data and considerations related to the Non-Observed Economy and the Shadow Economy.",
    "Recommends establishing a Random Audit Program to collect representative data for PIT gap estimation.",
    "Describes how to scale findings from the random-audit sample to the population to produce aggregate PIT gap estimates.",
    "Notes relevance for auditing, tax compliance measurement, and revenue performance assessment.",
    "Subjects: Auditing, Expenditure, Personal income tax, Public financial management (PFM), Revenue administration, Revenue Administration Gap Analysis Program (RA-GAP), Revenue performance assessment, Tax gap, Taxes",
    "Keywords: Auditing, gap estimate, Non-Observed Economy, Personal Income Tax, Personal Income Tax gap estimation, PIT gap, publication order, Random Audit Program, Revenue Administration Gap Analysis Program (RA-GAP), Shadow Economy, Tax Administration, Tax Avoidance, Tax Compliance, Tax Evasion, Tax Gap, taxpayer registry data",
    "**Appendix 1  Random Sample Designs**"
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