## 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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## 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

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### 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

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## Content in this bundle

- **Annex 1. Corporate Income Tax in Selected Countries: A Brief Overview**
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_Source: https://www.imf.org/en/publications/tnm/issues/2023/10/31/corporate-income-tax-gap-estimation-by-using-bottom-up-techniques-in-selected-countries-537786_