## Revenue Authorities and their Boards of Management: Recent Developments

_Technical Notes and Manuals, August 22, 2024_

## Source details

**Canonical URL:** [Revenue Authorities and their Boards of Management: Recent Developments](https://www.imf.org/en/publications/tnm/issues/2024/08/23/revenue-authorities-and-their-boards-of-management-recent-developments-551872)

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## Bibliographic details
- Authors: William Joseph Crandall, Elizabeth Gavin, Maureen Kidd, Andrew R Masters
- Published: August 22, 2024
- Series: Technical Notes and Manuals
- DOI: https://doi.org/10.5089/9798400282881.005

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### Overview and purpose
- Provides detailed and updated information on the semi-autonomous Revenue Authority (RA) governance model for revenue administration.
- Update based on a review of relevant legislation, questionnaire results, and outcomes of a series of seminars.
- Notes that the RA governance model was developed "40 years ago" and is used by "some 35 administrations world-wide."

### Governance structure and legal design
- The RA governance model includes three partners: a Minister, a board of management, and a Chief Executive Officer.
- RAs are established through specific enabling legislation.
- Clarity in the language used in the law is critical for establishing the exact roles of the three partners.

### Role and characteristics of the board of management
- The board of management is typically more limited in role than a private sector board of directors.
  - Limitation partly due to the confidentiality of individual taxpayer information.
- Emerging issue: some stakeholders view the RA board role as becoming more closely aligned with private sector boards of directors.
- The unique features of RA boards are examined in the note, including implications for oversight, accountability, and confidentiality.

### Human resources, funding, and objectives
- RAs were originally founded on the belief that:
  - More nimble HR practices and
  - Appropriate funding
  would result in more robust revenue administration.
- While direct causality between the RA governance model and improved revenue administration is difficult to establish, practitioners are convinced the model contributes to improved outcomes.
- The note emphasizes that the HR and funding advantages need to be protected.

### Key findings and messages
- The RA governance model remains widely used and relevant ("some 35 administrations world-wide").
- Legal clarity is essential to define the roles of Minister, board of management, and CEO precisely.
- Confidentiality constraints shape the scope of board responsibilities, differentiating RA boards from private sector boards.
- Practitioners report perceived benefits from HR flexibility and funding arrangements under the RA model, even if causal proof is limited.
- Emerging convergence toward private sector-style board roles warrants attention for policy and governance implications.

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## Content in this bundle

- **Revenue Authorities and Their Boards of Management Recent Developments; TNM 2024/005**
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_Source: https://www.imf.org/en/publications/tnm/issues/2024/08/23/revenue-authorities-and-their-boards-of-management-recent-developments-551872_