Managing Income Tax Compliance through Self-Assessment
IMF Working Papers, March 11, 2014
Source details
- Canonical URL
- Managing Income Tax Compliance through Self-Assessment
Other formats
Bibliographic details
- Authors: Andrew Okello
- Published: March 11, 2014
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781475515237.001
Overview
- Title: Managing Income Tax Compliance through Self-Assessment
- Author: Andrew Okello
- Publication type: IMF Working Papers; Working Paper No. 2014/041
- Date: March 11, 2014
- Pages: 38
- Volume: 2014
- Issue: 041
- DOI: https://doi.org/10.5089/9781475515237.001
- ISBN: 9781475515237
- ISSN: 1018-5941
Key findings
- Modern tax administrations seek to optimize tax collections while minimizing administration costs and taxpayer compliance costs.
- Experience shows that voluntary compliance is best achieved through a system of self-assessment.
- Many tax administrations have introduced self-assessment principles in the income tax law but the legal authority is not being consistently applied.
- Tax administrations continue to rely heavily on “desk” auditing a majority of tax returns.
- Risk management practices remain largely underdeveloped and/or underutilized.
- There is substantial opportunity in many countries to enhance the design and delivery of client-focused taxpayer service programs, and to better engage with the private sector and other stakeholders.
Subject areas and keywords
- Subject: Auditing; Income tax systems; Public financial management (PFM); Revenue administration; Tax administration core functions; Taxes; Taxpayer services
- Keywords: a number of country; Auditing; business taxpayer; East Asia; Global; income tax; income tax self-assessment system; Income tax systems; Middle East; risk management; self-assessment; self-assessment implementation; self-assessment practice; self-assessment system; service implementation plan; South Asia; Sub-Saharan Africa; tax administration; Tax administration core functions; tax compliance; tax liability; tax revenue; taxpayer assessment; taxpayer certainty; taxpayer effort; taxpayer self-assessment practice; taxpayer service; Taxpayer services; WP
Diagnostic issues identified
- Inconsistent application of legal authority for self-assessment embedded in income tax laws.
- Overreliance on desk auditing for a majority of tax returns.
- Underdeveloped and/or underutilized risk management practices.
- Weaknesses in client-focused taxpayer service program design and delivery.
- Insufficient engagement with the private sector and other stakeholders.
Implications for tax administration strategy
- Strengthening practical implementation of self-assessment regimes is central to achieving voluntary compliance.
- Developing and deploying risk management practices can reduce reliance on blanket desk audits and target enforcement resources more effectively.
- Improving taxpayer service programs and stakeholder engagement can lower taxpayer compliance costs and improve compliance behavior.
Publication metadata for reference
- Series: Working Paper No. 2014/041
Source: IMF Working Papers — Managing Income Tax Compliance through Self-Assessment, Andrew Okello, March 11, 2014. DOI: https://doi.org/10.5089/9781475515237.001