Revenue Authorities: Issues and Problems in Evaluating their Success
IMF Working Papers, October 1, 2006
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- Revenue Authorities: Issues and Problems in Evaluating their Success
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Bibliographic details
- Authors: Maureen Kidd, William Joseph Crandall
- Published: October 1, 2006
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451865004.001
Overview
- Revenue authorities (RAs) are adopted by some countries as an alternative governance/delivery model for revenue administration.
- RAs are seen as a potential solution to problems such as low rates of tax compliance, ineffective tax administration staff, and corruption.
- The paper frames RAs from the perspective of revenue administration’s objective to improve performance and compliance with the law.
Features of the RA model and reasons for establishment
- Compiles and analyses features of the RA governance model.
- Examines reasons why revenue authorities were established, including perceived needs for:
- improved tax compliance,
- modernization of tax administration,
- enhanced staff effectiveness,
- mitigation of corruption.
Country perceptions and assessments
- Assesses countries' own perceptions about how the RA model may have contributed to tax administration reform.
- Finds that subjective perceptions among countries with RAs indicate the model has:
- led to improved revenue administration,
- spurred modernization.
Data, evaluation challenges, and attribution problems
- Discusses difficulties in data collection required for econometric assessment of RAs.
- Highlights the problem of attributing observed changes in performance to a particular governance model (i.e., isolating the effect of adopting an RA versus other reforms or contextual factors).
- Notes limits of existing objective analyses in establishing causal links between RA adoption and superior performance.
Key findings and conclusion
- While subjective country perceptions are positive about RAs’ role in improving administration and modernization, the paper concludes:
- there is no objective analysis showing that countries with RAs have performed better than countries without RAs.
Source: IMF Working Paper “Revenue Authorities: Issues and Problems in Evaluating their Success”, Maureen Kidd and William Joseph Crandall, October 1, 2006.