## Quantifying the Revenue Yields from Tax Administration Reforms

_IMF Working Papers, November 10, 2023_

## Source details

**Canonical URL:** [Quantifying the Revenue Yields from Tax Administration Reforms](https://www.imf.org/en/publications/wp/issues/2023/11/10/quantifying-the-revenue-yields-from-tax-administration-reforms-541407)

## Other formats

- [Markdown version](/en/publications/wp/issues/2023/11/10/quantifying-the-revenue-yields-from-tax-administration-reforms-541407/index.md)
- [Structured JSON version](/en/publications/wp/issues/2023/11/10/quantifying-the-revenue-yields-from-tax-administration-reforms-541407/index.json)
- [Bundle manifest](/en/publications/wp/issues/2023/11/10/quantifying-the-revenue-yields-from-tax-administration-reforms-541407/bundle-manifest.json)

## Bibliographic details
- Authors: Hassan Adan, Jean-Marc Atsebi, Nikolay Gueorguiev, Jiro Honda, Manabu Nose
- Published: November 10, 2023
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9798400258923.001

---

### Summary and purpose
- Purpose: Estimate revenue yields associated with various tax administration (TA) capabilities to fill a gap in quantified evidence on TA reforms’ impact on domestic revenue mobilization.
- Data sources: International Survey on Tax Administration (ISORA), Tax Administration Diagnostic Assessment Tool (TADAT), and TA reform episodes datasets (identified by Akitoby et al., 2020).
- Methods: Hausman-Taylor cross-country panel regression and an event study for specific TA reform episodes.

### Key quantitative findings
- An increase in overall TA strength from the 40th percentile to the 60th percentile is associated with an increase in tax revenue by 1.8 pp. of GDP (with a 95 percent confidence range of 0.5‒2.6 pp. of GDP).
- The event-study assessment shows sustained TA reforms led to an increase in tax revenues between 2 to 3 pp. of GDP.
- Revenue yields increase over time to more than 3 pp. of GDP after the 6th year following a comprehensive reform.
- Country case evidence cited: Jamaica, Rwanda, and Senegal align with the event-study finding of 2 to 3 pp. of GDP increases.

### Methodological notes
- Regression approach: Hausman-Taylor cross-country panel regression applied to ISORA data.
- Complementary approach: Event study analysis of specific TA reform episodes drawn from the TA reform episodes dataset.

### Specific TA measures with significant impact
- Strengthening compliance risks management.
- Enhancing public accountability.
- Establishing Large Taxpayer Offices (LTO).
- Strengthening accountability and transparency.
- Enhancing timely filing of tax declarations.

### Implications for TA reform policy
- Comprehensive and sustained TA reforms can deliver measurable revenue gains in the range of 1.8 pp. to more than 3 pp. of GDP over time.
- Targeted reforms in compliance risk management, public accountability, LTOs, transparency, and filing timeliness are identified as high-impact measures to prioritize in reform programs.

*IMF Working Paper: Quantifying the Revenue Yields from Tax Administration Reforms, Hassan Adan; Jean-Marc Atsebi; Nikolay Gueorguiev; Jiro Honda; Manabu Nose; November 10, 2023.*

---

## Content in this bundle

- **Working Paper**
  - [Working Paper (Markdown version)](/-/media/files/publications/wp/2023/english/wpiea2023231-print-pdf.pdf.md){rel="alternate" type="text/markdown"}
  - [Working Paper (PDF)](/-/media/files/publications/wp/2023/english/wpiea2023231-print-pdf.pdf){rel="external" type="application/pdf"}

---

_Source: https://www.imf.org/en/publications/wp/issues/2023/11/10/quantifying-the-revenue-yields-from-tax-administration-reforms-541407_