{
  "title": "Who Pays When Tax Administration Improves? Revenue, Compliance, and Behavioral Responses to Georgia’s Large Taxpayer Office",
  "publication": "IMF Working Papers, February 20, 2026",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2026/02/20/who-pays-when-tax-administration-improves-revenue-compliance-and-behavioral-responses-to-574159",
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  "summary": "In 2021, the Republic of Georgia established a Large Taxpayer Office (LTO) to strengthen tax administration and improve compliance among firms that contribute a disproportionate share of revenue.",
  "sections": [
    {
      "heading": "Overview and Research Design",
      "content": "- In 2021, the Republic of Georgia established a Large Taxpayer Office (LTO) to strengthen tax administration and improve compliance among firms that contribute a disproportionate share of revenue.\n- The study uses administrative data from 2017–2024 and exploits both the 2021 introduction of the LTO and the revision of eligibility thresholds in 2024.\n- Estimation strategy: weighted difference-in-differences design to estimate the causal impact of intensive oversight, with no change in tax rates, on taxpayer behavior and revenue collection."
    },
    {
      "heading": "Key Findings and Quantitative Impacts",
      "content": "- LTO assignment raised annual tax assessments by about 0.4–0.7 percent of GDP.\n- Revenue increases were concentrated in:\n  - Value added tax (VAT)\n  - Withholding taxes"
    },
    {
      "heading": "Channels and Behavioral Responses",
      "content": "- Compliance improvements resulted from a combination of:\n  - Targeted enforcement\n  - Improved taxpayer services\n- Audit activity changed in composition:\n  - Audits became fewer but more selective."
    },
    {
      "heading": "Heterogeneity and Sectoral Patterns",
      "content": "- Impacts are largest in sectors characterized by:\n  - Strong third-party reporting\n  - High transaction traceability"
    },
    {
      "heading": "Policy Implications",
      "content": "- Reforms to tax administration can:\n  - Deliver significant gains in fiscal capacity\n  - Generate fiscal space\n  - Support development\n- Effective LTO-style interventions appear to work through both enforcement and service-improvement levers rather than rate changes."
    },
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      "content": "- Pages: 45\n- Series: Working Paper No. 2026/031\n- DOI: https://doi.org/10.5089/9798229037747.001\n\nIMF Working Paper No. 2026/031.\n\n---\n\n Content in this bundle\n\n- Working Paper\n  - Working Paper (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Working Paper (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2026/02/20/who-pays-when-tax-administration-improves-revenue-compliance-and-behavioral-responses-to-574159"
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    "Authors: Jean-Marc Atsebi, Mikheil Chikviladze, Mitali Das, Elguja Loliashvili, Mona Wang",
    "Published: February 20, 2026",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9798229037747.001",
    "In 2021, the Republic of Georgia established a Large Taxpayer Office (LTO) to strengthen tax administration and improve compliance among firms that contribute a disproportionate share of revenue.",
    "The study uses administrative data from 2017–2024 and exploits both the 2021 introduction of the LTO and the revision of eligibility thresholds in 2024.",
    "Estimation strategy: weighted difference-in-differences design to estimate the causal impact of intensive oversight, with no change in tax rates, on taxpayer behavior and revenue collection.",
    "LTO assignment raised annual tax assessments by about 0.4–0.7 percent of GDP.",
    "Revenue increases were concentrated in:",
    "Compliance improvements resulted from a combination of:",
    "Audit activity changed in composition:",
    "Impacts are largest in sectors characterized by:",
    "Reforms to tax administration can:",
    "Effective LTO-style interventions appear to work through both enforcement and service-improvement levers rather than rate changes.",
    "Pages: 45",
    "Series: Working Paper No. 2026/031",
    "DOI: https://doi.org/10.5089/9798229037747.001",
    "**Working Paper**"
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