## Who Pays When Tax Administration Improves? Revenue, Compliance, and Behavioral Responses to Georgia’s Large Taxpayer Office

_IMF Working Papers, February 20, 2026_

## Source details

**Canonical URL:** [Who Pays When Tax Administration Improves? Revenue, Compliance, and Behavioral Responses to Georgia’s Large Taxpayer Office](https://www.imf.org/en/publications/wp/issues/2026/02/20/who-pays-when-tax-administration-improves-revenue-compliance-and-behavioral-responses-to-574159)

## Other formats

- [Markdown version](/en/publications/wp/issues/2026/02/20/who-pays-when-tax-administration-improves-revenue-compliance-and-behavioral-responses-to-574159/index.md)
- [Structured JSON version](/en/publications/wp/issues/2026/02/20/who-pays-when-tax-administration-improves-revenue-compliance-and-behavioral-responses-to-574159/index.json)
- [Bundle manifest](/en/publications/wp/issues/2026/02/20/who-pays-when-tax-administration-improves-revenue-compliance-and-behavioral-responses-to-574159/bundle-manifest.json)

## Bibliographic details
- 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

---

### Overview and Research Design
- 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.

### Key Findings and Quantitative Impacts
- LTO assignment raised annual tax assessments by about 0.4–0.7 percent of GDP.
- Revenue increases were concentrated in:
  - Value added tax (VAT)
  - Withholding taxes

### Channels and Behavioral Responses
- Compliance improvements resulted from a combination of:
  - Targeted enforcement
  - Improved taxpayer services
- Audit activity changed in composition:
  - Audits became fewer but more selective.

### Heterogeneity and Sectoral Patterns
- Impacts are largest in sectors characterized by:
  - Strong third-party reporting
  - High transaction traceability

### Policy Implications
- Reforms to tax administration can:
  - Deliver significant gains in fiscal capacity
  - Generate fiscal space
  - Support development
- Effective LTO-style interventions appear to work through both enforcement and service-improvement levers rather than rate changes.

### Publication Metadata (selected)
- Pages: 45
- Series: Working Paper No. 2026/031
- DOI: https://doi.org/10.5089/9798229037747.001

*IMF Working Paper No. 2026/031.*

---

## Content in this bundle

- **Working Paper**
  - [Working Paper (Markdown version)](/-/media/files/publications/wp/2026/english/wpiea2026031-source-pdf.pdf.md){rel="alternate" type="text/markdown"}
  - [Working Paper (PDF)](/-/media/files/publications/wp/2026/english/wpiea2026031-source-pdf.pdf){rel="external" type="application/pdf"}

---

_Source: https://www.imf.org/en/publications/wp/issues/2026/02/20/who-pays-when-tax-administration-improves-revenue-compliance-and-behavioral-responses-to-574159_