View
328
Download
0
Embed Size (px)
Citation preview
ANINTEGRATEDASSESSMENTMODEL FORTAXADMINISTRATION
COMPREHENSIVE MODEL TO ASSESS THE OVERALL PERFORMANCE OF TAX
ADMINISTRATION
PUBLIC SECTOR AND GOVERNANCE GROUP (PRMPS) WORLD BANK GROUP
Rationale for developing this tool by the World Bank Group
• Important role and increasing capacity building work of the WBG in taxpolicy and revenue administration:– As of December 2011, around 126 WBG operations (credits, loans, and
technical assistance advisory services) have components involving tax policyand revenue administration.
– These operations target more than 70 countries-most of the operations targetLow Income Countries in AFR, and Upper Middle Income Countries in LAC andECA.
• IEG Evaluation (2008) of the WBG support for PS reform recommended:– Better upstream diagnosis to better understand the context of reforms; and– Implementation of a set of tangible indicators to measure effectiveness and
progress towards achievement of objectives;
• A standardized and comprehensive tool to assess the performance of taxadministration has not been developed yet.
1
Tools currently available to measure the performance of tax administration
2
OECD´s Comparative Information Series for OECD and non-OECD countries (2010)
Comparative Information Series: A pilot study on Revenue Administration in Sub-Saharan Africa (OECD/ATAF)
Public Expenditure and Financial Accountability (PEFA) Framework
The European Commission´s Fiscal Blueprints
The USAID´s Collecting Taxes Database
Diagnostic Framework for Revenue Administration (WB/RAPTG, 2000)
3
INDEX
IAMTAX: a comprehensive model to assess the performance of tax administration
4
• The World Bank (PRMPS) has developed the IAMTAX as a comprehensive andsystematic tool for assessing tax administration performance over time.
• Overall performance of tax administration is analyzed by covering a wide array ofelements encompassing three levels of analysis: (i) legal and regulatory framework;(ii) institutional set-up/capacity building; and (iii) core business processes.
• The model is built on benchmarking analysis, but it recognizes the fact that no one-size fits all.
“As a result, the model places strong emphasis on a country’s context and its evolving nature by proposing a framework to better accommodate changes in the country’s
environment”.
IAMTAX: Objectives and main elements
5
• The IAMTAX consists of two main elements:
(i) the diagnostic tool; and
(ii) the measurement framework
• The diagnostic tool would :
assess the current situation of a given tax administration; and
establish the baseline for the entire set of indicators against which the performanceof tax administration would be monitored and assessed throughout a period oftime.
The diagnostic tool would play a critical role in putting into context the current performanceof a given tax administration vis-à-vis the proposed measurement framework.
• The measurement framework would contribute towards achievement of two mainobjectives:
identify and asses performance gaps of tax administration by comparing the actualperformance against a set of desirable benchmarks and good practices(“benchmarking” tool); and
assess and monitor performance of tax administration over time.
Using the IAMTAX as a benchmarking tool
6
Current trends in tax administration:
Finding the core strategic dimensions of the model
✓ A new paradigm for control of compliance
✓ Customer orientation✓ Market segmentation
together with risk analysis techniques as a central plank of a modern control of compliance strategy
✓ New organizational model
✓ Process orientation✓ The key role of ICT✓ International dimensions
of taxation
7
Core Strategic Dimensions of the Measurement Framework
• The measurement framework has been developed around a reference system that consists of 14 core strategic dimensions widely recognized to be key features of modern tax administrations.
• The reference system ultimately centers on a new paradigm of tax administration that focuses on encouraging compliance and cooperation with taxpayers.
Legal and Regulatory Framework
Institutional set-up and capacity building
Core business processes
3 LEVELS OF ANALYSIS
DIMENSIONS
8
Measurement Framework Indicators
9
Type of taxpayer
Geographic Location/Region
Economic sector
IAMTAX Indicators
Outcome indicators(30)
Intermediateoutput indicators(20)
Drill down indicators
Reference system is linked to the environment in which tax administration operates…..
10
A. Simplification of tax legislation;B. Client/taxpayer orientation;C. Enhancing voluntary compliance;D. Extensive use of Information and
Communication Technology;E. Segmentation of taxpayers;F. Application of risk based criteria to
analyze and monitor tax compliance;
G. Information as a fundamental asset of the tax administration;
H. Emphasis on Human Resource Management;
I. Increasing relevance of international taxation;
J. Equity and transparency of tax system;
K. Process orientation;L. Planning as a core element of tax
administration; M. Increasing the analytical capacities
of tax administrationN. External communication policy,
which fosters relations with the private sector and other stakeholders;
Key Objectives Strategic Dimensions Operational Level
Outputs• No. of tax audits;• Tax disputes resolved;• Tax services provided;• Tax arrears collected;• Other
Outcomes• Change in compliance
behavior;• Increased level of
voluntary compliance;
Core Business Processes
Mass Processes (Processing of tax returns, taxpayer services..)
Taxpayer registry
Market segmentation (Tax audit function, revenue arrears
management…)
Taxpayer account
Environment
InputsHuman resources; budget; and infrastructure
(physical and IT)
e - OfficesThird party information
Banks
Transparency, equity and
simplification of tax
legislation
Strategic Vision
Effectiveness
Efficiency
Taxpayer services and
external communication
Grouping strategic dimensions into key objectives
Strategic Vision, Legal and
Regulatory Framework
Operational Performance
11
Good Practices in Tax Administration
• The model incorporates a significant number of goodpractices (190) extracted from the current literatureand the extensive experience of the World BankGroup in tax administration reform projects.
12
Good practices are classified according to the three levels of analysis: (i) legal and regulatory
framework;(ii) institutional set/up and
capacity building; and (iii) core business processes.
Methodology of the Benchmarking Tool
• Each strategic dimension is linked to a set of good practices, outcome and intermediate output indicators.
• Strategic dimensions are grouped into 5 key objectives including (i) transparency, equity, and simplification of tax legislation; (ii) strategic vision; (iii) effectiveness; (iv) efficiency; and (v) taxpayer service and external communication.
• Objective values or range of values are assigned to each of the indicators.
• Application of the model involves a comprehensive analysis of tax administration processes by using all available information sources.
• The “benchmarking tool” would determine how the tax administration scores in each of strategic dimensions and key objectives.
• It would also determine how the tax administration scores in (i) good practices, outcome and output indicators; (ii) particular processes or functions; and (iii) specific level or sub-level of analysis.
The overall score of the tax administration would be the sum of scores of each
strategic dimension.
13
IAMTAX: Reporting Results
14
14 Strategic Dimensions
5 Key Objectives12 Core Business Processes
IAMTAX: Assessing performance of the tax administration from different perspectives
15
Reporting results for each strategic dimension
16
IAMTAX: Approach to Key Objectives
17
Reporting results for key objectives
18
IAMTAX: Approach to Core Business Processes
19
Performance assessment graphics
20
Tax audit performance
Revenue arrears management
Strategic Vision
Taxpayer service
Reporting Results: Tax Administration performance over time
21
LOWPERFORMANCE
AVERAGE PERFORMANCE
GOOD PERFORMANCE
OUTSTANDINGPERFORMANCE
Reporting Results: Strategic Vision and Operational Performance
22
Country X
Reporting Results: Performance of a given Tax Administration in Strategic Vision and Operational Performance
23
H
GF
B
E
I
C
Country A
D
Reporting Results: Cross-Country Comparison in LAC Region (hypothetical situation)
24
H
2012
GF
B
E
I
C
Country A
D
2016
Comparative Analysis of Tax Administrations in LAC Region (hypothetical situation)
25
IAMTAX AS A DIAGNOSTIC AND MONITORING TOOL
26
“Theory is when you know everything but nothing works. Practice is when everything works but nobody knows why. We have put together
theory and practice: nothing is working… and nobody knows why” (Albert Einstein)
IAMTAX as a Diagnostic and Monitoring Tool
27
Diagnosis of a tax administration
Analyze the Context
Setting a baseline
Monitoring Performance
Analyze the underlying factors that explain institutional gaps or weaknesses
With the help of the diagnostic tool
Setting a baseline and respective targets for the indicators over a period of time
Monitoring Performance against targets
IAMTAX as a Diagnostic and Monitoring Tool-Monitoring progress over time
28
Measurement framework
Benchmarking tool
Diagnostic toolIndicators baseline
Year 1 Targets Year 2 Targets
Country X Supervision mission 2012
Year 3 Targets
Country X Supervision mission 2014
Monitoring and assessing compliance against targets
OUTCOME INDICATORS
(30) GOOD
PRACTICES (190)
DRILL DOWN INTERMEDIATE
OUTPUT INDICATORS
DRILL DOWN OUTCOME
INDICATORS
INTERMEDIATEOUTPUT
INDICATORS (20+40)
Full set of Indicators and Good Practices
Indicators and good practices used as a benchmarking tool
Indicators and good practices used to carry out diagnosis and monitoring of tax administration
+29
30
Refine the methodology
Prepare documents, questionnaires and indicators matrix and monitoring cards
Analyze tax administration processes by using all available information
sources
Validate the proposed set of indicators and good
practices
The results of the first pilot will be used to build a web application which would produce reports and results of the gap analysis, and transform them
in a graphical form
Implementation of the model-Roadmap
IAMTAX-Indicators Matrix
31
IAMTAX: Indicators Cards
32
Web page IAMTAX: Assessment tool
WORLD BANK IAMTAX
Methodology
Diagnostic tool
Measurement framework
Best Practices
List of indicators
Statistics and reports
www.iamtax.org
The IAMTAX is a tool that evaluates in a comprehensive and systematic way performance of taxadministration. It consists of two main elements: a diagnostic tool and a measurement framework.The measurement framework would contribute towards achievement of two main objectives:identify and assess performance gaps of tax administration by comparing the actual performanceagainst a set of desirable benchmarks and good practices (“benchmarking” tool); and assess andmonitor performance of tax administration over time (diagnostic and monitoring tool). Thediagnostic tool would: (i) assess the current situation of a given tax administration; and (ii)establish the baseline for the entire set of indicators against which the performance of taxadministration would be monitored and assessed throughout a period of time.
33
Additional functionalities of the model
34
Documents Database
Comparative Studies of
Tax Administrati
on
Case Studies
Manual of Tax
Administration