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Table of contents

Abbreviations and Acronyms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Executive summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Chapter 1. Institutional arrangements for tax administration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Key points . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 The revenue body as an institution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 The extent of revenue body autonomy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Scope of responsibilities of the revenue body . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 Special governance arrangements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 Special institutional arrangements for dealing with taxpayers’ complaints . . . . . . . . . . . . . . . . . . . . . 46 Bibliography. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55

Chapter 2. The organisation of revenue bodies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57

Key points . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58 Getting organised to collect taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58 Office networks for tax administration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80 Large taxpayer operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84 Managing the tax affairs of high net worth individuals taxpayers . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89 Bibliography. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102

Chapter 3. Selected aspects of strategic management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103

Key points and observations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104 Managing for improved performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105 Reporting revenue body performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125 Summary observations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127 Managing and improving taxpayers’ compliance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 136 Bibliography. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 146

Chapter 4. Human resource management and tax administration . . . . . . . . . . . . . . . . . . . . . . . . . . 147

Key points . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 148 Aspects of HRM Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 149 Changes in policy in aspects of HRM within revenue bodies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153 Staff metrics: Staff numbers and attrition, age profiles and qualifications. . . . . . . . . . . . . . . . . . . . . 161

Chapter 5. Resources of national revenue bodies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 169

Key points and observations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 170 The resources of national revenue bodies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 171 Impacts of recent Government decisions on revenue bodies’ budgets . . . . . . . . . . . . . . . . . . . . . . . . 171

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Overall tax administration expenditure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173 Measures of relative costs of administration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 178 International comparisons of administrative expenditure and staffing. . . . . . . . . . . . . . . . . . . . . . . . 182 Bibliography. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 192

Chapter 6. Operational performance of revenue bodies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 193

Key points and observations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 194 Tax revenue collections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 195 Refunds of taxes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 199 Taxpayer service delivery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 201 Are you being served? Revenue bodies’ use of service delivery standards. . . . . . . . . . . . . . . . . . . . . 206 Tax verification activities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 212 Tax disputes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 216 Tax debts and their collection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 219 Bibliography. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 231

Chapter 7. The use of electronic services in tax administration . . . . . . . . . . . . . . . . . . . . . . . . . . . . 233

Key points . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 234 Provision and use of modern electronic services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 235 Bibliography. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 251

Chapter 8. Tax administration and tax intermediaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 253

Key points . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 254 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 254 The population and work volumes of tax intermediaries. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 256 Regulation of tax intermediaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 256 The services and support provided to tax intermediaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 262 Bibliography. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 271

Chapter 9. Legislated administrative frameworks for tax administration . . . . . . . . . . . . . . . . . . . 273

Key findings and observations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 274 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 275 Taxpayers’ rights and charters 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 275 Access to tax rulings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 281 Taxpayer registration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 283 Collection and assessment of taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 289 Administrative review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 320 Enforced collection of unpaid taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 321 Information and access powers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 322 Tax offences (including policies for voluntary disclosures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 330 Bibliography. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 351

Annex A. Aggregate Tables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 353

Annex B. Participating revenue bodies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 373

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Figures

Figure 2.1 Brazil’s Secretariat of Federal Revenue. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63 Figure 2.2 Czech Republic’s General Financial Directorate. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63 Figure 2.3 Finnish Tax Administration (Vero) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64 Figure 2.4 Ireland Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64 Figure 2.5 Italian Revenue Agency (Agenzia Entrate) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65 Figure 2.6 The Netherlands Tax and Customs Administration (NTCA) . . . . . . . . . . . . . . . . . . . . . . . . 65 Figure 2.7 Russia’s Federal Tax Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66 Figure 2.8 Inland Revenue Authority of Singapore . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 Figure 2.9 Swedish Tax Agency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 Figure 2.10 South African Revenue Service. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68 Figure 2.11 Turkish Tax Administration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68 Figure 2.12 Italy: Structure of provincial directorates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73 Figure 2.13 High net worth individuals – Estimated numbers and wealth in 2011 . . . . . . . . . . . . . . . . . 91 Figure 3.1 The compliance risk management process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 136 Figure 3.2 The BISEP model and spectrum of taxpayer attitudes to compliance . . . . . . . . . . . . . . . . 137 Figure 7.1 Maturity model of pre-filling capabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 242 Figure 7.2 Maturity model of payment methods. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 243 Figure 9.1 Key stages in the PAYE annual cycle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 290

Tables

Table 1.1 Institutional arrangements for tax administration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Table 1.2 Delegated authority of national revenue bodies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 Table 1.3 Authority delegated to revenue bodies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 Table 1.4 Case studies: Obstacles, challenges and benefits with SSC integration . . . . . . . . . . . . . . . . 33 Table 1.5 Social security contributions: Assistance provided by revenue bodies not having primary

collection responsibility. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 Table 1.6 Selected non-tax roles of revenue bodies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 Table 1.7 Special body for dealing with taxpayers’ complaints . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 Table 2.1 Selected features of the organisational structure of revenue bodies . . . . . . . . . . . . . . . . . . . 61 Table 2.2 Features of the organisation structure of selected revenue bodies . . . . . . . . . . . . . . . . . . . . 62 Table 2.3 Office network for tax administration role-number of office types . . . . . . . . . . . . . . . . . . . 82 Table 2.4 Office network for tax administration role-number of staff and office type . . . . . . . . . . . . 83 Table 2.5 Large taxpayer operations: Criteria, taxpayer numbers and staff (2011). . . . . . . . . . . . . . . . 86 Table 2.6 Selected Large Taxpayer Units (LTUs) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88 Table 2.7 High net worth individuals: criteria, taxpayer numbers and staffing . . . . . . . . . . . . . . . . . . 93 Table 3.1 Revenue bodies’ mandated business performance targets . . . . . . . . . . . . . . . . . . . . . . . . . 109 Table 3.2 Examples of Government: Ministry targets for revenue bodies . . . . . . . . . . . . . . . . . . . . . 110 Table 3.3 Selected management practices: business plans, annual reports, surveys . . . . . . . . . . . . . 112 Table 3.4 Strategic approach for managing taxpayers’ compliance . . . . . . . . . . . . . . . . . . . . . . . . . . 139 Table 4.1 Revenue bodies’ human resources management (HRM) strategies . . . . . . . . . . . . . . . . . . 151 Table 4.2 Aspects of staff recruitment and development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 157 Table 4.3 Performance management and remuneration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 159 Table 4.4 Staff metrics. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163 Table 5.1 Salary expenditure/total expenditure-tax administration . . . . . . . . . . . . . . . . . . . . . . . . . . 174 Table 5.2 IT and human resource management expenditure (% of all expenditure) . . . . . . . . . . . . . 175 Table 5.3 Cost of collection ratios (administrative costs/net revenue) . . . . . . . . . . . . . . . . . . . . . . . . 180 Table 5.4 Tax administration expenditure/gross domestic product (GDP) . . . . . . . . . . . . . . . . . . . . . 181 Table 5.5 Revenue body staff usage for fiscal year 2011 and related ratios . . . . . . . . . . . . . . . . . . . . 185 Table 5.6 Staff usage (2011) by major tax functional groupings (% of total usage) . . . . . . . . . . . . . . 187 Table 5.7 Expenditure on non-tax roles (% of total revenue body expenditure). . . . . . . . . . . . . . . . . 190 Table 6.1 Aggregate tax collections (by major tax type) for 2010 and prior years . . . . . . . . . . . . . . . 197 Table 6.2 Revenue collections and refunds (relative shares) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 198

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Table 6.3 Service demand volumes-for selected services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 203 Table 6.4 Service demand volumes: Phone inquiries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 204 Table 6.5 Taxpayer services: Selected administrative features and demand ratios . . . . . . . . . . . . . . 205 Table 6.6 Service standards/performance in 2011: Income tax returns . . . . . . . . . . . . . . . . . . . . . . . 208 Table 6.7 Service standards and performance in 2011: VAT refunds and correspondence . . . . . . . . 208 Table 6.8 Service standards and performance in 2011: In-person and phone inquiries . . . . . . . . . . . 209 Table 6.9 Service standards and performance in 2011: Complaints and registrations . . . . . . . . . . . . 210 Table 6.10 Examples of responsive service standards and good performance results . . . . . . . . . . . . . 211 Table 6.11 Verification actions: Number completed for all taxpayer categories . . . . . . . . . . . . . . . . . 213 Table 6.12 Verification actions: Number completed for large taxpayers . . . . . . . . . . . . . . . . . . . . . . . 214 Table 6.13 Verification actions: Value of assessments/total net revenue collections . . . . . . . . . . . . . . 215 Table 6.14 Tax disputes in administrative review: Finalised cases. . . . . . . . . . . . . . . . . . . . . . . . . . . . 217 Table 6.15 Tax disputes in administrative review: Unfinalised cases at year-end . . . . . . . . . . . . . . . . 218 Table 6.16 Tax debts: Undisputed tax debt as share of net revenue collections . . . . . . . . . . . . . . . . . . 222 Table 6.17 Tax debts: Debt collected as a share of total debt for collection . . . . . . . . . . . . . . . . . . . . . 223 Table 6.18 Tax debts: Debt written off as a share of debt inventory. . . . . . . . . . . . . . . . . . . . . . . . . . . 224 Table 6.19 Tax debts: Movement in tax debt case numbers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 225 Table 7.1 Personal income tax returns: Use of electronic filing and pre-filling. . . . . . . . . . . . . . . . . 238 Table 7.2 Corporate income tax returns: Use of electronic filing and pre-filling . . . . . . . . . . . . . . . 239 Table 7.3 Value added tax (VAT) returns: Use of electronic filing and pre-filling . . . . . . . . . . . . . . 240 Table 7.4 Methods available for tax payments and their usage in 2011 . . . . . . . . . . . . . . . . . . . . . . . 245 Table 7.5 Other electronic services provided to taxpayers, etc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 247 Table 8.1 Tax intermediaries: Laws and regulations, returns prepared and surveys . . . . . . . . . . . . . 261 Table 8.2 Tax administration: Supporting and interacting with tax intermediaries . . . . . . . . . . . . . . 269 Table 9.1 Taxpayers’ rights and selected features of the revenue rulings system. . . . . . . . . . . . . . . . 282 Table 9.2 Comparison of registered taxpayer populations (2011) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 284 Table 9.3 System of taxpayer identifiers for revenue administration . . . . . . . . . . . . . . . . . . . . . . . . . 286 Table 9.4 Use of taxpayer identifiers for information reporting and matching . . . . . . . . . . . . . . . . . 288 Table 9.5 Withholding and reporting regimes for income of resident taxpayers . . . . . . . . . . . . . . . . 296 Table 9.6 Withholding and reporting regimes for income of non-resident taxpayers. . . . . . . . . . . . . 297 Table 9.7 Personal income tax. Employers’ withholding, payment, and reporting obligations . . . . . 299 Table 9.8 Personal income tax: payment and return filing obligations. . . . . . . . . . . . . . . . . . . . . . . . 305 Table 9.9 Corporate Income Tax: Payment and return filing obligations. . . . . . . . . . . . . . . . . . . . . . 310 Table 9.10 Value Added Tax (VAT): Registration, payment, and filing obligations . . . . . . . . . . . . . . 315 Table 9.11 Selected features of tax disputes of assessment or rulings . . . . . . . . . . . . . . . . . . . . . . . . . 324 Table 9.12 Enforced tax debt collection powers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 326 Table 9.13 Verification of taxpayers’ liabilities: information access and search powers of tax officials. . . 328 Table 9.14 Incorrect reporting of tax liabilities: Framework for sanctions. . . . . . . . . . . . . . . . . . . . . . 331 Table 9.15 Revenue bodies’ use of voluntary disclosure policies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 335 Table A.1 Revenue aggregates: Gross revenue collections for all taxes administered and gross PIT

and SSC revenue collected. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 354 Table A.2 Revenue aggregates: Gross PIT and SSC revenue collected via withholding at source

and total refunds of taxes administered. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 356 Table A.3 Net revenue collections for all taxes administered by revenue body and Gross domestic

product . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 358 Table A.4 Aggregate expenditure for all revenue body functions and total expenditure for

information technology operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 360 Table A.5 Aggregate expenditure for tax functions and related overheads and total salary costs

for tax functions and related overheads. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 362 Table A.6 Human resource management aggregates: Expenditure and total staff usage in 2011

by functional groupings (FTEs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 364 Table A.7 Value of tax debt outstanding (not disputed) at the year-end and value of tax debt written off. . 366 Table A.8 Total Amount of debt collected during the fiscal year and Number of year-end debt cases . . . 368 Table A.9 Value of verification actions: For all taxpayers and large taxpayers. . . . . . . . . . . . . . . . . . 370

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TABLE OF CONTENTS – 7

Boxes

Box 1.1 EU Fiscal Blueprints: An overall framework for tax administration . . . . . . . . . . . . . . . . . . 22 Box 1.2 EU Fiscal Blueprints: Structure and administration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Box 1.3 Typical powers of autonomous revenue bodies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Box 1.4 The integration of tax and social security contributions (SSC) collection . . . . . . . . . . . . . . 32 Box 1.5 South Africa moves to establish Office of Tax Ombud. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 Box 2.1 Greece: Directions and developments in institutional reform. . . . . . . . . . . . . . . . . . . . . . . . 72 Box 2.2 Tax administration reform directions for Portugal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77 Box 2.3 Tax reform news from Romania . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78 Box 2.4 Examples of large scale office network rationalisation programs. . . . . . . . . . . . . . . . . . . . . 84 Box 2.5 The state of the world’s wealth: some recent research findings . . . . . . . . . . . . . . . . . . . . . . 90 Box 2.6 South Africa: SARS compliance focus on wealthy individuals and their trusts. . . . . . . . . . 95 Box 2.7 Australia: Reported approaches/experiences for highly wealthy individuals . . . . . . . . . . . . 96 Box 3.1 Key trends in public sector administration reform . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106 Box 3.2 Setting targets and measuring performance: Emerging directions and issues . . . . . . . . . . 118 Box 3.3 United States: Monitoring progress towards strategic goals . . . . . . . . . . . . . . . . . . . . . . . . 128 Box 3.4 United Kingdom HMRC’s reporting of tax compliance (in aggregate and by selected

taxpayer segments). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130 Box 3.5 Canada: Reporting outcomes re taxpayers’ compliance . . . . . . . . . . . . . . . . . . . . . . . . . . . 131 Box 3.6 Australia: Reporting performance outcomes re service delivery . . . . . . . . . . . . . . . . . . . . 132 Box 3.7 Canada: Reporting performance outcomes re taxpayer services . . . . . . . . . . . . . . . . . . . . 133 Box 3.8 Ireland: Reporting performance outcomes re service delivery . . . . . . . . . . . . . . . . . . . . . . 134 Box 3.9 Spain: Reporting outcomes re perceptions of services and competence. . . . . . . . . . . . . . . 135 Box 3.10 New Zealand: Reporting re perceptions of services and competence. . . . . . . . . . . . . . . . . 135 Box 3.11 Australia: Publication of key compliance risks and strategies . . . . . . . . . . . . . . . . . . . . . . 140 Box 3.12 South Africa publishes its first Compliance Programme . . . . . . . . . . . . . . . . . . . . . . . . . . 141 Box 3.13 Tax gap estimation activities of selected revenue bodies, etc.. . . . . . . . . . . . . . . . . . . . . . . 142 Box 4.1 New Zealand: Developing our People Capability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 152 Box 4.2 Measuring staff engagement and satisfaction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 154 Box 4.3 Revenue body examples of major HRM policy change. . . . . . . . . . . . . . . . . . . . . . . . . . . . 155 Box 4.4 Revenue body examples of developments with recruitment practices . . . . . . . . . . . . . . . . 156 Box 4.5 Examples of training partnerships. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 158 Box 4.6 Use of 360 degree feedback on employee performance . . . . . . . . . . . . . . . . . . . . . . . . . . . 160 Box 5.1 The cost of collection ratio as an indicator of efficiency and/or effectiveness . . . . . . . . . . 178 Box 5.2 International comparisons of cost of collection ratios. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 183 Box 5.3 Australia: Experience with the use of external collection agents . . . . . . . . . . . . . . . . . . . . 189 Box 6.1 Factors that can contribute to the incidence of tax refunds. . . . . . . . . . . . . . . . . . . . . . . . . 200 Box 7.1 Denmark: The evolution of pre-filled tax returns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 241 Box 7.2 Interactive Voice Response (IVR) Technologies: What are they? What do they do? . . . . . 249 Box 8.1 Study into the role of tax intermediaries: The enhanced relationship. . . . . . . . . . . . . . . . . 255 Box 8.2 Australia: Tax Agent Services Legislation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 257 Box 8.3 United States: Paid Preparer Initiative. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 259 Box 8.4 Japan: The regulation of tax intermediaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 260 Box 8.5 The Netherlands: Horizontal monitoring and tax intermediaries . . . . . . . . . . . . . . . . . . . . 262 Box 8.6 United Kingdom: HMRC’s strategy for supporting tax intermediaries . . . . . . . . . . . . . . . 263 Box 8.7 Australia: Key elements of Tax Practitioner Action Plan . . . . . . . . . . . . . . . . . . . . . . . . . . 264 Box 8.8 Organisational support for tax professionals from selected revenue bodies . . . . . . . . . . . . 265 Box 8.9 Examples of enhanced on line services from selected revenue bodies . . . . . . . . . . . . . . . . 266 Box 8.10 The ATO’s differentiated approach . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 268 Box 9.1 OECD Taxpayers’ Charter-illustrative description of taxpayers’ rights . . . . . . . . . . . . . . . 278 Box 9.2 Key elements of Hong Kong Inland Revenue’s Taxpayers’ Charter . . . . . . . . . . . . . . . . . . 279 Box 9.3 Lithuania’s Taxpayer Service Standard . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 280 Box 9.4 New Zealand: Making tax time easier proposals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 292 Box 9.5 United Kingdom: Issues in PAYE administration and possible solutions. . . . . . . . . . . . . . 293 Box 9.6 Withholding regimes and self-employment/business income. . . . . . . . . . . . . . . . . . . . . . . 295

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8 – TABLE OF CONTENTS

Box 9.7 Third party reporting regimes for self-employment/business income . . . . . . . . . . . . . . . . 298 Box 9.8 Key findings: The Impact of VAT Compliance on Business. . . . . . . . . . . . . . . . . . . . . . . . 320 Box 9.9 New Zealand: Example of general voluntary disclosure policy . . . . . . . . . . . . . . . . . . . . . 332 Box 9.10 United States: Outline of the IRS’s 2012 Offshore Voluntary Disclosure Program . . . . . . 333 Box 9.11 United Kingdom: Example of a targeted voluntary disclosure initiative . . . . . . . . . . . . . . 334

TAX ADMINISTRATION 2013: COMPARATIVE INFORMATION ON OECD AND OTHER ADVANCED AND EMERGING ECONOMIES – © OECD 2013