A Comparative Analysis of Tax Administration in Asia and the Pacific

Date: April 2014
Type: Reports
Country:
Subject:
ISBN: 978-92-9254-440-9 (print), 978-92-9254-441-6 (web)
Price: US$22.00 (hardcopy)
Author: Araki, Satoru; Claus, Iris

Description

A robust and sustainable tax system requires good tax administration. This report compares the administrative frameworks, functions, and performances of tax administration bodies in 22 jurisdictions in Asia and the Pacific.

The descriptive analysis is based on surveys of tax administration conducted in 2012 and 2013. The surveys attempt to provide internationally comparable data on aspects of the sample jurisdictions’ tax systems and their administration.

Highlights

Conclusions that emerge from the descriptive and comparative analysis done in the report include the following:

  • Effective human resources management is a key requirement for tax administrations where people are the most important enablers to carry out their main mandate, which is to collect tax revenue;
  • Tax arrears tend to be a more frequent occurrence in developing economies than developed countries, reflecting lower enforcement capacity by tax administrations and taxpayer compliance;
  • The majority of revenue bodies surveyed (16 out of 22) has a large taxpayer unit focusing on the tax affairs of large enterprises;
  • Information and communication technology (ICT) is another important aspect for tax administrations. ICT costs as a percent of total expenditures are relatively low in some countries (e.g., Indonesia, the Kyrgyz Republic, and Malaysia);
  • A shift to electronic tax payment methods would help reduce tax administration costs and the scope for bribery and corruption, which is substantially higher with in-person payments at tax offices; and
  • A key direction for better dispute resolution systems is to strengthen the independence of review institutions from the tax authorities.

Contents

  • Executive Summary
  • Introduction
  • Tax Revenue Collections
  • Institutional Arrangements for Revenue Bodies
  • Internal Organization Design of Revenue Bodies
  • Human Resources Management
  • Budget and Expenditure
  • Taxpayer Identification and Filing
  • Electronic Taxpayer Services
  • Tax Audits
  • Arrears Collection
  • Administrative Arrangements for Tax Disputes
  • Appendixes
  • References