Overview

The Tax administration Diagnostic Assessment Tool (TADAT) is designed to provide an objective assessment of the health of key components of a country’s system of tax administration. This framework is focused on the nine key performance outcome areas (POAs) that cover most tax administration functions, processes and institutions. The assessment of these performance outcome areas is based on 32 high-level indicatorsthat are each built on 1 to 5 dimensions that together add up to 55 measurement dimensions, making TADAT a comprehensive but administrable diagnostic tool. The TADAT assessments are particularly helpful in:

Identifying the relative strengths and weaknesses in tax administration systems, processes, and institutions.
Facilitating a shared view on the condition of the system of tax administration among all stakeholders (e.g., country authorities, international organizations, and technical assistance providers).
Setting the reform agenda, including reform objectives, priorities, initiatives, and implementation sequencing.
Facilitating management and coordination of external support for reforms, and achieving faster and more efficient implementation.
Monitoring and evaluating reform progress by way of subsequent repeat assessments.

TADAT focuses on the performance of the major national taxes: corporate income tax (CIT), personal income tax (PIT), value added tax (VAT) (or its indirect tax equivalent such as sales tax), excise duties, and Pay As You Earn (PAYE) amounts withheld by employers (which, strictly speaking, are remittances of PIT). Social security contributions (SSCs) may also be included in assessments where SSCs are a major source of government revenue and are collected by the tax administration, as is the case in many European countries.

Trained assessors will apply the TADAT methodology. They will be guided by approved and standardized terms of reference and standards set out in the TADAT Assessor Field Guide.

The TADAT Secretariat will review performance assessment reports to ensure quality standards are met and consistency is maintained.