TADAT Good Practices Database
Good Practice Search
Discover the TADAT Good Practices —your dynamic gateway to proven strategies and innovative solutions shaping successful tax administration reforms worldwide. This interactive resource allows policymakers, practitioners, and stakeholders to easily search and explore a curated collection of real-world examples and actionable insights.
By showcasing effective approaches tested across diverse contexts, the page empowers users to incorporate these best practices into their reform agendas, accelerating the path to enhanced tax compliance, improved revenue mobilization, and stronger fiscal governance. Dive in and connect with the knowledge transforming tax systems for inclusive and sustainable development.
| DIM_CODE | LG_CODE | SCORE | SCR_DISC | ASSESMENT | FG | LANGUAGE | DIMENSION | IMF REGION | SCORE | ASSESMENT (FIRST/REPEAT) | FIELD GUIDE | LANGUAGE | GOOD PRACTICE |
|---|---|---|---|---|---|---|
| P3-8-1 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; Information on main taxpayer obligations and entitlements is available and tailored to the needs of specific taxpayer groups. The Tax Administration provides clear information on taxpayer obligations and entitlements for all core taxes through its website, regional tax offices, call center, kiosks, brochures, and taxpayer education events. The information is free of charge and is tailored to the needs of different taxpayer groups. Separate sections of the website provide information for individuals, individual entrepreneurs, individuals providing services in agritourism, legal entities, foreign companies operating in the country, gambling businesses, residents of the free economic zones, and residents of the High-Tech Park, residents of the country's industrial Park. The website also has a version for visually impaired users. The Tax Administration also conducts online conferences and participates in public education programs through the national financial literacy program. |
| P3-8-2 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; Information provided by the Tax Administration is current, and changes in policy and law are communicated in advance. A dedicated team is responsible for updating the website of the Tax Administration, and the process and procedures are documented. Changes to the legislation and procedures are communicated before the changes take effect through the general communication through the website, various media (including radio and television), regional offices, printed materials posted or distributed in the Tax Administration regional offices and through other public institutions. |
| P3-8-3 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; Information is easily accessible through various channels at no cost. The Tax Administration conducts a broad range of proactive outreach activities. Information is provided through the Tax Administration website, the personalised taxpayer portal, a call center, and Tax Administration’s tax offices. The Tax Administration conducts workshops in schools and organises and publishes books for children. There is no cost to taxpayers for service or information received from the Tax Administration, except for a weekly printed journal published by the Tax Administration. |
| P3-9 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; The Tax Administration call center responds to all taxpayer calls within two minutes. The Tax Administration call centre operates during regular business hours, and a self-service automatic answering system is available to taxpayers 24/7. There are strict requirements regarding response times for emails and letters. There are not yet service delivery standards for telephone calls to the call centre. The call centre received 52,916 requests from September 2016 – to August 2017 (on average, about 145 per day). |
| P3-11-1. | EUR | A | First | 2015 | English | Scored A because good practice was detected in; The Tax Administration obtains regular feedback from taxpayers, and a survey of taxpayer perceptions is conducted regularly. The Tax Administration gathers feedback through the website, email, telephone, taxpayer service centers, public events, meetings with stakeholders and surveys. Every two years, a statistically significant survey of small and medium-sized enterprises is completed by the Analytical and Information Center under the Presidential Administration. A statistically significant survey is also completed by one of the universities on a yearly basis. An electronic system for assessing the performance of the services provided to the taxpayers is introduced in the taxpayer centers. Representatives of the Tax Administration and its tax offices regularly meet with taxpayers during the visits to enterprises and field trips meetings. Starting with 2018, the Tax Administration plans to conduct surveys through the online taxpayer portal and a mobile application for obtaining feedback from individuals will also go live in 2018 |
| P3-11-2 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; Taxpayer input is taken into account in the design and testing of new processes and products. The Tax Administration has an Advisory Council, which is a public-private dialogue platform for consultations on the issues of taxation. There are 35 members of the Council. Approximately two-thirds of the members are representatives of various business associations, private businesses, and tax experts, while around one-third of the members represent various government bodies, including the Tax Administration. This Council provides inputs and advice to the Tax Administration in the design of new processes and products before they are introduced. Taxpayers are regularly invited to take part in the testing of new processes and products before they are rolled out. |
| P4-12-3 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; Data gathered shows that 100 per cent for Large taxpayers only, 83.5 per cent of CIT declarations are filed on time, 85.6 per cent of PIT declarations (of sole proprietors and individuals) are filed on time, 97.9 per cent of VAT declarations are filed on-time, and 83.5 per cent of PAYE declarations are filed on time. For the one year (January 2016 to December 2016), the average on-time filing for all taxpayers was 97.9 per cent. The Tax Administration uses various measures to encourage the on-time filing of tax declarations. PIT filing for individual entrepreneurs and individual taxpayers is mandatory only for those with income other than wages. Quarterly CIT declarations include information on PAYE filing. The Tax Administration can access third-party information and establish the number of expected PIT and PAYE tax declarations. The latter are cross-checked with social security contributions for each employee. |
| P9-32-1 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; The preparation and publication of annual reports covering the financial and operational performance of the Tax Administration |
| P3-8-2 | MCD | A | First | 2019 | English | Scored A because good practice was detected in; The Tax Administration has documented procedures and a dedicated department - the Taxpayer Service Department - which provides specific and general dissemination of updates to information. In addition, the weekly journal provides information to taxpayers. Taxpayers are also informed through proactive engagement before the law takes effect. During 2018, for targeted 27 communication, The Tax Administration conducted 2,500 seminars, 677 TV and radio bulletins, and regular internet feeds to keep taxpayers updated with general and specific information |
| P3-8-3 | MCD | A | First | 2019 | English | Scored A because good practice was detected in; A broad range of proactive taxpayer education programs is regularly conducted. In 2019, so far, 20 universities and schools had been covered to impart education on taxation and citizens’ responsibilities. On 21st December 2019, a competition was organised for university students to award those with the best knowledge of tax laws and procedures. Information is available regarding core taxes and all taxpayer segments through several channels like websites, regular seminars and meeting with business associations at the headquarters and local offices. The Tax Administration website runs 24 hours and throughout the year with dedicated staff regularly updating the information regarding changes in tax laws and administrative procedures. All information is available to the taxpayers free of cost except for the annual subscription toTax Administration’s weekly journal. There are 37 e-Terminals with dedicated fibre optics lines in remote tax offices where internet access is weak—this enables taxpayers to meet their tax declaration and payment obligations electronically. |
| P3-9 | MCD | A | First | 2019 | English | Scored A because good practice was detected in; All telephone enquiries by taxpayers are handled promptly. There are three dedicated call centers in the capital city and two other locations have an automated recording and monitoring system through which calls are recorded and answered by operators. Logs of all responses by operators are kept on a daily basis and consolidated into weekly and monthly reports. These reports show that 100 per cent of taxpayer enquiries were answered in less than six minutes. The Tax Administration instructions laying out the methodology for the call center require calls to be answered within three minutes. See Table 3 in Attachment III |
| P3-11-1. | MCD | A | First | 2019 | English | Scored A because good practice was detected in; Feedback from taxpayers is obtained routinely using a variety of methods. Based on instructions issued by the Chairman, the Tax Administration obtains regular feedback from taxpayers through taxpayer’s personal cabinet, seminars, call centers, surveys and business meetings, and replies to 29 all relevant questions. As part of the World Bank, perception surveys have been regularly conducted by an independent expert survey agency. The last two perception surveys were conducted in 2017 and 2019. The surveys were based on statistically valid samples and tested. |
| P3-11-2 | MCD | A | First | 2019 | English | Scored A because good practice was detected in; The Tax Administration regularly consults with taxpayer groups and intermediaries to identify deficiencies. Letter dated 23rd September 2019 from the Head of the Legal Department to the head of the Tax Administration. The Tax Administration demonstrates that out of 80 suggestions by taxpayers, 27 were recommended for resolution and consideration. By decision No. 6, dated 13th June 2019, the Head of theTax Administration responded to taxpayers’ suggestion regarding e-token, accepting their request to make them free of charge. The Tax Administration’s website has a section where taxpayers can report suggestions for improving IT processes, forms and products. |
| P4-14 | MCD | A | First | 2019 | English | Scored A because good practice was detected in; There is a mandatory requirement for all tax declarations for the core taxes to be submitted electronically. Because of the low internet penetration in remote areas of the country, the Tax Administration has provided e-terminals in many tax offices with dedicated fibre-optic lines. |
| P5-15 | MCD | A | First | 2019 | English | Scored A because good practice was detected in; All core taxes are required to be paid electronically. Data submitted using the Tax System database indicates that all the core taxes were paid 100 percent using electronic payment methods. Statistics for three calendar years in 2016, 2017 and 2018 were furnished. |
| P5-16 | MCD | A | First | 2019 | English | Scored A because good practice was detected in; Tax withholding at source and advance payments are routinely used. The Taxation Act lays down the provisions for payment, collection and refund of taxes, including deadlines for payment and penalties and interest in case of late payment. Withholding at source for employment income, interest, and dividend income are in place. The withholding on interest and dividend incomes are final, and no declaration is required from the taxpayer receiving the income. Articles 200-250 lay down that advance tax is required to be paid for CIT by the 15th of the month following the month in which the income was earned. This also applies to rental income received by individuals. Although advance tax is paid monthly, a declaration for CIT must be filed annually. All information regarding payment schedules is available on the website. There is no need for mandatory reporting since the tax withholding is final. |
| P5-17-1 | MCD | A | First | 2019 | English | Scored A because good practice was detected in; Due dates for payment of all tax heads are indicated in the Taxation Act. Interest for late payment is charged at the rate of 0.05 percent per day. In terms of the number of VAT payments, 90.4 percent of all taxpayers and 100 percent of large taxpayers made their payments by the statutory due date in 2018, according to the Tax System database. Likewise, in terms of the value of payments, 90.5 percent of payments by all VAT payers and 100 percent of payment by large taxpayers are made on time. |
| P5-17-2 | MCD | A | First | 2019 | English | Scored A because good practice was detected in; In terms of the value of payments, 90.5 percent of payments by all VAT payers and 100 percent of payments by large taxpayers are made on time. |
| P5-18-1 | MCD | A | First | 2019 | English | Scored A because good practice was detected in; The level of tax arrears of the Tax Administration is relatively low. A dedicated department - Tax Debt and Collection Enforcement Department - deals with tax collection, debts and arrears. The Taxation Act lays down the measures for ensuring enforced collection of arrears. Through public seminars, business meetings and TV channels, instructions are issued to taxpayers from time to time and taxpayers are made aware of payment requirements and due dates of payments. The three-year average of core tax arrears as a percentage of total core tax revenues collected is 8.2 percent. |
| P5-18-2 | MCD | A | First | 2019 | English | Scored A because good practice was detected in; The level of tax arrears of the TC is relatively low. A dedicated department - Tax Debt and Collection Enforcement Department - deals with tax collection, debts and arrears. The Taxation Act lays down the measures for ensuring enforced collection of arrears. Through public seminars, business meetings and TV channels, instructions are issued to taxpayers from time to time and taxpayers are made aware of payment requirements and due dates of payments. The three-year average of collectable core tax arrears as a percentage of total core tax revenues collected is 3.1 percent. The three-year average of old core tax arrears as a percentage of total core tax arrears is 31.8 percent. |
| P9-32-1 | MCD | A | First | 2019 | English | Scored A because good practice was detected in; An annual report of operational and financial performance is published. The approved annual report of operational and financial performance is made public by publication in a journal. The annual report is very detailed and contains performance on all operations and finances. The annual report for the year 2018 was published within one month of the end of the fiscal year. For the year 2017, the annual report was likewise published within one month of the end of the fiscal year. In addition, the published annual reports are also made available on the website of the journal. |
| P2-3-1 | AFR | A | Repeat | 2019 | English | Scored A because good practice was detected in; The Tax Administration has an effective process for gathering intelligence and identifying compliance risks. Data from a range of third parties are gathered and interpreted—this includes customs motor vehicle register stamp duty on land payments. Data is also gathered and analysed from internal sources such as taxpayer returns and results from audit programs. Environmental scans- tax gap studies and sectoral research are conducted routinely and analysed. Risk Bulletins are produced annually. |
| P2-3-2 | AFR | A | Repeat | 2019 | English | Scored A because good practice was detected in; A structured Compliance Risk Management (CRM) process has been developed and is effectively applied. A CRM process that is a part of a multi-year national assessment plan and structured across the main taxpayer obligations, core taxes and taxpayer segments now form an integral part of the administration’s strategic management- annual planning and enterprise risk management (ERM) processes. |
| P2-4 | AFR | A | Repeat | 2019 | English | Scored A because good practice was detected in; The Tax Administration has developed a comprehensive compliance improvement plan (CIP) which has been fully implemented. The CIP is derived from the Tax Administration’s corporate plan and structured across the main taxpayer obligations- all core taxes and key taxpayer segments. A risk matrix is updated annually and designed around identified compliance risks with recommended mitigation strategies. The compliance divisions are allocated resources to implement the plan. |
| P2-5 | AFR | A | Repeat | 2019 | English | Scored A because good practice was detected in; Governance arrangements are in place for approving compliance risk mitigation strategies and monitoring progress with implementation. The Management Executive Committee (MEC), chaired by the Head of the Tax Administration and comprising Commissioners from relevant departments, monitors the implementation and impact of risk mitigation activities for compliance and organizational risks. The ERM unit presents risks to the MEC monthly for action and decisions. The Domestic Tax Management team also monitors the operationalization of the CIP. Studies have been undertaken to evaluate the impact of compliance improvement initiatives on high-risk sectors. A post-audit impact report is done annually, and the findings from the impact assessment and studies are used as feedback for improvement of the compliance risk |
| P3-9 | AFR | A | Repeat | 2019 | English | Scored A because good practice was detected in; Taxpayers have convenient access to information, in various local dialects, through a range of user-friendly channels. The Tax Administration has a robust program to promote client service and public confidence in the tax system. The program is coordinated by the Communication Department in liaison with the operational departments and field stations and delivers tax information for all core taxes, main compliance obligations and all categories of taxpayers via: The Tax Administration website. A self-help tax education portal which has videos, instructions, and guides. • Generic and sector-based tax literature which is presented in print, audio, or digital formats and active participation on social media—Facebook, and Twitter. A centralized inbound call center that is operated during normal working hours and for extended hours during peak filing and tax payment periods. Active engagement with private sector associations. Staff visits to small and medium taxpayers premises (also called tax katales) and other personalized assistance and public seminars and tax clinics for specific taxpayer groups. • Client relationship managers in the large taxpayer office (LTO) and medium taxpayer office (MTO). • Walk-in service centers in all field offices. • Letters, e-mails, text messages, and brochures. • The hosting of an annual “Taxpayers Appreciation Month.” • The Tax Administration also seeks to educate future taxpayers (e.g. school children) through innovative collaborative arrangements with various institutions. The Tax Administration has documented procedures for preparing and communicating tax education material, including that related to changes in tax laws or process. This process is coordinated by dedicated Communication Department staff and includes: identification of changes in tax laws or process and making a case for the need for education material; preparing education material in liaison with subject matter experts; preparing training and taxpayer sensitization material in various local language dialects; and communicating changes in tax laws or process via the Tax Administration website, newspapers, radio and television announcements; and meetings with targeted stakeholders to present the changes, including publication of a Budget booklet which is presented the day after the financial statement is read by the Minister of Finance, including publication of a Budget booklet which is presented the day after the budget speech. The Tax Administration has a call center and calls are answered promptly. During 2017/18, the call center received an average of 5,500 telephone enquiry calls per month and answered 98.3 percent of these calls within 6 minutes’ waiting time. While impressive and meeting the TADAT score for good practice, taxpayer feedback via a September 2018 contact center satisfaction survey shows general dissatisfaction with the quality of service. For example, 44 percent of respondents felt that their issues were not resolved conclusively while 40 percent were dissatisfied with feedback from the call center. The survey made recommendations for improvement. |
| P3-11-2 | AFR | A | Repeat | 2019 | English | Scored A because good practice was detected in; There is also evidence that results of such engagements were used to design tax policy changes and refine administrative procedures (e.g. design of a presumptive tax regime for small and micro enterprises) |
| P4-14 | AFR | A | Repeat | 2019 | English | Scored A because good practice was detected in; Electronic filing is mandatory for all core taxes because good practice was detected in. On-time filing data can be extracted directly from the electronic tax system. |
| P5-15 | AFR | A | Repeat | 2019 | English | Scored A because good practice was detected in; All core taxes are paid electronically. Various options are available to taxpayers to make payments, such as online payments at three banks, mobile payments and cash-over-counter payments at 24 banks. Future plans for electronic payments include the use of an e-Wallet. |
| P5-16 | AFR | A | Repeat | 2019 | English | Scored A because good practice was detected in; The Tax Administration makes good use of withholding in respect of employment income, interest, dividends, and advance payment systems. They are withholding at source as prescribed in the Income Tax Act, Chapter 500 mandates withholding at source for all employment, interest and dividend income and other income like a rental. Advance payment arrangements are also in place to collect income tax from businesses (CIT) and self-employed individuals (PIT), with the First payment due within the First six months of the year of the assessment. |
| P6-19-1 | AFR | A | Repeat | 2019 | English | Scored A because good practice was detected in; The Tax Administration’s tax audit program meets international good practice. The Compliance Improvement Plan covers all core taxes and taxpayer segments, including high-net-worth individuals and the public sector. The Compliance Improvement Plan focuses on the highest risks and financial relevance using an automated risk engine. Cases are selected centrally. The Tax Administration uses a wide range of audit types, including compliance audits, return examinations, refund audits, and compliance visits. To expand audit coverage, The Tax Administration has allocated its resources to provide greater focus on compliance advisory visits and desk audits. Both direct and indirect audit methods are used. The Tax Administration’s post-assessment review evaluates the impact of audits on the level of compliance |
| P9-29-2 | AFR | A | Repeat | 2019 | English | Scored A because good practice was detected in; Staff integrity assurance mechanisms are present in the Tax Administration. The internal affairs unit has appropriate investigative powers. The unit provides leadership in formulating integrity and ethics policies, including the code of ethics. The team cooperates with the ombudsman and law enforcement agencies. The unit maintains integrity-related statistics while preserving confidentiality; these statistics are publicised in the annual report on the Tax Administration's website. |
| P9-30-1 | AFR | A | Repeat | 2019 | English | Scored A because good practice was detected in; Processes exist for the external oversight of the Tax Administration. Annual financial and operational audits are carried out by the Auditor General (AG). Review findings are responded to by the Tax Administration and included in the AG’s report. They are also discussed in Parliament and open to the media. The AG’s information, including the Tax Administration's responses, is available on AG’s website. |
| P6-19-2 | AFR | A | Repeat | 2019 | English | Scored A because good practice was detected in; Audit case selection is undertaken centrally and is a two-step process. Initially, potential cases are identified by the Civil Case Selection System - an analytical tool that uses taxpayer return information and third-party data to produce a risk score. Cases in the higher-scoring range are then reviewed by an Audit Case Profiling Team that determines the investigative audit type to undertake (limited or full). Cases are then allocated to the regions based on their available audit case capacity. Although there is no formal random audit program that could be used to check the case selection system and the profiling process or to provide further input into estimating the level of incorrect reporting, the case selection system has an inbuilt random case generator that provides for several cases to be selected on a random basis. The LB&IU Audit Plan is separate from the above plan. It specifies the number of audits to be undertaken and identifies the risk areas that will be focused on for the year. The plan identifies the tax and the specific risk that will be the subject of the audit. Risks listed in the plan include transfer pricing, mergers and acquisitions, and international tax arrangements. The plan also identifies industries covered in the audit plan, mainly the financial services and mining industries. Detailed reports are prepared on audit results. These are designed monthly and include for small/medium taxpayers: achievements against plan; case flows; complaints/objections. There is no evidence of an overall evaluation of the impact of audit activity on taxpayer compliance levels. For large businesses, the monthly report focused on case numbers, results and progress against the plan. Detailed procedures support the audit process. These are referred to as SOPs and cover all stages of the audit process (planning/execution/finalisation). SOPs reviewed had all been recently updated and were well structured and cross-referenced. Separate SOPs are available to cover particular types of audits, for example, indirect methods and audits of specific industries such as construction, mining and primary production. |
| P6-19-3 | AFR | A | Repeat | 2019 | English | Scored A because good practice was detected in; The Tax Administration’s Enterprise Business Enablement Unit routinely monitors audit quality. A formal documented audit quality review process is detailed as an SOP and covers all stages of the audit process covering both the adherence to procedures to the appropriateness of the audit cases findings. Evidence to support cases where quality standards were not met was reviewed. Such cases are documented in a “Non-Conformance Report” which is followed up with the auditor and their manager. Outcomes of the quality review process are reported to The Tax Administration’s management on a monthly basis. |
| P3-9 | AFR | A | Repeat | 2019 | English | Scored A because good practice was detected in;The service delivery standards in the taxpayer charter are consistently met. The charter—publicized on The Tax Administration website—makes several service commitments (e.g., The Tax Administration will respond to all written information requests from taxpayers within 14 days). Performance against the service commitments is monitored continuously and publicly reported in the print media quarterly. Recent statistics show that 90 per cent of taxpayers who request information from the Tax Administration receive a response within 1.7 days. |
| P3-8-1 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; Information on all the core taxes’ obligations and entitlements is readily available to the public. A comprehensive range of information to businesses and citizens on registration, filing, payment, and reporting of information in tax returns and their entitlements is provided by the TaxAdministration. Small taxpayers such as those in agriculture are provided with information specifically tailored to their unique needs and take into account the possibility that they might be unable to afford services of accountants and tax practitioners. Tax information is provided to the general public through booklets, guides, pamphlets, newsletters, stakeholder forums, radio, TV and the web page (there is a guide specifically providing detailed information on how to use the IT system and how to access various tax information). The Tax Administration educates and provides the public tax information during stakeholder forums to the public in the Tax Administration areas. The major channel of engaging and providing information to taxpayers used by the Tax Administration is the email |
| P3-8-2 | WHD | A | First | 2015 | English | Scored A because good practice was detected in;Tax information is updated in terms of the law and administrative policy for all core taxes. The Tax Administration has a system that provides for regular and systematic updating of information. The Promotion and Taxpayer Education Unit has a team of trained staff whose responsibility is to update public information when changes to the law and administrative procedures occur. They are also responsible for raising taxpayer awareness of differences, using various means ranging from public campaigns to direct communication with taxpayers |
| P3-8-3 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; Information on all core tax obligations can be obtained easily through a variety of channels. In addition to walk-in, taxpayer needs for information and advice are met through the use of the website, mainly email and other means. Reaches to taxpayers and provides taxpayer education through an innovative service solution of using mobile offices, especially in rural areas. In addition, the provision of taxpayer education to citizens in the rural areas is provided in the local language jointly with language experts from the Institute of Guarani Language. Information is provided at no cost. To modernise its operations, The Tax Administration has developed a Communication Strategy that will encapsulate the service delivery channels used in 2015. |
| P3-8-1 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; The public is provided with readily available and comprehensive information on all the core taxes’ obligations and entitlements. All citizens and businesses have access to publicly available information on registration, filing, payment and how to account. The Tax Administration reports information in declarations. Information on taxpayer entitlements is also publicly available. The country is one of the countries with high Internet access and usage; most of the taxpayer information is made available through the website. The website has different categories tailored to the specific needs of a given group of taxpayers, for example, employees/pensioners, business entities, and professional advisors (tax attorneys. The other channels used include television, radio, guides, pamphlets, booklets and taxpayer education forums such as newly established companies, educating the Repeatary school students and others. |
| P3-8-2 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; Taxpayer information is regularly and systematically updated in terms of the law and administrative policy for all core taxes. The Tax Administration has documented procedures providing guidance to staff responsible for updating taxpayer information. A dedicated team of technical staff makes regular and systematic updates of taxpayer information. |
| P3-8-3 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; Information on all core tax obligations can be obtained easily through a variety of channels. The Tax Administration has a documented service delivery channel strategy that provides guidance on which channel to use in any given circumstances. The Tax Administration supports voluntary Tax Authority compliance through various channels that include the website, social media, call center and walk-ins. Public information is made available to taxpayers at no cost except for private rulings where a fee is charged. The Tax Administration website was developed using software that enables differently able people, such as the colourblind, to access it easily. In addition, the website was designed using a responsive design that allows the webpage to fit on any device with a different screen configuration automatically—such as computers, tablets and mobile phones. The language used on the website and other documents are plain and user-friendly. |
| P3-11-1 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; A wide variety of methods are used to obtain taxpayer performance feedback. The Tax Administration uses various mechanisms to receive taxpayer feedback on its services and products. The critical tools used include inviting taxpayers to participate in website and electronic forms design testing in the Tax Administration laboratories. The Tax Administration also uses scientific research to determine the best way of informing/educating taxpayers. One such outcome of the scientific research was gaming solutions to inform pupils and students on the importance of complying with one’s tax obligations. The benefits of paying taxes, such as financing the welfare system, are explained. This is available on the website, a collaborative effort between the Tax Administration, MOF, Organizations representing the Country enterprises, labour organisations, and local and regional authorities to combat the informal economy. Through systematic use of a variety of methodologies, Tax Administration seeks feedback from taxpayers on their perception of the Tax Administration’s services and products. Recently taxpayers were engaged in developing a self-service solution that they now use in determining their tax deductions when they commute to work. |
| P3-11-2 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; Taxpayer input is routinely and systematically taken into account in designing the Tax Administration’s products and services. Feedback from selected segments of taxpayers is an important input during the development of new information products and/or redesigning those in existence. The systematic use of input from taxpayers allows Tax Administration to deliver customized information products and solutions for self-service. After the design stage, the administration analyzes and evaluates how the taxpayers are responding to the services and products |
| P3-8-1 | APD | A | First | 2015 | English | Scored A because good practice was detected in; A wide range of information on taxes, tax forms, practice statements and frequently asked questions (FAQ) is available on The Tax Administration website. The information is easily accessible, and the public website hit-rate statistics for the period January 2013– to February 2015 show increasing usage of the facility. For example, the total sessions recorded on the website in 2013 were 187,602; and 213,241 in 2014. Access by citizens over the period averages 70 per cent of the actual hit rates (134,768 in 2013; 148,924 in 2014). The Tax Administration also regularly conducts outreach sessions to advise taxpayers on their rights and obligations, and the executive management team is actively involved in many of these sessions. A nationwide campaign to explain new PAYE processes and procedures was started in 2013. Numerous press releases have been issued by the Chief Executive Officer (CEO) and surveys conducted internally by theTax Administration to assess taxpayer satisfaction with the service. |
| P3-8-2 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; The information in the materials obtained from the Communications and Image Office and the Service Center are updated in terms of current legislation. When there is a change in legislation or procedures, or a new service is installed, the Tax Administration makes a good deal of information available. The ruling on the Tax Administration Internet website is up-to-date, although there are difficulties accessing, for example, the entire VAT Code Regulations. While legal texts appear on the Tax Administration site, there are few cases in which there are explanations or presence of the Tax Administration to facilitate the taxpayers’ understanding of their obligations and rights, other than the list of questions and answers that clarify the most frequent doubts. |
| P3-11-1 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; The Audit Committee’s website and meetings are systematic methods for obtaining feedback from taxpayers and their represe and their representatives. Through the website, taxpayers are able to continuously make suggestions, comments, and complaints. The powers of the Audit Committee, which is made up of significant representation from civil society, including promoting legislative measures to improve the tax system and actions to make Tax Administration more effective. The Audit Committee’s meetings were held every six months until 2009 and became annual meetings as of 2010. During these systematic and documented meetings, the Tax Administration and taxpayer representatives as well as political representation. The Tax Administration discuss and evaluate subjects related to tax policy and administration. |
| P3-8-1 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; Tax Administration provides to taxpayers with extensive information using various channels. The Tax Administration supports voluntary compliance through various channels including a taxpayer portal, website, YouTube, television, radio, call center, and walk-ins at local offices. The public is provided with information that explains what are the taxpayer’s obligations and entitlements on registration, filing, payment, and reporting. Information across all core taxes is tailored to the needs of key taxpayer segments. Tax Administration routinely conducts tax seminars for new businesses and other taxpayer segments when the need arises, for example, when there is a change in the tax law and/or administrative procedures. Education programs are also provided for schools and students. The internet is a major channel for distributing information to taxpayers. Since the Country has the highest rate of internet access and usage across the region, most taxpayer 6 76.6 percent of the Country's population uses the internet. Information on the website is in LG139n, LG101n, and English. A wide range of pamphlets, brochures, and guides the Tax Administration and is available to download from the webpage. Taxpayers can communicate with Tax Administration through a personalized web portal. Information and services on this portal can be tailored to the needs of individual taxpayers or taxpayer segments and include e-filing of tax returns. |
| P3-8-2 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; Information is current in terms of the law and administrative policy for all core taxes. Procedures are in place for dedicated staff to regularly and systematically update public information when changes to the law and administrative procedures occur. |
| P3-8-3 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; Taxpayers can quickly obtain information on all core tax obligations. Information is available on the web page and in printed materials. There is a documented service delivery channel strategy outlined in the Strategic Plan 2010–15 aimed at shifting taxpayer service to more cost-efficient channels. The Compliance Strategy contains initiatives for increasing voluntary compliance through a range of activities. |
| P3-9 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; Tax Administration responds to all requests from taxpayers and intermediaries within 30 days. Responses to requests are provided either by letter or by e-mail. |
| P3-8-1 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; Tax Administration offers a broad range of information to users, available through many and varied sources. The Tax Administration has a Communication and Quality Division responsible for preparing and publishing tax documentation. The actions taken may relate either to all taxpayers (via seminars, forums for the presentation of reforms, information campaigns etc.) or specific groups (creation of authorized management centers for small and medium-sized enterprises, information campaigns for medium-sized enterprises, etc.) or for the population as a whole (press articles, radio and television broadcasts, the primary and Repeatary school curricula, etc.). |
| P3-8-3 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; The documentation provided for taxpayers is readily accessible. The documentation is available at the website, through the taxpayer service units, and through several channels (for example, through the press, radio, television and schools). |
| P3-8-1 | APD | A | First | 2015 | English | Scored A because good practice was detected in; Tax Administration provides extensive information on taxpayers’ obligations and entitlements for each core tax. The information is tailored to the needs of most key taxpayers in 23 segments. Printed material explaining taxpayer obligations and entitlements is available at local branches and on the website. Tax Administration conducts taxpayer education programs for taxpayers to assist in voluntarily compliance. These include reaching out to children through the Junior Tax Office Program and organizing visits to the Tax Administration for students and other agencies |
| P3-8-3 | APD | A | First | 2015 | English | Scored A because good practice was detected in; Taxpayers can obtain information on all core tax obligations and entitlements easily and at a minimal cost. The service delivery channel strategy is included in the strategic plan with a clear direction toward increasing the use of electronic services. In 2004 efiling was introduced through efize which is an online tax management system provided and implemented by the Tax Administration for cost-effective support of voluntary compliance. This system now comprises 16 electronic services. A variety of service delivery channels are used, including printed material, web page, service counters at local branches, a call center handling both in- and outbound calls and the use of television and radio to draw attention to announcements and press releases. Other outreach activities programs (programs to promote e-filing), mobile exhibitions and the use of social media are all examples of innovative initiatives using different channels to reach out to taxpayers with information and to strengthen voluntary compliance |
| P3-8-1 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; A wide range of information is available for all taxes and main taxpayer obligations. This primarily takes the form of guides, bulletins, press releases, radio and television spots, social media (e.g., Facebook, Twitter), and regularly updated content on the Tax Administration website (www.LG141tax.gov.jm). The website includes links to tax legislation, tax forms and instructions, and frequently asked questions (FAQs) and features information tailored to business and non-business taxpayers, tax intermediaries, and charities, as well as to specific taxpayer groups, such as hotels and financial institutions. A 'Tax Kit' for newly registered businesses is available online and at Tax Administration offices, covering the range of applicable taxes and tax obligations. The Tax Administration also regularly conducts outreach sessions to advise taxpayers on their rights and obligations, legislative changes, and new requirements (e.g., mandatory e-filing for specified groups), and the Tax Administration runs a schools tax education programme (STEP) to build tax awareness among primary, Repeatary, and tertiary students. |
| P3-8-3 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; Taxpayers can obtain information and assistance easily, quickly and at minimal cost through various channels. These include brochures and other print materials, in-line (walk-in) support and at tax offices, Customer Care Centre support for telephone and e-mail queries, the website, and The Tax Administration-sponsored workshops and seminars. For LTO taxpayers, a dedicated Client Relationship Manager is assigned to provide the full range of taxpayer services. For smaller taxpayers, The Tax Administration offers free sessions at tax offices around the island to assist with end-of-year income tax filing. Furthermore, at select offices, self-service filing centres have been set up where taxpayers can file their returns and conduct another routine online with readily available technical assistance. The range of service delivery channels reflects the reality of LG141n society, where internet penetration remains low among large segments of the population |
| P3-9 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; Response times for routine enquiries conform to international good practice. As presented in Attachment III, Table 10, The Tax Administration reports that 100 per cent of email correspondence is acknowledged within 24 business hours. While acknowledgement is not the same as a substantive reply, the monthly log of taxpayer contacts (via e-mail and telephone) indicates that 99 per cent of issues are resolved with the First contact. Furthermore, while monitoring of taxpayer interactions is fragmented at present, the Programmes Unit Plan for 2015/16 introduce new guidelines for operating units to report progress against KPIs and other performance indicators using a standardized planning and reporting template. As mentioned in POA 2, the new reporting arrangements, including quarterly performance reviews, will formally commence in November 2015. |
| P3-11-2 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; Taxpayer input is routinely and systematically considered in the design of taxpayer service programs and products. For example, feedback from taxpayer focus groups was used when designing the Tax Administration new income tax forms, which consolidate reporting for income tax and social contributions in one return. Content on the website’s home page is regularly refreshed to reflect issues and suggestions resulting from taxpayer interactions. Additionally, in response to feedback from participants at taxpayer workshops, Tax Administration recently launched a program enabling taxpayers to schedule one-on-one sessions or request a Tax Administration advisory visit to facilitate compliance with tax obligations. |
| P3-9 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; As measured by telephone response times, with over 90 percent of calls answered in less than 6 minutes, The Tax Administration is readily available to answer taxpayer questions and concerns through that vehicle. However, at around 200 calls concerning core taxes per month, the volume of calls is rather small, implying that many taxpayers are receiving their information by other means such as inquiring in the regional offices. Looking beyond the call centre, The Tax Administration publishes relatively exacting service level standards; it does not, however, systematically monitor the nationwide fulfilment of all of them. |
| P3-11-1 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; Tax Administration routinely obtains feedback on its performance from a variety of sources. The Taxpayer Service and Education Department solicits feedback in its forums and meetings with taxpayer groups and notes the schedule for responding to issues raised. Complaints arrive and are logged in the call center according to the topic and in-person in the regional office. The Tax Administration conducts comprehensive perception surveys approximately as discussed below |
| P3-8-1 | MCD | A | First | 2015 | English | Scored A because good practice was detected in; The Tax Administration provides easily obtainable, clear taxpayer information explaining taxpayer obligations and entitlements in respect of each core tax. The Tax Administration provides information to taxpayers on their obligations of registering, filing, payment, and reporting through its website (http://www.The Tax Authority.gov.gh/ ), guides, manuals as well as taxpayer education events. Available information covers all core taxes and is tailored for key taxpayer segments and industry groups. The Tax Administration utilizes e-newsletters, press releases, internet ads, and social media platforms such as Facebook, Twitter and WhatsApp. It also conducts public education workshops that target chambers of commerce, trade unions, universities and other interested groups, and is collaborating with the Ministry of Education to develop a curriculum about taxes for students |
| P3-8-3 | MCD | A | First | 2015 | English | Scored A because good practice was detected in; Taxpayers can obtain information and assistance easily, quickly and at minimal or no cost through a wide range of channels. These channels include Tax Administration’s website, taxpayer instructions, manuals and brochures, newsletters and educational events. Taxpayers can also contact the Tax Administration call center for assistance. The range of service delivery channels reflects Tax Administration’s understanding that taxpayers in different segments need information tailored to their specific needs—for instance, providing walk-in service at district offices to accommodate small taxpayers. In addition to frequently asked questions (FAQs) on Tax Administration website, The Tax Administration also produces policy papers on various tax issues. |
| P3-9 | MCD | A | First | 2015 | English | Scored A because good practice was detected in; Tax Administration responds to taxpayer requests in a timely manner. The Tax Administration service standards are contained in its Service Manual and associated Matrix, both of which are posted on The Tax Administration website. As shown in Attachment III, Table 3, the call center answers all calls within six minutes. Moreover, The Tax Administration has received regional awards for its service standards, including response times |
| P3-11-1 | MCD | A | First | 2015 | English | Scored A because good practice was detected in; The Tax Administration is proactive in obtaining taxpayer feedback and uses a variety of methods to do so. The Director of Media gathers information daily. In addition, the Department conducts a taxpayer survey every six months and holds focus groups every three months or as needed. Survey results are analyzed by an independent third party |
| P3-11-2 | MCD | A | First | 2015 | English | Scored A because good practice was detected in; Taxpayer feedback is routinely taken into account in designing programs and improving services. The Tax Administration uses information from customer surveys to improve its services. Examples are: piloting and preparing for a “single window” at the Large Taxpayer Office and three other offices; installing ramps and making wheelchairs available for disadvantaged customers; improving sanitation at tax offices; and searching for a new location for headquarters for improved taxpayer convenience |
| P3-8-1 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; Information is available to taxpayers on their obligations and refund entitlements. The information is easily accessible at branch offices and through media outlets. The information covers all core taxes and is tailored to the needs of taxpayer segments. For example, separate and unique information is provided to micro-taxpayers, large taxpayers, as well as various industries (e.g., construction, coffee) through newsletters, brochures, seminars, and outreach programs in the local language as well as English. Tax intermediaries also are provided with information to meet their service obligations. |
| P3-8-2 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; Taxpayer information is kept current by a dedicated unit, responsible for updating the website and social media and for issuing tweets and press releases. A small team (with a staff of four) within the Education, Communication and International Cooperation Department is charged with keeping public information up-to-date. There is a standing instruction to all departments to provide regular updates to this team, who update the website and push the updates out to taxpayers through Facebook, Twitter and press releases. The text of law changes is provided on a ‘same day’ basis by the legal department and the website is immediately updated. |
| P3-9 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; The contact center reports excellent results on call waiting times. The contact center has 32 staff, who provide information to taxpayers by phone and email. It does not publish written standards, but its practice is to respond to email enquiries within two business days. Data produced by the Tax Administration in the pre-mission questionnaire (Attachment III, Table 3) shows that of 107,194 calls received in the year to February 28, 2016, almost 92 percent were answered within 45 Repeats. |
| P3-8-2 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; Information is kept current by specific staff, responsible for updating the website and social media, and for issuing press releases. A small team is charged with keeping public information up-to-date and this team relies on subject matter experts for technical input. There is a standing instruction to all departments to provide regular updates to this team, who update the website and issue press releases. The text of law changes is provided by the legal department and the website is updated when new laws come into effect |
| P3-8-1 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; The Tax Administration provides citizens, businesses, and foreign investors with a range of information about core tax obligations and entitlements. Summary information in clear and understandable terms is publicly available on all core taxes, key taxpayer obligations (registration, filing, payment, and reporting of information in tax declarations), and associated rights (e.g., the right to dispute an assessment). The Tax Administration website, for example, includes short descriptions of the main taxes and associated requirements, frequently asked questions, almost 450 case studies (public rulings) on how specific provisions of the law are interpreted by The Tax Administration, topical news items, and forms to be completed by taxpayers. A comprehensive ‘Tax Pocket Book’ (published only in English) describes the main taxes, who is liable for each, and what is required of taxpayers to comply with the law. |
| P3-8-3 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; Telephone enquiry calls received by the call center are answered within acceptable time standards. As shown in Table 3 in Attachment III, 98.6 percent of telephone enquiry calls received are answered within 6 minutes’ waiting time. The Table 3 data does not, however, take into account of the impact on taxpayers of line overload. The call center system can accommodate a maximum of 60 callers at a time, meaning that during peak enquiry periods some taxpayers may not be able to get through to the call center. In light of this capacity constraint and potential impact, the assessment score has been adjusted to ‘B.’ |
| P3-11-2 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; Strong engagement with taxpayers is shown through a system whereby public rulings are developed in collaboration with taxpayers and intermediaries. Since 2010 the Tax Administration has engaged with accountancy bodies to develop case studies (equivalent to public rulings) to clarify difficulties of legal interpretation that commonly arise in audits and disputes. The Coordination Council in Charge of Reviewing Tax Code Explanations and Case Guides for the Purpose of Improving Tax Legislation currently has 33 members, 17 of whom are tax intermediaries or lawyers. The ombudsman’s office is also represented. The council meets regularly to devise the case studies, which are published on The Tax Administration website. There is also evidence of the active involvement of taxpayers in the form design and testing of new processes. One example relates to the design of a new form of petroleum products, which changed significantly following taxpayer input. There is also a training version of the taxpayers’ portal where taxpayers can test the system in ‘demo’ mode. |
| P3-8-1 | APD | A | First | 2015 | English | Scored A because good practice was detected in; The Tax Administration, centrally and through its provincial and district offices, provides information to taxpayers on each of the core taxes. The information is provided through Tax Administration’s website and 63 websites of provincial tax offices (PTOs), publications as well as through targeted communication by phone and mail. The information is tailored to most taxpayer groups. The website (www. The Tax Authority.gov.vn) allows for searching through administrative procedures, sorting them by characteristics of the taxpayer including size, industry, legal status, and foreign capital (joint ventures and foreign investors). The Tax Administration engages with the Country's Tax Consultants Association to reach out to tax agents. The intercommunity working groups include staff that have ethnic minority language skills and reach out to ethnic minority taxpayers, who otherwise have difficulty in using the national language. Tax rulings are issued by The Tax Administration Headquarters or PTOs, are published in a single database, and the Tax Administration ensures the rulings are not contradictory. The MoF’s Decision 78/2007/Q?-BTC governs the responses to taxpayers on Tax Administration matters and provides guidance to the Tax Administration on how responses are managed. |
| P3-8-2 | APD | A | First | 2015 | English | Scored A because good practice was detected in; Dedicated resources are assigned to ensure tax information is current. The procedures to update the publication and materials are published on the website exist. The update process is regulated by the Tax Administration Decision 1002. The update is done simultaneously throughout all 63 PTO websites and The Tax Administration website, as the database of tax legislation and procedures is in a single one and referenced by each PTO website. There are dedicated staff within taxpayer service and IT departments in charge of updating this information |
| P3-8-3 | APD | A | First | 2015 | English | Scored A because good practice was detected in; Taxpayers can obtain information on all core taxes easily and at no cost through a variety of service delivery channels. The channels include printed materials, websites, one-stop shops in each local tax office, calls with PTO and The Tax Administration HQ staff, rulings, and the use of television and radio. The service delivery vision and training program are outlined in the annual action plan and multi-year strategy. For example, there is a clear direction towards increasing the use of electronic services, including already introduced e-filing, e-payment, enotifications channels; education campaigns include programs for schoolchildren and there is a regular Tax Tdministration television show on the Radio. According to the 2015 Annual Report, The Tax Administration organized Listen to Taxpayers Week in which there was proactively reaching out to taxpayers nationwide. The Tax Administration does not charge for any of the information provided to taxpayers. There is a link on the www.The Tax Administration.gov.vn to access online filing, which also provides 24-hour access to taxpayer information, as well as allows submission of queries on tax issues. To support the taxpayers, Tax Administration has developed a dedicated website http://nnnnnjj.The Tax Authority.gov.vn to help taxpayers try online filing in a test environment prior to actual submission. |
| P3-11-1 | APD | A | First | 2015 | English | Scored A because good practice was detected in; The Tax Administration regularly obtains feedback from taxpayers through the website, email, telephone, public events and meetings with stakeholders. The Tax Administration receives feedback through the website, which provides for comments by taxpayers on different areas ofTtax Administration. In course of 2015, there were 1300 meetings with taxpayers organized by the Tax Administration and district tax authorities to seek feedback on issues with Tax Administration as specified in The Tax Administration's annual report for 2015. The Tax Administration has been carrying out a survey based on a statistically valid sample of key taxpayer segments on an annual basis. Until 2015 the Tax Administration was undertaking this survey by itself, however, starting in 2015 the survey was contracted out to the LG16 Chamber of Commerce and supported by the International Finance Corporation. The 2016 survey has been contracted out using The Tax Administration budget resources |
| P3-11-2 | APD | A | First | 2015 | English | Scored A because good practice was detected in; Taxpayers are regularly consulted to identify key deficiencies of the Tax Administration procedures and products as well as new draft processes, legal acts, and e-services. As mentioned, above the feedback is obtained regularly and taken on board through the multiple meetings with taxpayer representatives as well as large-scale events with business associations, and associations of tax consultants and accountants. An example is the Business Dialogue Conference in 2015 with businessmen from the neighbouring country co-organized by the MOF and the Embassy of the foreign country. Every legal act including those by MOF and Tax Administration are published on the website ahead of approval for comments and feedback from civil society. The Tax Administration shared the evidence of the feedback received prior to the issuance of the circular to revise seven circulars to simplified tax procedures in August 2014 |
| P3-8-1 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; A wide range of tax information including the law, tax forms, and frequently asked questions are available in various media and on The Tax Administration’s website. The Tax Administration provides all taxpayers with information on their obligations, that is, registration, filing, payment and accurate reporting of information in declarations. Taxpayer entitlements under tax laws and procedures exist and are tailored to the taxpayers’ specific needs. Information is available for all segments (small taxpayers, medium taxpayers and large taxpayers). There is specialized information for industry groups, e.g. the mining industry. Some of the available material is translated into local languages. The wide range of information products in place includes television commercials, advertisements in printed media, billboards, leaflets and information on the website including FAQ’s. Taxpayer outreach programs are also carried out on a regular basis—the activities are planned and reported upon. There are also specific events focused on tax intermediaries. |
| P3-9 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; The Tax Administration responds to taxpayer requests for information quickly. Although an expected response time is not mentioned in the Taxpayer Charter, The Tax Administration handles over 81.1 percent of the telephone enquiries within international good standards of 6 minutes (Attachment III, Table 3). The waiting time for telephone enquiry calls is used as a proxy for measuring the Tax Administration’s performance in responding to information requests Authority generally. A field visit to The Tax Administration’s customer contact centre showed that the waiting time for taxpayers with walk-in enquiries is also short. Management monitors waiting times and performance is reported in the quarterly Taxpayer Charter Monitoring report. |
| P3-11-1 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; The Tax Administration obtains feedback on the standard of services on a regular basis. If a taxpayer visits the customer contact centre in the capital city, at the end of the meeting he or she is asked to fill out a Customer Service Monitoring Form. Focused meetings are also held with stakeholders where feedback is collected. On the website, it is possible to provide feedback to the Tax Administration or directly to its Integrity Committee. Every two years the Tax Administration commissions a taxpayer perception survey. An external consultant with an academic background carried out the 2013 and 2015 surveys. The information is gathered from taxpayers in all segments, across the country. The survey uses a statistically valid sample of taxpayers. The 2015 survey 28 provides a comparison between the 2013 and 2015 outcomes and addresses all core services and products of the Tax Administration. |
| P3-8-1 | APD | A | First | 2015 | English | Scored A because good practice was detected in; The Tax Administration provides easily accessible and clear taxpayer information that explains taxpayer obligations and entitlements in respect of each core tax. The information is available on registration, filing, payment, and reporting through the website, guides, manuals, as well as taxpayer education events. It is tailored for individuals, individual entrepreneurs and legal entities. Also, the information is provided in separate sections of the website on taxes for traders in key sectors of the economy (for example, natural resources), businesses trading with the EEU countries and taxpayers in the alcohol industry. In addition to the Tax Administration website, there is a specialized website on annual tax declarations The information on the Tax Administration website is provided in the National language and one foreign language and thus is fully understandable by the population. |
| P3-8-3 | APD | A | First | 2015 | English | Scored A because good practice was detected in, Taxpayers can obtain information on all core taxes easily and at no cost through a 25 variety of service delivery channels. The channels include the Tax Administration website, printed materials posted or distributed in the Tax Administration offices, press releases published on the website and in local media, frequently asked questions on the Tax Administration website, explanation letters and one-stop shops in territorial tax offices. Taxpayers can also contact the Tax Administration call center for assistance at no charge. According to Article 18 of the Tax Code, rulings are provided by the MoE but they are not binding. The Tax Administration can also only recommend how tax legislation should be applied. The Tax Administration Order No. 24 approved a media plan for 2015. Further, the Tax Administration Development Strategy for 2015-2017 includes actions to improve the call center’s efficiency and the information delivery channels including social media, such as Facebook and Twitter, and to develop a training course for schools and universities |
| P3-11-1 | APD | A | First | 2015 | English | Scored A because good practice was detected in; The Tax Administration regularly obtains feedback from taxpayers through the website, email, telephone, public events, meetings with stakeholders and surveys. Web-based surveys, a permanent feature of the Tax Administration website, are used to gather taxpayers’ opinions about various areas of Tax Administration. At the time of this assessment, the Tax Administration had surveyed taxpayers’ opinions about the information available on the Tax Administration website. The Tax Administration carried out tax compliance cost surveys based on a statistically valid sample of key taxpayer segments in 2012 and 2014. Both surveys were conducted with the support of the International Financial Corporation (IFC) by an independent survey firm selected by the IFC. These surveys measured tax compliance and taxpayers’ perception of the Tax Administration's performance and information services provided. In 2013, the Tax Administration with support of the continental Development Bank also carried out a taxpayers’ perception survey. The Tax Administration regularly conducts workshops for taxpayers to provide the information and collect their feedback. In 2015, there were 724 workshops with taxpayers organized by the Tax Administration headquarters and territorial tax offices as evidenced by the Taxpayer Service Unit’s annual report. |
| P3-11-1 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; Regular feedback is obtained from taxpayers and trends in taxpayer perceptions of its services are independently surveyed. There are a number of regular feedback mechanisms, including Facebook and Twitter, as well an extensive program of seminars and meetings with stakeholders. As a part of the World Bank modernization program, the Tax Administration has commissioned a number of statistically valid and independent surveys which included taxpayer perceptions of services and products. |
| P3-8-1 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; Information on taxpayer obligations and entitlements is readily available for all core taxes and it is tailored to meet the needs of a range of taxpayers. The Administration, Methodology, Procedure and Service Department oversees efforts to ensure that taxpayers are well informed on their main obligations and entitlements in respect of all core taxes. The Tax administration website is the First source of information for taxpayers and it contains information on various taxes, services and procedures. The website also features video clips explaining tax procedures and featuring frequently asked questions (FAQs). Taxpayers can sign up on the website for notifications and have access to a tax calendar that highlights key events in relation to tax obligations. A weekly 30-minute television (TV) slot addresses issues related to tax procedures and it provides additional information to support voluntary compliance. Taxpayers are also able to access the tax legislation and other related laws on a portal – LG137n Legal Information System . Twenty service centers are located in regional offices across the country and they support taxpayers with walk-in enquiries and each center implements a training program for taxpayers. Outreach activities and delivery channels are also tailored to specific segments or industry groups and intermediaries. In limited cases, paper notices and forms are used for small entrepreneurs and taxpayers in remote locations. The national language is the language used by virtually all taxpayers and the adult literacy rate is 99.7 percent |
| P3-8-2 | EUR | A | First | 2015 | English | Scored A because good practice was detected. in; The information available to taxpayers is kept current in terms of law and administrative policy. The process and procedures for updating taxpayer information is outlined in Order No. 2981/A dated December 13, 2010, which also designates responsibility to specific units within the Tax Administration for updating particular sections of the website. Changes to legislation and administrative policy are communicated to all field offices and to relevant taxpayers before the changes take effect. The Tax Administration also publishes quarterly legislative digests on its website which outline any changes in tax law |
| P3-8-3 | EUR | A | First | 2015 | English | Scored A because good practice was detected. Information required by taxpayers on their obligations and entitlements is easily accessible through a variety of channels and at no cost. The Tax Administration conducts outreach activities tailored for specific segments of taxpayers such as small, medium, and large, taxpayers. Staff from headquarters is dispatched to various regions to supplement training efforts undertaken across the country. An example is contained in Order no 505/A from the MoF where officials from head office were sent to hold 21 meetings across the country from September 03-24, 2014 in support of a Small, Medium, and Micro Enterprise assistance package adopted by the government in May 2014. Taxpayers and intermediaries have access to the website and the online portal that allows secure access for filing declarations. In addition, taxpayers can access information through the website, call center, by email, letters and through rulings from the Tax Administration. There is no cost to taxpayers for any services or information received from the Tax Administration. |
| P3-9 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; The amount of taxpayer enquiries that are responded to by the Tax Administration call center in under 6 minutes is 77.8 percent of total calls received. A fully functional call center is based at the Tax Administration’s headquarters. It receives taxpayer enquiries in addition to providing inputs in enhancing the FAQs that are posted on the website. The Tax Administration uses service-level standards that apply to all government departments in relation to response times on enquiries from the public. Public service regulations stipulate a maximum of 15 days for the resolution of enquiries but the Tax Administration has, through an internal order, set an even reduced internal target of five days. |
| P3-11-1 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; The Tax Administration receives feedback from taxpayers regularly, including the use of perception surveys. A Tax Council made up of officials from the MoF, business community and taxpayer rights groups was created in 2014. The Council is a forum to engage taxpayers and provides an avenue for their contributions to legislative, policy and administrative issues. A new forum under the Tax Administration was established in October 2016 with a specific focus on Tax Administration, and it also includes development partners as observers. In addition to interactions with taxpayers through the 20 service centers, the Tax Administration has an interactive survey on its website that enables taxpayers to submit their feedback on its services and products. A taxpayer perception survey, based on a statistically valid sample of key taxpayer segments, was conducted by a think tank in 2013. A follow-up survey commenced in August 2016, with the report expected to be finalized in December 2016. |
| P3-8-3 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; Taxpayers can easily obtain information from the Tax Administration through a range of channels at little to no cost. The Tax Administration has documented service delivery strategies, and information is provided through a website, brochures, guidelines, public notices, radio and TV programs, YouTube, and social media. During the annual ‘taxpayer’s month,’ The Tax Administration holds a Tax Summit to provide information and a platform for taxpayers and key stakeholders to engage. Information is also provided to taxpayers and tax intermediaries through a range of proactive and targeted channels including seminars, clinics, training, stakeholder meetings, as well as email and telephone. The call center is available outside of normal business hours and has extended hours during filing season (including weekends), and the cost is minimal to taxpayers. Furthermore, taxpayers can access their accounts 24 hours online. |
| P3-11-1 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; The Tax Administration regularly obtains feedback from taxpayers and stakeholders on its services through a variety of channels. Taxpayers and professional associations provide feedback through emails, telephone, website, and service centers, as well as through stakeholder meetings and public forums such as the Tax Summit. The Tax Administration is also active in conducting customer satisfaction surveys every two to three years. The surveys cover a statistically valid sample of key taxpayer segments as well as other stakeholders and are conducted by an independent third party |
| P3-8-1 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; International good practices are in place for every aspect of scope, currency, and accessibility of information. The Tax Administration provides the public with a range of information about core tax obligations and entitlements. A variety of access services – website, public media (YouTube, Facebook, Twitter) brochures (both online and on paper) are publicly available on all core taxes, key taxpayer obligations (registration, filing, payment, and reporting of information in tax declarations), and associated rights (e.g., right to dispute an assessment). The Tax Administration website, for example, includes descriptions of the main taxes and associated requirements, topical news items, and forms to be completed by taxpayers. Information is tailored to the needs of key taxpayer segments, intermediaries and disadvantaged groups. A magazine, ‘Moderna,’ for higher-level taxpayers is published monthly. Videos and brochures are produced in simple language for less sophisticated taxpayers. The service delivery channel strategy is contained in the Strategic Plan 2014-2017. |
| P3-8-2 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; The website information is up-to-date. Most publications and brochures (paper and on the website) were updated in 2016, and questions asked by taxpayers are responded to. The service department also has dedicated staff to review, analyze and update frequently asked questions (FAQ), which are also available on the intranet to staff when providing information to taxpayers. Taxpayers are informed of changes in the law and procedures through the website, radio (monthly radio program), and news media. There is also a section on the website where drafts of proposed laws are available in advance so that taxpayers can provide their comments before final approval. |
| P3-8-3 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; Taxpayers have access to information through a variety of user-friendly channels: The Tax Administration website. An internet forum staffed with two people where taxpayers pose questions (around 200 per month) and The Tax Administration answers them spontaneously. A centralized inbound call center operating during normal business hours with a free telephone number. Kiosks in shopping malls with tax information. Walk-in taxpayers get information and assistance in the local offices. Letters, e-mails, and social media. Newspaper, radio, and television announcements to alert taxpayers on changes in the law and administrative practices. ? New app for mobile phones where taxpayers can check their own registration status or that of any other taxpayer. Articles in business and professional journals, and in the Tax Administration institutional magazine (4,000 copies are issued free of charge every month). A taxpayer portal provides taxpayers with a secure authenticated electronic gateway through which they can, for example, view their tax filing, payment information and request for certificates. Further support to taxpayers is provided through the Tax Administration public education and assistance program. The Tax Administration has invested greatly in this area, as evidenced by: A comprehensive school education program—an initiative designed to teach school and university students about taxes, and provide training and instructional guides to teachers—these guides are refreshed annually in preparation for the next school year. Further, education agreements with 12 LG205n universities are in place. Online games and puzzles are offered on a dedicated tax education portal. Seminars and assistance are offered to different economic sectors through the Ministry of Trade. The Tax Administration also conducts general seminars and workshops designed to raise taxpayer awareness on obligations, changes to the law and common tax issues. |
| P3-9 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; Telephone inquiry calls received by the call center are answered within good international practice time standards. As shown in Table 3 in Attachment III, 98 percent of telephone inquiry calls received are answered within six minutes of waiting time. The call center has a contact staff of 25 people, and around 80 percent of calls are answered within 20 Repeats; three minutes are used to assist taxpayers. Call center service delivery standards are part of the Strategic and the Annual Operational Plans (publicly available on the website) and these are used to measure the level of service and waiting times at local offices and the call center. When a taxpayer walks into a local office, a receipt is issued with the estimated time of response |
| P3-11-2 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; The Tax Administration consults regularly with taxpayers, business groups and intermediaries to discuss and remedy deficiencies in administrative products and their training needs. They are also consulted in the testing of new products and approaches, mainly for the website, and drafts of changes in the law. |
| P3-8-2 | MCD | A | First | 2015 | English | Scored A because good practice was detected in; Tax information on the Tax Administration website is current in terms of law and administrative policy. Procedures are in place and dedicated technical staff are assigned to updating regularly information on the website. Changes in law and policies are communicated widely prior to their effective date. Some attempts have also been made to use social media for the dissemination of basic information. The VAT Wing of The Tax Administration has a detailed Strategic Communication Plan covering 2015-19. It includes communications through, for example, call centers, public relations agencies and TV talk shows. |
| P3-8-3 | MCD | A | First | 2015 | English | Scored A because good practice was detected in; The Tax Administration provides a wide range of information from its website—it is easily available and is free of cost. Delivery channels used to provide information to taxpayers include the website (www. The Tax Authority.gov.bd), printed taxpayer service literature in National Language and English, public circulars and guidelines, conducting public seminars, and annual tax fairs. The Tax Administration also 23 conducts Taxpayer Education Programs and workshops to communicate proposed changes in tax laws. It has also started tax awareness programs for students. |
| P3-9 | MCD | A | First | 2015 | English | Scored A because good practice was detected in; Telephonic enquiries are answered through call centers in six minutes or less in 70 percent of cases. Service delivery standards relating to the time taken to respond to the taxpayer and intermediary requests for information are not prescribed. [See Table 3 in Attachment III.] |
| P3-11-1 | MCD | A | First | 2015 | English | Scored A because good practice was detected in; The Tax Administration consults regularly with its main stakeholders, including Chambers of Commerce and the Institute of Chartered Accountants, for feedback and suggestions. Independent taxpayer perception surveys were conducted in 2013 and 2015 through third party professional agencies as part of two different projects, and a survey is underway through the VAT Online project |
| P3-8-1 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; Taxpayers have convenient (ease) access to information through a variety (range) of user-friendly channels: Does the Tax Administration website include all categories of taxpayer obligations, and a chat line for online service;? An additional website for medium, small taxpayers, and new entrepreneurs;Social media – YouTube, Facebook, Chat and Twitter; A taxpayer portal—provides taxpayers with a secure authenticated electronic gateway through which they can request and receive information on various tax matters;? Walk-in service centres (105) throughout the Country;A centralized inbound call centre (175 lines) operating during normal business hours, and Saturdays at the local call rate;Letters, e-mails, text messages, brochures;Does the Tax Administration visit businesses and other personalized assistance, and public seminars;Newspaper, radio, and television announcements to alert taxpayers to changes in the law and administrative practices like filing deadlines; radio programs in the local language;Twelve mobile vans to reach isolated areas and local language interactions; Training trainers to deliver tax seminars to university students;? One hundred and ten customized “channels of attention” where large and medium taxpayers are assigned a The Tax Administration representative to receive service including via phone and email. |
| P3-8-2 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; Staff ensures information is current in terms of law and policy. Technical staff resources are assigned to keep publicly available information up-to-date; the above-stated services focus on specific taxpayer groups. Information to taxpayers is updated before any changes take effect. |
| P3-8-3 | WHD | A | First | 2015 | English | No write up in the Par |
| P3-9 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; Telephone enquiry calls received by the call center are answered within acceptable time standards. As shown in Table 3 in Attachment III, 67 percent of telephone enquiry calls received are answered within 20 Repeats. In addition, the give-up rate is 9 percent. Further discussion and the assessment team’s field visits to a service center and the call center justify an ‘A’ rating for this dimension. |
| P3-10 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; Numerous services are offered to taxpayers to reduce cost—simplified VAT returns, e-books, secure taxpayer portal, e-invoices, and pre-filled tax declarations for personal income tax. Frequently Asked Questions (FAQs) as well as responses to questionnaires obtained through discussions with taxpayer focus groups are analyzed to identify areas in which services can be improved |
| P3-11-1 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; The use and frequency of methods to obtain performance feedback from taxpayers meet or exceed international good practice. An independent survey is conducted every three months to gather taxpayer feedback on all processes. Feedback is also obtained through service centers (client satisfaction electronic device), in-depth interviews, an “incognito taxpayer” initiative and telephone contact. There is also a channel to obtain comments from taxpayers through the Taxpayer Ombudsman where the taxpayer can file written complaints. |
| P3-11-2 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; Taxpayer input is taken into account in the design of administrative processes and products through, for example, focus groups (e.g., on the new simplified regime, rental incomes, PIT filing), interviews and independent surveys |
| P3-8-3 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; Taxpayers can easily and conveniently obtain information through a variety of delivery channels. The Tax Administration provides a range of education programs, including partnering with the Secretary of Education to educate high school students that are participating in a work-study promotion on tax obligations and administration. Other user-friendly delivery channels include telephone, website, brochures, walk-in service, social media, advertisements, and a Help Desk. Information is readily available to the taxpayers or intermediaries at no cost |
| P3-8-1 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; A relatively new communication service has made good progress in providing a wide array of information and services to taxpayers. A range of information on taxpayer obligations is available through the Tax Administration website. This information includes all taxpayer segments and all the obligations of taxpayers. Key taxpayer segments (forestry, oil, mining, tax treaties) are addressed on the website. Taxpayers can file their returns electronically. Reception centres were created in the regions (12) and local offices (100). Taxpayers are informed about their tax obligations via radio (Tax Minute), television (Morning Safari) and print media, both in the official and local languages. Newspaper, radio, and television ads alert taxpayers to changes to the legislation on the annual Finance Law. Taxpayers receive written responses to information requests, email inquiries, and telephone services in offices. Brochures on various tax issues are published both in French and English. The Tax Administration organizes seminars, workshops, and meetings with industry and professional associations. One-stop shops were established in the regions for the registration of new companies, and they are staffed with relevant government agencies. |
| P3-8-1 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; The Tax Administration provides extensive information on taxpayers’ obligations and entitlements. The information is readily available for each core tax and is tailored to the needs of all key taxpayer segments. Printed material explaining taxpayer obligations and entitlements is available in the customer service area in the tax office and on the Tax Administration’s website. Radio, TV and social media are used to reach out to different taxpayer segments depending on needs and preferred channel communication. Information is delivered in different languages (including sign language on TV) to meet the needs of the relevant recipients. |
| P3-8-2 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; Dedicated resources are assigned to the task of ensuring that information is current in terms of the law and administrative policy. The Education and Communication Department, together with the compliance departments (see organizational chart in Attachment IV) are tasked to ensure that information is current in terms of the law and administrative policy. The Education and Communication SOPs and KPIs list a range of actions to be undertaken to ensure that information is current. Taxpayers are made aware of changes in the law or administrative policy through general communication such as on the website, press conferences and newsletters. The Tax Administration also uses targeted communication such as letters to specific groups affected by changes in law or administrative policy. Information is updated and communicated before any changes take effect. |
| P3-8-3 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; Taxpayers can easily obtain information on all core tax obligations and entitlements. The Tax Administration conducts a range of proactive taxpayer education programs to assist voluntary compliance, including seminars for new businesses and reaching out to school students. Information is available through a variety of user-friendly delivery channels and gives taxpayers convenient access at minimal or no cost. These include: • Seminars and stakeholder meetings for different taxpayer segments. • Leaflets are available at the Customer Service Center at the tax office. • The Tax administration website includes information for different taxpayer segments and obligations. • A call centre is available for taxpayers to make telephonic enquiries. • Use of television and radio to draw attention to announcements and press releases and to alert taxpayers to changes in the law and administrative policy. • Programs to promote e-filing. • Social media – YouTube™ and Twitter™. • A taxpayer portal for individual taxpayers provides secure electronic access. • A walk-in Customer Service Center. • Newsletters available on the website and by email subscription. • Letters and emails targeted to specific taxpayer segments affected by a change in the tax law and/or administrative policy. The Tax Administration also makes information easily available to taxpayers and intermediaries by conducting field visits during the filing and payment seasons. |
| P3-9 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; Telephone enquiry calls received are answered within the minimum waiting time. As shown in Table 3 in Attachment III, 97 percent of telephone enquiry calls received are answered within 50 Repeats. Additional resources are assigned to the call center during peak enquiry periods. The assessment team, on two separate occasions, called the call center and on both occasions, the calls were answered in under one minute. The Tax Administration monitors waiting- and response times for telephone enquiries and consultations given at the walk-in center at the Customer Service Center. |
| P3-10 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; Regular monitoring of Frequently Asked Questions (FAQs) and misunderstandings of the law help target and refine public information, products and services. The Tax Administration interacts with focus groups and stakeholders to identify areas in which services and products can be improved. A secure Taxpayer Portal service is available 24/7 for individual taxpayers where the taxpayer or their authorized agent can view the status of refunds/payments, filing and payment obligations, and transaction history. The portal enables the taxpayer to file tax returns and pay taxes by Mobile Payment or Credit Card and edit profile information. Tax declaration and other forms are reviewed regularly to minimize compliance costs resulting in a recent re-design of the annual income tax return. |
| P3-11-2 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; Statistically valid surveys, which included taxpayer perceptions of services and products were undertaken in 2008, 2012, and 2016. These surveys are conducted by the Tax Administration itself, and only every four years. While the integrity perception survey is conducted independently and includes aspects relating to service, it too is not conducted once every three years (the TADAT standard)—the last survey was in 2016 and the one before that in 2011. |
| P3-8-3 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; The Tax Administration has a range of proactive taxpayer education programs delivered through different channels. There are various service delivery channels, for example: (i) a taxpayer can request information at the tax office, a call center and e-Tax website; (ii) brochures are available at all Tax Administration offices; and (iii) Tax Administration has an educational program for students and there are frequent seminars and meetings with several associations. Information is available at no cost to taxpayers and intermediaries and self-service facilities are available to taxpayers and intermediaries at their convenience including outside normal business hours. |
| P3-11-2 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; The Tax Administration consults regularly with key taxpayer groups and intermediaries and takes their input into account. Feedback and suggestions from taxpayers are considered in the design and testing of new processes and products. For example, during the e-Tax platform implementation, panels were formed to receive input, enhance the website and identify navigational and usability issues. Financial institutions were also consulted for targeted program implementation |
| P3-8-2 | WHD | A | First | 2015 | English | Scored A because a good practice was detected. The TA makes adequate and successful efforts to ensure that the information is updated in relation to legislation and administrative policies. The Administration of Attention toThe taxpayer has a web portal administration procedure that includes the routine information updating and also has a production procedure for virtual teaching material. On the portal there is a frequently asked questions area, the last of which update dates back to August 2017. All laws and regulations found in the Tax Record are available on the portal and are completely updated |
| P3-8-3 | WHD | A | First | 2015 | English | Scored A because a good practice was detected. Taxpayers have access to information through a variety of channels friendly. The Tax Authority web portal includes all categories of taxpayer obligations, email inquiries, online chat (working hours), number taxpayer service telephone number and access to public information; In addition, there is additional information on the web portal for medium taxpayers and small and new entrepreneurs; The Tax Authority makes use of social networks, provides information services quick service in specialized agencies, telephone service, mobile services attention “Tax Authority at your fingertips”, training and tax education programs in markets, virtual training, collaborations with the Ministry of Education, among others, |
| P3-8-3 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; Information is available through a variety of user-friendly service delivery channels at no or minimal cost. The main service delivery channels are the website, a national call center, and help desks in the territorial offices. Apart from online declaration and payment facilities, the electronic services website includes (for registered users) access to tax account details, an “e-enquiry” service (which can, for example, automate the issue of tax certificates), and a message dissemination facility where taxpayers are automatically informed on subjects of interest to which they have subscribed. The electronic services website is available 24/7 and, for legal entities, multiple access authorizations are allowed, subject to identity validation protocols. Answers to significant questions of tax practice that are submitted to the Tax Administration – these are essentially binding public rulings – are published on the website. |
| P3-9 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; Telephone enquiries received by the call center are answered within acceptable time standards. As shown in Table 3 in Attachment III, 99 percent of telephone enquiry calls received are answered within 6 minutes’ waiting time. The call center staff of 20 is cross-trained to respond to both tax and technical/system enquiries. Tax calls are limited to general enquiries only. Technical support calls make up over 80 percent of call volume. During peak periods, management supplements the dedicated telephone staff by shifting other resources to handle the higher volume and maintain the level of service. The call center uses VOIP17 technology so that line expansion is available on-demand, preventing overload |
| P3-8-3 | WHD | A | First | 2015 | English | Score A because good practices were detected. The Tax Authority website and other modern information service channels are made available free of charge to taxpayers. In addition, seminars are regularly held for taxpayers as part of a tax education program. The Tax Authority's website and other modern information service channels are provided to taxpayers free of charge. Additionally, seminars are held regularly for taxpayers as part of a tax education program |
| P3-8-3 | AFR | A | First | 2015 | English | Rated A because good practices were detected. Taxpayers obtain information relatively easily from the tax administration. Operational services welcome users during opening hours and answer their questions. Press campaigns, seminars and open days are regularly organized. An Info newsletter is published every quarter and the tax administration has a website and a Facebook page. Information sessions in which the tax administration participates are organized for new businesses. Awareness-raising activities are sometimes carried out in schools at the request of school principals. The information is available free of charge. The information is available online on the tax administration website but the collection of tax texts is not there. |
| P3-9 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; The Tax Administration responds to taxpayer’s requests for information quickly via its call center Data provided show that the Tax Administration handles just over 79 percent of telephone enquiries—well within the TADAT standard of 6 minutes (see Table 3 of Attachment III). The waiting time for incoming calls is used as an indicator for measuring the Tax Administration’s performance in responding to information requests generally. Monthly and annual reports are produced by the Tax Administrationin which waiting times and time to process enquiries are reported. |
| P3-8-1 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; The Tax Administration provides information to taxpayers on a wide range of topics and customizes it to the needs of different taxpayer segments and groups. There is an elaborate website that contains information which covers all the main taxes and taxpayer obligations and entitlements, as well as social security single contribution payments. The information is tailored to the needs of different sectors of the economy, industry groups, tax intermediaries, and disadvantaged groups such as rural taxpayers, people with disabilities and minorities. The Tax Administration also uses social media such as Facebook, Twitter and YouTube. The Tax Administration has printed several thousand different brochures on a wide range of topics. Also, there are 475 service centers that provide information to taxpayers who do not have internet access. The Tax Administration publishes the monthly Tax Service Herald which clarifies taxpayers’ rights and duties on different topics. |
| P3-8-3 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; The information is provided to taxpayers through a wide range of cost-free service delivery channels and taxpayer education programs. In addition to the Tax Administration website, service centers, social media, and information brochures and publications, taxpayers have access to targeted seminars and information campaigns. Procedures are updated annually for advance e-services (e.g. Tax Authority Order 18/2018). The Public Council, which is a body consisting of taxpayers, the Ministry of Finance and Tax Administration meets regularly to discuss tax issues and provide information on new provisions in law and procedures. In addition, the Tax Administration holds consultations with the Investment Council which includes heads of international and domestic companies, international institutions, industry associations, unions and NGOs. Tax officials conduct competitions for school children to improve their knowledge about taxes. The Tax University at Irpin conducts classes for college students. An annual report on the taxpayer education program is published. |
| P3-9 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; Service delivery standards exist in relation to e-services provided to taxpayers. More than 70 percent of calls are responded to within 3 minutes. A modern call center, with electronic monitoring and recording, exists. The service standard is set for calls to be responded to within three minutes. According to the system, 71.3 percent of calls are answered within three minutes. (Attachment III, Table 3) |
| P3-11-1 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; The Tax Administration regularly obtains feedback from taxpayers by commissioning perception surveys. Statistically valid surveys were conducted nationwide by independent expert groups in 2017 and 2016. Only one report was published. In addition, there is a telephone hotline where taxpayers can provide feedback on the service received. The LTO has a customer survey on their website. |
| P3-11-2 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; The Tax Administration involves taxpayers in the design of new products. The Tax Administration engages taxpayers, from various segments, to identify deficiencies in the Country's tax system including with (i) banks in 2016 under the Doing Business initiatives to improve the payment system; (ii) the country's Institute of Chartered Accountants to make improvements to the refund process and network issues when interacting online with Tax Administration systems; and (iii) top audit firms on improving the e-filing platform. With respect to the Project, the Tax Administrationhas collaborated extensively with stakeholders including the Oil Producers Trade Section, the National Petroleum Corporation and the Institute of Chartered Accountants on redesigning e-forms, e-filing, configuration and developing terms and |
| P3-9 | MCD | A | First | 2015 | English | Rated A because good practices were detected. Response time to phone calls is very short. The three quarters calls are completed in less than six minutes (see Table 3, Annex III). A call mystery carried out by the evaluation team was successful |
| P3-8-3 | MCD | A | First | 2015 | English | Scored A because good practice was detected in; The MoF website gives guidance to taxpayers on all tax obligations. It includes form completion and a comprehensive calendar of tax events including filing and payment dates. Other important delivery channels for service and information include; A taxpayer portal that provides secure electronic access to view refunds/payments, filing and payment obligations and transaction history; Brochures available at the walk-in service centres and at the regional offices; A call center available for taxpayers to make enquiries during and outside business hours; Use of television and press releases to alert taxpayers to changes in the law and/or administrative policy; Use of social media (YouTube and Facebook); A Mobile App available for download; and Seminars and stakeholder meetings for different taxpayers segments. |
| P3-11-2 | MCD | A | First | 2015 | English | Scored A because good practice was detected in; The Tax Administration consults regularly with taxpayers and stakeholders when redesigning administrative processes and products. This includes consultations with stakeholders such as the Country's Association of Accountants, representatives from the legal profession and other industry groups. These initiatives facilitate an on-going active involvement to identify areas for improvement in administrative processes and products. IT consultants for the Tax Administration have recently analyzed patterns in taxpayers’ use of electronic services, with the view to improving taxpayer interactions and the redesigning of on-line forms. |
| P3-9 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; In 2017, 98.7 percent of telephone enquiry calls were answered within a 6-minutes wait time. The Tax Administration has a dedicated call center where all calls are electronically monitored. The assessment team tested the response time of the call center on April 23, 2018, and the call was answered in less than one minute; a visit to the center was also undertaken on April 24, 2018 (refer to Table 3 of Attachment III) |
| P3-8-1 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; Information about core tax obligations and entitlements is readily available and is tailored to the needs of key categories and groups. A wide range of information is available on the main taxpayer obligations (registration, filing, payment and reporting) and entitlements, in respect of all core taxes. The language used in information material is most easily understandable but could be more user-friendly in certain areas. Information on the website, which is the primary information source, is organized around people, businesses and tax specialists. There is further segmentation around types of person (e.g., employees, students, pensioners) and types of business entity (e.g., freelance trades, business companies, non-profits and those obliged to operate virtual cash registers). Tailored information is provided for smaller businesses with simplified bookkeeping arrangements and certain industry groups subject to special tax regimes, such as accommodation and transport sectors affected by the “digital platform” tax. There is also some customization for disadvantaged groups, for example, providing forms and guidance in the minority language. |
| P3-8-1 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; Tax Administration provides a range of information to taxpayers on the main areas of tax obligations and entitlements. Information is also provided on all obligations, all core taxes, key segments, disadvantaged groups and intermediaries. The Tax Administration utilizes the website, brochures, social, and electronic media to conduct taxpayer education. The information contained therein is targeted to the needs of the key taxpayer segments, industry groups, intermediaries and disadvantaged groups. |
| P3-8-3 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; Taxpayers can obtain information easily and quickly through various delivery channels. Tax Administration offers a broad range of proactive education programs, using several avenues (such as social media, its website, walk-ins, electronic media and face-to-face interactions) at no cost to taxpayers. Information provided on the website and social media is available outside business hours. |
| P3-8-1 | WHD | A | First | 2015 | English | Score A because good practices were detected. The Tax Authority provides information on the main areas of taxpayers' obligations and rights; the information is adapted to the needs of the main segments of taxpayers, intermediaries and disadvantaged groups. The information is available not only for the main tax, but also for all other taxes administered by the Tax Authority. Taxpayers can ask questions on the easily accessible portal and these are answered by the Tax Authority. Specific banners are used to highlight specific topics for the attention of different types of taxpayers and tax regimes. Frequently asked questions and answers and guidance manuals that cover all taxpayers' needs are available on the Tax Authority portal. Specific information aimed at tax accountants, small taxpayers and individual entrepreneurs is also available on the portal. As an example, regular meetings are held with farmers to educate them about tax issues. |
| P3-8-1 | WHD | A | First | 2015 | English | Score A because good practices were detected. The Tax Authority provides taxpayers with information on the main obligations and rights and these are adapted to the needs of the main sectors of taxpayers, intermediaries and disadvantaged groups. Information is available not only for the basic tax for which large and medium-sized businesses are eligible, but also for the smaller taxes paid by small taxpayers and individuals. The information is especially targeted at certain sectors, such as electricity and transport. There are also special facilities for communicating information to visually impaired taxpayers. |
| P3-8-3 | WHD | A | First | 2015 | English | Score A because good practices were detected. The Tax Authority provides a wide range of information to taxpayers through various communication channels. Taxpayer education programs aim to sensitize citizens from an early age (e.g. students) about the collection of public revenue and expenditure through seminars and visits to universities and schools within the scope of the City Constitutional Project. Seminars for taxpayers and their representatives are conducted by third parties in conjunction with the Revenue Department. Information not related to the seminar, including clarifications and orders) is mainly available through the Tax Authority website. Telephone answering services are limited due to fear of fraudulent calls. There are other channels where taxpayers can ask questions by email and these must be answered within 24 hours. Due to the widespread use of the internet and email, information is made available to taxpayers at a time convenient to them and at no cost. |
| P3-8-1 | EUR | A | Repeat | 2015 | English | Scored A because good practice was detected in; Information on the main areas of core tax obligations and entitlements is readily available through various channels. There is an extensive range of material available on the website in relation to the main areas of taxpayers’ obligations. This includes videos providing step-by-step guidance on completing declarations and refund claims, easy-to-read pamphlets covering specific issues, frequently asked questions shown in a user-friendly way, and all legal provisions. The information on the website is in regional languages, and partly in English. On the Tax Administration Facebook, page taxpayers are informed about the latest news and upcoming taxpayer education activities organized by Tax Administration. Taxpayers can communicate with Tax Administration through a web portal. Each regional office has a walk-in enquiry service (there is a dedicated Taxpayer Service Center in the capital city) which provides a range of hard-copy explanatory material. Information is also made available in response to telephone and email queries through taxpayer service specialists in each regional office |
| P3-8-2 | EUR | A | Repeat | 2015 | English | Scored A because good practice was detected in; Taxpayer information is kept current by a dedicated unit and upcoming changes in law or administrative policy are generally flagged in advance. The Department of Taxpayer Service and Education is responsible for updating the website and other public information and for media releases. All legislation and administrative policies are kept current on the website and taxpayers are generally made aware of changes to law and procedures before they take effect. Specially targeted awareness-raising and training exercises are undertaken in advance of significant upcoming changes (for example, the Government’s recent fiscal package) |
| P3-8-3 | EUR | A | Repeat | 2015 | English | Scored A because good practice was detected in; Self-service activities are available to taxpayers and intermediaries at a time convenient to them. All digital services (website, Facebook page, and e-filing) are available 24/7 and are 26 free of charge. The Tax Administration provides a range of free tax seminars and workshops for taxpayers and intermediaries. |
| P3-9 | EUR | A | Repeat | 2015 | English | Scored A because good practice was detected in; Tax Authority responds to all phone calls within six minutes and they try to respond to all written inquiries within 15 days. In Tax Authority’s 2015–20 Strategic Plan the response time for written requests is set at 15 days. In the Taxpayers Rights and Obligations pamphlet, Tax Administration has committed to a goal to answer all phone calls immediately. Table 3 in Attachment III shows all telephone enquiries to the Call Center are answered within six minutes |
| P3-11-1 | EUR | A | Repeat | 2015 | English | Scored A because good practice was detected. Tax Administration obtains feedback from taxpayers via the website, Facebook, email, and during educational seminars. All feedback is registered and considered. A taxpayer perception survey has recently been conducted by an independent third party. The survey focuses on the perceptions of taxpayers, individuals and businesses in the country in relation to interactions with Tax Administration staff and services and how procedures are applied. The survey is being analyzed and steps are being taken to publicize the survey in late June 2018. A similar survey was conducted two years ago and actions were taken by Tax Administration to improve services and procedures. These kinds of perception surveys are planned to take place every two years. |
| P3-8-1 | WHD | A | First | 2015 | English | Score A Because good practice was detected, information on the main obligations and rights of taxpayers is available and adapted to the needs of different segments of taxpayers. The Tax Authority portal offers a wide catalog of services and easily accessible information, classifies them by topics and taxes and highlights the most frequent queries. The tax legislation section of the portal offers a complete collection of tax rules |
| P3-8-3 | WHD | A | First | 2015 | English | Score A because good practices were detected. Several taxpayer assistance channels are available free of charge, even outside office hours; and extensive taxpayer education programs are in place. In addition to the portal, face-to-face interactions are available at 54 service points and one-stop shops. The following additional channels are also available: (i) call center with operators available 11 hours a day; (ii) 24 hours for recorded answers to frequently asked questions; (iii) consultations via email; and (iv) individualized counter response to queries. The Tax Authority promotes educational programs for taxpayers, as well as students at various levels, and holds a significant number of courses, lectures, meetings and seminars. These programs include online courses. |
| P3-9 | WHD | A | First | 2015 | English | Score A because a good practice was detected. The response time to questions from taxpayers and tax intermediaries is of a high standard. Around 81% of telephone queries are answered within 6 minutes. The call center operates 11 hours a day (from 8am to 7pm) on three levels: the first, with an outsourced team for operational issues; the second, through the Multimedia Relationship Center; and the third, with auditors from specialized technical units (Table 3 of Annex III) |
| P3-11-1 | WHD | A | First | 2015 | English | Score A because good practice was detected. Taxpayer feedback is obtained through various means. A survey on the standard of taxpayer education program was carried out by an independent research group in 2016. There are other internal mechanisms to measure taxpayer satisfaction with service delivery. The Ombudsman also receives general information, complaints, suggestions, compliments and requests for information. There is an exclusive service for taxpayers to comment on the quality of the tax education program. The State Taxpayer Defense Council receives and monitors complaints and comments. This is a broad forum in which everything that concerns the interests of taxpayers can be dealt with quickly. Additionally, monthly seminars are held between the tax administration and various groups of taxpayers |
| P3-8-1 | WHD | A | First | 2015 | English | Scored A because a good practice was detected. The Tax Agency provides information through different channels adapted to the needs of taxpayers about their main obligations and rights with respect to all main taxes. The information contained in brochures, guides, pamphlets and videos tutorials are tailored to the specific needs of the main segments of contributors (for example, consultants, freelancers and trades, transporters, artisans, merchants and nurserymen). During the registration of New taxpayers receive an information brochure and are invited to a course introductory session on their rights and obligations.15 Accountants receive specialized training provided by the SIN (22 sessions in 2017) and have the updated regulations on the internet portal. In the PACs, preferential attention is given to people with special needs, assigning them absolute priority. Additionally, verbal information is provided in local languages, All public servants are required by law to know one of these languages. |
| P3-8-3 | WHD | A | First | 2015 | English | It scored A because a good practice was detected. Taxpayers obtain information easily and free of charge through a Wide variety of service channels. The Tax Authority uses the following means and initiatives: • Extensive network of 16 PACs with world-class facilities including queue management, information panels and tax kiosks (computers with internet connection and staff who help with online procedures). • Dedicated telephone line. • Digital Media: Internet portal with self-service facilities in the office virtual, email, Facebook, Twitter, Instagram, Online Chat, WhatsApp and youtube channels • Accounting and tax support centers, press conferences, fair events, newsletters informative, training, promotion of tax culture. |
| P3-8-3 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; Tax Administration offers an impressive variety of taxpayer education programs and service delivery channels at no cost to taxpayers. Seminars are organized for small and medium enterprises, new registrants and high school students (on request by the Ministry of Education). The website, brochures, and notices ensure that taxpayers have information at a time convenient to them. Taxpayers are informed of their tax obligations via television, radio and print media, in the official and local languages. Regional centres are open Monday through Friday and Saturday mornings |
| P3-11-1 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; Tax Administration regularly seeks performance feedback from taxpayers through a variety of channels. These include random interviews, questionnaires, suggestion boxes and stakeholder meetings. Feedback is gathered and analyzed. An independent third-party survey was completed in December 2015 and preparations are being made for the completion of the next independent survey by year-end. |
| P3-8-1 | WHD | A | First | 2015 | English | Score A because good practices were detected. The Tax Authority makes information available to the public about the obligations and rights of taxpayers. The information is adapted to the needs of the main segments of taxpayers, intermediaries and disadvantaged groups – including micro-enterprises and taxpayers in rural areas. The SEF-DF service portal allows queries on topics of interest – it has sections for the most requested and current topics, as well as frequently asked questions and answers (FAQs). |
| P3-9 | WHD | A | First | 2015 | English | Score A because good practices were detected. The timely response to questions from taxpayers and their intermediaries demonstrates a high quality of service. Of a total of 310,402 calls received over a period of one year, 95.8% had a waiting time of less than six minutes. (Table 3 of Annex III) |
| P3-10 | WHD | A | First | 2015 | English | Score A since good practices were detected. The Tax Authority offers a simplified tax system, including simplified filing and payment obligations for small taxpayers that are consistent with their size. Additionally, tax return forms are reviewed regularly to ensure that only necessary information is requested from taxpayers. Frequently asked questions and misunderstandings in the interpretation of laws and regulations are routinely analyzed to improve information products and services. 27 Active use of the 24-hour secure online taxpayer portal minimizes the need for visits to tax offices |
| P3-8-2 | MCD | A | First | 2015 | English | Rated A because good practice was detected. Extensive information is available on the rights and obligations of taxpayers for all assessment taxes in terms of registration, declaration and payment. The declarations and their forms, accompanied by the detailed notes to be served on them and submitted to the tax administration, are available on the tax administration website. |
| P3-8-2 | AFR | A | First | 2019 | English | Rated A because good practices were detected. The Department of Taxpayer Services is responsible for regularly updating the information provided via the web. Taxpayers are informed by various means of legislative and procedural changes, including specific and general communications, before the standards come into force. In addition to constantly updating the website, the tax administration carried out clarifications to taxpayers and intermediaries, distributed leaflets and flyers, sent written communications, such as letters and newsletters (Expresso das Ilhas), in addition to the use of Facebook, to clarify and provide up-to-date information to taxpayers. |
| P3-8-3 | AFR | A | First | 2019 | English | Rated A because good practices were detected. the tax administration promotes a variety of educational and proactive programs through the use of various channels and makes information and services available online. Examples of such programs include the National Citizenship Seminar and the student-focused National Tax Citizenship Program. A project dedicated to taxpayers who are starting a new business has been developed, which includes sending emails and messages, in addition to organizing specific events. The tax administration has several channels of information services for taxpayers, with information available, free of charge to taxpayers and intermediaries, at convenient times. The task of making tax education effective falls to the Department of Taxpayer Services, which has defined a program intended for different audiences, with the following intervention modules: Integrated Basic Education, Repeated Education, Professional Education, Higher Education, Employees Public Bodies and the Community in general. Several channels are available for service: face-to-face, via the web and telephone. The face-to-face service is provided by 70 units installed on the nine islands. The tax administration also works in partnerships with other organizations, such as municipal councils, the Ministry of Education and Pro-business. |
| P3-11-2 | AFR | A | First | 2019 | English | Rated A because good practices were detected. The tax administration regularly consults with groups of taxpayers and accountants to identify gaps and opportunities to improve its processes and products. Contributors and intermediaries are involved in the process of defining models or testing new processes or products. Examples of such practices are: holding a webinar to obtain taxpayers' opinions on the new electronic declaration to be implemented, the Annual Declaration of Accounting and Tax Information; the creation of a commission with representatives of intermediaries, the Professional Order of Auditors and Chartered Accountants, aimed at the implementation of electronic invoicing; hear taxpayers from the start of the implementation process; consultation with taxpayers in the development of codes (such as the Tax Enforcement Code and the Tax Procedure Code). |
| P3-8-1 | EUR | A | First | 2019 | English | Score A because a good practice was detected in. Information is available in various formats on the obligations and rights of taxpayers. In addition, it is appropriately segmented in relation to various groups of taxpayers, including some such as large families or people with special needs. Information on the rights and obligations of taxpayers is available in various formats: website, brochures, in-person assistance, telephone. On the other hand, the information is sufficiently segmented according to the characteristics of the taxpayers. For example, on the website there is an initial segmentation, distinguishing between “Citizens” and “Businesses and professionals”. Information about the different tax figures is included. And there is specific information for certain groups: large families, people with special needs, etc. In relation to people with special needs, there is an agreement with the main associations that is verified annually and help is offered through sign language interpreters in some offices. In addition, information is included in the different official languages. There is also an English version. |
| P3-8-2 | EUR | A | First | 2019 | English | Score A because a good practice was detected. Information on rights and obligations is permanently updated by personnel specifically dedicated to this work. The website systematically highlights modifications or news of interest to different collaborators and in some cases individualized communications are sent. On the Ministry's website there is an access point to facilitate citizen participation in the rule-making procedure. The purpose of prior public consultation procedures is to gather the opinion of citizens, organizations and associations before preparing a regulatory project. The public hearing and information procedures are intended to obtain the opinion of citizens who have rights and legitimate interests affected by a legislative project already drafted, either directly or through the organizations or associations that represent them, as well as to obtain additional contributions. that may be carried out by other people or entities. |
| P3-9 | EUR | A | First | 2019 | English | Score A because a good practice was detected. More than 70 percent of incoming calls are answered within 6 minutes of waiting. The Tax Authority monitors waiting times for telephone and in-person assistance on a monthly basis. According to table 3 of Annex III, 83 percent of the calls received during the last year were answered within this period. |
| P3-10 | EUR | A | First | 2019 | English | Score A because good practices were detected. Accounting and tax obligations are simplified for certain segments of taxpayers. The information provided to taxpayers is updated due to regulatory changes or to provide criteria in relation to doubts that may arise. Taxpayers and intermediaries can securely access the existing information held by the Tax Authority through its electronic headquarters without interruption. Both the design and content of the declarations, models and forms are constantly reviewed to incorporate new standards, techniques and procedures. There are special VAT regimes (simplified, equivalence surcharge), Corporate Tax (small companies) or Personal Income Tax (module regime) that include facilities to declare or simplify the formal requirements required. Sometimes the obligation to present some models or declarations is exempt. There are support programs for the main taxes, as well as for the keeping of joint accounting books and records (Web income for personal income tax, Web companies, virtual assistance for VAT,...). On the other hand, the Tax Agency has signed agreements of various kinds with other public administrations that need the information held by the Tax Agency to carry out their own actions. In order that taxpayers do not have to provide documentation or information that the Tax Authority already has, the agreements signed with these public organizations - with due legal support - establish the possibility that they can request the information directly from the Authority. Tax, avoiding procedures and travel for taxpayers A routine analysis of frequently asked questions (FAQs) is carried out, which is supported by computers, with a continuous update that allows the review of the declaration models and their adaptation to the service they support. Taxpayers and intermediaries can securely access the information that the Tax Authority manages about them through the electronic headquarters without interruption. Both the design and content of the declarations, models and forms are constantly reviewed to incorporate new standards, techniques and procedures, and to ensure that the strictly necessary information is requested to facilitate compliance with taxpayers' obligations. |
| P3-11-1 | EUR | A | First | 2019 | English | Score A because a good practice was detected. In interaction with taxpayers, groups and tax intermediaries, the Tax Authority continually obtains feedback on the services provided. There are several external organizations that prepare statistics from significant samples of taxpayers to publicize public opinion on the products and services of the Tax Authority. Taxpayers' information and opinions about the services provided are obtained through different channels: in-person service; phone calls; satisfaction surveys in rental campaigns; complaints to the CDC. In particular, the CDC follows up on the complaints made and the reasons for them, and may make modifications to the rules, procedures or forms to avoid doubts on the part of taxpayers. Several independent agencies produce statistics based on surveys of significant samples of taxpayers. One of them is the Center for Sociological Research (CIS), “Public Opinion and Fiscal Policy”, which annually prepares With the same annual periodicity, the study carried out by the Institute of Fiscal Studies (IEF), on "Fiscal opinions and attitudes of Spaniards", which includes statistical samples on the opinion on products (completion of declarations) and evaluation of services offered to the taxpayer, stands out. |
| P3-11-2 | EUR | A | First | 2019 | English | Score A because good practices were detected. To identify deficiencies in procedures and services, the Tax Authority not only takes into account the information and opinions of taxpayers, but also permanently interacts with certain significant groups, such as large companies and tax professionals. Likewise, meetings are held with software companies in order to provide adequate IT support to companies and professionals. The Tax Authority holds periodic meetings with certain groups of taxpayers to facilitate collaborative compliance through the Forum of Large Companies and the Forum of Tax Professional Colleges and Associations. In both forums there are working groups for different areas such as analysis and rationalization of indirect tax burdens, analysis of tax regulations, reduction of conflict, models, campaigns or measures to promote legal certainty. Meetings are also held with software development companies, which have their own developer portal, in which the technical specifications and all the versions that are developed in tests are published. Regarding the preparation of tax regulations, a public consultation is planned in advance on the Ministry's website in order to gather the opinion of the potential recipients of the regulation. Once the project or preliminary project has been prepared, if it affects the legitimate rights and interests of citizens, the text will be published to substantiate the public information procedure or to grant a hearing to the affected people, directly or through the organizations or associations that represent them. as well as to obtain additional contributions that other people or entities may make. |
| P3-8-2 | AFR | A | Repeat | 2019 | English | Scored A because good practice was detected in; The Tax Administration has documented procedures for keeping the information current and informing taxpayers of any changes in law and administrative policy. The Taxpayer Services Department is responsible for designing new and updating existing material and its mandate includes: identification of changes in tax laws or processes and making a case for the need for education material; preparing education material and products for existing processes in consultation with subject matter experts and affected taxpayer groups and intermediaries; preparing training and taxpayer sensitization material in various local language dialects; and communicating changes in tax laws or process via Tax Administration website, newspapers, radio and television announcements; and organizing meetings with targeted stakeholders to present new changes, including publication of explanatory guidance notes in preparation for the implementation of new laws announced by the government through the national budget process |
| P3-8-3 | AFR | A | Repeat | 2019 | English | Scored A because good practice was detected in; Communicating changes in tax laws or processes are done via the Tax Adminstration website, newspapers, radio and television announcements; and organizing meetings with targeted stakeholders to present new changes, including publication of explanatory guidance notes in preparation for the implementation of new laws announced by the government through the national budget process. |
| P3-11-1 | AFR | A | Repeat | 2019 | English | Scored A because good practice was detected in; The Tax Administration routinely seeks client feedback via customer satisfaction surveys, public contact centers, face-to-face engagements and social media platforms. The surveys include independent third-party (conducted every two years) and internal surveys. The results collected through the various methods are used to refine existing services, products, and administrative processes. |
| P3-8-2 | WHD | A | First | 2019 | English | Score A because good practices were detected in. The information available is updated and changes in regulations are communicated to through general and specific communications before they come into force. The Information and Assistance Subdirectorate of the Taxpayer Service Directorate has staff (3 public servants) exclusively dedicated to updating the information14 and account with a documented procedure for systematically updating information. The Regulatory modifications are communicated to taxpayers in a general way (radio, television, internet portal and social networks) and specifically (SMS messaging and alerts to enter the virtual office) before they come into effect. 15 Additionally, to the great Taxpayers are sent communications through their tax managers from the Directorate of Big contributors. |
| P3-8-3 | WHD | A | First | 2019 | English | Score A because good practices were detected. Taxpayers obtain information easily and free of charge through a wide variety of service channels. The TA uses the following means and initiatives: Network of 9 PSs in local tax administrations with first-class facilities that include queue management and kiosks (computers with internet connection and staff to help with online procedures). Digital media: online portals with self-service facilities (ATV and Digital Taxation), email, Facebook, Twitter and YouTube. Tax assistance centers at universities, fair events, quarterly newsletters, communications of interest, training (e.g. electronic invoice), Educational Program and tax culture. For large taxpayers, a tax model has been implemented since 2010. attention (by telephone, email and in person) through tax managers, who each have a portfolio of approximately 46 large taxpayers. |
| P3-8-1 | AFR | A | First | 2019 | English | Scored A because good practice was detected in; The Tax Administration offers a broad range of information to guide taxpayers on their obligations and entitlements under each of the core taxes. The information products include brochures, rulings, guidelines, factsheets, responses to frequently asked questions, forms, presentations to various stakeholders, and newsletters. Measures are also taken to tailor the information to the needs of various taxpayer groupings and they include (1) quarterly meetings with tax intermediaries and sharing information with them on WhatsApp; (2) seminars for newly registered businesses; (3) quarterly VAT seminars; and (4) educating newly registered taxpayers on their tax obligations and entitlements in a one-on-one setting immediately after registration. The information provided adequately covers the compliance needs of key taxpayer segments and industry groupings. |
| P3-8-2 | AFR | A | First | 2019 | English | Scored A because good practice was detected in; The information provided to taxpayers is current in terms of the law and administrative policy. Dedicated staff in the taxpayer Education and Services Department ensure that information provided to taxpayers is current. The mission observed that this department makes taxpayers aware of the changes before they come into effect through general communication over various channels including the radio, posters displayed in all Tax Administration offices, and newspaper articles and targeted seminars and workshops with various taxpayer groupings and intermediaries. |
| P3-8-3 | AFR | A | First | 2019 | English | Scored A because good practice was detected in; The Tax Administration provides taxpayer information using a variety of products and public outreach programs. The broad range of taxpayer information is readily available over the Tax Administration website and all the walk-in assistance centers. The Tax Administration also posts information on Facebook, YouTube and in newspapers, and runs various public tax programs over the radio. A pilot program for teaching school students about taxes was launched in 2018 by the School of Business Studies and Accounting. Targeted workshops are also regularly held to educate and guide new businesses and | 26 newly registered taxpayers for VAT. |
| P3-11-1 | EUR | A | First | 2019 | English | Scored A because good practice was detected in; Various methods are used to obtain feedback from taxpayers, including an independent, third-party survey of taxpayer perceptions of the Tax Administration’s services. Users of the website are invited to complete two surveys: one on the content and ease of navigation of the website; and the other on the standard and responsiveness of all channels of communication. Where dissatisfaction is indicated, free-form comments and suggestions are canvassed. Meetings and seminars with stakeholders on wider topics will often also invite feedback on Tax Administration services and products. The First independent survey of taxpayer perceptions of services and products was carried out in 2018. The survey was conducted by an international research firm using statistically valid sampling of a legal entity, entrepreneur and citizen segments. It is intended to repeat this independent survey at regular intervals (at least every three years) to monitor perception trends over time. |
| P3-8-1 | EUR | A | First | 2019 | English | Scored A because good practice was detected in; Information on tax obligations and entitlements are available through various channels. There is a range of material available on the website in relation to the main areas of taxpayers’ obligations and entitlements. This includes videos providing general information on IPT and the benefits of paying taxes. Taxpayers can communicate with The Tax Administration through e-mails. The Tax Administration has a walk-in enquiry service and telephone queries through taxpayer service specialists. Information is also provided through pamphlets, brochures, and public education programs. The information is tailored according to the needs of key taxpayer segments (natural/residential property, legal entities/commercial property, and agricultural properties). It is also tailored to three spoken languages. |
| P3-8-2 | AFR | A | First | 2019 | English | Scored A because good practice was detected in; The Tax Administration has documented procedures for keeping information current and informing taxpayers of any changes in law and administrative policy. The Operational Policy and Communications divisions have dedicated staff that regularly update the information provided to taxpayers to ensure it is current and relevant including any changes in tax laws or processes. Taxpayer sensitization material is developed and communication of changes in tax laws or processes is provided in advance using various modes such as via the Tax Administration website, newspapers, radio and television announcements; and organizing meetings with targeted stakeholders to present new changes. Explanatory guidance notes are also published. |
| P3-8-3 | AFR | A | First | 2019 | English | Scored A because good practice was detected in; Taxpayers have convenient access to information through a range of user-friendly channels at no cost, and a documented taxpayer education program has been implemented. The Tax Authority has a range of taxpayer education programs that are comprehensive and routinely conducted. They include different taxpayer segments, new businesses and collaboration with the Junior Achievement, targeting school children and young entrepreneurs. Information on all core taxes and main compliance obligations are also available via • Tax Administration Website; • Toll-free contact center operated during normal working hours; • Customer service desks in all tax offices; • Frequently asked questions on the website; • Tax dialogue sessions with groups of taxpayers and an annual “Customer Service Week”; • Generic and specific tax information presented through seminars/workshops and print and audio means; • Engagement with private sector associations and intermediaries; • Practice notes and fact sheets/guidance notes; • Social media platforms such as Facebook; and • Client relationship managers in the large taxpayer unit |
| P3-11-1 | AFR | A | First | 2019 | English | Scored A because good practice was detected in; The Tax Administration routinely seeks client feedback via customer satisfaction surveys, public contact centers, face-to-face engagements and social media platforms. The surveys include independent third-party (conducted every two years based on a statistically valid sample of key taxpayers) and internal surveys. The Tax Administration has a Taxpayer Charter and a Customer Service Standards handbook. Taxpayer service centers and border posts’ service delivery are monitored routinely using a closed feedback loop. The results collected through the various methods are considered when refining services, products, and administrative processes. |
| P3-8-1 | EUR | A | Repeat | 2019 | English | Scored A because good practice was detected in; Tax Administration provides information to the taxpayers on a wide range of topics and tailors it to the needs of different taxpayer segments, industries and intermediaries. The recently launched new website contains a wide range of information covering all taxpayer obligations (registration, filing, reporting and payment) and entitlements (e.g. VAT refunds and the right to dispute). The information Tax Administration provides is tailored to the needs of small business taxpayers, e.g. clarifying their accounting and filing obligations, and gives specific attention to disadvantaged groups and minorities that use other languages than the National Language. Information related to specific topics is available via approximately 600 methodological guidelines and procedural manuals. Tax Administration also uses social media such as Facebook and YouTube. There are 15 regional service centers that provide information to those taxpayers who prefer face-to-face interaction. |
| P3-8-2 | EUR | A | Repeat | 2019 | English | Scored A because good practice was detected in; Tax Administration ensures that information is current and that taxpayers are made aware of changes in the law and administrative policies before they take effect. As a follow-up to the previous TADAT assessment, Tax Administration has established a working group which is operational since February 2020. This dedicated working group is responsible for keeping information up-to-date. Current and draft tax laws are monitored on a daily basis, and information provided by the operational departments to taxpayers is monitored regularly. |
| P3-8-3 | EUR | A | Repeat | 2019 | English | Scored A because good practice was detected in; Taxpayers have access to information through a broad range of user-friendly channels. Tax Administration’s service development strategy 2019-2020 outlines the direction in service delivery to improve voluntary compliance by using a wide range of services and further developing new communication channels such as online chats and chatboxes. In addition to the information provided via the website, taxpayers portal, social media, the call center and the 15 regional service centers, taxpayers have access to a variety of targeted seminars and information campaigns. Provision of information to taxpayers, intermediaries or other interested groups is free of charge. Tax Administration asks for a fee for the Privé service, a private tax advisor program, mainly used by large taxpayers, for personalized assistance. Tax Administrationis planning to make this service free of charge |
| P3-9 | EUR | A | Repeat | 2019 | English | Scored A because good practice was detected in; Telephone enquiry calls received by the call center are generally answered within six minutes. Taxpayers are actively informed about the service levels they can expect when dealing with the Tax Administration. Standards to respond to requests are: (i) six minutes for telephone calls; (ii) ten working days for letters; and (iii) two working days for official e-mails. The call center currently has 39 agents deployed in the front and back offices. A new system, which meets the current international standards for a call center system, was introduced in July 2020. The previous system was outdated and was not capable of determining the overall performance level of the call center, nor keeping track of lost calls. To address this problem, Tax Administration has developed a work-around to provide the necessary management information. Attachment III, Table 3, shows that 95 percent of all calls are answered within 6 minutes for the period until March 2020. Accurate measurement in the April-July 2020, was affected by the working-from-home aTax Authorityngements that were put in place due to the COVID-19 pandemic |
| P3-11-1 | EUR | A | Repeat | 2019 | English | Scored A because good practice was detected in; Tax Administration obtains feedback on its services from the taxpayers. Tax Administration engages with key stakeholders and monitors telephone calls and taxpayer visits to its premises. Meetings with the representatives of business associations are organized at the initiative of the Tax Administration and discuss the challenges that businesses face and options for improvement. The interaction via telephone calls and taxpayer visits to the contact center also provides Tax Administration with feedback regarding the services provided. A report on the attitude towards the tax system in the country shows a high level of trust towards the services of the Tax Administration. This report was issued by the USAID Governing for Growth program in the country, based on a survey of 1,742 respondents. It reports that 99 percent of the respondents were satisfied with the services from the service center and information on the website and 94 percent were satisfied with the services from the call center. |
| P3-11-2 | EUR | A | Repeat | 2019 | English | Scored A because good practice was detected in; Tax Administration consulted taxpayers on the design of the new Tax Administration website. The primary focus of the design of the new website was that taxpayers understand the information and can easily navigate the site. To this end, a large variety of groups of taxpayers, such as small businesses, intermediaries, and business associations were consulted. There are some other examples where the Tax Administration has reached out to key taxpayers’ groups and intermediaries to identify deficiencies in administrative processes and products, such as the design of the current VAT declaration form. Tax Administration consults business associations and intermediaries for the development of the methodological guidelines and procedural manuals as published on the website |
| P3-8-2 | AFR | A | First | 2019 | English | Scored A because good practice was detected in; Tax Administration has documented procedures for keeping information current and informing taxpayers of any changes in law and administrative policy. Information on the County website is updated routinely, and taxpayers are made aware of changes to the law or administrative policy in advance. The County is guided by the Finance Act, which is updated annually. Twitter and Facebook pages are updated and current. The Department of Information and Communication Technology has three dedicated staff headed by a Webmaster responsible for both the web and mail servers. They ensure that the information is current and relevant, including any changes in tax laws or processes. Requests for updating from the various departments are sent to the Webmaster email. The County also uses volunteers to disseminate information to 347 villages. Communication of changes in tax laws or processes is provided in advance using various modes such as via the website, Tax Administration public participation meeting and seminars, public notice, gazette notice, assembly and organizing meetings with targeted stakeholders such as the Chamber of Commerce, Hawkers Association and Bar owners Association. Additionally, the County radio station communicates any relevant taxpayer information. Public participation meetings are conducted in accordance with documented procedures |
| P3-8-3 | EUR | A | Repeat | 2019 | English | Scored A because good practice was detected in; Taxpayers can obtain information 24/7, as most of it is provided via the website. Taxpayers also have 24/7 access to their personalized e-services. Provision of information takes place through multiple channels of delivery: counter service, emails, telephone calls, letters, and educational courses. Educational courses are available free of charge to all. The courses include both general education about taxes and their payment (e.g., for school students or newly registered businesses) or designed to address a specific need or an event (e.g., a seminar on a specific tax law change) |
| P3-9 | EUR | A | Repeat | 2019 | English | Scored A because good practice was detected in; Taxpayers receive timely consultation services to their questions through phone calls and emails. More than 95 percent of contact center calls are taken within a set 6 minutes time limit (Attachment III, Table 3). Also, approximately 75 percent of written enquiries are responded to within 15 days. In case of an office visit, 75 percent of counter-service cases are resolved on the same day. |
| P3-10 | EUR | A | Repeat | 2019 | English | Scored A because good practice was detected in; The Tax Administration uses electronic services, pre-filled tax returns, and special simplified tax regimes to lower taxpayers’ cost of compliance with tax regulations. Taxpayers can use electronic services, including submission of returns and checking their tax accounting online 24/7. For personal income tax, pre-filling with taxpayer data is available and used. A Frequently Asked Questions (FAQ) system is used by tax officials extensively when responding to taxpayers’ enquiries to keep the response times short. A national legislative secretariat reviews all tax forms prior to their adoption to restrict information collected from citizens to aspects prescribed by the law. |
| P3-8-1 | AFR | A | Repeat | 2019 | English | Scored A because good practice was detected in; The Tax Administration provides a wide array of up-to-date information and services to taxpayers to meet all obligations and claim entitlements across all core taxes. This is done mainly through the Tax Administration’s TSO and service centers. Service delivery is refined through a streamlined process within a cooperative working arrangement between the Domestic Taxes Department and the Marketing and Communication Department. The information is customized to meet the specific needs of key sectors (e.g. manufacturing, construction), particular customer segments, such as small traders who cannot afford the services of tax intermediaries, and persons with disability. |
| P3-8-2 | AFR | A | Repeat | 2019 | English | Scored A because good practice was detected in; The Tax Administration has documented procedures for keeping the information current and informing taxpayers of any changes in law and administrative policy. Dedicated personnel in the customer touch points follow set procedures to ensure information is current and taxpayers are made aware of changes in the law or administrative policy through targeted and general communication before the law or policy takes effect as demonstrated through for example website updates, YouTube videos, and private rulings |
| P3-8-3 | AFR | A | Repeat | 2019 | English | Scored A because good practice was detected in; Taxpayers can easily obtain information from The Tax Administration through a range of channels at little to no cost. The Tax Administration has a service charter also called a Citizens’ Service Delivery Charter and information is provided through an up-to-date website, emails, SMS, brochures, guidelines, public notices, practice notes, private rulings, radio and television programs, YouTube, and social media. The Tax Administration also offers an expansive variety of taxpayer education programs with seminars organized for small and medium enterprises, key industry sectors such as industry and manufacturing, trade and investment, and financial and insurance services. A plethora of tax education forums, tax summits, and tax roundtables are also regularly organized. Programs for teaching school students about taxes are organized in collaboration with the Country's Institute of Curriculum Development. Finally, The Tax Administration offers extended working hours on weekends across Contact Centers countrywide, especially during filing season, and self-service facilities (mobile, website, customer portal, etc.) to taxpayers and their intermediaries, at a time convenient to them. |
| P3-11-1 | AFR | A | Repeat | 2019 | English | Scored A because good practice was detected in; The Tax Administration regularly monitors taxpayer perceptions of service and seeks taxpayer feedback on information products and services. This includes web page content and layout and form design. Taxpayers and professional associations provide feedback through emails, telephone, website, and service centers, as well as through a variety of regular stakeholder meetings and public forums such as tax education forums, tax summits, and tax roundtables. The Tax Administration is also very active in conducting customer satisfaction surveys every two years.The surveys are based on a statistically valid sample of key taxpayer segments and stakeholders and are conducted by an independent third party. During these meetings and public forums, key taxpayer groups and tax intermediaries discuss issues and challenges in the law and are consulted on administrative processes and products. |
| P3-11-2 | AFR | A | Repeat | 2019 | English | Scored A because good practice was detected in; There is also evidence that taxpayers and intermediaries are involved in the design and testing of new processes and products. |
| P3-8-1 | AFR | A | First | 2019 | English | Scored A because good practice was detected in; The Finance Act is current and available to the public at all The Tax Administration Revenue Offices. The Finance Act is reviewed and updated annually with public participation. A dedicated technical staff is in place to ensure that information is current. |
| P3-8-3 | AFR | A | First | 2019 | English | Scored A because good practice was detected in; The Tax Administration provides a broad range of taxpayer education programs made available to taxpayers via various delivery channels. Information is availed to taxpayers through channels including (i) regular workshops to businesses including to newly registered taxpayers; (ii) publicity campaigns and expos; (iii) brochures; (iv) The Tax Administration Website; (v) by telephone via the call centre; (vi) customer service centres distributed in strategic points across the country; (vii) postings to Facebook, and (viii) television and radio shows. The information is provided at no cost to taxpayers. Additionally, the website, postings to Facebook and in the main, the e-services platform all provide self-service facilities at a time convenient to taxpayers and intermediaries |
| P3-9 | APD | A | First | 2019 | English | Scored A because good practice was detected in; The Tax Administration’s call center delivers a high standard of service with all calls received being dealt with promptly—see Table 3 of Attachment III. The call center is at an early stage of development and demand for the service so far is low but is showing evidence of growth with call volumes roughly doubling since commencement. The center currently receives up to around 40 calls per month. Resources assigned to the call-center are limited and supporting infrastructure is still being fully established. Service delivery standards, which cover the majority of taxpayer interactions and services, are in place. Performance monitoring and evaluation against these standards are undertaken internally; however, performance results and outcomes are not published externally. |
| P3-8-1 | APD | A | First | 2019 | English | Scored A because good practice was detected in; Information on taxpayer obligations and entitlements is readily available for all core taxes, and it is tailored to meet the needs of taxpayers. The Tax Administration has an extensive engagement program, delivered in a variety of formats and targeted at different taxpayer groups, intermediaries and disadvantaged groups such as linguistic minorities. The Facilitation and Taxpayer Education unit within the Tax Administration is responsible for the dissemination of information to taxpayers in a timely manner. The Tax education unit designs and delivers taxpayer products, campaigns, and events focused on a variety of taxpayer segments to support taxpayers. The Tax Administration has a published Taxpayer Charter, setting out clearly the rights and obligations of the taxpaying population. Information is available on all core taxes and is tailored to segments based on risk or capabilities, including dedicated outreach activities with representative groups. |
| P3-8-2 | APD | A | First | 2019 | English | Scored A because good practice was detected in; The Tax Education Unit unit designs and maintains all taxpayer guidance and support material. There is a designated office for issuing regular updates and clarifications. The Tax Administration website also contains the latest updates on all the applicable tax rules and regulations. The information to taxpayers is communicated before the law or policy takes effect using the website and the print and social media. Publicity campaigns are in place to tackle common areas of taxpayers’ needs. |
| P3-8-3 | APD | A | First | 2019 | English | Scored A because good practice was detected in; The Tax Education Unit regularly conducted taxpayer education and awareness programs across the country. The information is generally available to taxpayers at no cost. The campaigns and outreach programs come in a variety of formats, including workshops, seminars and personal visits to prominent institutions and organizations in the country. These initiatives focus on highlighting the importance of filing tax returns along with detailed briefings that include guidance on how to file tax returns on The Tax Administration’s Income Tax portal. |
| P3-9 | APD | A | First | 2019 | English | Scored A because good practice was detected in; Almost all calls were answered within six minutes in FY 2020-21. An The capital city -based member of the TADAT assessment team visited the Tax Administration call center and noted that it was properly staffed. It was found that because of adequate staff, all the calls are replied in person and calls are not diverted to an answering machine. As a sample check, the record for Nov 2020 was verified with the data provided in Questionnaire Table 3 was found to be accurate. |
| P3-8-1 | WHD | A | Repeat | 2019 | English | Scored A because good practice was detected in; The Tax Administration provides wide-ranging information, using a variety of media and support approaches to explain obligations and entitlements across all core taxes. The Tax Administration website and Facebook page provide information for the core taxes65 (IIT, CIT, PAYE and GCT) across all obligations (registration, filing, reporting and payment) and entitlements (for example, GCT refunds and the right to dispute). Information is tailored to taxpayer segments (for example, smaller businesses), sectors (for example, financial sector and real estate sector), intermediaries (accountants), and disadvantaged taxpayers (Special Taxpayer Assistance Program, at The Tax Administration Customer Care Centres). “How To” segments and publications covering a range of topics can be found on The Tax Administration website, Facebook page and/or YouTube channel. The Tax Administration participates in business expos and provides localized advisory services upon request. In-person, services are available during business hours at 29 offices across the country. The Tax Administration also has a comprehensive school program on teaching taxes that has been recognized by the OECD in its sourcebook on taxpayer services. In FY2020/21 The Tax Administration launched a Mobile App giving users the ability to query and pay property taxes while “on the go,” and it is expected that the app will be expanded to allow for payment of other core taxes |
| P3-8-2 | WHD | A | Repeat | 2019 | English | Scored A because good practice was detected in; Information is current and taxpayers are made aware of changes in the law or administrative policies before they take effect. Changes to the law, procedures, and policies are subject to a communication strategy directed to the parties that are most impacted. A media release is prepared if the change affects a broad community, and a technical and/or web advisory is issued (SMS messaging may also be employed). Facebook, Instagram and Twitter are also used to push messages pertaining to new laws and policy/procedural changes. Stakeholder groups are consulted on changes to legislation or the implementation of new laws, such as the Chartered Accountants. A Memorandum of Understanding exists with the Chartered Accountants that states that they will be consulted on changes to legislation and policies where possible. Sector-specific changes typically involve discussions with sector representation, for example, financial groups. The Tax Administration subject-matter experts from the technical specialist group (legal) work with the communications group to ensure the accuracy of updates to publications and website material. |
| P3-8-3 | WHD | A | Repeat | 2019 | English | Scored A because good practice was detected in; Information is easily and freely accessed from a wide variety of information sources. The Tax Administration provides information through multiple channels with a heavy reliance on electronic media (Facebook, YouTube, Twitter, Instagram, The Tax Administration website, and hosted webinars). Information sources include technical advisories, rulings, practice notes, fact sheets and Frequently Asked Questions (FAQs). Face-to-face interaction with the Tax Administration occurs at all 29 offices across the country, which provide extended service during particularly heavy periods throughout the year. The teaching taxes programs are available to young LG141ns through primary to postRepeatary education institutions. The Ta xAdministration sponsors an annual debate at the university level on the role of taxation in the community. Service delivery channel plans are explained, monitored, and reported in the Annual Report and National Compliance Plan. |
| P3-9 | WHD | A | Repeat | 2019 | English | Scored A because good practice was detected in; The telephone enquiries standard adopted by the Tax Administration is well within the 6-minute standard of the TADAT framework. Service standards have been specified in the Citizen Charter relative to written correspondence, e-mails, in-person visits, and telephone enquiries. Performance levels against the standards were not available except for telephone. The Tax Administration’s call center system offers instant access to a menu of enquiry options upon completion of dialling. It is configured to monitor the number of calls answered within a standard of 20 Repeats and does not identify the number of calls answered within the 6 minutes. The data provided in Attachment III table 3 shows 62.3 per cent of calls answered for The Tax Administration’s 20-Repeat standard. In light of this, and to assess calls answered within 6 minutes, the TADAT team members undertook random calling of the call center and found that the average time to respond was 28 Repeats, indicating that all calls were answered within the TADAT’s six-minutes standard. Therefore, using professional judgment, the team concluded that The Tax Administration meets and exceeds the TADAT assessment standard. See Table 3 of Attachment III |
| P3-11-1 | WHD | A | Repeat | 2019 | English | Scored A because good practice was detected in; Performance feedback on taxpayer services and service channels is obtained regularly through multiple means. Perception surveys are conducted regularly – in-house surveys are conducted annually, and externally commissioned surveys are conducted bi-annually. Surveys are statistically valid and cover businesses and individuals. Web polls and customer feedback systems are reported to exist within each of the Tax Authority offices. Meetings with stakeholder groups are held regularly, including with ICAJ (twice a year), the taxation committee (every two months), and other specific bodies. Public presentations on various tax issues are made to various groups and sectors, and feedback surveys are conducted often. Regular feedback is also provided and monitored through the social media sites where The Tax Administration has a presence – Facebook, Instagram and Twitter. Survey results are not publicly available. |
| P3-11-2 | WHD | A | Repeat | 2019 | English | Scored A because good practice was detected in; Taxpayer input is sought on changes to forms, publications and The Tax Administration website through focus group participation and other means, such as the Institute of Accountants. The Tax Administration forms design team uses taxpayer feedback and accesses stakeholders to provide input on proposed changes to forms. Currently, the website portal is undergoing modifications on which focus group input is being sought. The MOU with the Chartered Accountants is also an example of the proactive nature of the Tax Administration in seeking and securing input from third parties on any proposed changes impacting taxpayers. |
| P3-8-1 | APD | A | First | 2019 | English | Scored A because good practice was detected in; Information is available to taxpayers to explain their main obligations and entitlements for each core tax. The information needs of different taxpayer segments are addressed through separate Taxpayer Services Bureaus in the Department of Large Taxpayers and the Department of Small & Medium Taxpayers respectively. Materials are also produced to address the needs of new taxpayers |
| P3-8-2 | APD | A | First | 2019 | English | Scored A because good practice was detected in; Maintaining and updating information for taxpayers is the responsibility of the Public Relations Bureau in the Department of General Affairs. A process is in place to deal with changes in the law or other changes to taxpayer obligations. This process is internally wellunderstood and includes undertaking proactive consultation with groups of taxpayers. Tax intermediaries play an active role in consultation activities. Tax Administration Taxpayer Service staff and auditors proactively advise taxpayers of any changes to their obligations arising from changes in the law, regulations or Tax Administration working procedures before such changes take effect |
| P3-8-3 | APD | A | First | 2019 | English | Scored A because good practice was detected in; Tax Administration provides information to taxpayers through a variety of channels. These include the Tax Administration website , an active social media presence, a range of explanatory brochures, technical practice notes and a public and private rulings program. An in-house call center was established in 2018 to address telephone enquiries, and the Tax Administration also provides a physical taxpayer service center in City Centre. All public services are provided free of charge |
| P3-9 | APD | A | First | 2019 | English | Scored A because good practice was detected in; The Tax Administration’s call center delivers a high standard of service with all calls received being dealt with promptly. Tax Administration has set an internal service delivery target to answer taxpayer enquiry calls within 3 minutes, and Table 3 of Attachment III indicates that more than 99 percent of all calls are answered within the international good practice standard of 6 minutes. The call center was established in 2018 and has a dedicated staff of 10 with six inward lines. The is a call-forwarding system in place to transfer callers to Tax Administration headquarters staff if the main call center becomes overloaded. |
| P3-10 | APD | A | First | 2019 | English | Scored A because good practice was detected. Initiatives to reduce compliance costs for small taxpayers are in place. Micro-businesses3 are not required to register with the Tax Authority or pay tax. Small businesses4 are required to keep records of sales and expenses, and only medium and large businesses are obliged to comply with International Accounting Standards. Taxpayer forms, including those used for registration and declaration, are regularly reviewed and updated. This is done to ensure that only necessary information is sought and that taxpayers are not required to spend time and effort providing information that is not needed The Tax Administration website allows taxpayers and their agents secure access to account information. At present this does not extend to making changes to such information online. Frequently asked questions and common misunderstandings are subject to ongoing review to identify areas in which clarification of taxpayers’ obligations is required. These are addressed through a range of taxpayer information and education products, including a regular series of taxpayer/stakeholder seminars at which feedback information is provided and feedback sought. |
| P3-11-1 | APD | A | First | 2019 | English | Scored A because good practice was detected in; Taxpayer feedback on Tax Administrtion’s service delivery is obtained through a variety of methods. A program of regular taxpayer seminars delivers information on a variety of issues and is also used to solicit taxpayer feedback and suggestions for improvement. Independent taxpayer perception surveys were conducted in 2013, 2015 and 20185 – and although the independent survey schedule has been interrupted by the COVID-19 pandemic, the Tax Administration reported its intention to recommence the survey program on a biennial basis as soon as possible. Survey results are not published but were reported as being used in the strategic and operational planning process to develop improvements in taxpayer service. |
| P3-11-2 | APD | A | First | 2019 | English | Scored A because good practice was detected in; The taxpayer seminar program is also used to pilot proposed changes affecting taxpayers. Such changes include the introduction of new forms and procedures, and the seminars are used to gather feedback that is used to validate and improve these changes before they are introduced. |
| P3-8-1 | APD | A | First | 2019 | English | Scored A because good practice was detected in; The Tax Administration has placed significant focus on providing taxpayers with a broad range of information. Information on the main taxpayer obligations and entitlements is readily available for all core taxes and is tailored to meet the needs of all taxpayer segments. Self-service activities are available to taxpayers at a time convenient to them. All digital services (website, Facebook pages, and e-filing) are available 24/7 and are free of charge. The Tax Administration provides tax programs for school students and free tax seminars and workshops for taxpayers and intermediaries. There is a special section on the web page, along with a guide, containing information for disabled persons. |
| P3-8-2 | APD | A | First | 2019 | English | Scored A because good practice was detected in; Taxpayers are made aware of changes in law or administrative policy through information on the website, by email and text message alerts and by use of social media. The Tax Administration produces videos and posters to be used on the webpage and social media, and the segment strategies for the different taxpayer groups highlight the timeliness of information to the taxpayers. The webpage has a special section where new laws and changes to the laws are posted. Many taxpayers (more than 60 percent) use the webpage and the social media platforms. The Tax Administration is currently developing the webpage and its electronic services to encompass new services for the coming year. Each department unit has one dedicated person responsible for updating the website in cooperation with the media department specialist. |
| P3-8-3 | APD | A | First | 2019 | English | Scored A because good practice was detected in; the Tax Administration has historically organized face-to-face meetings with industries impacted by changes in the law. These events are now conducted virtually due to the pandemic. Once information on new legislation is posted on the website or otherwise disseminated (brochures, emails, and text messages), the Tax Administration provides training to the relevant segments. |
| P3-9 | APD | A | First | 2019 | English | Scored A because good practice was detected in; Almost 90 percent of all phone calls to the call center are answered within six minutes. Also, 60 percent of the questions are answered directly during the call or within 24 hours. Taxpayers can leave questions in the automatic answering machine and the questions will be answered the next working day. Questions not answered by the call center are transferred to the Legal Department. The time to respond to taxpayers’ written requests is in 30 days according to the law but in urgent cases, the Tax Administration will answer within three days. The Tax Administration is currently reviewing its service delivery standards and will update its internal procedures accordingly. |
| P3-11-1 | APD | A | First | 2019 | English | Scored A because good practice was detected in; The Tax Administration obtains feedback from taxpayers via the website and meetings with stakeholders. Taxpayers actively use the separate feedback tool provided in the portal while filing their tax returns, paying their taxes, or seeking information on the website. The Tax Administration YouTube channel was visited by more than 330,000 users in 2021, making more than 900,000 comments. The channel has 1,800 subscribers and 3,470 users receive regular information. The feedback is used by the Tax Administration to improve training programs and guidance to taxpayers. |
| P3-8-2 | EUR | A | Repeat | 2019 | English | Scored A because good practice was detected in; The Tax Administration has a procedure, and dedicated staff is assigned, to update information in a timely manner when needed. Mainly using the Tax Administration website, taxpayers are made aware of changes in tax laws and procedures. This is done both on a general level and through targeted information. The task is delegated to the taxpayer service sector, which has staff allocated to make the updates. A good example of this is the awareness campaign for adopting fiscal cash registers, which was targeted at small and medium-sized retailers and service providers |
| P3-8-3 | EUR | A | Repeat | 2019 | English | Scored A because good practice was detected in; Proactive educational programs are provided e.g., for newly registered businesses, schools and for university students. The program in schools is targeted for fourth-grade students and has been running since 2016. Information is provided mainly through the Tax Administration website, but also through a call center and one-stop-shop service points throughout the country. By request, the documents published on the website can also be obtained as hard copies. Information is free of charge. The Tax Administration encourages taxpayers to move towards a digital environment with their tax affairs and the Tax Administration website self-services are available 24/7 |
| P3-9 | EUR | A | Repeat | 2019 | English | Scored A because good practice was detected in; Taxpayers receive timely responses to their questions through telephone enquiries. Over 70 per cent of contact centre calls are taken within a set 6-minute time limit over 12 months total average. The numerical data is presented in Table 3 in Attachment III |
| P3-8-1 | AFR | A | Repeat | 2019 | English | Scored A because good practice was detected in; Information on the main areas of registration, filing, payment and reporting is readily available for the core taxes. Guidance is available on how and when taxpayers can meet their tax obligations. Information is available for: (i) all taxpayer segments; (ii) specialized sectors such as mining and construction; (iii) disadvantaged groups that cannot read or write English—tailored to their needs through presentations in their local languages— for example, provision of radio jingles in two Native languages. Tax Administration’s website includes Frequently Asked Questions (FAQs). |
| P3-8-3 | AFR | A | Repeat | 2019 | English | Scored A because good practice was detected in; A broad range of information is available to taxpayers at no cost. For example, taxpayer education programs are available through tax clinics, roadshows, and different service channels. The latter include the Tax Administration’s website, brochures, information sheets, TV clips and radio jingles, and WhatsApp and text message clips. Information is also available (at any time) through TaxOnline II and mobile applications (TaxOnApp and TaxonPhone). Walk-in service centers and the call center are also available for use by taxpayers. |
| P3-9 | AFR | A | Repeat | 2019 | English | Scored A because good practice was detected in; The Tax Administration responds promptly to customers’ calls through a dedicated call centre. At least 92 percent of telephone inquiries are answered within the 6 minutes of waiting time TADAT standard. Table 3 in Attachment III shows average response times of over 95 percent of all telephone inquiries. Tax Authority’s Taxpayer Services Charter has set a standard for answering calls within 3 minutes during non-due date periods and 5 minutes during (filing) due date periods. Dropped calls reported were minimal. |
| P3-11-2 | AFR | A | Repeat | 2019 | English | Scored A because good practice was detected in; Tax Administration actively considers taxpayers’ input in designing administrative processes and products. Stakeholders are invited to contribute to developing new systems and enhancing existing products. For example, there was extensive consultation and engagement in recently introduced ICT-related systems, including providing feedback on technical plans and testing of the TaxOnline II system. |
| P3-8-2 | APD | A | First | 2019 | English | Scored A because good practice was detected in; Tax Administration ensures that information is current and that taxpayers are made aware of changes in the law and administrative policies before they take effect. Taxpayers are educated on impending changes to the laws, which are also published in the government gazette and all Tax Administration’s engagement channels. Tax Administration has dedicated staff from marketing, technical units, and the tax academy that are responsible for regular updates to the frequently asked questions and for keeping information on the website up to date. |
| P3-8-3 | APD | A | First | 2019 | English | Scored A because good practice was detected in; Taxpayers have access to information through a broad range of user-friendly channels. Information is available via information guides on Tax Administration’s website, the call center, and multiple engagement channels, including online chats using the Viber chat application, Tax Administration’s social media channels, such as Facebook and Tax Administration’s YouTube channel. There is also a dedicated service center that provides information to those taxpayers who prefer face-to-face interaction and taxpayers in +D230atolls can visit the local office. Taxpayers also have access to various targeted seminars, media campaigns and dedicated email queries service. Provision of information to taxpayers, intermediaries, or other interested groups is free of charge. Under taxpayer service standards, information is provided free of cost to taxpayers. The dedicated hotline is not enabled for toll-free calling, but taxpayers have an option to request a callback and thus incur an only minimum cost. |
| P3-9 | APD | A | First | 2019 | English | Scored A because good practice was detected in; Telephone inquiry calls received by the call center are almost all answered within six minutes. Tax Administration uses the two IT systems to monitor telephone calls. Table 3 of Attachment III, shows that on average, 98.4 percent of all calls are answered within six minutes for the year 2021. Callers can request a callback if they do not want to wait and Tax Administration’s service standards require the callback to be made within the current day. |
| P3-8-2 | AFR | A | First | 2019 | English | Rated A because good practices were detected. Taxpayers are made aware of changes to the law and administrative policy through targeted and general communication before the texts come into force. Updating information materials is entrusted to the communications and quality office attached to the Director General. Responsibilities for raising taxpayer awareness of tax morale are clearly defined. The office is responsible for setting up a communication system on normative reforms, in particular strategies to raise awareness of user consent, and for informing taxpayers on the methods of implementing the new measures. Significant legislative or administrative policy changes are systematically brought to the attention of taxpayers through general and targeted communication before their adoption or entry into force. |
| P3-8-3 | AFR | A | First | 2019 | English | Rated A because good practices were detected. Taxpayers have easy access to tax information from the tax administration. The operational departments have services dedicated to users who welcome them during opening hours and are responsible for helping them satisfy their needs. tax obligations and provide them with services. Press campaigns, seminars and open days are regularly organized. A newspaper information is published quarterly by the tax administration to share tax news and inform about new products and services. For example, 45 training sessions were organized to popularize the tax guide for small and medium-sized enterprises (SMEs). A tax compliance awareness brochure aimed at schools was distributed. The Minister of Finance and Budget and the Minister of Education The National Commission proceeded, by interministerial decree n°021548 of July 30, 2019, in place of a working group responsible for developing a system for introducing good citizenship taxation in primary school curricula. The information is available online, in the form of brochures and is also communicated by telephone and SMS for those who subscribe to this service. |
| P3-10 | AFR | A | First | 2019 | English | Rated A because good practices were detected. All taxpayers can access their data online and small taxpayers benefit from simplified procedures. Individuals who declare a turnover of less than 50 million FCFA are subject to the Single Global Contribution with a single declaration per year which includes six taxes (income tax, VAT, CEL, flat-rate contribution payable by 31 employer and alcohol license) and payment in three installments. Companies which have a turnover of less than 100 million FCFA are subject to the simplified real taxation regime providing for a reduction in VAT declaration obligations and other withholding taxes and for the benefit of the taxable event established upon receipt. The pre-established declaration is not in force but the Remuneration paid by identified third parties (salaries, interest, dividends) is subject to withholding tax. Frequently asked questions from taxpayers and the most difficult interpretations from municipalities are systematically analyzed and published on the site 6. Large and medium-sized businesses have access to their online accounts via the etax application, so other taxpayers can also access their data via My Personal Space. The forms are reviewed regularly to avoid unnecessary questions.A |
| P3-8-3 | WHD | A | First | 2019 | English | Score A because a good practice was detected. The Tax Education program carries out actions aimed at raising citizen awareness about the obligations and rights related to state taxes. There are specific lectures for 28 tax intermediaries and small businesses. Furthermore, the current taxpayer education program focuses on raising awareness of new, micro and small businesses. There is also a “citizenship bus” that travels throughout the state taking the tax education program to the most distant locations. The administration provides in-person service channels in various parts of the state, with specific opening hours. Virtual information, through sefaz.net15, the website and DT-e, is available 24 hours a day, at no cost for access |
| P3-8-2 | AFR | A | First | 2019 | English | Score A because a good practice was detected. Information is updated regularly. The Tax Authority encourages taxpayers to use its services online and by telephone, as part of a general effort to avoid the need for face-to-face contact (this channel represented less than 5 percent of total contacts in 2019). They document in detail the procedures adopted to maintain the page to ensure it is always up to date. Responsibility for maintaining the page is assigned to people from different areas of the organization. These responsibilities apply to communications generally. The focal points within the organization are: the general service coordinator, for services, and the communication advisor, for the availability of information on the website, both supported by technical teams from their respective areas |
| P3-8-3 | AFR | A | First | 2019 | English | Score A because a good practice was detected. Taxpayers have several channels at their disposal through which they can receive information and guidance. The Tax Authority essentially relies on its website as* its main information dissemination platform. Taxpayers can schedule in-person assistance, seek specific guidance or use a postal contact to interact with the Tax Authority. Taxpayers can report to Federal Revenue units across the country and can also receive services through the post office and some banks. A telephone service is also available. Requests for guidance by post are less frequent and there is no national management of this type of correspondence. The Tax Authority has partnerships with different institutions (for example, universities) to be able to offer educational programs tailored to needs. All services are free. |
| P3-9 | AFR | A | First | 2019 | English | Score A because a good practice was detected. This difficulty, combined with budgetary restrictions, led to the decision to invest more heavily in the various forms of online or telephone service. The “chat” function was launched in 2019 and is perhaps the closest thing to a “call center”. It is available nationwide and the attendants can provide a series of services22. Taxpayers enter a virtual queue and their activity is monitored in real time. A total of 92 percent of taxpayers wait six minutes less for a call. Telephone service Automatic machines can respond to two types of requests (consultation of registration status and consultation on income tax refunds, both for individuals) |
| P3-10 | AFR | A | First | 2019 | English | Score A because a good practice was detected. The Tax Authority has been investing considerably in reducing the burden of compliance for taxpayers. There are simplified procedures for small taxpayers, which include a shorter form that can be filled out and sent via an app cell. Reporting rules have also been simplified by virtually eliminating this requirement for many taxpayers; Furthermore, the taxpayer himself can access his data on some taxes. Simplified compliance procedures are also available for individuals (e.g. the domestic worker) and there are pre-filled declarations. The website is robust and comprehensive and any employee with access to the internet has a full range of RFB information and services at their disposal 24 hours a day. day. Dedicated teams analyze the most common errors, whether through service monitoring or verification activities. These teams come up with solutions to inform high-level decisions. level and help with implementation |
| P3-11-2 | AFR | A | First | 2019 | English | Score A because a good practice was detected. There is a strong commitment to seeking taxpayer input in the development of processes and procedures. RFB holds meetings with specific target groups to test service innovations, both during the development process and before implementation. official launch of the new service. As an example, accountants are regularly consulted regarding service improvements. The Tax Authority deliberately seeks input from individuals and specific organizations or groups to improve processes (e.g. industry confederation, association of pharmaceutical companies) |
| P3-8-2 | WHD | A | First | 2019 | English | I wrote it down because a good practice was detected. Information is updated regularly. The Tax Authority encourages taxpayers to use its services online and by telephone, as part of a general effort to avoid the need for face-to-face contact (this channel represented less than 5 percent of total contacts in 2019). They document in detail the procedures adopted to maintain the page to ensure it is always up to date. Responsibility for maintaining the page is assigned to people from different areas of the organization. These responsibilities apply to communications generally. The focal points within the organization are: the general service coordinator, for services, and the communication advisor, for the availability of information on the website, both supported by technical teams from their respective areas |
| P3-8-3 | WHD | A | First | 2019 | English | I wrote it down because a good practice was detected. Taxpayers have at their disposal several channels through which they can receive information and guidance. The Tax Authority essentially relies on its website as the main platform for disseminating information. Taxpayers can schedule in-person assistance, seek specific guidance or use a postal contact to interact with the Tax Authority. Taxpayers can report to Federal Revenue units across the country and can also receive services through the post office and some banks. A telephone service is also available. Requests for guidance by post are less frequent and there is no national management of this type of correspondence. The Tax Authority has partnerships with different institutions (for example, universities) to be able to offer educational programs tailored to needs. All services are free. |
| P3-9 | WHD | A | First | 2019 | English | I wrote it down because a good practice was detected. The service provided to the taxpayer is recognized as a fundamental element in encouraging voluntary compliance. A full 92 percent of taxpayers wait less than six minutes for an appointment. Taxpayers have several options for contacting the Tax Authority, including the website, an online “chat” service, various cell phone requests and an automatic response function. Until 2015, there was a “call center” service outsourced, but this was suspended because it was considered too difficult to maintain sufficiently well-trained staff to accurately respond to taxpayers' questions. This difficulty, combined with budget restrictions, led to the decision to invest more heavily in the various forms of online or telephone service. The “chat” function was launched in 2019 and is perhaps the closest thing to a “call center”. It is available throughout the country and attendants can provide a range of services22. Taxpayers enter a virtual queue and their activity is monitored in real time. A full 92 percent of taxpayers expect less six minutes for a call. Telephone service Automatic machines can respond to two types of requests (registration status query and query on refund of income tax, both for individuals) |
| P3-8-1 | AFR | A | Repeat | 2019 | English | Rated A because good practices were detected. The tax administration offers users a wide range of information, available via numerous and varied sources. The Directorate of Communication, Quality and Promotion of Citizenship and the Sub-Directorate of Publications and Documentation come under the Legislation Directorate. The Litigation & Documentation department is responsible for the development, publication and communication of tax documents. By decree No. 2016-869 of November 3, 2016, the Sub-directorate for the promotion of tax citizenship, responsible for the promotion of tax citizenship. Customer users are informed of their main rights and obligations through several media, including seminars, reform presentation forums, information campaigns, awareness caravans, press articles, radio and television broadcasts, educational training in 23 primary and Repeatary, etc.). The actions carried out concern all taxpayers and specific groups (e.g. creation of approved management centers for small and medium-sized businesses, leaflets for informal sector service providers, etc.). |
| P3-8-2 | AFR | A | Repeat | 2019 | English | Rated A because good practices were detected. The documentation and information made available to user-clients are regularly and systematically updated. There are procedural manuals for this purpose, such as procedures for disposing of the texts and services of the legislation, for the design of texts and documents and the preparation of tax annexes. Taxpayers are kept informed of changes to the law or administrative policy before their effective date through targeted communications (e.g. training meetings for taxpayers, presentation of new tax guidelines to the private sector, etc.) and general communications (press articles, press releases, etc.) |
| P3-8-3 | AFR | A | Repeat | 2019 | English | Rated A because good practices were detected. The information made available to user-clients is easy to access. The tax administration website is widely used to disseminate information and carry out certain tax procedures. The general tax code, the calendar of tax obligations, the tax doctrine, the printed documents, can be consulted online. The information is available at little or no cost. In general, the tax administration goes from a B+ rating in 2015 to an A rating in 2021 in these dimensions D3-8. |
| P3-9 | AFR | A | Repeat | 2019 | English | Rated A because good practices were detected. Maximum wait times associated with call center telephone inquiries are monitored and on average 86% of calls are answered within a maximum 6 minute wait time between October 2020 and September 2021 [Appendix III, table 12]. The tax administration responds quickly to customer calls through a dedicated call center. The tax administration is committed to respecting the service delivery standards documented in the Tax Administration Quality Charter available online, with performance evaluation reports carried out against the standards and published in the tax administration reports. activity. The tax administration's quality charter defines response times for each type of service. In particular, the response to letters must be made within one month to |
| P3-8-1 | WHD | A | First | 2019 | English | Score A because a good practice was detected. The Tax Authority provides the public with comprehensive information on the obligations and rights of taxpayers and meets the needs of different segments of taxpayers. The Tax Authority Portal allows you to consult current legislation and its recent changes, as well as providing taxpayers with access to services to fulfill their obligations online, such as registration, change of registration, payment of taxes, consultation of documents, declarations and processes. The information is adapted for different segments, such as small businesses, rural producers, accounting companies, with access to the Virtual Taxpayer Service Center via password or digital certificate. Explanatory videos are produced about rights and duties aimed at small taxpayers in order to facilitate understanding of the content. |
| P3-8-3 | WHD | A | First | 2019 | English | Score A because a good practice was detected. A wide range of information is available to taxpayers at no cost. For example, taxpayer education programs are available through tax clinics, roadshows and different service channels. The latter include the Tax Authority website, brochures, information leaflets, TV clips and radio jingles, and WhatsApp clips and text messages. The information is also available (at any time) through TaxOnline II and mobile applications. The service stations and call center are also available for taxpayers to use. |
| P6-20 | EUR | A | First | 2019 | English | Scored A because good practice was detected. There is high coverage of automated information cross-checking. Tax Authority extensively uses third-party information received from employers, banks, public agencies and others. This information is automatically cross-checked and used in making tax assessments and pre-populating tax returns for all PIT taxpayers. In 2013, Tax Authority received 58.4 million pieces of third-party information. |
| P6-22 | WHD | A | First | 2015 | English | Score A because a good practice was detected. Studies are carried out annually on the scope of inaccurate declarations of both VAT and ISR. The Tax Authority makes periodic estimates of the VAT gap. In 2015, FAD was asked to calculate the VAT gap using the Tax Administration Gap Analysis. The internal studies of the Tax Authority from 2007 to 2013 show consistency with the results of the RA GAP study and confirm that the methodology used is solid. The results are made public and used to improve reporting accuracy. |
| P6-19-1 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; Audit programs of the Tax Administration are comprehensive and effective. There are two audit programs, one for the Large Taxpayer Department, and one for the Medium and Small Taxpayer Department. They cover all core taxes, key taxpayer segments, and high-risk areas. Cases are selected centrally by the Tax Risk Management Unit based on 36 assessed risks in the compliance risk register. A range of audit types together with direct and indirect methods are used and the results of audits are evaluated to assess the impact |
| P6-20 | EUR | A | First | 2019 | English | Scored A because a good practice was detected. Information cross-checks are constantly carried out between available data and information obtained at the request or supply of third parties. Mass automated cross-checks are carried out to verify the accuracy of the declared amounts. Among the entities can be mentioned Banks, Stock Market, Internet providers and with respect to the government organizations included in the crossings, Social Security, Customs, Commercial Registry and Property Registry among others. Mass automated cross-checks are carried out to verify the accuracy of the declared amounts. Among the entities can be mentioned Banks, Stock Market, Internet providers and with respect to the government organizations included in the crossings, Social Security, Customs, Commercial Registry and Property Registry among others. |
| P6-21 | EUR | A | First | 2019 | English | Scored A because a good practice was detected. The Tax Authority has a system of binding public and private rulings and different cooperative compliance agreements have been signed. The Tax Authority has a system of binding queries carried out by the Tax DG, which includes the publication of responses to queries made by taxpayers. Consultations can refer to any tax and affect natural or legal persons. The doctrine of the Economic Administrative Courts is also published. In addition to binding queries, there is a repository of queries classified by tax subject, which, although not strictly binding, relieve you of tax obligation. Likewise, and as a preventive measure, Preliminary Valuation Agreements are established regarding transfer prices and distribution of costs or benefits. With a collaborative approach, and in order to manage the risks of inaccurate information and reinforce legal certainty in the interpretation of tax regulations, actions such as the constitution of a Large Companies Forum, Code of Good Tax Practices, Social Collaboration, Networks Social and Advisory Forums have been held. |
| P6-19-3 | WHD | A | First | 2019 | English | Scored A because a good practice was detected. A unit at a central level monitors and quality controls the actions following a standardized LG70 procedure and regularly issues reports. Dependent on the Supervision Directorate, there is a unit -Subdirectorate of Control of Inspection Processes- which is responsible for evaluating the performance of the inspection bodies and the quality and productivity of the actions, defining performance indicators. The officials of this unit regularly visit the supervisory bodies, take note of the most relevant facts of the case, the risks established by the officials in charge of the analysis or supervision, and make recommendations on the actions to be adopted in the course of the investigation. process. There are action manuals that regulate this activity and evidence of “minutes” or reports of the monitoring carried out is provided. |
| P6-20 | WHD | A | First | 2019 | English | Score A because a good practice was detected. The tax administration carries out automatic data crossing on a large scale based on the information provided in the system's declarations. Cross-checking data with information from employers, stock exchanges, social security agencies and real estate registries are not applicable as the system has the characteristics of VAT. Automated data crossings cover all electronic tax documentation that has the taxpayer as the sender or recipient of goods or services, and verify the declared data with information from financial institutions, such as credit card operators, customs, commercial boards, free zones, online suppliers, among others. All tax documents issued by taxpayers are electronic, which allows the structuring of tax networks for systematic data verification and validation of tax credits and debts, in addition to contributing to the analysis of refund requests from the system |
| P6-19-2 | WHD | A | First | 2019 | English | Score A Because a good practice was detected. There are several manuals – general and specific – that guide and define the procedures to be carried out by auditors during the execution of an inspection, which meet the minimum requirements required by TADAT. The Inspection Procedures manual guides auditors regarding the execution of inspection procedures. The Audit Manual is permanently updated. It is divided into Titles, Sections and Chapters, each covering the inspection and audit procedures to be adopted at each stage, including guidance on subpoenas and the documents that must be analyzed and requested. The reasons are included legal and binding administrative and judicial jurisprudence. The TADAT team verified that the The inspection manual defines, among other aspects, procedures for i) planning audit cases (roadmap), ii) communicating to the taxpayer the scope and nature of the inspection, iii) examining the taxpayer's documentation and records, iv) presenting to the taxpayer the results of the audit and possible infraction notices, and v) inform the taxpayer about the defense mechanisms available to them. It should be noted that national legislation does not provide for mechanisms to agree/reconcile the results of an external audit with the taxpayer. For now, it is worth noting that auditors do not waste time preparing dossiers with the profile of the taxpayer to be audited, since these are provided directly by case programming. Regarding the management of inspection case documentation (notifications, working papers, files, etc.), it should be mentioned that it is fully automated through the Tax Action System. Finally, the existence of more specific manuals or guides imposed by other entities was found, selective taxes on consumption, VAT, Cide Combustíveis, Cide Remittances Abroad), due to fiscal risk (Exchange Regularization, Fraudulent Interposition, Destruction of Goods, Money Laundering , Corporate Reorganization, Abusive Tax Planning), by economic sector (Real Estate Activities, Beverages, Cigarettes and VISE - Comprehensive View of the Economic Sector and by taxpayer segment (economic groups, family groups, immune and exempt institutions, exporting companies) |
| P6-19-3 | WHD | A | First | 2019 | English | Score A For having detected a good practice. In addition to being monitored by those responsible for inspection, the quality control of the inspection is routinely monitored by the General Coordination of Internal Audit and Risk Management (AUDIT), in accordance with previously approved revised procedures. Their findings are duly communicated to the units and have an impact on improving the quality of audits. in addition to the quality analysis carried out by two national bodies in the at regional level, and by the Head of the Police Inspection Service, and at local level, o AUDIT's internal audit teams routinely verify that external audits and credit rights analysis audits (refund, compensation and reimbursement) observe established procedures . In their audit work, AUDIT teams follow the procedures established in the Internal Audit Manual. Among others, there are terms prepared by the Tax Auditors, as well as all the documents contained in the inspection and notice of infraction (process for establishing tax credits). The results are reported, through specific individual reports28, to managers, regional or local authorities of Police Stations, Heads of Inspection Division of the Superintendencies of each Fiscal Region), process managers, National Inspectors and Undersecretary of Collection, Registration and Service, in the case of credit rights analysis audits. At the end of the year, these findings are referred to in the Annual Internal Audit Activity Report. compiled evidence of actions taken as a result of internal audit findings. |
| P6-20 | WHD | A | First | 2019 | English | Score A because a good practice was detected. The Tax Authority has great capacity to carry out automatic crossings of large volumes of data from internal and external sources to check for inaccuracies in main tax returns. The legislation grants broad powers to the Tax Authority to establish information obligations. Furthermore, the Tax Authority reuses information made available by institutions government agencies at all levels of government and shares information with other jurisdictions. In this sense, he routinely captures: • VAT data from the Digital Tax Bookkeeping of Contributions • information from financial institutions, stock exchanges and/or shareholder registries of companies listed through the e-Financeira ancillary obligation,31 • information provided by employers through the ancillary obligation (Withholding Income Tax Declaration),32 in addition to the information provided by employers who fulfill their labor, social security and social security obligations taxes through the Digital Bookkeeping System for Tax and Social Security Obligations and Labor (eSocial) and the Time Guarantee Fund Collection Guide Social Security Assistance and Information and the information provided in the Declaration of Income Paid to Consultants by International Organizations, 33 • government purchases through a cooperation agreement with the Secretariat of National Treasury to access data from the SIAFI system (Integrated information from the Motor Vehicle Registry, • information from the Financial Intelligence Unit, • data from major payment service providers plus transaction data through credit cards, Statement of Credit Card Transactions) credit), • information about operations with cryptocurrencies, such as bitcoin, and The Tax Authority has a Data Lake solution, Revenue Data, which allows for agile processing of large volumes of data and which has the main tools and technologies for analyzing data used in the market. Furthermore, it has a tool developed internally for data crossing. All crossing rules are contained in the selection and programming manuals managed by a separate unit. The TADAT team was able to verify the operation of the crossing rules responsible for the registry office, property registration and titles and documents, through the ancillary obligation Declaration on Real Estate Operations Financial Administration of the Federal Government), • data from Foreign Trade systems (Siscomex) administered by the Tax Authority, • Accounting data from States and Municipalities through agreements cooperation, • information from Electronic Invoices from State Secretariats through cooperation agreements, • data on the acquisition or sale of properties registered by bailiffs, |
| P6-19-2 | WHD | A | First | 2019 | English | Scored A because a good practice was detected. The standardization of audit procedures follows good practices international. There are several manuals – general and specific – that offer guidelines and definition of audit procedures. The Procedure Manual Official Determinations (June 2019) and Expanded Control Instruction (December 2019) audit procedures have been standardized in the departments of large taxpayers, and regional and departmental directorates at the national level. Among other elements, these documents establish guidelines for the following stages of the process: action planning; analysis of the taxpayer profile; scope of the review, including criteria for its extension, suspension and extension; issuance of audit plans and working papers; protocols communication to the audited taxpayer about rights and resolution procedures of litigation; and procedures to follow for the discussion of adjustments and the proposal of liquidation and regularization. On document management (orders of performance, work papers, files, etc.), it is necessary to point out that this is standardized and automated through the Tax Audit System. Finally, it was verified the existence of action or instruction guides by economic sectors (telecommunications, |
| P6-19-3 | WHD | A | Repeat | 2019 | English | Scored A because good practice was detected in; The Quality Review Unit regularly reviews completed audits for quality and issues reports on the findings, which are taken into account to improve audit program delivery. Under the Operations Division, the Quality Review Unit follows a structured work plan and adheres to SOPs. It issues checklists, reports, and scoring (satisfactory& above, improvement needed or unsatisfactory), which are used to assess the quality of the audits. Results are presented in senior management meetings to standardize and monitor the audit process, develop audit training, and support future audit work plans. |
| P6-20 | WHD | A | First | 2019 | English | Score A because a good practice was detected. The tax administration automatically cross-checks on a large scale the information provided in the system's declarations. Cross-checking data with information from employers, stock exchanges, social security agencies and real estate registries are not applicable as the system has the characteristics of VAT. Coverage of automated data crossings across all electronic tax documentation in which the taxpayer appears as the sender or recipient of goods or services, and verify the declared data with information from financial institutions, such as credit card operators, customs, commercial boards, free zones , online sellers from other states and the State Department of Transit,. All tax documents issued by taxpayers are electronic, which allows the structuring of tax networks for systematic data verification and validation of tax values, in addition to contributing to the analysis of refund requests from the system. |
| P6-19-2 | APD | A | First | 2019 | English | Scored A because good practice was detected in; The Tax Administration has a tax audit manual prepared by the System Deployment Unit and audit process regulations. The manual provides extensive details on how to prepare, conduct, and close an audit from the systems perspective. There are a number of sector speciality audit guides including the construction sector, trucking, mining, real estate, wholesale and retail, restaurants, e-commerce, and the motor vehicle trade. In addition, the process regulations include calculation sheets, multiple templates, interview notes, and details for excisable products like alcohol and tobacco. There are clearly detailed steps for an auditor to follow once the audit case has been assigned to them. Screenshots were provided from the audit module. This includes an audit plan, a declaration of no conflict of interest, electronic approval of the audit plan, a place for daily notes, and preparation, execution, and completion phases of the audit. |
| P6-19-2 | EUR | A | Repeat | 2019 | English | Scored A Because the good practice was detected in; Auditors are required to follow the Tax Administration audit manual that lays out the appropriate steps to conduct an audit that meets Tax Administration’s quality standards. The audit manual is detailed in its explanations of the steps needed to be followed once a case is assigned including preparing an audit plan, creating a taxpayer profile, engaging the taxpayer, examining records, advising taxpayers of the findings, and informing taxpayers of their appeal rights. The manual provides a comprehensive overview of audit methodologies, techniques, and procedures. There are also a number of special manuals detailing audit steps for economic sectors – audit manuals exist for VAT in the construction industry, the road freight industry and agriculture. The Tax Administration has also published an audit standard document that summarizes key steps and approaches in completing the audit, including informing taxpayers of dispute resolution procedures. |
| P6-19-3 | APD | A | First | 2019 | English | Scored A because good practice was detected in; Audit quality is maintained through a peer review process, followed by approval by an audit committee. The peer-review process evaluates a percentage of files prior to completion to ensure quality standards have been met. The manager of the audit department also reviews each file as part of the completion process. The final step in the approval process is a review by the audit committee which is comprised of the heads of the audit department and other senior staff. A standard checklist is used. The Audit Committee documents its findings in meeting minutes, which include instructions to auditors where additional work is required. The overall findings from the audit committee reviews are used to identify training needs, which are then incorporated into the training plan for auditors |
| P9-29-1 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; A wide range of internal controls is in place. SOPs and manuals exist for all business units; they are available online (on the Intranet) for staff. The transition to a semi-autonomous body and the implementation of a new IT system have required new job descriptions and a comprehensive re-engineering of all the processes; as a result, most of the SOPs have been updated. A system of delegation is in place for financial transactions and operational decisions. Access rights to the system and information are granted by both the HR division and the senior office managers. Accounting transactions (including the person who has made the transaction) can be tracked in the system. Disaster recovery and data backup plans are also in place. For example, new procedures have been implemented to improve the security of e-mails, and the Tax Administration has been helped to develop scripts to improve its information system and data integrity. The Tax Administration employee conduct is governed by the Tax Administration Code of Conduct. A good level of assurance on the effectiveness of internal controls is provided by the Internal Audit function. The Internal Audit division reports, administratively, to the Commissioner and, functionally, to the Board’s Audit Committee. The Internal Audit team comprises 35 trained auditors, many with tax administration experience and post-graduate level training. The lack of IT experts has been identified as a weakness, but the Internal Auditors liaise with the IT division that provides the necessary support whenever required. The Internal Audit team operates according to its audit plan 2015/16, which includes comprehensive risk mapping and an annual audit program. The Internal Audit Team reports its findings quarterly and annually to the Board’s Audit Committee. Audit findings are reviewed by management and their responses are incorporated in the final report. |
| P9-29-2 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; There is a good level of assurance of staff integrity. All allegations of staff misconduct in the revenue sector are referred to the Revenue Protection Unit; an independent agency within the Ministry of Finance. The Revenue Protection Unit also provides leadership in the determination of integrity and ethics policy and oversees its implementation. The Revenue Protection Unit has notably provided inputs to the Tax Administration’s Code of Conduct. It also interacts with other enforcement bodies (including police, Major Organized Crime and AntiCorruption and the Corruption Prevention Commission. It produces quarterly reports including statistical breakdowns of the number of intelligence products developed, background checks completed, and cases initiated, investigated and prosecuted. These reports including (confidential) integrity-related statistics are publicly reported. |
| P9-30-2 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; An external mechanism for investigation of allegations of suspected wrongdoing and maladministration is in place. The Revenue Protection Unit has extensive powers to investigate alleged corruption cases. It reports to the Financial Secretary of the Ministry of Finance on a quarterly basis. Overall, the Tax Administration collaborates with the Revenue Protection Unit and the two bodies share their databases. A number of examples illustrate this good collaboration: (i) Tax Administration via its Human Resources division has consistently referred cases of staff misconduct to the Tax Administration; (ii) Tax Administration’s Internal Audit Division has designated an internal auditor who is assigned to Revenue Protection Unit for purposes of on-going investigations; (iii) a disciplinary committee has been established within the Tax Administration that acts on RPD recommendations; (iv) a Security Advisor position has been created within the Tax Administration on the recommendation of RPD; and (v) areas where criminal activities have been identified by the RPD have been included in the Tax Administration risk register and covered by the current audit program. There are two other bodies in place to investigate unresolved complaints from taxpayers on maladministration: the Standards and Monitoring Office and the Ombudsman. Systemic service and fairness issues and challenges are reported to the Ministry of Finance. |
| P9-29-1 | WHD | A | Repeat | 2019 | English | Scored A because good practice was detected in; The Tax Administration has an independent internal audit unit that meets international standards of good practice. The establishment of the Internal Audit Unit (IAU) is set out in the Financial Administration and Audit Act. The internal audit procedures are laid out in the Government of the Country Internal Audit Manual. The unit consists of 22 staff members of whom 19 are auditors including the Chief Internal Auditor, who reports functionally to the Audit Committee of the Tax Administration Board and administratively to the Head of the Tax Administration. The terms of reference of the IAU are outlined in the Internal Audit Charter which specifies the Unit’s functional and organizational independence and audit scope. IAU prepares an annual audit plan designed to provide audit coverage across all key the Tax Administration operations in effectively and efficiently. The plan identifies inefficiencies in business processes, where internal controls are weak and need strengthening, and verifies the accuracy and integrity of the tax administration system. It also prepares quarterly and annual reports of its findings and recommendations. Regular training is provided by the Internal Audit Directorate (IAD) of the Ministry of Finance and the Tax Administration Training Unit. Staff have several years of experience in financial audits, performance audits and ISO audits. IAU prepares a yearly training program detailing the training needs of the unit and audit staff are trained regularly. The IAD of the Ministry of Finance conducts an independent review of the IAU once every 5 years. The IAU maintains a repository of internal controls policies and procedures from all areas of operation in the form of SOPs, which are updated by the Organisation Development Section of the Tax Administration. IT system controls are in place and audit trails of user access are robust including the existence of system-generated reports. IAU provides good internal surveillance of the Tax Administration Information system |
| P9-30-1 | WHD | A | Repeat | 2019 | English | Scored A because good practice was detected in; The Auditor General’s Office (AGO) provides independent external oversight of the Tax Administration's operational and financial performance. The responsibilities and authority of the Auditor General are detailed in the Constitution and the Financial Administration and Audit Act. It provides annual audits of all government ministries, departments and agencies including the Tax Administration in accordance with professional and ethical standards based on a Strategic Business Plan. The AGO issues report on the Tax Administration's operational performance as well as the use of public resources. The Tax Administration provides responses to the AGO's findings. The findings are published on the AGO’s website and are also presented to Parliament through the Public Accounts Committee where the hearings are public. |
| P9-32-1 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; Annual reports on operating and financial performance are published within 6 months of the end of the fiscal year to which they refer. The annual reports contain extensive information on the operational and financial performance of the Tax Administration. |
| P9-29-1 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; The Tax Administration also which is also responsible for internal audits, covers all the directorates and units as well as all their activities. The Office, which reports directly to the Head of the Tax Administration has 68 inspectors at headquarters and 100 officers assigned to the branches of the Tax Investigation in the regional tax directorates. For example, the audit program for the fiscal year 2015 covers the management of the taxpayer registry, debt collection, taxpayer audit, the handling of exemptions, compliance with tax obligations, the quality of service provided to taxpayers and communication |
| P9-29-1 | APD | A | First | 2015 | English | Scored A because good practice was detected in; A strong internal control framework is in place. Core administration functions are now highly automated with accounting processes entirely online. A framework of authorizations regarding access to systems and taxpayer data is in place and the system provides an audit trail of all accesses and data entries on the system. Work design includes functional separation of duties. The Tax Administration has also signed a “corporate integrity pledge” with the National Anti-Corruption Commission. This pledge commits the Tax Administration to the implementation of a comprehensive program of integrity improvement measures. The Tax Administration reports on progress with the implementation of these measures as and when required by the commission. The Tax Administration has a functionally separate internal audit unit which formally reports directly to the Tax Administration Board. An annual internal audit plan is prepared each year and is approved by the Risk and Compliance Committee. The plan encompasses both performance audits and financial statement audits and includes a cross-section of regional and branch offices and headquarters departments. Progress with implementation of the plan is monitored at quarterly meetings of the committee. |
| P9-29-2 | APD | A | First | 2015 | English | Scored A because good practice was detected in; There is a range of staff integrity assurance mechanisms in place. These include: (a) an integrity feedback channel for taxpayers to file complaints on the Tax Administration’s website; (b) a whistle blower policy; (c) the corporate integrity pledge; (d) a structured multi-year integrity improvement plan; (e) a staff code of ethics; and (f) an Integrity and Governance Committee; (g) and separate frameworks for audits and investigations which set out how these processes must be conducted and taxpayers’ rights and obligations. Responsibility for investigating breaches by staff is handled in a focused manner and case investigations may involve the Inspectors and Integrity Department, the Finance Department, or the security unit within the IT Department. Ultimately, the results of investigations of breaches by staff are submitted to the appropriate disciplinary committees (Executive and Non-Executive) according to the stipulated staff integrity assurance procedures. The reported incidence of staff integrity breaches is quite low. For example, the Tax Administration records show that since 2004, only two cases involving financial loss to the organization have been investigated. The number of staff disciplinary and court cases is also low (29 cases in 2014 and 39 cases in 2015) |
| P9-30-1 | APD | A | First | 2015 | English | Scored A because good practice was detected in; There is a strong framework of external oversight of the Tax Administration operations and financial performance in place. The Accountant-General’s office audits the financial statements of the Tax Administration every year and the results are published in the Tax Administration annual report. The National Audit Office conducts an annual program of performance audits of aspects of the Tax Administration’s operations and the findings are reported to the Parliament. A permanent Risk and Compliance Committee (audit committee) is responsible for monitoring the implementation of all recommendations made in the course of these external audits. |
| P9-29-1 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; The Tax Administration currently has an effective internal audit program that can be improved to address the weaknesses identified by the TADAT methodology, other agencies and independent reviews. The Internal Audit Division performs 25 audits a year based on an annual risk assessment of all operational, revenue accounting, and internal financial management areas. The annual internal audit plan describes the criteria and methodology used for selecting the auditable areas. The internal auditors are guided by the internal audit procedures based on the Internal Audit Charter and Procedures prepared by the Ministry of Finance. They also use the ISO 9001:2008 standards, staff job descriptions, and processes and procedures manuals as reference points. As previously mentioned, however, the operational processes and procedures manuals lack sufficient internal controls to provide the internal auditors with an unequivocal baseline for conducting the audits. There is systematic and regular monitoring and reporting to ensure that internal audit findings are acted upon. The Internal Audit Division reports its findings for each audit to the Board as it is completed, but the Division also provides mandatory quarterly and annual reports to the Board. The audited units, develop action plans, aimed at ensuring the implementation of recommendations and overcoming the weaknesses identified during the internal audits. On a quarterly basis, the Audit Committee of the the Tax Administration' Board also reports on whether the Internal Audit program is being executed efficiently and effectively. |
| P9-29-2 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; In the case of internal affairs, the Tax Administration has an Ethics and Integrity Management Division in charge of assuring the integrity of its employees. This Division reviews complaint received from businesses, individuals, and staff regarding fiscal fraud, malpractices, service delivery, and behaviour of staff of the Tax Administration. The Division has appropriate investigative powers, and in 2014/15, it undertook 40 investigations of staff misconduct. In instances of gross misconduct, the case is reviewed internally by the Legal and Board Secretariat Department, and in instances of criminal conduct, the case is sent to the national police and/or the Ombudsman. While the job descriptions describe basic staff duties, they do not detail authorization of activities, separation of duties, access privileges, or control over documents and records. for prosecution. On a monthly basis, the Division holds a general staff meeting to discuss the status of integrity in the institution, which provides statistics on malpractice and cases that have been investigated. These same statistics are published in the annual report. The Division is making significant strides in formulating policy, having recently drafted and circulated a code of conduct in 2015, which describes disciplinary faults and attendant actions. There is also an effort to improve collaboration with the Office of the Ombudsman to bridge the gap between national standards on anti-corruption with those of the Tax Administration. The Division is also developing a comprehensive integrity strategy. It should be noted that conspicuous consumption reports are conducted on an ad hoc basis and all employees (and spouses) are required to declare their assets to the Ombudsman. |
| P9-30-1 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; There is strong independent external oversight of both operational and financial performance of the Tax Administration, and its responses to queries are included in the audit reports and publically reported. The Office of the Auditor General (OAG) is currently responsible for auditing the operational and financial affairs of the Tax Administration since the fiscal year 2013/14—previously, an external firm on behalf of the Tax Administration Board of Directors, conducted the audits. The OAG presents its reports to Parliament, and the Public Accounts Committee (PAC) scrutinizes them. The public is also free to attend proceedings of the PAC and the media reports on proceedings. Finalized reports are published on the OAG’s website. A very comprehensive process audit of the Tax Administration by the OAG for 2013/14 was sighted by the assessment team and is currently before the PAC—it will be published on completion of the proceedings. |
| P9-30-2 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; Inthe Country, the Ombudsman’s Office is responsible for overseeing anti-corruption activities, including the Tax Administration. The office was set up by Law No. 200 of 300 and Article 400 sets out its roles and responsibilities. These include: (i) acting as a link on anti-corruption activities; (ii) preventing and fighting injustice, corruption and related offences in public and private entities; and (iii) receiving, examining and helping resolve complaints from any person about services provided by civil servants, and public and private institutions. Complaints can be made online at the Ombudsman’s website. The Ombudsman is working closely with the Quality Assurance Department of Tax Administration, and an investigation on customs-related (but not domestic taxes) service issues in the Tax Administration was conducted and recommendations made. The assessment team enquired from the Tax Administration staff whether the customs report had any domestic tax cross-cutting issues and there was no indication that there were any—the report was addressed to the Head of the Tax Administration and copied to the Minister of Finance amongst others. A check on the Ombudsman’s corruption convictions database and reports did not yield any Tax Administration-related issues or reports. On balance, the checks and balances exist, and the Tax Administration, using its taxpayer services channels (see POA 3) endeavours to resolve service issues in time. Although the customs-related issues report does not qualify under the TADAT assessment, its existence provides some evidence that an independent office is in place and has addressed service and maladministration issues regarding the Tax Administration as an institution. As such, the foregoing justifies an “A” rating. |
| P9-32-1 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; The Tax Administration produces a number of reports outlining its financial and operational performance. The Tax Administration produces a comprehensive annual report outlining the full financial and operational performance of the Tax Administration. The reports are transmitted to the Minister of Finance who, by law is required to prepare and submit them to the OAG not later than September 30 of the following fiscal year. The Minister also presents consolidated financial statements (including the Tax Administration component) to the PAC of Parliament. PAC sessions are open to the public. Further, the Tax Administration publishes approved reports of its operational performance on its website. |
| P9-30-1 | MCD | A | First | 2015 | English | Scored A because good practice was detected in; There is strong external oversight of the Tax Administration’s operations and financial performance in place. The Government Accounting Agency conducts an audit annually of the financial statements and operations of the Tax Administration and its report is tabled in Parliament. The Tax Administration has an opportunity to respond to any findings and/or recommendations made and such responses are also tabled in Parliament. Auditors from other agencies also provide oversight of the Tax Administration operations, these include Ministry of Finance, which also undertake routine audits on the Tax Administration performance (these reports are not published); In addition to other Ministries, Collectively these agencies form part of an overall strong level of external scrutiny |
| P9-32-1 | MCD | A | First | 2015 | English | Scored A because good practice was detected in; The Tax Administration publishes its annual report outlining its financial and operational performance. The report is tabled in Parliament and is made available to the public. The report includes financial statements audited by the Government Accounting Agency and a summary of achievements against the Tax Administration's Annual Plan. |
| P9-30-1 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; There is a strong framework in place for external oversight of the Tax Administration’s operational and financial performance. The State Audit Office audits and publicly reports on the financial statements of the Tax Administration on an annual basis. The Audit Office also regularly audits and publicly reports on aspects of the Tax Administration’s operational performance. Under the law governing the Audit Office, every audited entity must respond within six months to the proposed actions and recommendations in the Audit Office report. These responses are publicly reported and the Head of the Tax Administration may be summoned to appear before a committee of the Parliament. |
| P9-32-1 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; The Tax Administration produces an annual report outlining its financial and operational performance. The report describes the financial and operational performance of the Tax Administration for 2014. The report was presented to the Minister of Finance and made available to the public on the Tax Administration website in March 2015. |
| P9-29-1 | AFR | A | Repeat | 2019 | English | Scored A because good practice was detected in; The Tax Administration has an organizationally independent Quality Assurance Department (QAD) that reports administratively to the Head of the Tax Administration and functionally to the Board through the Audit and Risk Committee. The QAD led by the Commissioner, comprises the Standardization Unit, the Internal Audit Division (IAD) and Integrity and Ethics Management Division. The IAD has skilled and suitably qualified internal auditors including one certified risk practitioner and one IT systems auditor. Prior to developing the Internal Audit (IA) plan, a risk assessment is conducted using a risk scoring method, materiality of issues, internal guidelines, and other available resources. QAD is currently using ISO 9001:2015 standards. The IA plan coverage includes key operations and internal control checks, operational performance and financial audits including IT systems audits. Subsequently, the IA plan is approved by the Audit and Risk Committee. The IA plan provides for ad hoc audits that may arise during the year. An IT systems audit was done in 2016 with a Repeat IT systems audit beginning in early 2019. QAD ensures that internal auditors are regularly trained and updated in audit methodologies. Staff attend workshops offered by the Institute of Internal Auditors among others, in-house at the Tax Administration and through peer-to-peer learning. An annual training plan is in place. The QAD has developed the Tax Procedures Manual which is updated every two years and is available both in hardcopy and on the Intranet. The OAG audits the QADs’ internal audit operations every five years. The last IA operations review was conducted in 2015. The Tax Administration core IT system is not accessible externally and has sufficient detection mechanisms to prevent malware and other unauthorized attempts at internal access from occurring. Additionally, restricted user-profiles and audit trails of user access and changes made to taxpayer data exist and are routinely monitored using the Audit Vault and Database Firewall which has a reporting system that generates automated reports on a daily basis. These reports are analyzed on a weekly basis to identify potential abnormal activities on the Tax Administration databases. Reports generated include but are not limited to (1) alert report; and login and logout attempts. |
| P9-31 | AFR | A | Repeat | 2019 | English | Scored A because good practice was detected in; The Tax Administration monitors public confidence through customer satisfaction surveys conducted every two years. The surveys were conducted by independent consultants and were based on a statistically valid sample of key taxpayer segments and targeted internal and external customers of the Tax Administration across all districts. Surveys were carried out in 2016 and 2018 and the results were made public within six months of completion. The 2018 survey included looking at the public perception of the Tax Administration’s integrity. |
| P9-32-1 | AFR | A | Repeat | 2019 | English | Scored A because good practice was detected in; The Tax Administration's annual report outlining both the financial and operational performance is made public within six months of the end of the fiscal year. The Tax Administration has a legal requirement to prepare an annual report which consists of (i) financial statements in respect of the financial year to which the report relates; (ii) a report on the activities of the Tax Administration over the financial year; and (iii) a corporate governance report. The timelines for publishing the annual report are captured in the revenue administration annual action plan. The Tax Administration prepares an annual report which is submitted to the OAG not later than September 30 of the following fiscal year – that is three months after the end of the Tax Administration’s financial year. |
| P9-32-2 | AFR | A | Repeat | 2019 | English | Scored A because good practice was detected in; Strategic and operational plans are made public. The previous strategic plan (2015 to 2018) and the current annual action plan27 are accessible on the Tax Administration website. The annual action plan was made public at least 10 days before the beginning of the fiscal year. The Draft (2019 to 2024) strategic plan is scheduled for completion by June 2019. |
| P9-30-1 | AFR | A | First | 2019 | English | Scored A because good practice was detected in; External oversight by the Office of the Auditor-General is regularly exercised. An annual audit of the Tax Administration financial statements is conducted by the Office of the Auditor-General. The annual visit includes operational performance audits and the Tax Administration responds to the review findings. Furthermore, the Tax Administration is called to appear before the Public Finance Accounts Committee and answer questions relating to the Auditor General’s report and its response. These hearings are public and are televised. |
| P9-30-2 | AFR | A | First | 2019 | English | Scored A because good practice was detected in; The investigation process for suspected wrongdoing and maladministration is robust. Representatives from both the national Office of the Ombudsman and The Anti-corruption Commission of the Country were present for discussion on this POA. In the past few years, only one complaint has been received by the Office of the Ombudsman relating to the Tax Administration. This was investigated, and recommendations were made to the Head of the Tax Administration who responded in writing. The Office of the Ombudsman only reports beyond the agency concerned when no response or a response deemed unsatisfactory is received. In the latter instance, the Office of the Ombudsman would report directly to the Political Head. No cases warranting a referral to the Anti-Commission have been identified at the Tax Administration. Regular reporting and systematic monitoring occur only when there are active cases. |
| P9-32-1 | AFR | A | First | 2019 | English | Scored A because good practice was detected in; The Tax Administration publishes its annual report detailing its financial and operational performance in a timely manner. An annual report to the government outlining the full financial and operational performance of the Tax Administration is made. This annual report is also made public within six months of the end of the fiscal year. |
| P9-32-1 | EUR | A | First | 2019 | English | Scored A because good practice was detected in; There is an annual report to the government detailing the financial and operational performance of the Tax Administration. The 2018 annual report was made public within six months of the end of the fiscal year |
| P9-32-2 | AFR | A | First | 2019 | English | Scored A because good practice was detected in; The 2019-2021 Tax Administration strategic plan was released on December 12, 2018. The publication on the Tax Administration website of the 2019-2021 strategic plan prior to its implementation explains the A grade assigned to this indicator |
| P9-32-1 | APD | A | First | 2019 | English | No write up in the Par |
| P9-32-2 | APD | A | First | 2019 | English | No write up in the Par |
| P9-30-1 | EUR | A | Repeat | 2019 | English | Scored A because good practice was detected in; The National Audit Office audits the Tax Administration's performance and financial statements annually. The audit activities of the National Audit Office are regulated by the law. Findings are responded to and reported by the Tax Administration to the Ministry of Finance and published on the website of the Audit Office. |
| P9-32-1 | EUR | A | Repeat | 2019 | English | Scored A because good practice was detected in; The annual report is published within four months of the end of the fiscal year, covering both operational and financial performance of the Tax Administration. The Tax Administration also publishes quarterly reports on its website. The quarterly report is very detailed and covers output statistics comprehensively. |
| P9-32-2 | EUR | A | Repeat | 2019 | English | Scored A because good practice was detected in; The Tax Administration publishes its future directions and plans on its website. Both strategic and operational plans are finalized by December for the next period and are made public in advance. The current strategic plan covers years 2019-2021 |
| P9-30-1 | APD | A | First | 2019 | English | Scored A because good practice was detected in; The Tax Administration is subject to annual audits by the Country-level Department of Internal Audit and by the Country Audit Authority The Department of Internal Audit focus on the Tax Administration's operational performance, compliance with established operating procedures, and gaps in internal controls and makes recommendations on how these should be remedied. The audit report is addressed to the Head of the Tax Administration. The Country Audit Authority focuses on the collection of revenue and the Tax Administration’s financial accounts, and the report is submitted to Committee Number 300 of the National Assembly. The Tax Administration responds formally to the issues raised. The responses include explanations of issues raised where required and commitments to take remedial actions as appropriate. Audit reports and Tax Administration responses are also made public via the official government website. |
| P9-30-1 | AFR | A | First | 2019 | English | Scored A because good practice was detected in; There is an annual audit of the Tax Administration's financial and operational performance by the Office of the Auditor General (OAG). The OAG examines the financial and operational performance of the Tax Administration annually. An annual audit program of operational performance by the OAG is in place. The Tax Administration’s IAD liaises with the OAG and facilitates and coordinates the audits. The OAG’s reports include the identification of risks and recommendations for improvement or changes. The Tax Administration management responds to findings and recommendations by the OAG. The annual OAG report is the public document published on both the Tax Administration and OAG websites. In addition, the Tax Administration Public Accounts Committee reviews the Tax Administration’s financial statements quarterly. At a national level, the Senate also has oversight of the Tax Administration’s financial and operational performance. Where necessary, the Senate can summon the Head of the Tax Administration to respond to issues (that include the OAG’s findings and recommendations). The whole process is made public and is broadcast live on radio and television |
| P9-32-1 | AFR | A | First | 2019 | English | Scored A because good practice was detected in; An annual report is produced covering the financial and operational performance for the immediate past fiscal year and is made public within three months. The report is submitted to the Tax Administration's Executive Committee Member in charge of Finance and Social-Economic Planning, which tables it before the Tax Administration Assembly by 30 October each year. |
| P9-30-1 | APD | A | First | 2015 | English | Scored A because good practice was detected in; The Auditor General conducts an annual review of the Tax Administration. The audit encompasses the Tax Administration’s financial statements and operational performance and the final report is required to be tabled in Parliament and reviewed by the Public Accounts Committee. The Tax Administration executive management has an opportunity to respond to the findings in the OAG’s draft report before it is finalized and again during questioning by the Public Accounts Committee once the report has been tabled in Parliament. The OAG’s report for the year ended December 31, 2013, was tabled in Parliament on February 20, 2015, and included the Tax Administration’s responses to the recommendations. |
| P9-32-1 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; The Tax Administration prepares and disseminates an annual Annual Report and Accountability Report, which are made public within the First 6 months of each year. The report is made public within the First 6 months of the end of the Executive Branch's term of office. Some aspects of the operational management included in the Annual Report and in the Accountability Report that is made public within the First 6 months of the Executive and in the Accountability Report prepared by the Tax Administration, such as collection results, the performance of some basic processes and notes on the main institutional projects. projects. The evaluation team verified that the report for June 2017 to May 2018 was made public in June 2018 and May 2018. The report for 2018 was made public in June 2018 and that the Accountability Report for June 2017 to May 2018 was made public in August 2018, all through the Tax Administration website. Additionally, they were exposed before the Legislative Assembly and before civil society. |
| P9-29-2 | WHD | A | First | 2019 | English | Scored A because good practice was detected in; Mechanisms to ensure the integrity of officials reach the level of international best practices are in place. The Tax Administration combats acts of corruption by employees' internal rules through the disciplinary regime, as well as the referral of investigative files in the commission of offences related to acts of corruption. It has broad investigative powers, operational functional independence and sufficient authority to require any person to provide any useful information that may be useful and relevant to combat acts related to corruption. The Unit also (i) cooperates with the nation's oversight agencies and (ii) publishes integrity-related statistics on the institution's transparency portal. Finally, there is evidence that all the Tax Administration officials have received the Tax Administration Code of Conduct for the Country's Public Servants. An Ethics Committee was recently sworn in to promote proactive actions in favour of integrity |
| P9-32-1 | WHD | A | First | 2019 | English | Scored A because good practice was detected in; The Tax Administration publishes its financial and operational reports before the First sixty days after the end of the fiscal year. The institutional report includes information on the Tax Administration information regarding the Tax Administration's operational and financial performance. |
| P9-32-1 | MCD | A | First | 2015 | English | Scored A because good practice was detected in; An annual report on the financial and operational performance of the Tax Administration is prepared. This report is transmitted to the authorities and published on the Tax Administration website. The annual report for 2017 was published in April 2018. |
| P9-30-1 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; There is strong independent external oversight of Tax Administration operations and financial performance. Each year, a private audit firm and Auditor-General independently audit the Tax Administration's operational and financial performance. Audit findings—and the Tax Administration’s responses to the findings—are presented to the Parliament and reported to the public. |
| P9-30-2 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; Independent and impartial investigative bodies exist to safeguard the community in their dealings with the Tax Administration. These include the Appeals Tribunal and Anti-Corruption Commission. The Tax Administration acts on findings and recommendations of the Tribunal and Anti Corruption Commission such as reconsidering and changing decisions, correcting administrative mistakes, paying compensation, changing procedures and, in the case of wrongdoing, disciplining staff involved, including dismissal and prosecution in serious cases |
| P9-32-1 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; A comprehensive annual report is produced outlining the financial and operational performance of the Tax Administration for the immediate past fiscal year. The report is presented and tabled in Parliament within 6 months of the end of each fiscal year and is made available to the public |
| P9-29-2 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; The Tax Administration has an organizationally independent internal affairs unit that reports directly to the Head of the Tax Administration. It is vested with appropriate investigative powers, provides leadership on the organization’s code of conduct, cooperates with enforcement agencies like the Country's Commission for Prevention of Corruption, and maintains integrity-related statistics that are included in the annual report. |
| P9-30-1 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; The Tax Administration’s financial statements and its operational performance are audited on an annual basis by the State Audit Office. The State Audit Office publishes audit reports and responses of auditees in its website |
| P9-32-1 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; An annual report is published within four months of the end of the fiscal year, covering both the operational and financial performance of the Tax Administration. In addition, the Tax Administration also publishes quarterly reports, and its website has search functionality to review performance based on a range of filters. |
| P9-32-2 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; The Tax Administration makes public its future directions and plans, in a timely manner. Strategic and implementation plans are finalized by December of every year, and published on the Tax Administration website |
| P9-29-1 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; The Tax Administration makes public its future directions and plans, in a timely manner. Strategic and implementation plans are finalized by December of every year and published on the Tax Administration website |
| P9-30-2 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; The investigation process for suspected misconduct of tax officials is undertaken by external bodies and overseen by the Tax Administration senior management. Notwithstanding the absence of a tax ombudsman or equivalent taxpayer protection unit, taxpayers have the possibility to lodge a complaint to a Public charged with defending people in case of suspected wrongdoing by the Tax Administration. After an investigation process has been finalized, recommendations could be issued for top management attention and posted on the website. Also, the Secretariat for Anti-Corruption is empowered to receive complaints and act upon suspected wrongdoing actions by tax officials. |
| P9-32-2 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; An annual strategic plan is made public in advance outlining main operational plan and actions. It includes a report of some of the key operational strategies to be developed in future to achieve the Tax Administration’s statutory goals to enhance collection and promote compliance. |
| P9-30-2 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; Independent and impartial investigative bodies exist to safeguard the community in their dealings with the Tax Administration. There is an Ombudsman (but not a specific tax ombudsman) for investigating complaints of maladministration. The Ombudsman provides taxpayers with an impartial channel to seek resolution of service-related, procedural or administrative disputes a taxpayer has with the Tax Administration. The Ombudsman mediates, conciliates, and/or investigates a taxpayer’s complaint and, where possible, secures resolution. The Ombudsman reports his findings to the Head of the Tax Administration and the Ministry of Finance. For purposes of protecting members of the community in its dealing with the public sector, there is a whistle-blowing mechanism to report wrongdoing to the Ombudsman on complaints of maladministration and the Police in relation to alleged criminal offences. In addition, there is a Data Protection Authority that ensures the protection and confidentiality of taxpayer information. The Tax Administration acts on the findings and recommendations of the Tax Ombudsman and the Data Protection Authority, including reconsidering and changing decisions, correcting administrative mistakes, changing procedures and, in the case of wrongdoing, disciplining staff involved. Such disciplinary action may result in a staff member of the Tax Administration being dismissed and even prosecuted in serious cases. |
| P9-31 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; There is a high level of public confidence in the Tax Administration. This is evidenced by the overall satisfaction rating in the 2012 Opinion survey. The results showed that 75 percent of citizens trust the Tax Administration in its conduct and provision of services. |
| P9-32-1 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; There is a comprehensive annual report outlining the audited financial and operational performance of the Tax Administration for each fiscal year. The Tax Administration annual report is presented only to the Ministry of Finance. Following the production of the 2013 annual report, it was decided that the report can be made available to the general public upon request and in the annual report there is a provision stating so. However, no effort has been made to make the report available to the public. Further, no effort has been made to inform the public of the existence of the provision. However, a summarized version of the annual report is made available to the public. |
| P9-29-2 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; The Tax Administration has a dedicated unit with three staff members who investigate and monitor questions related to staff integrity. The Head of the Anti Corruption Directorate reports to the Head of the National Anti Corruption Office within the context of the established memorandum of understanding. The staff has training in intelligence and investigative techniques. The unit was involved in revising the 2009 and 2012 codes of conduct – the latter being a revision of the Tax Administration policies in line with national policy on ethics and integrity. Statistics on integrity cases are also reported in the Tax Administration's annual reports |
| P9-29-1 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; The internal audit function is reasonably effective and regulated by law that applies to all public bodies in the Country. The Ministry of Finance has a Central Coordination Unit for Internal Audit which is responsible for the supervision of internal audit units in all public bodies. It receives quarterly reports from each of them. The Internal Audit Unit in the Tax Administration reports directly to the Head of the Tax Administration and has a staff of four certified auditors, including the Head. If required, the Tax Administration can request for additional resources from the Central Coordination Unit for Internal Audit. The Unit is required by law to prepare an annual audit plan in line with the strategic plan and based on (i) an analysis of the previous year’s actions; and (ii) monitoring of new 39 assessed risks. Each year, the Unit conducts about ten internal audits which cover expenditure management, procurement, internal financial management and all key operations. These are done in accordance with the internal audit manual. The findings are discussed with concerned departments and an action plan is drawn up for the implementation of recommendations. For instance, in 2014 the Unit found that the number of visits to taxpayer premises had increased and the number of tax audits had decreased. The Unit also found that the increase in visits was largely ineffective. According to the head of the Internal Audit Unit, the management has generally acted upon internal audit findings and recommendations. |
| P9-29-2 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; Staff integrity is assured by a separate Division for Professional Standards which reports directly to the Executive Office of the Head of the Tax Administration. The Division investigates all cases of misconduct and coordinates its activities with the anti-corruption agency of the Country and with other enforcement agencies. Cases of corruption and other misconduct are taken to a disciplinary committee to adjudicate. The Division is also involved in preventive measures, including background checks of new employees and training of existing staff on ethics, conduct rules, conflict of interest issues, and sanctions for misconduct. It prepares statistics on cases where professional conduct was breached. The Division also monitors and processes conflict of interest situations. Staff is required to report conflict of interest situations to their supervisor so that the management can advise the concerned staff on a course of action and remedial steps. |
| P9-30-1 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; The external oversight of the Tax Administration's operational and financial performance is robust. The Auditor-General (AG) reports directly to the Parliament. The AG’s office conducts an annual audit of the Tax Administration functions including revenue collection, expenditure management, human resources (HR) issues, procurement, and operational issues (e.g., audit, arrears situation, debt collection, etc.). The audit report is presented to the Parliamentary Committee on Audits to which the Minister of Finance or Head of the Tax Administration may be summoned to answer questions. The audit report is published on the website of AG and contains the findings, the response of the Tax Administration and AG’s recommendations. The report also contains a list of actions taken by the Tax Administration in response to the recommendations of the previous year’s audit report. |
| P9-30-2 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; There is an independent and impartial body or ombudsman to whom taxpayers can complain about any wrongdoing or maladministration by the Tax Administration officials. This allows an impartial resolution of service-related, procedural, or administrative disputes. The ombudsman conveys his/her findings to the Head of the Tax Administration and the Minister of Finance. The Minister may then create a panel to address the concerns based on the recommendations of the ombudsman. The Minister of Finance has designated the MOF’s Division on EU Integration to monitor, on a quarterly basis, compliance by the Tax Administration on these matters. In addition to the ombudsman, taxpayers can also take their complaints to the Minister of Finance or to the Economic Crimes Department, depending on the nature of alleged maladministration. An anti-corruption agency for the entire country reports directly to the parliament. The agency develops separate strategies for the Tax Administration and other agencies that it oversees. The agency investigates cases of corruption against tax officials and determines remedial actions which could include, inter alia, termination of service or reprimand. Criminal cases are sent to the prosecutor general. The reports of the agency are published and contain actions to be taken by the Tax Administration to address the alleged misconduct. There are reports of compliance on a quarterly basis. There is systematic monitoring and reporting to senior management of the action taken to address misconduct. The Head of the Tax Administration holds weekly management meetings, which may discuss specific issues raised by the anticorruption agency or the ombudsman. |
| P9-32-1 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; Staff integrity is assured by a separate Division for Professional Standards which reports directly to the Head of the Tax Administration. The Division investigates all cases of misconduct and coordinates its activities with the anti-corruption agency |
| P9-32-2 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; The annual plan, strategic plan and business plan are all available on the website. The reports include a comparison of data from past years. |
| P9-30-1 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; There is strong external oversight of the Tax Administration’s operations and financial performance. Every year, the Auditor General reviews the Tax Administration´s financial statements and operational performance. The Tax Administration responds to the findings of the Auditor-General who includes the responses into a report that is then tabled before Parliament. The report and any open issues are discussed before Parliament. The media frequently reports on the discussion in Parliament. The Auditor General´s report, including the Tax Administration responses, is available on the website of the Auditor General |
| P9-32-1 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; A comprehensive annual report is produced outlining the financial and operational performance of the Tax Administration for the immediate past fiscal year. The Annual Report and Financial Statements are presented to the Minister and the Parliament but are not available on the website of the Tax Administration. However, an overview of the Tax Administration expenditures as well as information on output performance, focusing on key outputs and actions implemented to improve the Tax Administration´s performance, is available in the Annual Budget Performance Reports of the Country that are available online |
| P9-29-1 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; A wide range of internal controls is in place. SOPs and manuals exist for all business units; they are available online (on the Intranet) for staff. The transition to a semi-autonomous body and the implementation of a new IT system have required new job descriptions and a comprehensive re-engineering of all the processes; as a result, most of the SOPs have been updated. A system of delegation is in place for financial transactions and operational decisions. Access rights to the system and information are granted by both the HR division and the senior office managers. Accounting transactions (including the person who has made the transaction) can be tracked in the system. Disaster recovery and data backup plans are also in place. For example, new procedures have been implemented to improve the security of e-mails, and the Tax Administration has been helped to develop scripts to improve its information system and data integrity. The Tax Administration employee conduct is governed by the Tax Administration Code of Conduct. A good level of assurance on the effectiveness of internal controls is provided by the Internal Audit function. The Internal Audit division reports, administratively, to the Commissioner and, functionally, to the Board’s Audit Committee. The Internal Audit team comprises 35 trained auditors, many with Tax Administration experience and post-graduate level training, and is headed by an experienced certified accountant (ex-auditor in the private sector). The lack of IT experts has been identified as a weakness, but the Internal Auditors liaise with the IT division that provides the necessary support whenever required. The Internal Audit team operates according to its audit plan 2015/16, which includes comprehensive risk mapping and an annual audit program. The Internal Audit Team reports its findings quarterly and annually to the Board’s Audit Committee. Audit findings are reviewed by management and their responses are incorporated in the final report. |
| P9-29-2 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; There is a good level of assurance of staff integrity. All allegations of staff misconduct in the revenue sector are referred to the Revenue Protection Unit; an independent agency within the Ministry of Finance. The Revenue Protection Unit also provides leadership in the determination of integrity and ethics policy and oversees its implementation. The Revenue Protection Unit has notably provided inputs to the Tax Administration’s Code of Conduct in 2014. It also interacts with other enforcement bodies (including police, Major Organized Crime and AntiCorruption and the Corruption Prevention Commission. It produces quarterly reports including statistical breakdowns of the number of intelligence products developed, background checks completed, and cases initiated, investigated and prosecuted. These reports including (confidential) integrity-related statistics are publicly reported. |
| P9-30-2 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; An external mechanism for investigation of allegations of suspected wrongdoing and maladministration is in place. The Revenue Protection Unit has extensive powers to investigate alleged corruption cases. It reports to the Ministry of Finance on a quarterly basis. Overall, the Tax Administration collaborates with the Revenue Protection Unit and the two bodies share their databases. A number of examples illustrate this good collaboration: (i) Tax Administration via its Human Resources division has consistently referred cases of staff misconduct to the Tax Administration; (ii) Tax Administration’s Internal Audit Division has designated an internal auditor who is assigned to Revenue Protection Unit for purposes of on-going investigations; (iii) a disciplinary committee has been established within the Tax Administration that acts on RPD recommendations; (iv) a Security Advisor position has been created within The Tax Administration on recommendation of RPD; and (v) areas where criminal activities have been identified by the RPD have been included in the Tax Administration’s risk register and covered by the current audit program. There are two other bodies in place to investigate unresolved complaints from taxpayers on maladministration: the Standards and Monitoring body (within Cabinet) and the Office of the Public Defender (ombudsman). Systemic service and fairness issues and challenges are reported to the Ministry of Finance. |
| P9-31 | MCD | A | First | 2015 | English | Scored A because good practice was detected in; The Tax Administration monitors public confidence through a range of measures and improves its services based on survey results. The Tax Administration views the taxpayer as its “strategic partner” and monitors public confidence through professional associations, chambers of commerce, brainstorming sessions on the Tax Administration services and plans and other means. Every six months, the Tax Administration conducts a customer satisfaction survey. Survey results are reviewed by the Tax Administration Planning and Cooperation Committee. An independent survey covering 2013 – 2014 resulted in the Tax Administration receiving an Award for excellence in government performance. Separately, the Ministry of Public Sector Development implements a “mystery shopper” program whereby persons posing as average taxpayers approach the tax office to spot-check the quality of taxpayer services. The Tax Administration generally posts survey results on its website within a month of their production and sends these results via email to certain taxpayers. The Tax Administration also uses these results to improve services. For instance, in response to surveys, the Tax Administration is piloting a single window for taxpayer services and has plans to expand this program to more tax offices. In addition, it has granted more authority to front-line employees to meet taxpayer needs. It has expanded accessibility for taxpayers with special needs, including ramps and wheelchairs |
| P9-32-1 | MCD | A | First | 2015 | English | Scored A because good practice was detected in; The Tax Administration reports annually on its financial and operational performance and makes the report public in a timely manner. The Tax Administration prepares an annual report that is posted to the Tax Administration website, emailed to taxpayers, and distributed via a CD to the Ministry of Finance. The Country's Audit Bureau reports to Parliament annually and includes the Tax Administration performance in its report, and the Head of the Tax Administration may be called to testify to Parliament. |
| P9-32-2 | MCD | A | First | 2015 | English | Scored A because good practice was detected in; The Tax Administration's future plans are made public in a timely manner. The Tax Administration prepares a three-year strategic plan and an annual operating plan. These are both made public prior to implementation. |
| P9-32-1 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; The Tax Administration Annual Report is the annual report on the Tax Administration's financial and operational performance. It is made public in the three months following the closing of the fiscal year. The Annual Report reports on revenue collection, operational performance and the economic use of financial and human resources. |
| P9-32-2 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; The strategic and operational plans of the Tax Administration are made public in advance. The current strategic plan for 2016 to 2020 was made public before the beginning of the period covered. The Tax Administration 2017 operational plan was published on December 21, 2016, and its operational plan update was also disseminated on May 31, 2017. |
| P9-30-2 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; An Ombudsman and the Anti Corruption Agency are in place to routinely investigate suspected wrongdoing and maladministration of the Tax Administration. Systemic problems identified by the Ombudsman and recommended solutions are reported to the Tax Administration and to the government. The Anti Corruption Agency oversees Tax Administration anti-corruption policies and has provided guidelines for the integrity plan. The Tax Administration's internal control division examines complaints and recommendations received from the ombudsman and Agency and takes action (including dismissal) to address detected irregularities. The internal control division reports on a weekly basis to senior management on actions are taken in relation to ombudsman and Anti-Corruption Agency cases |
| P9-31 | APD | A | First | 2015 | English | Scored A because good practice was detected in; The Tax Administration has been carrying out a taxpayer satisfaction survey based on a statically valid sample of key taxpayer segments on an annual basis and uses survey findings to inform public campaigns and compliance efforts. In 2015 the survey was conducted by LG16 Chamber of Commerce and Industry. After the survey was completed in May 2015, the dissemination workshop was organized in August 2015 which was widely welcomed by the private sector and the media. The Tax Administration's senior management used the survey findings to drive reforms at the local level. Three regional workshops with local tax offices were organized to disseminate the findings and key messages to local tax officials in October 2015. In total, there were over 300 tax officials from 63 provinces attending the regional workshops. The Tax Administration thereafter issued a directive to the whole administration asking all local tax offices to implement measures to improve transparency, code of conduct, behaviour and quality of services delivered. |
| P9-29-2 | AFR | A | Repeat | 2015 | English | Scored A because good practice was detected in; The Tax Administration has an independent Internal Affairs Unit, headed by the Chief Internal Affairs Officer; and statistics are maintained and reported publicly. Internal Affairs reports to the Head of the Tax Administration. The unit is composed of the Chief, three team leaders and 10 investigators. The Chief of Internal Affairs has (and exercises) full investigative powers. He is a member of the Integrity Committee, which is responsible for ethics policy, including the formulation of the Code of Conduct. Investigations into wrongdoing include corruption vulnerability assessments. As jurisdictions dictate, the Chief of Internal Affairs collaborates and makes referrals to the local police, the Anti-Corruption Commission, and the Drug Enforcement Commission. Annual Internal Affairs statistics on fraud and misconduct are reported in the Annual Report, which is made public by posting it on the Tax Administration website. The Integrity Committee also reports Internal Affairs statistics to the Governing Board on a quarterly basis. |
| P9-30-1 | AFR | A | Repeat | 2015 | English | Scored A because good practice was detected in; There is strong external oversight of the Tax Administration, with an annual audit by the Office of the Auditor General, and an audit of the financial statements by a private audit firm. The private audit firm audits Tax Administration’s financial performance and reporting. The Office of the Auditor-General examines revenue and operational performance, and internal controls. The Tax Administration’s IAU is responsible for liaising with the external auditors, and for facilitating and coordinating the audits and responses. The audit program ensures that the financial statements and operational performance are audited annually. The Tax Administration Act (Section 400) requires the Tax Administration to present audited financial statements to the Minister of Finance within six months of the end of the financial year. Opinions on the financial statements are provided by the private sector audit firm. The Auditor General’s report on the Tax Administration along with other government institutions is tabled with Parliament in September following the end of the financial year. The financial statements are published in the Tax Administration’s annual report, and the Auditor General’s report is published on the website of his Office. In addition, the findings, and the Tax Administration’s responses, are subject to a public hearing by the Public Accounts Committee of Parliament. This is widely reported on radio and in the press. The Tax Administration prepares responses to the Auditor General’s recommendations and presents these to the Parliamentary Committee. The report of the Public Accounts Committee is published on Parliament’s website, and responses to the Committee’s recommendations are reported to Parliament. |
| P9-32-1 | AFR | A | Repeat | 2015 | English | Scored A because good practice was detected in; An annual report is produced outlining the financial and operational performance of the Tax Administration for the immediate past fiscal year. This report is submitted to the Minister for Finance who tables it before Parliament within 6 months of the end of the fiscal year and it is made available to the public. |
| P9-29-2 | EUR | A | Repeat | 2019 | English | Scored A because good practice was detected in; The Internal Control Department reports directly to the Head of the Tax Administration and has extensive powers to investigate cases of staff irregularities and integrity issues. Its powers and functions for investigating complaints and recommending disciplinary actions are derived from the law. There is a Rule of Conduct for Employees in the Tax Administration, as well as an all of government Code of Conduct for Civil Servants. All staff are made aware of the Code and the Rule through email communication. The Internal Control Department cooperates with the Anti-Corruption Agency and the Prosecutor’s Office through working group meetings. Integrity statistics are maintained and submitted to the High Council of Civil Servants which publishes separate statistics for all departments of government on its website. |
| P9-30-2 | EUR | A | Repeat | 2019 | English | Scored A because good practice was detected in; An ombudsman routinely investigates complaints of taxpayers, and an anti-corruption agency investigates serious cases of corruption. The Ombudsman has a hotline where citizens can make complaints of abuse or mistreatment by tax officials. The Tax Administration responds to these complaints regularly. Systemic problems and recommended actions are highlighted in the Regular Annual Report of the Ombudsman. The Internal Control Department of the Tax Administration works closely with the Anti-corruption Agency on serious cases of corruption and communicates with the agency routinely to update it on the progress of action taken. The Internal Control Department routinely reports to senior management on actions taken on recommendations of the ombudsman and the anti-corruption agency |
| P9-29-2 | AFR | A | Repeat | 2019 | English | Scored A because good practice was detected in; Staff integrity assurance mechanisms are in place. The Tax Administration has implemented a code of ethics and integrity policies that embody the principles of local and international regulations. The Tax Administration has a fully resourced, experienced and trained Internal Affairs Unit staff, which reports to the Head of the Tax Administration and the Board via the Board Secretary. The Internal Affairs Unit uses various channels to communicate the code of ethics and integrity policies. The channels include workshops, intranet and, upon employment, staff are required to sign a secrecy agreement. The Internal Affairs Unit has the authority to investigate professional conduct issues and cooperates with the Anti-Corruption Commission and the Police Department in investigations that require their support. Staff integrity statistics are maintained and included in the published Annual Report. |
| P9-30-1 | AFR | A | Repeat | 2019 | English | Scored A because good practice was detected in; There is dedicated and independent external oversight of the Tax Administration’s operations and financial performance. The Office of the Auditor-General has a dedicated division—The Revenue Audits Directorate of the Audit Division, responsible for conducting annual audits of the Tax Administration’s financial statements and operations. The OAG is guided by Article 500 of LG73. Responses to the external review findings on financial and performance audits are publicly reported to Parliament through the Public Accounts Committee. The Tax Administration also engaged private external auditors for the year ended December 31, 2020, to conduct an external audit review which covered: (i) the identification of significant risks and potential misstatements relating to the major account balances and transactions; (ii) a follow-up on issues raised in the previous year’s management letter; (iii) a review of the general computer controls ; and (iv) a substantive test of detail of the material accounts identified at year-end. |
| P9-32-1 | AFR | A | Repeat | 2019 | English | Scored A because good practice was detected in; An annual report which contains financial and operational performance is published within six months of the end of the fiscal year. As per Section 300 of Chapter 600 of the Tax Administration law and Section 500 of the Public Finance Management Act, the report is submitted to the Minister of Finance, who then tables it in Parliament within six months of the end of the fiscal year. Moreover, the report is made available to the public. |
| P9-32-1 | AFR | A | First | 2019 | English | Scored A because good practice was detected in; An annual report is produced covering the financial and operational performance for the immediate past fiscal year and is made public within three months. The Report is submitted to the County Executive Committee Member in charge of Planning who tables it before the County Assembly by 30th September of each year. |
| P9-32-2 | AFR | A | First | 2019 | English | Scored A because good practice was detected in; The future directions and plans of the Tax Administration are made public. The Tax Administration's future directions are incorporated in the County's Annual Development Plan and County Integrated Development Plan - the latter is a 5-year strategic plan. Both the ADP and CIDP are made public one month in advance of the plan period |
| P9-29-2 | APD | A | First | 2015 | English | Scored A because good practice was detected. Staff integrity assurance mechanisms are in place. The Tax Administration has an Anti-Corruption Unit within the Internal Audit Department which, however, reports directly to the Tax Administration State Secretary and comprises four investigators. This unit is responsible for the following: (i) an internal investigation of taxpayers’ complaints on wrongdoing and violation of taxpayers’ rights (155 cases received in 2015); (ii) implementation of an anti-corruption plan; (iii) development of standards for ethical and anti-corruption behaviour; and (iv) cooperation with governmental bodies responsible for anti-corruption policy, such as the Anticorruption Office, the Government Apparatus and the Public Prosecution Office. The Anti-Corruption Unit maintains statistics on staff integrity and these statistics are made public through press releases on the Tax Administration website. |
| P9-32-1 | APD | A | First | 2015 | English | Scored A because good practice was detected in; The Tax Administration's financial and operational performance reports are made public. The implementation reports for the Tax Administration Development Strategy, the Annual Business Plan, the Budget Revenue Plan as well as the financial statement are submitted to the Ministry of Finance on a regular basis. These reports are made available on the Tax Administration's website within six months after the end of a fiscal year. |
| P9-30-1 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; The Auditor-General reviews the Tax Administration’s financial and operational performance annually. The AG’s reports as well as the Head of the Tax Administration's responses to the findings are presented to Parliament. Parliament’s Public Accounts Committee as well as Parliament review the AG report annually and may call upon the Head of the Tax Administration to provide testimony on specific issues. These reports and the Head of the Tax Administration responses to the findings are published on the AG’s website. |
| P9-32-1 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; Annual reports are published within six months of the end of the fiscal year. Reports on operational performance are published separately from information on the Tax Administration´s financial budget and balance sheet. In addition, the Tax Administration also publishes performance reports twice a year |
| P9-32-1 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; The Tax Administration produces an annual report on its operational performance and reports details about its financial performance to the Ministry of Finance. Both reports are made public within six months after the end of the fiscal year. The annual report, which is published on the Tax Administration’s website, covers various aspects of work conducted by the Tax administration in the course of the fiscal year. During 2014 and 2015 the Tax Administration was part of the Ministry of Finance and therefore its financial performance was reported to the Ministry of Finance (MoF) on a monthly, quarterly and annual basis. The MoF publishes a consolidated annual report covering the financial performance of various parts of the Ministry including the Tax Administration. |
| P9-29-2 | AFR | A | First | 2015 | English | Scored A because good practice was detected in;The reporting lines of the Department in charge of Ethics are sound and it oversees the formulation of integrity strategies and policies. The unit has powers to investigate cases of corruption amongst staff, and statistics about integrity are publicly reported. The unit has a well-functioning relationship with the national Ethics and Anti-Corruption Commission, supported by a Memorandum of Understanding (MoU), which is executed through joint investigations, case referrals (in both directions), and an Apex Committee to address issues of national interest and routine reporting of performance to the national authority. |
| P9-30-2 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; The Commission on Administrative Justice and the Anti Corruption Agency routinely investigate cases of suspected wrongdoing and maladministration. The issued certificates on compliance, which inform the overall national rating of the institution, and the Tax Administration received the rating of ‘very good in the previous year.On integrity-related matters, the Tax Administration has an MoU with the Anti Corruption Agency to work together on combating and preventing corruption at the Tax Administration, and they hold regular meetings. Senior management is informed monthly on the progression of issues raised by the Anti Corruption Agencies |
| P9-30-1 | MCD | A | First | 2015 | English | Scored A because good practice was detected in; External oversight of the Tax Investigations operations and financial performance is assured by the Comptroller and Auditor General, a constitutional authority reporting to the Public Accounts Committee (PAC) of Parliament. The Auditor-General prepares strategic plans as well as annual audit plans for financial and performance audits of Tax Administrations operations. There is a separate Revenue Audit Directorate within the Auditor General's Office to conduct audits exclusively of the Tax Administration's operations. The Tax Administration responds to the findings of the Revenue Audit Directorate. The audit reports are presented to the PAC and published in print and on the Auditor General's website. The Annual Report of the Auditor General mentions some of the key areas where issues were raised relating to the Tax Administration operations. |
| P9-29-1 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; Internal audit consistently verifies the soundness of the Tax Administration´s internal controls, risk management, and governance frameworks. The Tax Administration has an organizationally independent internal audit unit with a large number of internal auditors, reporting directly to an audit committee. Internal audit activities are set out in an annual internal audit plan. The plan comprises internal control checks, operational performance audits, information technology systems audits and financial audits. The operational performance audits cover both internal and taxpayer-related operations. The Tax Administration develops action plans for each area to comply with the recommendations provided by the internal audit unit and publishes the status report of the recommendations every six months in the portal. There is also regular training of internal auditors in the National Control School in audit methodologies. The external review body regularly reviews the internal audit operations and systems (e.g., reviews the audit plans and audit reports). There is a central repository of internal control policies, processes and procedures available on the Tax Administration’s intranet. IT system controls are in place to detect incidents that threaten the confidentiality and integrity of Tax Administration data. Specifically, restricted user-profiles and audit trails of user access and changes made to taxpayer data exist, together with surveillance by internal audit unit . |
| P9-29-2 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; Staff integrity assurance mechanisms are in place. There is an organizationally independent internal affairs unit reporting directly to the Head of the Tax Administration. Internal affairs unit provides leadership to the formulation of integrity and ethics policy (e.g., anti-corruption institutional and sectorial plans, declaration of interests and assets of tax officials, protection of whistle-blowers) and ensures that everyone within the organization adheres to it. The internal affairs unit has appropriate investigative powers and exercises these powers by investigating professional misconduct of tax and bringing wrongdoers (27 tax officials in 2016) to account (e.g., firing or warning). It cooperates with relevant enforcement agencies and maintains and publishes integrity-related statistics. In addition, there is an annual internal survey about the perception of corruption in the organization. Information about punished tax officials is publicly reported on the Tax Administration's intranet |
| P9-30-2 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; An Ombudsman investigates taxpayer complaints of maladministration. The Ombudsman routinely investigates complaints from taxpayers about the treatment they have received from the Tax Administration. A Taxpayer Rights Defender Office is located within the Tax Administration and reports to the Head of the Tax Administration. It processes complaints received through several channels. An investigation process for suspected wrongdoing is in place. An anti-corruption agency, oversees the Tax Administration´s anti-corruption policies through institutional and sectorial anti-corruption plans. In addition, the anti-corruption public prosecutor investigates the most serious cases of alleged corrupt conduct of tax officials. |
| P9-31 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; An annual independent mechanism for monitoring public confidence in the Tax Administration is in place. Since 2013, a company hired by the Institutional Image Unit through an annual public tender conducts a survey every year to monitor trends in public confidence in the Tax Administration. The survey is based on a statistically valid sample of key taxpayer segments and a solid methodology. Specifically, the enquiry carried out during September-October was based on 1,438 enquiries at the national level comprising individuals, large taxpayers, and small and medium companies. The results of the survey are made public through the inclusion of a metric on public confidence in the annual follow-up report of the strategic plan. In addition, the Tax Administration took the survey results into account when reviewing its public relations campaigns (e.g., electronic receipts) and in preparing the Compliance Improvement Plan for 2017. |
| P9-32-1 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; The annual report outlining both the financial and operational performance of the Tax Administration is made public within 3 months of the end of the fiscal year. In addition, the Tax Administration also publishes an annual report by results and has a transparency portal with information on relevant matters. |
| P9-32-2 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; Strategic and operational plans are made public in advance of the period covered by the plans. Multiannual strategic plans and annual operational plans are made public at the end of December every year. |
| P9-29-1 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; Internal audit consistently verifies the soundness of the Tax Administration's internal Control, risk managmeent, and governance frameworks. The Tax Administration has an organizationally independent Internal Audit Department with 16 skilled internal auditors. The Tax Administration law provides for the Internal Audit Department to report directly to the Tax Administration Board, but to be administratively accountable to the Head of the Tax Administration. The Board meets and reviews all internal audit reports quarterly and the annual audit plan. Internal audit activities are set out in an annual internal audit plan. The plan comprises internal control checks, operational performance audits, information technology systems audits and financial audits. The operational performance audits cover both internal and taxpayer-related operations. The Tax Administration has been ISO 9001:2008 certified since 2012. Some 275 core processes are documented and are available on the intranet for staff guidance. Procedures establish clear responsibility and accountability in a transparent manner for all procedures. The Tax Administration's Quality Management System (QMS) is constantly being audited by the QMS team within the Internal Audit Department. This is also subject to an external audit by the Country's Standards Bureau - the assessment team reviewed reports of an independent review of internal audit operations. There are SOPs for non-processes as well. Regular training of internal auditors in audit methodology takes place. Staff attend workshops offered by the Association of Chartered Certified Accountants, the Institute of Internal Auditors, audit and accounting firms, in-house at the Tax Administration and through peer-to-peer learning. An annual training plan is in place. There is a central repository of internal control policies, processes and procedures. These are available on the Tax Administration's intranet and internal audit division's audit management software called "Relate". The Internal Audit Department is currently in the process of identifying and highlighting all major controls in the Tax Administration SOPs. IT systems controls are in place and can detect incidents that threaten the confidentiality and integrity of Tax Administration data. Intrusion prevention controls detect any incidents that threaten the confidentiality and integrity of the Tax Administration data for external-facing systems, e.g the Tax Administration website and e-service portal. As the Tax Administration has a single office or tax operations, the core IT system is not accessible externally, and has sufficient detection mechanisms to prevent malware and other unauthorized attempts at internal access from occuring. Additionally, restricted user -profiles and audit trails of user access and changes made to taxpayer data exist and are monitored routinely. |
| P9-29-2 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; Staff integrity assurance mechanisms are in place. There is an organizationally independent Internal Affairs Department established by Section 200 of the Tax Administration law. The Internal Affairs Department comprises 15 suitably qualified and experienced staff reporting directly to the Board. The Internal Affairs Department is responsible for the Tax Administration's integrity management framework and ensures that everyone within the organization adheres to it. The Internal Affairs Department cooperates with relevant external enforcement agencies and maintains and publishes integrity-related statistics. The Internal Affairs Department has the appropriate investigative powers and exercises these powers by investigating professional misconduct (325 investigations, over 200 were recommended for disciplinary action, 14 were referred to the Country Commission Against Corruption (the national anti-corruption agency), and 9 to the police). The Internal Affairs Department regularly provides integrity-related training to the Tax Administration staff. |
| P9-30-1 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; There is an annual audit of the Tax Administration's financial statements by the Country's Audit office. The Country's Audit office reports findings in a management letter to the Tax Administration which is formally responded to on the country's Audit office's website. The Country's Audit office also regularly reviews the internal audit operations and systems (e.g.., reviews the audit plans and audit reports). |
| P9-30-2 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; There is an annual audit of the Tax Administration's financial statements by the Country's Audit office. The Country's Audit office reports findings in a management letter to the Tax Administration which is formally responded to on the country's Audit office's website. The Country's Audit office also regularly reviews the internal audit operations and systems (e.g.., reviews the audit plans and audit reports). |
| P9-29-2 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; The Tax Administration has an organizationally independent Internal Security Department (the internal affairs equivalent) working directly under the Commissioner with adequate investigative powers. It has a large number of staff who are in the HQ and the rest others in the local offices. Staff in the local office report to HQ, although their salaries are paid at the local level. They have the authority to conduct operational searches. For punitive actions, there is a disciplinary committee under the Commissioner. The department provides leadership on integrity issues, reports to the Commissioner regularly, and was instrumental in drafting the Ethics Code. It cooperates with other enforcement agencies such as the National Anti-Corruption Bureau, Prosecutor’s office and the police. The department maintains integrity-related statistics which are published on the Tax Administration website. |
| P9-32-1 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; The Tax Administration reports annually on its financial and operational performance and makes the report public in a timely manner. It also prepares an annual report that is submitted to the Ministry of Finance. The 2016 report was published when it was approved, that is, six weeks after the end of the calendar (fiscal) year. The 2017 Report has just published in March 2018. |
| P9-32-2 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; The strategic and operational plans are made public in advance of the period covered. The plan for 2017-2020 was published at the end of 2016. The plans are made public prior to implementation |
| P9-30-1 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; The Audit Office of the Country conducts independent annual reviews of the Tax Administration. The Audit Office is responsible for conducting financial and operational audits of the Tax Administration and does so every year. All annual reports of the Auditor General are tabled in Parliament. The 2015 report tabled in Parliament was limited to revenue receipts. However, the last published audited financial statement of the Tax Administration is for 2011- a responsibility of the Audit Office. The Tax Administration systematically responds to review findings of the Audit Office and evidence submitted to the assessment team confirms this position. |
| P9-32-1 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; Annual reports on the Tax Administration's financial and operational performance are made public within six months of the end of the previous fiscal period. The Tax Administration prepares an annual report on the past year’s operational and financial performance. The report is published on its website within six months of the previous fiscal year. The annual reports for 2014 and 2015 were presented to the assessment team. The 2016 report was not yet available at the time of the mission. |
| P9-32-1 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; Annual reports are published within six months of the end of the fiscal year. Annual reports to the government outlining operational and financial performance are published on the website soon after the end of the reporting period. The annual report for the 2016 calendar year was published in February 2017. In addition, an extensive and more detailed range of statistical data relating to the Tax Administration's revenue collections and activities is published on the website. |
| P9-29-2 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; The Tax Administration has a well-developed and organizationally independent internal affairs unit with adequate investigative powers. The unit, reports directly to the Secretary of State for Finance. The Unit has appropriate investigative powers that are laid out in the law including accessing all relevant documents. It follows the integrity policy and the ethics code. It cooperates with the anti-corruption agency in the Ministry of Public Affairs, as well as the police and the State Prosecutor’s office. The Unit maintains integrity statistics and prepares an annual integrity report that is published on the Tax Administration website |
| P9-30-2 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; The external investigation process for suspected wrongdoing is well developed and undertaken by the ombudsman and the State Prosecutor’s office — recommendations are acted upon routinely. The ombudsman is assigned to the Tax Administration. Any person can write suggestions or complaints regarding the actions of the Tax Administration or its staff. The ombudsman routinely reports the complaints to the Tax Administration, and when resolved, the taxpayer is always informed of the results. The statistics and a brief account of the complaint are published monthly on the Tax Administration website. The Prosecutor’s office liaises with the Secretary of Finance to discuss cases of serious misdemeanour and corruption. The Prosecutor can recommend administrative penalties or criminal prosecution. Actions on the recommendation are taken by the Governor, who is the only authority to remove a civil servant. |
| P9-32-1 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; The annual report on the financial and operational performance of the Tax Administration is elaborate and made public within four months of the end of the financial year. The annual report, in three volumes, contains a detailed analysis of the performance of all the directorates of the Tax Administration. The report, in hard copy and on the website, is published in April, for the fiscal year ending December. |
| P9-29-2 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; Internal Affairs Directorate has appropriate investigative powers, applies diverse approaches to its activities and is well resourced. Internal Affairs Directorate reports to the Governor of the Authority for Public Revenue. It conducts a mix of disciplinary and criminal investigations and wealth and asset checks related to the staff and attends to anonymous complaints. It is actively cooperating with the General Inspector of Public Administration and works with the Public Prosecutors on referrals relating to staff complaints. A comprehensive report of its activities is produced annually and is available to the public. An Internal Affairs Directorate official chairs a committee established to review the code of conduct and revise the strategic plan against corruption. |
| P9-32-1 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; An annual report is prepared and made public by the Tax Administration. The annual report includes information on the operational performance of the Tax Administration, expenditure statements, and indications of priorities for the following year. Once tabled in the Parliament, the annual report is published in the Government Gazette and on the Tax Administration website. The Government requires public bodies to table their annual plans within three months of the end of the fiscal year. The annual report for the 2016 fiscal year was published in March 2017. |
| P9-30-1 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; The Auditor-General audits the financial and operational performance of the Tax Administration every year. The Tax Administration responds to the Auditor General's findings and these are reported to parliament and published on the Tax Administration website |
| P9-32-1 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; Separate reports on the financial and operational performance of the Tax Administration are published annually and within six months of the end of the fiscal year. The report of financial performance of the Tax Administration for the year ended December 31, 2016 was published on the Tax Administration website on March 22, 2017 and the report on operational performance was published on April 20, 2017. |
| P9-32-2 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; Operational and Mid-Term Strategic plans are made public in advance of the reporting period. The annual work program of the Tax Administration for 2018 was published on the Tax Administration's website in December 2017. The 2018-2020 Mid-Term Work Plan was also published in late 2017. |
| P9-32-1 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; An annual report outlining financial and operational performance is made public within six months of the end of the financial year. The Tax Administration prepares financial and operational performance reports as part of the annual reporting process. The internal procedure requires that the report, after the Auditor General audit, should be submitted to the Board of Directors by 31st March for approval. This report is then officially submitted to the Ministry of Finance and a copy is uploaded on the website of the Tax Administration. |
| P9-32-1 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; The Tax Administration publishes its annual reports within three months of the end of the fiscal year. The Tax Administration produces annual reports outlining the full financial and operational performance of the Tax Administration and makes them public on its website within three months of the end of the fiscal year. |
| P9-29-2 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; The Tax Administration has a well-established and organizationally independent internal affairs unit with adequate investigative powers to provide assurance of staff integrity. The Unit receives complaints from the Ombudsman and Prosecutor’s Office. It has appropriate authority to investigate actions of misconduct by officials of the Tax Administration. The Unit also conducts a review of assets of public servants and reports cases of assets disproportionate to the known sources. Additionally, the Unit provides leadership in the formulation of integrity policies and the ethics code. It also cooperates with police and other relevant agencies through regular meetings and consultations. Adequate statistics are maintained and made public on the Tax Administration website. |
| P9-30-1 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; External oversight of the Tax Administration’s financial and operational performance is robust, and external review findings are published. The Court of Accounts has a specialized group that regularly reviews the operational and financial performance of all departments of the Tax Administration. They have a year-round audit program and can open special audits in serious cases. The Court of accounts sends reports of its findings and recommendations to the Tax Administration on a regular basis, and the tax agency has to respond within a determined deadline. The Tax Administration regularly sends a consolidated report to the Court of Accounts and to the Legislative Assembly. The reports and actions taken by the Tax Administration are posted on its website and made public |
| P9-30-2 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; Complaints on suspected wrongdoing are received by the Ombudsman. It receives complaints from the public through phone, email, and in-person on a variety of matters, of which only 3 per cent relate to complaints of misconduct by tax officials (about ten complaints on tax officials in a year). The complaints are sent to the Tax Administration line managers, or, as appropriate, to the internal affairs department. The Ombudsman responds to complainants within 48 hours (and includes inputs from the Tax Administration). It also sends periodic reports to the Tax Administration. The Ministério Público Estadual investigates cases of serious misconduct or corruption. Matters involving the recovery of misappropriated funds are also dealt with by the Procuradoria Geral do Estado. The Ministério Público together with the internal affairs department oversees the anti-corruption policies of the Tax Administration. The Secretary of Finance and the Under-Secretary of Revenue are informed immediately after an act of corruption has been established by the Corregedoria |
| P9-29-2 | EUR | A | Repeat | 2015 | English | Scored A because good practice was detected in; The Tax Administration has an organizationally independent Professional Standards Directorate, which reports directly to the Head of the Tax Administration. This directorate, which has four staff (including the director), is responsible for the detection and prevention of staff corruption and violations of laws and procedures relating to conflicts of interest and ethical behaviour. Cases are put forward for consideration of administrative sanctions. Cases of violation of the Law on Anti-Corruption are reported to the Anti-Corruption Agency. Criminal cases are reported to Police Department for Economic Crimes and Corruption and in some cases to the State Prosecutors’ office. Staff in this directorate have sufficient investigative powers and cooperate with the Anti-Corruption Agency, police, and the prosecutor’s office. The directorate provides input to the development of the Tax Administration’s Code of Ethics. All cases from the Professional Standards Directorate are made public. All cases are reported on the Tax Administration website and statistics are included in the annual Tax Administration report to the Government. |
| P9-30-1 | EUR | A | Repeat | 2015 | English | Scored A because good practice was detected in; The AG’s Office audits the Tax Administration’s financial statements and elements of its operational performance annually. The AG’s annual program of audits for the Tax Administration includes specified elements of operational performance. The findings of the AG are responded to by the Tax Administration. Findings of the AG’s audits are published on its website. Responses from the Tax Administration are not reported on the AG’s website but are included in the next year’s AG report |
| P9-31 | EUR | A | Repeat | 2015 | English | Scored A because good practice was detected in; The level of public confidence in the Tax Administration is monitored biennially through an independent external survey. By December 2017, a Repeat survey had been completed by an independent external consulting company. The survey focused on the perceptions of taxpayers, including individuals and businesses of different sizes and sectors, regarding transparency, efficiency fairness, and service orientation of the Tax Administrations' operations. In general, the Tax Administration scored well on all parameters compared to the 2015 survey but the 2017 survey also identified some areas for improvement including the time taken to refund VAT. Following analysis, the survey will be acted upon and made public. The Tax Administration is currently analyzing the survey to identify weaknesses and opportunities to improve services and reduce taxpayer compliance costs. Publication of the survey is scheduled for the end of June 2018 |
| P9-32-1 | EUR | A | Repeat | 2015 | English | Scored A because good practice was detected in; The Tax Administration submits an annual report to the Government on financial and operational performance. The annual report, which is published on the Tax Administration website, covers various aspects of the work conducted by the Tax Administration during the fiscal year. The report contains information on revenue collections and progress made in achieving the Tax Administration priorities. The report is published within six months of the end of the fiscal year. |
| P9-30-2 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; Complaints on suspected wrongdoing are reviewed by the Ombudsman. The Ombudsman receives complaints from the public through phone, email and in person. The complaints are transmitted to the appropriate level in the Tax Administration, depending on the nature of the complaint, and the Tax bodies have 20 days to respond to them. The complaints and their resolution are published both on the Tax Administration website and on the ombudsman portal. Systemic problems and their solutions are reported to the senior management of the tax administration and the Secretary of Finance. |
| P9-30-2 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; The Ombudsman routinely investigates complaints about suspected wrongdoing and maladministration and recommends actions to the Secretary. The Ombudsman, then, contacts the department concerned to examine the complaint. If the complaint relates to issues of corruption, information is sent to the Corregedoria. Statistics on the number and nature of complaints are published on the Tax Administration website. Every six months, the Ombudsman prepares a report to the Secretary. This report is also published on the Ombudsman website. The Ombudsman for the State conducts periodic internal evaluations to see if the Ombudsman assigned to the Tax Administration has abided by the set procedure |
| P9-32-1 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; An annual report of the financial and operational performance of the Tax Administration is prepared and published within six months of the end of the fiscal year, For the calendar year 2017, the annual report was published on the Tax Administration portal on May 25, 2018. Monthly reports on the financial performance are prepared and made available to the public through the portal, with information on revenues, expenditures and investments, In accordance with the Law of Fiscal Responsibility, citizens are also informed about purchases and public contracts and transfers of the resource. |
| P9-29-1 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; Internal audit within the Tax Administration is independent, reports directly to an Audit Committee has an audit scope covering all key operational areas, and its operations are reviewed annually by OAG. Internal Audit operates three teams, focusing on (i) IT and risk; (ii) performance and quality control; and (iii) DT and Customs operations. They report to an Audit Committee comprising three external members of the Board. Annual plans based on risk analysis ensure between 45-55 audits per year. Auditors have trained annually, internally and externally, based on identified needs of individuals. Procedures and policies are maintained on the Tax Administration SharePoint intranet site. The IT system provides audit trails of user access and changes made to taxpayer data, reviewed by Internal Audit using system-generated reports to focus the audits. The OAG conducts independent annual reviews and reports on the effectiveness of Internal Audit operations and systems, details of which are publicly available |
| P9-30-1 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; External independent oversight of the Tax Administration’s operational and financial performance is well established and systematic and ensures recommendations are acted upon. The OAG carries out its responsibility to annually audit and report on the operational and financial performance of the Tax Administration. The OAG liaises with the Tax Administration Internal Audit and Loss Control units to develop their plans. Reports include identification of risks and recommendations for changes and improvements. These are shared with the Tax Administration senior management team and Board and monitored in-year. The Tax Administration responds to the findings and provides updates on the implementation of recommendations. Recommendations not implemented during the period are carried forward. The report of the Auditor-General is publicly reported each year and published on the website. |
| P9-29-2 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; The Tax Administration has an organizationally independent internal affairs unit with adequate investigative powers to provide assurance of staff integrity. Further, integrity-related statistics are published. The Unit, with a staff of 11 investigators, reports directly to the Head of the Tax Administration. It investigates the misconduct of serving officials and recommends and enforces punishments. The Unit also provides leadership on ethics and integrity policies and writes these policies. It collaborates regularly with other anti-corruption, external audit and enforcement agencies such as the Controller Authority, Attorney General, and Prosecutor General. The Unit maintains statistics and prepares an annual report of all its activities. These statistics and reports are available for internal use on the intranet and are also published in the Government Activity Report. |
| P9-30-1 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; There is a regular external review of the Tax Administration’s financial and operational performance, and the review findings are published. External oversight is provided by two authorities: (i) Court of Accounts, and (ii) Comptroller General. The Court of Accounts presents its findings and responses of the Tax Administration to the legislative chamber, while the Controller General reports to the Governor. Both these authorities publish their annual programs of external oversight on their websites. Their decisions and responsibilities of the Tax Administration are presented on their respective websites |
| P9-30-2 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; Complaints on suspected wrongdoing are reviewed by the Ombudsman. The Ombudsman receives complaints from the public in person, through phone, by email, through its portal or alternatively on the portal of the Ombudsman. The complaints are channelled to the appropriate Tax Administration domain with a 20-day response timeline. The whole process is automated. The complaints and their resolution are published in semiannually on the Tax Administration and the Ombudsman websites. The Public Ministry investigates serious cases of misconduct or corruption. Cases are prosecuted through the judicial system with the assistance of the Attorney General. Case statistics from all departments are maintained by the Public Ministry and have been published since 2013. |
| P9-32-1 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; The Tax Administration publishes semiannual and annual reports of its financial and operational performance within six months of the end of the performance period. These reports are published on the Tax Administration webpage; a large range of information and statistics is available. Performance statistics are also published as on the website of the Governor. |
| P9-32-2 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; Detailed strategic and operational plans are published in advance of the period covered. The current strategic plan covering the period 2016-2019 was prepared and published on the website of the Planning Secretary, in 2015 |
| P9-29-2 | AFR | A | First | 2019 | English | Scored A because good practice was detected in; The Tax Administration has a robust program to assure staff integrity. The internal affairs division reports directly to the Head of the Tax Administration and devises strategies and programs to detect and combat fraud. A code of conduct was implemented at the creation of the Tax Administration and was updated in 2015. The code reflects the principles set out in the Prevention of Corruption Act. The code is explained to employees as part of the induction process and employees must sign the code. The division has appropriate powers to investigate and has in place working relationships with other agencies e.g. police, anti-corruption commission etc. Integrity statistics are maintained and are published in the annual report |
| P9-32-1 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; The Court of Auditors audits the financial statements of the Tax Administration independently and periodically. Audits of the Tax Administration accounts are conducted The annual operational performance audits have focused on the area of collection and tax execution. Observations and recommendations provided by the external audit are responded to by the Tax Administration and the implementation of actions is monitored. The results of the external reviews, the respective responses and the actions taken are reported publicly |
| P9-32-1 | EUR | A | First | 2019 | English | Scored A because good practice was detected in; An annual report to government detailing the financial and operational performance of the Tax Administration exists. The 2018 annual report was made public within six months of the end of the fiscal year |
| P9-30-1 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; There is external supervision over the financial and operational performance of the Tax Administration, exercised by the State Authority and the Office of Auditors. The recommendations made by these bodies are followed and publicized. The Taxpayer Defense Organization routinely investigates complaints and makes suggestions. Problems detected are reported to the Tax Administration. The Tax Administration is subject to the public accounting regime by legal mandate. The accounting instruction for the public administration provided by law establishes the principles, purposes and competencies in the matters of public accounting and is fully applicable to the Tax Administration. The instruction regulates the procedure for the formulation and content of the annual accounts as well as their submission to audit by the State Authority. In addition, the accounts rendered by the Tax Administration are submitted by the Tax Administration to the Office of Auditors, and are subject to examination and audit by this Organization. |
| P9-30-2 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; Mechanisms to ensure the integrity of the Tax Administration's personnel, the actions related to them and, if applicable, their investigation, as well as the analysis and evaluation of the Tax Administration's security and internal control systems are in place. It is empowered by law to make full use of the techniques it deems most appropriate, with full access to the information. There are mechanisms in place to ensure the integrity of personnel, but no statistics are publicly disclosed on investigations and their results. statistics on investigations and their results are not made public, nor are statistics on disciplinary files and their results. There are Tax Administration personnel permanently stationed in the Anti-Corruption Office. |
| P9-31 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; Public confidence in the Tax Administration is measured by surveys conducted by external parties on an annual basis and made public. The Tax Administration takes into account the results of these surveys and studies, which generally show a good a good opinion of citizens. The mechanisms for measuring the public's confidence in the Tax Administration are mainly the surveys conducted and are made public within six months of their completion. The surveys show a positive image of the Tax Administration services consolidated among citizens. The correctness, training and impartiality of its civil servants are positively valued, as well as the capacity of its and impartiality of its officials, as well as the capacity of the Tax Administration services to solve taxpayers' problems. Taxpayers. Complaints filed with the Taxpayer Defence Organization do not detect any lack of integrity of the Tax Administration staff. |
| P9-32-1 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; Tax Administration follows a management by objectives model based on strategic and operational planning instruments. It is periodically accountable to the Parliament through the appearance of its Head of the Tax Administration. An annual report and a report on the results achieved in the established objectives are prepared and published. It is also publicized in the media by means of appropriate press releases. |
| P9-30-2 | EUR | A | Repeat | 2019 | English | Scored A because good practice was detected in; LG123 has a Business and Tax Ombudsman that routinely investigate complaints from taxpayers and citizens. Most interactions are in respect of legislative changes and interpretation, and on service deficiencies. Recommendations are made by these bodies on individual cases and systematic matters. There is a body responsible for monitoring implementation of the (Tax) Ombudsman’s and anti-corruption agency’s recommendations or complaints. The Change and Planning Department submits reports on implementation of recommendations to the Head of the Tax Administration. An investigative department in the Ministry of Finance also has a role in investigating wrongdoing by the Tax Administration staff. The Country has a range of agencies whose roles are to prevent, detect, and investigate corruption. These include the Anti-corruption agency, the Investigative Unit of the Prosecutions Office, and the investigative Unit of the Ministry of Finance. The Tax Administration actively cooperates with these bodies. |
| P9-29-1 | AFR | A | Repeat | 2019 | English | Scored A because good practice was detected in; Tax Administration has an organizationally independent Internal Audit Department that reports administratively to the Head of the Tax Administration and functionally to the Board of Directors through the Board Audit and Risk Committee. Internal Audit Department activities are set out in an annual Internal Audit Department (IAD) work plan. The plan prescribes checks on financial reporting, the robustness of internal controls, operational performance audits, information technology systems audits and compliance with laws. The operational performance audits cover both the Tax Administration's internal operations and revenue administration processes. The Office of the Auditor General carries out an annual review of the Internal Audit Department operations and systems and as part of this review provides an opinion in its report on the reliability of internal Audit Department processes. There was also an independent external quality assurance review of the Internal Audit Department done in 2017 by an independent consultant. There is regular training of internal auditors for both their personal and continuous professional development purposes. There is a central repository of internal control policies, processes and procedures. This central repository is available on the Tax Administration system managed by the Quality Management Programme in the Strategy, Innovation and Risk Department. IT system controls are in place to detect incidents that threaten the confidentiality and integrity of Tax Administration data. These controls include restricted user profiles and audit trails of user access and changes made to taxpayer data exist. The IAD also makes use of several computer-aided audit tools for effective surveillance (e.g., inappropriate use or access by employees and intrusions into the system) |
| P9-29-2 | AFR | A | Repeat | 2019 | English | Scored A because good practice was detected in; Staff integrity assurance mechanisms are in place. The Tax Administration Intelligence Unit is focused solely on internal affairs which functionally reports to the Commissioner in charge of Intelligence and Strategy—a Deputy Head of the Tax Administration. The Intelligence Unit has appropriate investigative powers and investigates allegations of wrong-doing by employees. Allegations are received from various sources including the public through direct or anonymous reporting and other departments and agencies in LG34 including the Anti-Corruption Organization that also handles other crimes. The Intelligence Unit work with the Directorate of Criminal Investigations to gather evidence and criminal cases are referred to the Office of the Director of Public Prosecutions which is the national prosecuting authority in the Country. The Intelligence Unit supports the formulation of integrity and ethics policy including the code of ethics by making appropriate recommendations during reviews of the code of ethics. The Human Resources Division ensures that all the Tax Administration staff sign an oath of secrecy at recruitment and at renewals of contracts for staff engaged on contract. The code of conduct and Ethics and updates made are provided to all staff and they acknowledge receipt. The Intelligence Unit cooperates with and has signed memorandums of understanding (MOUs) with the Anti-Corruption Organization the agency responsible for anti-corruption activities in the Country. Both the Intelligence Unit and Anti-Corruption Organization maintain integrity-related statistics while preserving confidentiality; these statistics are publicized in the Integrity Newsletter which is published on the Tax Administration website and the quarterly reports of the Anti-Corruption Organization. |
| P9-30-1 | AFR | A | Repeat | 2019 | English | Scored A because good practice was detected in; Auditor General conducts financial and operational audits annually. External review findings by the AG are responded to, monitored by the Board Audit and Risk Committee and included in the AG’s report. The AG report and the Tax Administration responses are submitted to the National Assembly and published on the AG website. The Tax Administration Management appearances at the Parliamentary Public Accounts Committee are publicly reported. |
| P9-30-2 | AFR | A | Repeat | 2019 | English | Scored A because good practice was detected in; Investigations into suspected wrong-doing and maladministration are conducted by the Anti-Corruption Organization and Institution of Administrative Justice respectively. The Institution of Administrative Justice forwards to the Tax Administration complaints received from taxpayers. The Tax Administration investigates and addresses the complaints and reports back to the Institution of Administrative Justice quarterly. The Anti -Corruption Organization oversees the anti-corruption policy and works closely with the Intelligence Unit in the Tax Administration. An MOU between the Tax Administration and the Anti Corruption Organization is in place. The Tax Administration cooperates with the Anti-Corruption Organization, the Criminal Investigations Unit of the LG34, Police Service and the office of the Director of Public Prosecutions to investigate and prosecute serious cases of corruption among tax officials. The Board of Directors regularly receives reports of actions taken in response to recommendations of the Institution of Administrative Justice and the Anti-Corruption Organization. |
| P9-31 | AFR | A | Repeat | 2019 | English | Scored A because good practice was detected in; A customer satisfaction survey is carried out by an independent third party every two years. It is based on a statistically valid sample of key taxpayer segments. A summary of the survey is published on the Tax Administration website within 6 months of completion. The Tax Administration also conducts a Corruption Perception Survey, the results of which are not published. The survey results are taken into account in the Tax Administration integrity program and in the communications strategy. There are a number of public relations campaigns relating to integrity, including the Quarterly Integrity newsletter and online presence. |
| P9-32-1 | APD | A | First | 2019 | English | Scored A because good practice was detected in; A comprehensive Annual Report is prepared on the financial and operational performance of the Tax Administration. This report is normally submitted to Parliament in September each year. A delay in this timeframe occurred for the 2019/2020 Annual Report due to the COVID pandemic with submission to Parliament occurring in May 2021. At this stage, although the 2020/2021 Annual Report will be prepared by September 2021, no scheduled date for submission to Parliament has been determined but the expectation is that it will be delayed again. These unusual circumstances, which have delayed the normal submission process, have been taken into account for this assessment |
| P9-32-2 | APD | A | First | 2019 | English | Scored A because good practice was detected in; A multi-year Corporate Plan outlines the organization's future directions and plans. The current plan, released in 2020, is for the period 2020/2021 to 2022/2023 and was available in advance of the period covered. The Corporate Plan publicly details: reforms; priorities; plans; outputs and KPIs; and budget and staffing. Output-focused annual operational plans are then prepared by individual divisions within the Tax Administration. The First time ever produced Corporate Improvement Strategy (CIS) has also been publicly released. This strategy was released in 2019 and covers the period 2019 – 2021. The CIS is the primary document that sets out specific strategies to promote and enhance taxpayers’ compliance levels. |
| P9-30-1 | APD | A | First | 2019 | English | Scored A because good practice was detected in; Auditor General of LG09 provides external oversight over the Tax Administration's operational and financial performance. External review findings are responded to and are publicly reported. The Auditor General Office is a constitutional Institution and has an annual audit program of the Tax Administration's performance. The audit reports are responded to by the Tax Administration and discussed in the Public Acounts Committee (PAC) of Parliament. These reports are publicly available on the Tax Administration, Auditor General and PAC websites. |
| P9-32-1 | WHD | A | First | 2019 | English | Scored A because good practice was detected in; Annual institutional reports on operating and financial performance are published within six months of the end of the year to which they relate within 6 months of the end of the fiscal year to which they refer. Institutional annual reports contain adequate information on the operational and financial performance of the Tax Administration. |
| P9-30-1 | AFR | A | First | 2019 | English | Scored A because good practice was detected in; Office of the Auditor General (OAG) audits the Tax Administration financial statements and operational performance annually. An annual program of operational performance audits by the OAG is in place. Tax Administration also reviews AOG reports and responds to the findings and recommendations by OAG. Entry and exit meetings are held with the OAG officials to discuss the scope of the planned audit and audit findings respectively. External review findings and responses of the Tax Administration are publicly reported and the reports of OAG up to 2019 were published on the OAG website. |
| P9-32-1 | AFR | A | First | 2019 | English | Scored A because good practice was detected in; An annual report to Government outlining the full financial and operational performance of the Tax Administration for the immediate past Financial Year is produced and is made public within four months of the end of the Financial Year. The report is submitted to the Senior Management team of the Tax Administration and is considered by the Technical Planning Committee of Council. The report is also discussed at the Annual Budget Conference usually held September or October of each Financial Year and the report is also shared with key stakeholders through channels like emails. The report is also submitted to Parliament. |
| P9-30-1 | EUR | A | First | 2019 | English | Scored A because good practice was detected in; Tax Administration financial statements and operations are audited annually by LG249 Audit Office. The LG249 Audit Office annual program of audits includes financial statements and some elements of operational performance. Audit findings are responded to by the Tax Administration. The findings and the response to the findings is published in LG249 Audit Office reports. |
| P9-32-1 | EUR | A | First | 2019 | English | Scored A because good practice was detected in; Tax Administration publishes financial and operational performance reports annually. The operational performance report, which is published on the website, covers various activities and aspects of the work conducted by the Tax Administration during the fiscal year. The financial performance report contains information on revenue collections, expenses, capital investments, projects and subventions during the review fiscal year (FY) and includes comparison to the previous three years. The reports are published within six months of the end of the FY. |
| P9-32-1 | APD | A | First | 2019 | English | Scored A because good practice was detected in; Tax Administration submits an annual report to the government, which is then published within six months of the end of the Fiscal Year. The report outlines full financial data comprising both outturn details of the revenue collected against all tax types and the Tax Administration’s financial statements. The report also summarizes operational activities, including human resources management and development and taxpayer compliance activities conducted throughout the year. Notably, the Tax Administration reports on the gender breakdown of its staff, with female staff having slightly higher numbers than males. The 2020 report also contains data on the KPIs for the Tax Administration’s strategic priority areas. More generally, the report shares the outlook for the upcoming year and the 2020 report notes the challenges brought about by COVID-19 and the measures introduced to address the challenges. |
| P9-30-1 | APD | A | First | 2019 | English | Scored A because good practice was detected in; LG140's Audit Office conducts annual audits of financial statements while the Ministry of Finance conducts external reviews of operational performance. The Tax Administration reviews the recommendations of the Audit Office annual financial statement audit and the recommendations of the Ministry of Finance’s operational performance report and responds to their findings and recommendations. The findings of external reviews, and the Tax Administration’s responses are publicly reported. |
| P9-30-2 | APD | A | First | 2019 | English | Scored A because good practice was detected in; Citizens can channel their complaints and grievances of wrongdoing and maladministration from government agencies through a toll-free line 5555, but no Ombudsman has been established. Taxpayers can also appeal to the Ministry of Finance or by email to the cabinet. A transparent electronic system is provided by government that allows citizens to check the status of their case. The Parliament has adopted the Law on Glass Accounts in an attempt to ensure the efficient and proper use of state and local government funds, the transparency of decisions and actions concerning budget management and public overview of the same. The Anti-Corruption Organization reviews many government agencies including the Tax Administration. Findings and recommendations are publicly reported, and the Tax Administration’s responses are published on the Tax Administration webpage |
| P9-31 | APD | A | First | 2019 | English | Scored A because good practice was detected in; Tax Administration monitors general public confidence in the Tax Administration via independent surveys. Taxpayer survey was conducted using an internet-based online information collection method, based on a proper methodology and approach for collecting information regarding taxpayers’ satisfaction and confidence in the Tax Administration. The survey outcomes point to the knowledge, attitude, and practices that need improvement. A detailed independent survey is conducted annually by the Marketing Consulting Group. It is based on a statistically valid sample of key taxpayer segments. It provides comprehensive insights into taxpayer perceptions across more than 100 indicators. The annual survey includes recommendations for practical changes to be made to processes and procedures across the Tax Administration’s various operational processes. The most recent survey proposed more than 30 recommendations which have been used to inform the Department of Taxation’s integrity framework and public campaigns. In addition, it also publishes the Code of Conduct, measures taken to ensure transparency of human resource management, and measures taken to ensure the integrity staff performance evaluations |
| P9-29-2 | WHD | A | First | 2019 | English | Scored A because good practice was detected in; Integrity and ethics of the employees are guaranteed by both the Inspector General's Office and an an ethics committee. A code of conduct was implemented in after 2010 and reflects the standards of the federal executive branch. This code is distributed to all employees, who must confirm receipt by digital means. The Inspector General's Office reports directly to the Head of the Tax Administration and deals with all processes that may result in disciplinary action or criminal actions. The Inspector General's Office has full competence and wide investigative powers, and maintains well-established working relationships with other government agencies such as the Police and the Public Prosecutor's Office. The ethics committee (composed of representatives of the management and employees) deals with issues related to functional relations and employee behavior, such as, for example, the use of personal social networks in the workplace. Statistics on workload are maintained and publicly disclosed |
| P9-30-1 | WHD | A | First | 2019 | English | Scored A because good practice was detected in; There is extensive external supervision. An external audit is performed annually by the Office of the Auditor General. The audit report includes financial statements, audits of operational performance and is made public. The Tax Administration's responses to the audit findings are included in the summary of this audit report. In addition, the Constitution assigns to the Senate the responsibility for oversight and evaluation of the tax system. The Audit Organization audits the balance sheets of the Tax Administration as part of the process of preparing the General Budget of the LG08 and makes recommendations for improvement. Its report is also published. An annual program of performance audits is carried out by the Audit Organization. Irregularities and mismanagement are addressed. |
| P9-32-1 | WHD | A | First | 2019 | English | Scored A because good practice was detected in; An annual report is prepared according to a format and schedule determined by the the government's audit office. The audit office publishes a comprehensive annual report that encompasses both operational and financial performance. This report is published within six months. The Tax Administration also publishes a public report that includes only operational performance information only. This report is issued soon after the close of the fiscal year, i.e. within six months. |
| P9-32-1 | WHD | A | First | 2019 | English | Scored A because good practice was detected in; There is an annual report to government detailing the financial and operational performance of the Tax Administration. The 2018 annual report was made public within six months of the end of the fiscal year |
| P2-3-1 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; Structured risk assessment process exists. The Tax Administration uses a risk management methodology developed by the government as part of its yearly strategic process to identify, assess and prioritize compliance risk for all core taxes, main taxpayer obligations (registration, filing, payment and accuracy of reporting) and key taxpayer segment. The risks are derived from the objectives that Ministry of Finance gives to the Tax Administration, research undertaken internally in the directorate of taxes and intelligence gathered in the regions. |
| P2-4 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; High level risks are identified and mitigated through a compliance improvement program. The overall risk assessment, with all supporting prosesses and documents, provide insights into risks and trends in compliance levels. Risk mitigation activities are identified and prioritized. The regions are involved in the risk mitigation activities. Progress and results are monitored and reported. |
| P2-6-1 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; Institutional risks are identified, assessed and prioritized across the organization. A structured risk assessment methodology is used in the organization to manage institutional risk. The core processes of the Tax Administrationare designed around managing large volumes of data sets generated internally and received from third parties. Consequently risk assessments focuses on risks associated with loss or failure of the information technology system (both software and hardware) including loss and/ or leakage of confidential taxpayer information. Further, the Tax Administration manages risk related to receiving compromised data and information from third parties. |
| P2-3-2 | EUR | A | First | 2015 | English | Scored A because good practice was detected; Tax Administration relies on a fairly sufficient number of sources of intelligence and research initiatives in preparing its Risk Response Plans. While results of completed audits are monitored, no random audits are undertaken by the Tax Administration to measure compliance levels in different economic sectors. The Tax Administration has access to, and uses, third party information from government agencies such as Customs Organization, Central Bank , and the Motor Vehicles Registry. Information on payments is accessed from commercial banks and international agencies. In recent years,the Tax Administration has benefited from significant research on tax gap and “shadow economy” issues undertaken by agencies such as the World Bank, EU, bilateral donors among others. Nonetheless, the agency has not investigated topical compliance issues involving profit shifting and aggressive tax planning by high-wealth and high-income taxpayers, nor examined environmental factors influencing taxpayer attitudes and behaviors in LG150. |
| P2-4 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; Compliance improvement measures to address high level risks are both identified and actioned. The Risk Response Plan provides not only a detailed description of major risks but also the strategic initiatives that will be taken to address them. This Plan covers all the core taxes, all major taxpayer segments, and all taxpayer obligations (registration, filing, payments, and reporting). Regional offices assigned to undertake these initiatives are required to report on their implementation on a quarterly basis and an annual report is prepared on the execution of each Risk Response Plan. |
| P2-6-1 | APD | A | First | 2015 | English | Scored A because good practice was detected in; Structured risk management framework is in place to identify, assess, prioritize, and mitigate institutional risks. Risks have been identified and prioritized using a formal likelihood/consequence matrix to produce a list of the top ten institutional risks. Risk registers are maintained and risk owners appointed to develop and implement mitigation strategies for these risks. Governance is exercised through a permanent Risk and Compliance Committee (audit committee) chaired by the Accountant-General and comprising two members from the private sector and one from the Ministry of Finance. The Head of the Tax Administration and Deputy Head of the Tax Administration attend in an advisory capacity. The committee meets quarterly, has formal agendas, briefing papers, and status reports and records minutes and action items. The committee approves and monitors implementation of the mitigation strategies for the identified institutional risks. This committee also monitors the implementation of all recommendations resulting from external and internal audits of the Tax Administration. The Tax Administration advised that a similar risk management framework is planned to be rolled-out for the compliance risk management process in the near future. Business resumption plans are in place and regularly tested and updated. A crisis management team has also been appointed and all members trained in their respective roles. Disaster simulation exercises are conducted as a means of testing the readiness of the Tax Administration to respond to major shocks to business operations (e.g., an earthquake emergency drill was conducted in the recent years and fully documented). A separate business resumption plan is in place for IT system support. Two training simulations are conducted annually in which the readiness of the Tax Administration to manage major system outages is tested. |
| P2-3-2 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; Structured risk assessment process has been used to develop the 2015/16 Compliance Risk Management Plan. The approach closely follows the OECD Risk Management Process Model is outlined in the Tax Administration's Compliance Risk Management Plan and is also closely linked to the Tax Administration's corporate strategic planning process. For example, the Fourth Corporate Plan of the Tax Administration has a complete section on compliance—one of the three strategic themes—the others being ‘convenience’ and ‘continual improvement.’ |
| P2-6-1 | MCD | A | First | 2015 | English | Scored A because good practice was detected in; Tax Administration has a structured approach in place in relation to institutional risks. This forms part of the annual planning cycle and includes a full listing of the risks, quantified by likelihood and consequence scores, mitigation strategies, and a business continuity plan. Staff are trained in response procedures, and to that effect, the Tax Administration recently conducted a simulated staff evacuation exercise at one of their district offices. |
| P2-6-1 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; Structured process is applied annually to identify, assess, and prioritize institutional risks across the organization. A comprehensive institutional risk register has been developed, along with business continuity plans that, in particular, cover data backups, archiving, protection of personal data, and disaster recovery locations. |
| P2-6-1 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; Tax Administration has in place a comprehensive structured process to identify, assess, prioritize, and mitigate institutional risks. Based on the RMF, the Tax Administration addresses institutional risks as part of its planning process; maintains an institutional risk register; has an annually updated business continuity plan; monitors progress and evaluates the impact of mitigation activities at senior management levels; and conducts disaster simulation exercises. |
| P2-3-1 | WHD | A | First | 2015 | English | Scored A because good practice was detected in;The extent of intelligence gathering and research to identify compliance risks is comprehensive. The Tax Administration analyzes data from a range of internal and external sources, including environmental scans, to identify emerging compliance risks. These include external context/environmental scan analyses, tax gap studies, sectoral research into hidden activities of businesses and internal data like results from audit programs. |
| P2-3-2 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; The compliance risk management process is a part of a multi-year national assessment plan and structured across the main taxpayer obligations, core taxes and taxpayer segments. A risk matrix is updated annually, risks linked to the prioritized areas are updated every three months and designed around all identified compliance risks with recommended mitigation treatments. |
| P2-4 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; Compliance improvement plan (CIP) is well-documented, describes the most significant compliance risks and explains how the Tax Administration intends to respond to these risks. The CIP is structured around key taxpayer obligations, segments, core taxes, summarizes the key compliance issues and how the Tax Administration intends to mitigate these risks. The CIP is fully resourced and progress is monitored monthly through the performance indicators and results included in the Institutional Operative Plan and the National Plan of Control. |
| P2-6-1 | MCD | A | First | 2015 | English | Scored A because good practice was detected in; A structured approach is in place to address institutional risks. This was introduced in mid 2017 and was as a result of assistance provided by OECD and later by an Accounting and Auditing firm. The administrative Affairs department of both the VAT and Revenue Directorates takes overall responsibility for risk in this area and each have a nominated representative with assigned duties. |
| P2-3-2 | EUR | A | Repeat | 2015 | English | Scored A because good practice was detected in; Tax Administration deploys a structured and comprehensive risk management approach aimed at assessing and quantifying a broad range of compliance risks. The Risk Management Division (RMD) uses a wide range of data sets (from partner agencies ) against which taxpayer profiles are developed. These are augmented by a comprehensive analysis against a series of risk rules that enables the RMD to assign risk scores to both individual taxpayers, and to industry sectors. Data is incorporated into a risk system, which provides a single view of a taxpayer’s compliance history, and relevant transactional data. It also provides a set of comparative financial ratios, and assigns a risk score to taxpayers. The risk system is maintained by the RMD, but is accessible to auditors in the regions. Analysis done by the RMD forms the basis of both the tax administration operational plans and its corporate strategy. The RMD’s Risk Treatment Plan addresses all core tax types, the different taxpayer obligations, and different taxpayer segments. It outlines both headline compliance issues, and provides details in respect of the number of visits, audits, education interventions, and other interventions that are expected at an office level in respect of each of the compliance risks identified. |
| P2-4 | EUR | A | Repeat | 2015 | English | Scored A because good practice was detected in; Tax Administration Risk Treatment Plan is comprehensive and provides granular details of activities targeting improvements in taxpayer compliance. It includes key performance indicators against which progress is tracked for each of the risk categories. An updated version of the plan is formally reviewed and adopted by the Tax Administration's senior management each year. The Risk Treatment Plan forms the basis of the Tax Administration operational plans. It comprehensively details the various supporting activities that are required at an office specific level, and covers risks across all the core taxes, the main compliance obligations and key taxpayer segments, and details anticipated audit coverage across specific industries. The Risk Treatment Plan is developed with the actual capacity in offices in mind. The plan is sufficiently detailed to the extent that it is able to identify the full time equivalents required for each of the required activities at an office level, and is matched to the actual resources per office, ensuring that there is sufficient capacity to operationalize the plan. The RMD provides regions with a list of higher-risk taxpayers to be audited, giving effect to the Risk Treatment Plan and audit coverage plans. Cases selected by the RMD constitute the majority of the audits conducted. Some random audits and a small number of audits focusing on compulsory verification checks are also completed. |
| P2-3-1 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; scope of information gathering and investigation to identify compliance risks is broad. The Tax Administration analyzes data from various internal sources and external, including analysis of the external context, to identify emerging compliance risks. These analyzes include: analysis of the internal and external context, studies of the registry gap, tax return presentation, payment in relation to the balance in favor of the treasury (in the development phase), sectoral investigation of hidden business activities and internal data. from the statements. There are various studies related to the identification of risks prepared by the Risk Studies and Management Area |
| P2-6-1 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; The Tax Administration annually follow a structured process to identify, Assess, prioritize, and mitigate institutional risks. Following the guidelines, the Tax Administration follow a structured process to develop prevention plans and mitigation of institutional risks in matters of i) information security and maintenance of the computer system, ii) human and environmental resources, and iii) security occupational. The Business Continuity Plan (PCN) of both the Tax Administration reflects the treatment of the risks associated with the First two. plans are prepared by personnel from each general management, and reviewed and approved by their directors. The risks associated with occupational safety are addressed jointly for the entire Tax Administration, mainly attention to disasters such as seismic activity or fire. The staff of the Tax Administration is trained in disaster prevention and mitigation procedures and performs drills regularly. |
| P2-3-1 | MCD | A | First | 2015 | English | Scored A because good practice was detected in; The Information from various external sources is collected and analyzed to identify the risks of tax incivism. This information is collected nationally and regional within the framework of data exchange agreements (government agencies, financial administrations, trade register, economic operators, etc.). Of the data from internal sources, in particular from tax declarations and tax audit activity, as well as economic studies are also used. This analysis is then used in thematic research and specific studies for tax audit purposes. These good practices justify the attribution of the note A to the First dimension. |
| P2-3-1 | AFR | A | Repeat | 2019 | English | Scored A because good practice was detected in; The Tax Administration has an effective process for gathering intelligence and identifying compliance risks. Data from a range of third parties is gathered and interpreted—this includes from customs, motor vehicle register and stamp duty on land payments. Data is also gathered and interpreted from internal sources such as taxpayer returns, and results from audit programs. Environmental scans, tax gap studies and sectoral research are conducted routinely and analyzed. Risk Bulletins are produced annually. |
| P2-3-2 | AFR | A | Repeat | 2019 | English | Scored A because good practice was detected in; A structured Compliance Risk Management (CRM) process has been developed and is effectively applied. A CRM process that is a part of a multi-year national assessment and structured across the main taxpayer obligations, core taxes and taxpayer segments now forms an integral part of URA’s strategic management, annual planning, and enterprise risk management (ERM) processes. |
| P2-4 | AFR | A | Repeat | 2019 | English | Scored A because good practice was detected in; Tax Administration has developed a comprehensive compliance improvement plan (CIP) which has been fully implemented. The CIP is derived from the Tax Administration’s corporate plan and structured across the main taxpayer obligations, all core taxes and key taxpayer segments. A risk matrix is updated annually and designed around identified compliance risks with recommended mitigation strategies. The compliance divisions are allocated resources to implement the plan. |
| P2-5 | AFR | A | Repeat | 2019 | English | Scored A because good practice was detected in; Governance arrangements are in place for approving compliance risk mitigation strategies and monitoring progress with implementation. The Organization Executive Committee, chaired by the Head of the Tax Administration and comprising Head of Depatments, monitors the implementation and impact of risk mitigation activities for compliance and organizational risks. The ERM unit presents risks to the Executive Committee monthly for action and decisions. The operationalization of the CIP is also monitored by the Domestic Taxes Senior team. Studies have been undertaken to evaluate the impact of compliance improvement initiatives onhigh-risk sectors. A post-audit impact report is done annually and the findings from the impact assessment and studies are used as feedback for improvement of the compliance risk management processes and to inform requests for changes to the tax legislation. |
| P2-3-1 | EUR | A | First | 2019 | English | Scored A because good practice was detected in; Analysis of environmental factors, as well as the collection and processing of tax information constitute, both in a strategic and operational approach, the basis of compliance risk management in the Tax Administration. The Tax Administration has a powerful system for obtaining and processing the information contained both in the tax returns filed by taxpayers, as well as that obtained by supply or capture, from different sources, both public and private, and national and international. There is a legal obligation to present informative declarations of withholdings made on salaries, rents, etc., and to attend to information requirements in addition to mutual assistance in international information exchanges. Likewise, the Tax Administration has a unit specifically dedicated to the prosecution of the most complex tax fraud, in whose structure there are units sufficiently equipped and specifically dedicated to the exchange of information with Intrnational Organizations. Function considered essential for the assessment of compliance risk in sophisticated and complex cross-border fraud. The information thus obtained allows the effective treatment of both current and emerging compliance risks, considering an environmental perspective and with a reflection on the strategic and operational planning of actions both to support voluntary compliance and tax control in the strict sense. |
| P2-3-2 | EUR | A | First | 2019 | English | Scored A because good practice was detected in; As part of its strategic planning, there is a structured process that includes an analysis of compliance risks in the main tax figures, as well as the objective areas and risk profiles in differentiated segments of taxpayers. The treatment and management of risks goes beyond the analysis and evaluation of the risks of compliance with the main tax obligations and includes the identification, evaluation, classification and quantification of risks that affect the tax application processes. To this end, Sectoral Security and Control Commissions are established in the different functional areas and a Risk Map has been drawn up that is subject to continuous annual monitoring and review. |
| P2-4 | EUR | A | First | 2019 | English | Scored A because good practice was detected in; There are programs to improve and mitigate compliance risks at both a strategic and operational level in all functional areas of the Tax Administration, with full resources and a Subdirectorate dedicated to Planning in all of them. These programs are projected on the most relevant risks and on all the main taxes, considering segments and specific risk profiles. There is a written and public program, the General Guidelines of the Annual Tax and Customs Control Plan, with an environmental reading for risk mitigation and strategic projection, which affects each of the main obligations and includes the main segments of taxpayers and taxes. The program is developed for its annual execution, in different plans of a reserved nature, by legal imperative, for each of the functional operational areas of the Tax Administration, carrying out a periodic follow-up of its fulfillment through the indicators of the analyzed annual plan of objectives in the Management and Territorial Management Committees. |
| P2-5 | EUR | A | First | 2019 | English | Scored A because good practice was detected in; The plans and programs established for risk mitigation are subject to continuous control, supervision, feedback and review by the Management Committee. Compliance risk mitigation activities for the main tax obligations arise from the lines of a strategic nature and from the general guidelines of the Annual Tax and Customs Control Plan which, approved by the Tax Administration Management Committee, documents confidentially, for each functional area of activity and in the different Partial Tax Control Plans, the actions and tasks to be carried out with a focus on results. The planned actions are subject to monitoring and impact analysis of their effectiveness through the Annual Plan of Objectives. The Annual Plan of Objectives is subject to control, monitoring and continuous review through a feedback process by the Management Committee the highest body at the Management level. The Management Committee meets weekly and the Territorial Management Committee meets at least monthly. |
| P2-6-1 | EUR | A | First | 2019 | English | Scored A because good practice was detected in; Tax Administration uses a structured process to identify, assess and mitigate institutional risks, also having a business continuity and occupational risk and catastrophe prevention plan that is subject to annual review. The Tax Administration has established for the entire organization, and through the CSSC, a structured process for the identification, qualification and evaluation of different process risks and, among them, those of an institutional nature. On the other hand, and as a result of the operation of the CSSC, a Risk Map is drawn up with three-year validity but which is subject to annual monitoring and follow-up by the Internal Audit Service. The Risk Map includes a catalog or record of the risks detected; the probability of its occurrence and impact on the objectives of the organization; mitigation measures and those responsible for their execution. Specifically and in relation to the use of IT, both infrastructures and services of a critical nature have been identified for the normal functioning of the Organization. In the event of contingencies of this nature, a Service Continuity Plan has been prepared that is reviewed annually and is managed continuously by those responsible for the different IT services. Apart from these specific risks, Tax Administration has action programs on occupational risks, which include protocols and specific training plans for staff in emergency and self-protection situations. |
| P2-7-1 | AFR | A | First | 2019 | English | Scored A because good practice was detected in; Tax Administration structures and capacity to support management of HCR are effective. The support risk management committee oversees the management of HCR. The committee, chaired by the Head of the Tax Administration, meets quarterly and is updated on the implementation of mitigation strategies. Formal processes operate to identify, assess, prioritize and mitigate HCR’s risks. A formal review of Tax Administration’s Information Technology systems and operations using specialist external IT auditors commenced at the end of April 2019. The review will inter alia, examine and report on the new BCMS, using international risk management standards. The HR strategy that has been approved by the Tax Administration Board and helps mitigate high HR risks is monitored and reported against. The HR management team contains three persons with human resource risk training, understanding and experience. The operations of the HR division were reviewed externally in recent years. All Tax Administration managers are trained to understand HCR. The Tax Administration operates an annual performance appraisal process for all staff, with staff receiving feedback quarterly from their manager. |
| P2-4 | AFR | A | First | 2019 | English | Scored A because good practice was detected in; Main tax compliance risks are addressed as part of a detailed improvement plan tax compliance managed by a dedicated structure and assessed monthly. The current action plan summary for the strengthening of tax citizenship is part of the plan strategic 2019-2021 , which is a component of the four poles of change main ones relating to the modernization of Tax Administrations and policies, included in the framework of the Public Finance Management Reform Plan in LG70, 2017-2021. The strategic plan comprises 3 strategic axes: (1) improving the quality of service to users to strengthen tax compliance, (2) the prevention of tax compliance and the strengthening of the fight against fraud, and (3) structural support measures. The measures broken down into 196 actions cover the main levels of tax compliance risks inherent in complying with all tax obligations of the three categories of taxpayers liable for the main taxes (VAT, IS, ITS, Excise Duty). |
| P2-5 | AFR | A | First | 2019 | English | Scored A because good practice was detected in; Monitoring of the main measures and actions to mitigate the main risks contained in the strategic plan is carried out by a dedicated team within the Tax Administration and a periodic evaluation is carried out. The Planning and Monitoring Unit, attached to the Head of the Tax Administration , is in charge of PREM is steered by the Public Finance Reform Support Unit under the MEF, Performance Evaluation Report Template monitoring of implementation. As such, it produces a monthly evaluation report and proposes corrective measures to the Tax Administration Steering Committee. The Tax Administration also provides updates on actions. |
| P2-3-1 | MCD | A | First | 2019 | English | Scored A because good practice was detected in; Tax Administration has regular access to and conducts regular analysis of a large variety of data from internal and external sources. External data sources include the National Bank and the commercial banks, the Customs, the Social Protection Fund, the Property Register, the Public Procurement Agency, the online transactional data from taxpayers’ cash registers, invoicing systems and gasoline stations. The data exchange processes are automated. At the Tax Administration, the data is stored in a centralized data warehouse that is used for analytics. Internal and external data sources allow statistical analysis and crosschecking of data for all taxpayer segments, by all tax types, and core tax obligations. A wide range of automated and parametrized statistical reports are available for the Tax Administration staff. The Tax Administration performs regular environmental scan analysis and interpretation of external and internal data, including specific surveys on taxpayers’ perception; however, tax gap analysis is not conducted yet. |
| P2-3-1 | EUR | A | First | 2019 | English | Scored A because good practice was detected in; Tax Administration gathers and analyzes information from internal and a growing range of external sources to build knowledge on compliance levels. Compliance risks are framed by the environmental scan, undertaken by the Tax Administration as part of the development of its 2017-2020 Strategic Plan. The Tax Administration analyzes economic tax performance by sector, segment and tax type. It also captures issues identified from tax declarations filed and its tax audit activity. The Tax Administration has undertaken VAT gap studies for past three years, and is currently concluding work on the 2019 study. Internal data sources accessed include: cash register and monitoring data, customs information, and electronic invoices. While the Tax Administration uses an ever-expanding array of riskmodels to interrogate external data , risk assessment and quantification is inhibited by the unavailability of information from financials. This process was repeated for the development of the current draft strategicplan for 2020 to 2022. Sectora l reports have been produced on the construction, mining and small business. This includes cadastra lnformation , video and vehicle information from the Ministry of Interior and license and registration information from various agencies including: Public Registry, Civil Registry, State Procurement & Agriculture and Education Institutions . |
| P2-3-1 | AFR | A | First | 2019 | English | Scored A because good practice was detected in; Tax Administration is building knowledge to identify compliance risks through intelligence and research. Data from a range of external sources is gathered and interpreted including from the Statistics body, financial sector regulators, insurance industry, Transport Authority, Central Bank of LG34, published financial statements, national data on internet and mobile phone usage and studies into taxpayer behaviours and topical issues. Data is also gathered and interpreted from internal sources including taxpayer registration and taxpayer returns within the IT tax system and customs data. Environmental scans through the IT system analyses were completed as part of the multi-year 7th Corporate Plan and the Annual Plan, tax gap studies and sectoral research conducted and analyzed. |
| P2-5 | WHD | A | First | 2019 | English | Scored A because good practice was detected in; Formal governance arrangements are in place at the Tax Administration's Board level to approve and monitor risk mitigation strategies. The Risk Committee is a committee under the Tax Administration's Board with a charter including, among other things, its responsibilities to provide oversight with regards to risk management including policy review and approvals, and monitoring of the effectiveness of the framework and internal control. The CRMD monitors and evaluates risk mitigation strategies approved in the corporate CIP key risk sectors and presents its reports to the Risk Committee. The Risk Committee evaluates the overall effectiveness of the approved compliance risk management strategies quarterly, measuring performance effectiveness against established key performance indicators in the corporate plan. In July 2020 the Commissioner established and appointed members to a Compliance Risk Committee to manage the formulation and implementation of a more detailed and broader scoped operational level compliance improvement plan currently under development. The Compliance Risk Committeehas met several times to review segment and sector-based RM&CIP for approval and is working with the CRMD in the development of the 8th Corporate Plan and drafting the more detailed broader scoped CIP fordomestic tax department. While the Corporate level CIP is resourced, the more detailed broader scope operational level draft CIP, has not yet been fully resourced. |
| P2-3-1 | WHD | A | First | 2019 | English | Scored A because good practice was detected in; Intelligence gathering and research on compliance risks are comprehensive. A Political, Economic, Sociological, Technological, Legal and Environmental analysis created the framework to study key external factors outside the Tax Administration’s control that could affect operations positively or negatively. The FY2022/2023 Political, Economic, Sociological, Technological, Legal and Environmental analysis Analysis covered the operational environment present in LG141, including the impact of COVID-19. The Tax Administration uses both internal and external sources to identify compliance risks. Data from external third-party providers are collected through the IT infrastructure and made available through the Tax Administration tax system, allowing for data- matching with internal data sources. The last tax gap study was undertaken in 2015 under the IMF Fiscal Affairs Department of Revenue The Tax Administration Gap Analysis Program, focuses on the compliance and policy gaps for the Tax Administration. |
| P2-3-2 | WHD | A | First | 2019 | English | Scored A because good practice was detected in; Process adopted to assess, rank, and quantify compliance risk is sound. A comprehensive tax compliance risk register exists. The risk register forms the basis for assessing and prioritizing compliance risks, covering core taxes, main taxpayer obligations, segments, and economic sector. For FY 2021/2022 a new approach has been introduced which through a single document, presents all risk leads generated in the IT System analyzed by the Forensic Data Mining Unit (Strategic Planning & Research Unit). Fourteen risk-based leads have been generated for FY2021/2022, and risk assessment and response implementation covers multiple years. |
| P2-4 | WHD | A | First | 2019 | English | Scored A because good practice was detected in; Comprehensive compliance improvement plan to mitigate identified risks to the tax system exists. Several documents and sources constitute the compliance improvement plan and include planned mitigation actions in respect of all core taxes, all taxpayer obligations and key taxpayer segments. The program is fully-resourced with key staff from Strategic Services and Operations. |
| P2-5 | WHD | A | First | 2019 | English | Scored A because good practice was detected in; Compliance risk mitigation strategies are monitored and evaluated. In tandem with senior management across the organization, the Deputy Head of Tax Administration for Operations and Strategic Services Division undertake quarterly compliance management reviews. The National Compliance Meeting ensures active involvement from senior management in approving risk mitigation strategies. The Tax Administration monitors progress and evaluates the impact of risk mitigation initiatives of taxpayer services and education, registration, filing and payment , and audit. |
| P2-7-1 | APD | A | First | 2019 | English | Scored A because good practice was detected in; Tax Administration’s process for gathering intelligence and identifying compliance risks is not comprehensive. Data from a range of internal sources are gathered and interpreted—this includes sources such as taxpayer declarations, balance sheet information, results from audit programs (except for random audits), and results of an internal survey of the risk identified by tax officials. Although a formal environmental scan is not undertaken, an analysis of cultural factors that influence compliance behaviour is part of the survey undertaken for Tax Administration. Tax gap studies, analysis of third-party information, and results of the confidentiality and data safeguards assessment conducted by the Global Forum in the Automatic Exchange of Information framework are not undertaken. |
| P2-7-2 | APD | A | First | 2019 | English | Scored A because good practice was detected in; Structured compliance risk management process has been developed and applied. The risk management process is a part of a multi-year national assessment plan and is structured across the main taxpayer obligations. It provides a high-level framework for Tax Administration’s strategic management and annual planning. However, the components of core taxes and taxpayer segments are neither assessed nor prioritized. |
| P2-3-1 | APD | A | First | 2019 | English | Scored A because good practice was detected in; Risk Management Department (RMD) has access to a broad swathe of data sources which are used to assess and quantify compliance risks. A broad range of external data sources are used. Cross-checking is done: with financial institutions in respect of taxpayers’ account information and information about beneficial owners; when making new payments to banks; when opening a savings or other account or making changes or transactions to a previously opened account; and other transactional information. Other external sources (such as the state central administrative body in charge of finance and budget, Customs, Stock exchange, Police, Financial Regulatory Authority, Central Securities Depository, the state central administrative body in charge of minerals and oil, the state administrative body in charge of road transport, Notary, Anti-Corruption Body, etc.) ensure the validation of 260 fields from the IT tax system, 320 fields from the system, and 20 from other third-party sources. In total, more than 600 data sources and fields are matched and mined. The process flows and interactions between the different systems and data sources are well-documented. Compliance risks are informed by the Tax Administration’s environmental scan undertaken as part of the development of its 2021-2024 Strategic Plan and Risk Management Plan to identify, assess and prioritize compliance risks for all major taxes on all major taxpayer obligations and covering all key taxpayer segments. |
| P2-3-2 | APD | A | First | 2019 | English | Scored A because good practice was detected in; Tax Administration has an extensive and well-structured compliance risk management methodology in place. Legislative provisions in the General Taxation Law provide a detailed framework for the scope and nature of compliance risk management (CRM). The practical application of the legislation is further expanded in a CRM- related law and a CRM annual plan; a documented risk-scoring methodology; and taxpayer selection tables. The taxpayer population is segmented into large, medium, small and micro taxpayer populations, as well as two special focus populations: the hidden economy and high-wealth individuals. Risk models distinguish between key tax types (VAT, Income Tax, Excise etc.) but can be combined to give a comprehensive risk assessment of a taxpayer. Risk assessments are also performed in relation to registration, filing and payment for inclusion in annual, segment-based compliance improvement strategies. The CRM annual plan for 2020 also included, for instance: a review of data on VAT fraud; a PIT study on political influence; studies on compliance in land transfers and motor vehicles. A comprehensive study into the hidden economy allowed the Tax Administration to detail, segment and stratify in some detail the components and subsets of compliance risks. Local offices also have the possibility to escalate identified risks to the central RMD, as input into the CRM process. The process is adequately structured around the kind of principles described in contemporary literature and covers a range of industries and tax types. |
| P2-4 | APD | A | First | 2019 | English | Scored A because good practice was detected in; Compliance improvement plans are documented, and progress against the plans is monitored regularly. The dedicated Tax Administration’s accountabilities are mapped out in the General Taxation Law and a decree on risk management. There are annual compliance improvement strategies for each market segment as well as for the specialized hidden economy and high wealth individuals’ populations. Each compliance improvement strategy identifies risks against the pillars of compliance and specifies mitigations strategies oriented towards the identified risks, linked to the areas responsible for implementation of the mitigation activities. The responsibilities assigned in the compliance improvement strategies are cross-referenced into the plans of individual Departments. For instance, the 2020 Tax Collection Management and Methodology Department Annual Plan and a list of taxpayers to be audited, which map out the responsible parties and timelines for delivery. All the departments and teams in the Tax Administration are fully resourced to carry out their responsibilities. During the assessment the Tax Administration had a workforce of 1,840 staff out of a provision for 1,858 staff. A dashboard is used to generate custom management reports that are reviewed on a regular basis. Progress against activities is tracked at an office level on a monthly basis, and at a Tax Administration level on a quarterly basis. |
| P2-3-1 | EUR | A | Repeat | 2019 | English | Scored A because good practice was detected in; Tax Administration gathers and analyzes information from internal sources and receives information from a growing number of external sources to identify tax compliance risks. The Tax Administration has increased its environmental scanning, from using the government’s fiscal strategy and revenue and growth projections, to a broader approach that also includes reviews on studies of the gray economy; a European Union fiscal transformation study; taxpayer satisfaction surveys undertaken by private sector market research firm and an analysis of taxpayer behavior in filing declarations. External data from the Customs Administration, local tax authorities, the National Bank of LG101 (limited information), Tobacco Authorities, commercial banks (on a limited basis), various business registers and government ministries such as the Interior, Labor, Health and Trade is also used for risk analysis . Internal data includes tax declarations and their forms; withholding taxes and contributions; data from the Register of Taxpayers and control activities. The TATP (2021-25) intends to expand access to more data |
| P2-4 | APD | A | First | 2019 | English | Scored A because good practice was detected in; Tax Administration developed and implemented its First compliance improvement plan in 2021, with a more comprehensive CIP now developed and being implemented for 2022. The CIP covers all tax types and compliance obligations and specific compliance issues in taxpayer segments and mitigation actions to be taken for risks. The CIP also contains a timetable for implementing activities, the business units responsible for delivering the mitigation strategies, and a monitoring/reporting timetable. A comprehensive annual compliance assessment is completed, which examines and assesses risks in each taxpayer segment and in eight key industry sectors. The Tax Administration’s Compliance Management Policy and an overview of the 2022 CIP are published on the website. |
| P8-27 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; All transactions are posted to the taxpayer ledger real-time or by rapid batch processing. There is a maximum lag of 24 hours from inception to sub-ledger update, with transactions for all tax types being posted to the taxpayer ledger either in real-time or by frequent batch processing. |
| P8-27 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; Accounting transactions are posted to the taxpayer ledger real-time or by rapid batch processing. The IT platform supporting the Tax Administration core operations allows for real-time accounting of transactions (liabilities and payments) to the taxpayer ledger for tax returns and payments received through the website. In the case of transactions received through “Collection Entities”, tax return information is posted to the ledger by the end of business day, whereas payments through checks are posted within 72 hours. Suspense account items and credit balances are monitored regularly and taxpayers have access to their current account through their Tax Administration website access code. |
| P8-27 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; All transactions are posted to the taxpayer ledger real time or by rapid batch processing. All transactions for all tax types are posted to the taxpayer ledger either in real-time or by frequent batch processing within 24 hours. |
| P8-28-1 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; High efficiency of processing of VAT refund claims. VAT refunds are automatically processed and paid in less than 21 days with an exception of those that have been flagged for auditing. |
| P8-28-2 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; High efficiency of processing of VAT refund claims. VAT refunds are automatically processed and paid in less than 21 days with an exception of those that have been flagged for auditing. |
| P8-27 | APD | A | First | 2015 | English | Scored A because good practice was detected in;Payments are posted to the taxpayer ledger in real-time. Payments are made by cash or cheques in-person at Tax Administration offices or sent through the mail (or electronically in a handful of cases). Unidentified cheque payments received by mail and unidentified electronic payments —where the identity of the taxpayer or tax type is unclear—are banked but not posted to a suspense account. A manual register of unidentified deposits is kept and this is routinely monitored by the Finance section to ensure that these amounts are captured in revenue reports and reconciliations. |
| P8-27 | APD | A | First | 2015 | English | Scored A because good practice was detected in; There is the timely posting of accounting transactions to the taxpayer ledger. For transactions which take place at branch offices or electronically, accounts in the taxpayer ledger are updated in real-time. These constitute the majority of transactions processed by the Tax Administration. For transactions which take place at banks or financial institutions, transactions are posted to the ledger within 24 hours. Additionally, the Tax Administration has a good automated system of suspense account management. |
| P8-27 | MCD | A | First | 2015 | English | Scored A because good practice was detected in; There is timely posting of accounting transactions to the taxpayer ledger. For transactions which take place at branch offices, accounts in the taxpayer ledger are updated in real-time. These constitute the majority of transactions processed by the Tax Administration as it is only recently that taxpayers for GST have been able to file electronically. For payment transactions which take place at banks, transactions are posted to the ledger within 24 hours. Additionally, Tax Administration has good procedures in regard to the system of suspense account management. |
| P8-27 | MCD | A | First | 2015 | English | Scored A because good practice was detected in; Tax Administration tax revenue accounting system contains many of the functional characteristics expected of a government revenue system. The system meets the requirements as stipulated by the Ministry of Finance’s standardized Government Financial Management Information System. As such, it directly interfaces with the Central Bank. Payments made by taxpayers are typically posted to the taxpayer account in a timely manner. We observed the system in action and noted that payments made at the cashier, for example, were reconciled and posted to the taxpayer account within 24 hours, and most commonly on the same working day. A range of manual account reconciliations between total receipts and individual payment transactions are undertaken. These reconciliations are undertaken by the Tax Administration cashiers and are subsequently verified by officers from the Ministry of Finance. |
| P8-27 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; Tax accounting system is generally sound and tax payments are quickly posted to taxpayer accounts. Payment of all taxes due is made via the commercial banking system into designated public revenue accounts. The Tax Administration receives all data on transactions in these public revenue accounts electronically, on a daily basis. All payment transactions for the business day are posted to each taxpayer’s account on the Tax Administration’s system on the following day—except for a small number of transactions that may not be clearly identified with a particular taxpayer. Suspense accounts are utilized to record the small number of unmatched transactions and these are actioned and resolved. Regular internal and external audits are conducted to ensure correctness of the accounting system. |
| P8-28-1 | WHD | A | First | 2015 | English | Scored A because good practice wasdetected in; VAT refund system is adequate in every respect—has risk-based verification, fast tracks good taxpayers, is tracked monthly to ensure adequate funds, excess credits are offset against tax arrears, and interest is paid on delayed refunds. This results into an ‘A’ score. |
| P8-26 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; Tax Administration meets or exceeds all aspects of revenue forecasting, estimating and monitoring. A specialist unit in the Tax Administration takes macro data from the Ministry of Finance and conducts forecasts, with another Tax Administration team who conducts research as further input. Collections are monitored and reported against forecast, sent electronically to the Ministry, with monthly meetings of a Cash Committee that further discuss past results and future projections. Forecasting VAT refunds, monitoring projected vs. actual, notifying the Ministry of accounts to be paid is done monthly. More than 80 tax expenditure accounts are also tracked, tax losses carried forward for the largest taxpayers – every aspect of this dimension is performed well. |
| P8-27 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; Tax Administration has an automated tax revenue accounting system. This system contains all the characteristics expected of a sound tax revenue accounting system, interfaces with the Ministry of Finance revenue accounting system, and is audited both internally and externally. All payments made by taxpayers are posted to the Tax Administration's accounting system within one business day. Where a high volume of cash is expected, and received by the Tax Administration cash hall, particularly on peak due dates, banking is carried out twice a day. The Tax Administration does not have unresolved balances on suspense accounts. The assessment team was advised that instances of unallocated, or unmatched payments are minimal as payment cannot be electronically made without a tax number and an allocation across tax types. Further, as all other payments are received by the Tax Administration in the cash hall, staff are careful to ensure that the correct information is provided to properly account for payments received. In a few instances, e.g. checks received by post, where the Tax Administration might not have sufficient information, a reconciliation account is used for these unmatched transactions. This account is monitored by the finance division daily, and unmatched transactions are usually cleared within one day, with exceptional cases usually taking no longer than three days. A team of three people in Internal Audit continuously audit the accounting system. For example, around three hundred staff days have been spent on auditing the accounting system during 2016/17. The LG156 Audit Office conducts an external audit on an annual basis as required by law. |
| P8-28-1 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; VAT refund system is adequate. Risk-based verification ensures that more than half the VAT refund claims are made without pre-refund audits. Low-risk taxpayers are fast-tracked, e.g. exporters. While budget allocations for VAT refunds are not an issue , payment levels are closely monitored against projections. The Tax Administration offsets VAT credits against arrears for other core taxes. This is provided the arrears in question are not subject to a genuine dispute. Where tax arrears are in dispute, an indicator on the IT system highlights this fact, and an offset is not carried out. Interest at the rate of four percent per annum is payable by the Tax Administration in respect of delayed refunds. This is provided for in Section 500, subsection 300 or DC of the Tax Administration VAT Act. For interest to be paid, the Tax Administration must have taken longer than 45 days after receipt of the return to finalize the refund claim. It should be noted that where information has been sought from the taxpayer, the 45-day period is suspended until the documentation has been supplied. The Tax Administration has adopted a “fast-track” VAT refund system for low-risk taxpayers. This system is typically for those taxpayers regularly exporting goods, e.g. textile manufacturers. Around 104 large taxpayers participate in the fast-track scheme that was introduced in early 2000s. Budgeted funds are available to meet all legitimate VAT refund claims. A total amount representing a list of approved VAT refunds is requested from Treasury daily. |
| P8-26 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; Dedicated staff of the Tax Administration provide input to government tax revenue forecasting and monitors collections for all core taxes, VAT refunds, tax expenditures and tax losses. The overall responsibility for revenue forecasting lies with the Ministry of Finance based on inputs from the Tax Administration. There is ongoing cooperation between the Tax Administration and the Ministry of Finance (MoF) based on a Memorandum of Understanding outlining the information and reports to be shared. A comprehensive data warehouse and business intelligence solution operated by the Tax Administration provides data and reports for forecasting and analysis. The MoF has access to this system and can generate its own customized reports in addition to a number of standardized reports. Tax Administration monitors tax revenues by matching forecasts and actual revenues for all core taxes on a monthly and quarterly basis and analyzing explanations for any gaps. In addition, the Tax Administration produces annual reports on tax expenditures and tax losses brought forward. |
| P8-28-1 | MCD | A | First | 2015 | English | Scored A because good practice was detected in; Fast-track VAT refund system is in place for low-risk taxpayers. All refund claims are subject to manual screening. Fast track processing is available for taxpayers regularly exporting goods and for taxpayers with a good compliance history. Around 18 percent of all claims filed in 2017 were identified as potential risk cases and selected for field audit or desk review. Adequate funds are made available to meet refund claims. A specific budget allocation for refunds is not made, and there are no instances where refunds claims had not been paid due to insufficient funding. Effective steps are taken to manage other tax arrears of refund claimants by off-setting excess VAT credits against outstanding liabilities for other taxes. The Tax Control and Refund Department approves legitimate VAT credits. These are passed to the Collection Department where credits are offset against all other tax arrears not in dispute. |
| P8-26 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; Tax Administration actively participates in preparing revenue forecasts for the budget, monitors results and estimates tax expenditures. Using specific methodologies developed by the Federal University of Rio de Janeiro for each type of revenue and official macroeconomic indicators of the federal government, the Fiscal Policy Secretariat, a unit within tax administration, prepares the revenue forecast that will be incorporated into the Annual Budget Law (LOA ) and the State Fiscal Recovery Program. The Collection Planning and Analysis Coordination (CPAA) monitors the main revenues realized (on a daily basis, produces reports on variations and recommends adjustment measures to the State government. |
| P8-27 | EUR | A | Repeat | 2015 | English | Scored A because good practice was detected in; Tax Administration has an automated accounting system that meets government information technology and accounting standards. An automated accounting system allows for the posting of all tax payments to taxpayer accounts within one business day. A direct systems interface with the Ministry of Finance ensures that all payments are cleared from Tax Administration accounts daily, and provides near real time information on taxpayer accounts. Integrity of the revenue accounting system is secured through both internal and external audits. Internal audits ensure that operational processes relating to revenue accounting are followed, and include a review of the calculation of liabilities, penalties and interest. The Auditor General (AG) also includes a review of the revenue accounting system as part of its annual audits of Tax Administration (with neither Internal Audit nor the AG having made any adverse findings on the integrity of the revenue accounting system). |
| P8-27 | WHD | A | First | 2015 | English | The Integrated Taxation System meets best practice standards. It is fully automated, interacts with the Integrated Government Management System—SIGGO and meets government IT and accounting standards. Regular internal and external audits ensure the system is aligned with these standards and tax legislation. Tax payments received by banks are processed by the system in real time. Using the barcode ensures that errors are avoided. The system records payment within 24 hours. The DF monitors and reconciles bank deposits with the state's accounting system. Taxpayers can see their payments credited to the tax system, securely, through the taxpayer portal. The accounting system is audited annually by the Controllership (internal control) and by the Court of Auditors - DF (external audit). |
| P8-27 | AFR | A | First | 2019 | English | DNRE has an automatic accounting system that meets government accounting and information technology standards. The DNRE accounting system interfaces with the MF accounting system. The IGF and SAI regularly perform external and internal audits, respectively, to ensure that the accounting system complies with tax laws and government accounting standards. Payments are immediately recorded in the DNRE system, GRE, and also in the MF accounting system. The payment document, the DUC, contains a code, from which the payment is automatically recorded in the taxpayer's current account. |
| P8-26 | EUR | A | First | 2019 | English | The tax administration contributes to the budget process through forecasts and estimates of tax revenue, controlling and monitoring income, refunds, cost of tax expenses and deferred tax losses by taxpayers for compensation with future tax liabilities. The Tax Studies and Statistics Service (SETE) of the AEAT carries out fiscal projections based on the government's official macroeconomic table prepared by the General Directorate of Macroeconomic Analysis of the Ministry of Economy. These projections are adjusted considering both the liquidation progress of the current year and the forecasts associated with new measures and regulatory changes and are sent to the Budget DG of the MH to prepare the General State Budgets (PGE). The SETE prepares monthly collection and income estimation reports, as well as the annual collection report, and the monthly progress reports indicate deviations from the budget and the collection impact of the measures compared to what was expected. The AEAT prepares a forecast of refunds for each of the tax figures that is the basis for the management of the payment fund of the General Secretariat of the Treasury. The SETE monitors the evolution of the rights to be compensated or monetized in subsequent years and, in accordance with the provisions of art. 134.2 of the EC, collaborates with the MH in the preparation of the budget for tax benefits that accompanies the PGE. |
| P8-28-1 | EUR | A | First | 2019 | English | The VAT refund system is adequate in its design, with risk-based verification, sufficient allocation of budget funds, payment of interest on delayed refunds and differential treatment of taxpayers included in the SII and REDEME. All VAT refund requests are subject to filters and controls at the time of filing the return. The balances in favor of the taxpayer can be offset by self-assessments for subsequent periods. The SETE makes the monthly forecast of returns for the year and the Presidency of the AEAT can modify said program during the year if necessary. |
| P8-27 | AFR | A | First | 2019 | English | Scored A because good practice was detected was detected in; Revenue accounting system of the Tax Administration is adequate. Tax Administration, like all government agencies in the Tax Administration, uses software custom-built and maintained by the Department of Information and Communication Technology. For domestic taxes, the bespoke system in use is the Client Management System (CMS) and for revenue accounting the Treasury Information System. The accounting system is automated and meets government ICT and accounting standards. Systems are integrated and fully maintained by the ICT Department. All payments are posted to taxpayers’ ledgers/accounts within one business day of their occurrence. This was confirmed during the field office visit. Regular external and internal audits are conducted to ensure the accounting system aligns with the tax laws and government accounting standards. |
| P8-26 | WHD | A | First | 2019 | English | The Tax Administration systematically provides detailed data by tax on a monthly basis for forecasting and monitoring tax revenues. The Tax Administration has expert personnel in the Tax Studies Department dedicated to these tasks. In addition to the detailed monthly information where the interannual variation of tax collection is analyzed, as well as its deviation from the budgeted values, estimates of tax expenditure are also provided annually. Likewise, the income estimates take into account the estimates of the ITBMS tax credit and the forecasts for the balance of losses and tax credits or deferred tax refunds. |
| P8-28-1 | WHD | A | First | 2019 | English | Verification of reimbursements is based on a risk analysis. The Credit Control System (SCC), under the responsibility of COREC, analyzes VAT refunds requested by taxpayers. The system uses predefined parameters in risk analysis that allow establishing the taxpayers' risk profile and carrying out pre/post-audits as appropriate. Requests go through an “electronic mesh” with different modules (negative IRPJ and CSLL balance, undue payment, legal actions, etc.), each with different parameters for |
| P8-26 | AFR | A | First | 2019 | English | Scored A because good practice was detected in; Dedicated staff within the Tax Administration routinely provide input into the government budgeting processes of revenue forecasting and tax revenue estimating. The Research, Strategy and Statistics unit within the Business Strategy and Development Division is responsible for regularly liaising with the Ministry of Finance. Monitoring of collections against budgeted forecasts are reported to government monthly including an analysis highlighting deviations from forecast. VAT refunds are treated as a “negative” tax and are offset against total VAT collections before being paid into the government’s consolidated account. Accordingly, while the extent of refunds each month are monitored, they are not treated as a budgeted expenditure requiring Ministry of Finance provisioning. The Tax administration, however, closely monitors actual VAT refunds against the monthly forecast. The Tax Administration monitors and reports annually on the cost to revenue of tax expenditures. More recently the tax admistration has become involved in costing tax proposals being considered by the Ministry of Finance as part of the decision-making process, i.e. prospectively in addition to retrospectively. The Tax Administration also monitors and reports annually on the stock of loss carry-forwards. All refunds are paid out, or offset against other tax liabilities, when they are due, i.e. there are no refund carry-forwards. |
| P8-26 | WHD | A | First | 2019 | English | The Tax Administration assists with revenue forecasts for the budget and tracks tax revenues. The Tax Administration has dedicated personnel in the Coordination of Economic Studies, of the Operational Analysis Management Subdirectorate, in charge of preparing the projections of the income from the taxes administered by the tax administration and presenting them to the Ministry of Finance for discussion. and monitoring. A daily monitoring of the collection is carried out with a detailed monthly grouping that is presented at the monthly meeting of the Superior Council of Fiscal Policy along with the explanation of the behavior of the effective collection in relation to the budgeted. In the nation's budget, net VAT levels are estimated and a study on tax expenditures is carried out annually, which is reflected in the government's Medium-Term Fiscal Framework. Likewise, the balances of tax losses are monitored and, in accordance with risk criteria, are subject to confirmation by scheduled audits. Tax losses and deferred VAT tax refunds are monitored. |
| P8-28-1 | WHD | A | First | 2019 | English | The Tax Administration assists with revenue forecasts for the budget and tracks tax revenues. The Tax Administration has dedicated personnel in the Coordination of Economic Studies, of the Operational Analysis Management Subdirectorate, in charge of preparing the projections of the income from the taxes administered by the tax administration and presenting them to the Ministry of Finance for discussion. and monitoring. A daily monitoring of the collection is carried out with a detailed monthly grouping that is presented at the monthly meeting of the Superior Council of Fiscal Policy along with the explanation of the behavior of the effective collection in relation to the budgeted. In the nation's budget, net VAT levels are estimated and a study on tax expenditures is carried out annually, which is reflected in the government's Medium-Term Fiscal Framework. Likewise, the balances of tax losses are monitored and, in accordance with risk criteria, are subject to confirmation by scheduled audits. Tax losses and deferred VAT tax refunds are monitored. |
| P8-26 | AFR | A | First | 2019 | English | Scored A because good practice was detected in; Tax Administration routinely provides input to government tax revenue forecasting and estimation. Revenue Management (RM), a dedicated organizational unit within the Service and Delivery Cluster (Operations), is responsible for gathering and analyzing data on tax revenue collections and economic conditions. It provides input to the government’s Revenue Analysis Working Committee . The outputs of the Committee are used in the Minister of Finance’s Annual Budget and Medium-Term Budget Policy Statements. Additionally, the Tax Administration and the Treasury have monthly sessions on mutual issues including revenue. RM also monitors tax revenue collections against revenue forecasts and VAT refund levels, and Tax Administration’s reports findings to the Treasury monthly. All significant variances from forecasts are investigated and reported. VAT refund levels are monitored and reported to the Treasury. Tax expenditures and the stock of losses carried forward by taxpayers from year-to-year are also monitored and reported. The Tax Administration monitors revenue foregone from tax expenditures and the stock of losses carried forward, and the amount of tax losses that may be set off against future tax liabilities. The findings are reported annually. |
| P8-27 | AFR | A | First | 2019 | English | Scored A because good practice was detected in; Has an automated accounting system. Tax Administration’s IT system contains all the characteristics expected of a sound tax revenue accounting system. It meets government information and accounting standards. It also interfaces with the Treasury accounting system (Basic Accounting System). All tax liabilities and payments made by taxpayers are posted to taxpayer accounts within one business day. The Tax Administration does not have unresolved balances on suspense accounts. The assessment team was advised that instances of unallocated or unmatched payments are minimal and resolved immediately. The integrity of the revenue accounting system is secured through both internal and external audits. IA undertakes reviews of the operational processes relating to revenue accounting, including how the system calculates liabilities, penalties, and interest across all tax heads. The AG also reviews the revenue accounting system as part of its annual audit program for Tax Administration. |
| P8-28-1 | AFR | A | First | 2019 | English | Scored A because good practice was detected in; VAT refund system is adequate. All VAT returns submitted for refund are subjected to an automated risk-based verification system. Consequently, every VAT return is risk-evaluated against more than 50 risk rules. For importers and exporters, customs data are used to perform up-front validations. Based on this evaluation's outcome, a verification case may or may not be created for a taxpayer. Approximately seven percent of the refund claims result in verification cases that, in turn, might result in pre-refund audits. In cases where there is a credit, no risk is identified, and no other reason exists for the refund to be stopped, payment is made immediately. A budget is allocated to meet legitimate refunds claims as they occur. |
| P8-27 | EUR | A | First | 2019 | English | Scored A because good practice was detected in; Accounting system is largely automated and based on relevant government-approved standards. The links to the Ministry’s systems are in place. Relevant events and occurrences are posted to taxpayer accounts within hours and up to one business day, with the exception of unexplained receipts, which are kept in suspense accounts until clarification. There are regular internal and external audits performed to assure adherence to the accounting rules and standards. |
| P8-26 | AFR | A | First | 2019 | English | Scored A because good practice was detected in; Tax Administration routinely provides input to government tax revenue forecasting and estimation. The Revenue Division (RD), a dedicated organizational unit within the Tax Administration, is responsible for gathering and analyzing data on tax revenue collections and economic conditions. RD provides input to the government’s Macro-Working Group for use in the budgeting processes of tax revenue forecasting and estimating. The outputs of the MWG are used in the Statement of Revenue and Expenditure for the Government (Annual Budget). RD also monitors tax revenue collections against revenue forecasts, and Tax Administration reports findings to the LG34 Treasury monthly. All significant variances from forecasts are analyzed and reported. A model for forecasting VAT refund levels was developed. The level of expected VAT refunds for 2020/21 was projected and shared with the LG34 Treasury). Tax expenditures, stock of losses, and credits/refunds carried forward are monitored and reported. Tax Administration annually monitors revenue foregone from tax expenditures, and the findings are reported to the LG34 Treasury. Additionally, the stock of losses and credits/refunds carried forward by taxpayers that may be set off against future tax liabilities are monitored and reported to the LG34 Treasury. |
| P8-26 | APD | A | First | 2019 | English | Scored A because good practice was detected in; Tax Administration provides robust input into government processes for tax revenue forecasting and tax revenue estimation. Dedicated personnel monitor revenue received against forecasts for all core taxes on a weekly basis and provide a summary report monthly to the Ministry of Finance. CT refunds are estimated through the forecasting process and paid from consolidated CT revenue. Various tax concessions, granted principally to assist with recovery from natural disasters, are available to some classes of taxpayers and applied largely to imports. The cost to revenue of these expenditures is reported monthly. Monitoring of the accumulation of losses and tax refunds is also maintained. |
| P8-27 | APD | A | First | 2019 | English | Scored A because good practice was detected in; Tax Administration’s accounting system is fully automated and meets government IT and accounting standards. The primary accounting systems are an IT system for inland taxes and a separate system for customs revenue. Additionally, the Tax Administration’s accounting system interfaces with the State Bank of Tax Administration’s system directly with payments updated in the system in real-time, if made electronically, and within 24 hours if paid manually. While the Tax Administration system does not directly interface with the MOF’s system, this is unnecessary since MOF’s account is held with the Tax Administration which is the Treasurer for the MOF and with which the Tax Administration has interface. The Tax Administration system interfaces directly with the MOF. Taxpayers’ ledgers are reviewed when the taxpayers are selected for tax audits. The system digitally determines the amount of tax payable or refund once the taxpayer provides the details that include income, expenditures, adjustable taxes and credits. In the case of the VAT and FED, as the taxpayer inputs details of purchases and supplies made within a tax period, the IT system for inland taxes calculates the Sales Tax liabilities or tax credits/refund automatically for that particular tax period. These accounting systems are audited both internally and externally to check if they meet government accounting standards. |
| P8-26 | WHD | A | First | 2019 | English | Scored A because good practice was detected in; Tax revenue collections are fully accounted for, monitored against expectations, and analyzed to inform government revenue forecasting. The Strategic Services Division monitors and provides monthly and quarterly reports on gross and net tax revenue collections by core tax type to the Ministry of Finance’ Tax Policy Division and the Accountant General.Tax revenue estimates assess the impact on revenue of proposed tax law changes to assist the government in determining the possible impact of new revenue measures on the government’s budget. The Tax Administration produces a forecast for net tax revenues, the results of which are matched against the Ministry of Finance targets, and seeks to address any issues in meeting them. The Tax Administration forecasts GCT refund levels, monitors the stock of tax losses carried forward by taxpayers and tax expenditures. To ensure that enough revenue funds are available, the Strategic Services Division provides monthly monitoring reports on GCT refunds. A monthly Refunds Statement is prepared to show the aggregate refund claims received vs. refund payments issued and the corresponding balance for GCT. The Tax Administration monitors the stock of tax losses through a module in the tax system. It also produces inputs for the Tax Expenditure Statement, pulled from the IT system via a script. |
| P8-27 | APD | A | First | 2019 | English | Scored A because good practice was detected in; Accounting system is automated and based on relevant government-approved standards. The links to the ministry’s systems are in place. Taxpayers make payments through commercial bank partners or at the tax offices. All balances are transferred by 2 pm daily to the LG71 Treasury account. The remaining balance after 2 pm will be transferred on the following day. There are regular internal and external audits performed to assure adherence to the accounting rules and standards. |
| P8-27 | EUR | A | Repeat | 2019 | English | Scored A because good practice was detected in; Tax Administration has a sound automated tax accounting system that interfaces with the Ministry of Finance revenue accounting system. All payments are posted to taxpayer ledgers within one business day. The system is regularly audited both by Internal Audit and External Audit by the LG101 Audit Institution . The most current LG101 Audit Institution report has not yet been received by the Tax Administration. |
| P8-28-1 | EUR | A | Repeat | 2019 | English | Scored A because good practice was detected in; Tax Administration uses partially automated verification software to screen refund claims and gives fast- track treatment to predominant exporters. One percent of the claims are verified as high-risk cases and are subject to pre-refund audits. All refund claims need some manual interaction and, at least, a formal decision to have the refund paid. An early notification system ensures that sufficient budget funds are available for the refunds. Amendments in the VAT law in in the recent year have enabled offsetting against tax arrears of other tax types. Interest payments are made on delayed refund payments, however, only on request by the taxpayer. |
| P1-1-1 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; Tax Administration’s registration procedures and the taxpayer database are fundamentally sound and strong. The Tax Administration issues all taxpayers with a unique identification number upon registration. The registration process can either be done online or manually for those who do not have Internet access. Both taxpayers who register online and those who complete the registration processes manually are required to physically provide to the Tax Administration, copies of their citizen identification cards or certificates of business incorporation that are certified as true copy of the original. In addition, documentation providing proof of an individual taxpayers’ place of residence or a business entity’s area of operation needs to be provided. The receiving officers at the front office use these documents to verify the taxpayers’ identity and ensure that the registration is correct. Other officers in the Collection Directorate verify and approve the registration and issuance of a TIN to a taxpayer as a control mechanism to avoid registration of fake taxpayers. |
| P1-1-1 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; Registration process and taxpayer database is sound. Registration of taxpayers is done through a centralized and computerized system. Each taxpayer has a unique identification number for example individuals are issued with a 11 digit number at birth. For companies, the taxpayer identification number is derived from its business number that is issued by the Register of Businesses. The information embedded in the TIN for businesses include entity type, associated entities (related parties), industry segment, geographic location, turnover, etc. All TINs have a control digit. The system provides the taxpayer’s compliance history and information on their obligations for all core taxes. This provides the basis for effective compliance management both at the individual taxpayer level as well as for the taxpayer population as a whole, or segments thereof. |
| P1-1-1 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; Tax Administration extensively uses third party information and undertakes a series of initiatives to identify unregistered individuals and businesses. The Tax Administration systematically uses third party information from other government agencies and private company to identify businesses and individuals not registered for business. A number of studies have been carried out to detect those businesses/traders that escape the purview of the Tax Administration. |
| P1-1-1 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; Registration process follows good international practice and the taxpayer database is sound. Any physical or juridical person who has a tax liability is required by law to register for a fiscal number, which is a unique taxpayer identification number applicable to all taxes. Registration of taxpayers is located on a centralized, computerized database that contains all relevant details about the taxpayer, including nature of business, location, turnover, taxpayer segment and economic sector. For legal persons the fiscal number is derived after a business number is issued by the Tax Administration Business Registration Agency. For physical persons, the civil registry provides the basis for registering taxpayers and providing fiscal numbers. The information technology (IT) portal provides a single view of the taxpayer which shows a taxpayer’s compliance history, arrears, and information on their obligations for all core taxes. The IT system generates a variety of national statistics and provides a national view on filing, payments, and other important data for different categories of taxpayers. This is an important management tool in designing effective national compliance management strategies. |
| P1-1-2 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; Efforts are made to keep the database as accurate as possible. Provisions in the Law on Tax Administration Procedures require the Tax Administration to remove from the register taxpayers that have become inactive. Inactive records are routinely tracked and these are reported in the Tax Administration website. Routine exchange of third party information from civil registry are used to update inactive taxpayers. When registering new taxpayers, relevant information, including bank account, national identification number, and other business details are checked. In some cases, this is followed up with visits to new businesses to check the authenticity of new registrants. The registered taxpayer database is frequently updated through extensive use of third party information from Labor Department, Tax Administration Customs and municipalities data. The call center follows up with late-filers and nonfilers, and if it is found that a business has closed, or a taxpayer is deceased or has moved, this information is passed to the regional tax office which then initiates the deregistration process. When a taxpayer is deregistered for VAT or has a fiscal number withdrawn, the details are published on the Tax Administration website. |
| P1-2 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; There is a wide range of initiatives undertaken to detect unregistered businesses. The Tax Administration systematically uses third party information from other government agencies including Tax Administration Customs, municipalities, the property tax register and motor vehicle registry and Central Bank of LG150 to match information and detect new businesses. Inspectors routinely visit new markets, construction sites and malls to detect new businesses that have not registered. These activities are included in the annual Risk Response Plan. The Tax Administration conducts “fiscalization” campaigns where inspectors go to new places of businesses and informs potential taxpayers on the procedure to register with the Registrar of Businesses and get a fiscal number. For instance, in one of the regional Tax Administration office, around 200 new cases were discovered and registered in this manner during 2014. Research studies have been conducted on behalf of The Tax Administration by an International Organization and World Bank, and, on behalf of LG150 Agency of Statistics , by an Institution (Tax Administration think tank) to analyze the extent of the informal economy and the tax gap. These have been published. |
| P1-1-1 | APD | A | First | 2015 | English | Scored A because good practice was detected in; Information held in the registration database amply supports interactions with taxpayers and tax intermediaries. Each registered taxpayer is given a unique taxpayer identification number which facilitates routine identification of taxpayers for administrative actions. Identifying information held in the database includes name, address, contact details, nature of business activity, tax obligations by tax type, and details of associated entities and related parties of the taxpayer (e.g., directors of registered companies). The registration IT sub-system provides frontline staff with a whole-of-taxpayer view across core taxes, subject to user access controls. The system is able to readily generate registration-related management information (e.g., statistics of registered taxpayers by entity type, location, and economic sector). |
| P1-1-1 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; Tax Administration’s Domestic Taxes Department (DTD) is responsible for managing the taxpayers’ register and maintaining the integrity of taxpayers’ accounts. Taxpayer registration of companies is carried out online (mandatory) by the Tax Administration Development Board’s on behalf of Tax Administration. The acts as a one-stop center for both company and taxpayer registration and is linked to the Tax Administration’s IT system—which manages taxpayer records. When a business is registered at the Registrar of business offices (including up-country), a 9-digit Taxpayer Identification Number (TIN) sourced from IT system is issued to the taxpayer at the board center within 15 minutes of application, provided all documentation, including proof of identity, is fine. A check for duplicates is also conducted in both the Tax Administration and board systems. A tax account is immediately opened at the Tax Administration for the company and tax reporting requirements are also advised to the taxpayer. The Tax Administration and board systems exchange information updates on taxpayer status and additional enhancements to the system are underway |
| P1-1-1 | AFR | A | First | 2015 | English | Scored A because good practice wasdetected in; Information held in the registration database is adequate to support compliance management, but there are challenges with respect to ensuring the accuracy of the database. The Tax Administration Process Review Unit gave a demonstration of the online database. The database is centralized and includes all key information about the taxpayers, including the nature of business, taxpayer segment, filing and payment history, audit reports, as well as information on related parties. Each taxpayer has a single taxpayer identification number (TIN). A request for registration and obtaining TIN can be made online. Since VAT has a threshold of 1000 Txs, an additional annex is required for VAT registration. The registration database provides a single view of the taxpayer for tax officials to track taxpayer information. It also provides a national view by segments, industry type, and other parameters which helps in the preparation of national statistics on filing and payment for specific categories of taxpayers. |
| P1-1-1 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; Tax Administration receives adequate information from taxpayers for registration purposes. A unique nine-digit number is issued from a centralized IT system to individuals by the Tax Administration and other entities by the Companies Office , which acts as a one-stop center for company and taxpayer registration, respectively, sources the number from the Tax Administration’s registration system. The Tax Administration and Company systems exchange information updates on taxpayer demographic status. However, the issuance of a taxpayer number does not result in automatic registration of entities as taxpayers as no such provisions exist in the Income Tax Act . Consequently, implicit registration of taxpayers occurs when an individual or entity submits a tax return. Notwithstanding the foregoing, the GCT Act provides for explicit registration of those who meet the GCT registration requirements. |
| P1-1-1 | MCD | A | First | 2015 | English | Scored A because good practice was detected in; Design of the registration database and information required of the taxpayer is generally sound. When a new taxpayer comes to register, The Tax Administration verifies the name and identification number by cross-referencing the CCD, Social Security, and the Municipality portals. It also verifies that a TIN has not been issued to the taxpayer previously. After verification, the taxpayer fills out an application form, which a Tax Administration clerk enters into the system. The taxpayer is then issued a unique, ten-digit TIN and a registration certificate and is assigned to a tax office corresponding to its expected turnover. If subject to Sales Tax, the taxpayer will also be registered accordingly and receive a separate Sales Tax certificate to be displayed at each of its business premises. Once registered, a taxpayer account is automatically opened at the Tax Administration and the taxpayer is advised of applicable filing and payment requirements. Thereafter, front-line officers have access to the taxpayer’s account for routine actions, while Headquarters has a national view of the taxpayer population. Key information being entered include: (i) Taxpayer name, (ii) Contact information, (iii) Type of taxpayer (individual, employee, corporation, partnership), (iv) Business activity (ISIC coding), (v) Associated entities, (vi) Sources of income, and (vii) Tax liability (Income Tax, Sales Tax, Special Sales Tax). |
| P1-1-2 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; Procedure exists and is routinely applied to identify and remove inactive taxpayers from the active registration database. Regular crosschecks of PRO and company register databases and databases of other government agencies are performed to verify accuracy of information in the register and identify active taxpayers that are flagged as inactive and reestablish them as active. The professional judgment of the assessment team is that list of active taxpayers fairly represents the taxpayer population that is expected to report their tax obligations. During the year, the Central Registry and PRO will be moving a large volume of inactive taxpayers that have been dormant for in excess of three year periods. |
| P1-2 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; Significant cross-checking of data is done to identify unregistered and incorrectly registered businesses. The Tax Administration also undertakes an extensive program of field inspections/visits to ensure registration and associated compliance. Cross-checking occurs automatically in many cases to verify identity, and periodical electronic cross checks are performed with agencies such as Customs and the national civil register with electronic sales information to provide assurance that correct tax-type registrations exist. Recent results produced for the effectiveness of the current project report significant achievements in identifying non-registered or incorrectly registered entities. |
| P1-2 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; Tax Administration has several initiatives to detect unregistered businesses and individuals to meet its target to grow its taxpayer base. There are departmental annual work plans for systematic use of third party data via the County Project and the Estates Project, which are managed by Taxpayer Services in the STO’s. They regularly obtain and use third party data from the electricity and water supply companies as well as information from county governments about payments to suppliers, to detect unregistered businesses and individuals. There is a mandatory program of inspections of business premises, organized by areas, or “Blocks.” Every station prepares an annual plan of local visits to identify and recruit unregistered business taxpayers and taxpayers with additional obligations. The results of all three programs, including the number of new registrants, are reported monthly by stations, and collated at the regional and national level. The overall results are reported quarterly to the Board of Directors as part of the Vision 500 reporting process. |
| P1-2 | MCD | A | First | 2015 | English | Scored A because good practice was detected in; Tax Administration uses third party information sources and field inspections to detect unregistered businesses and individuals. The annual report provides evidence of such actions and results. Information is received monthly from the registrar of properties and the motor vehicle registry, and is cross-checked regularly to identify new taxpayers. There is also a regular program to inspect business premises and traders undertaken by the Central Survey Unit of the Tax Administration. The annual report submitted by the Tax Administration shows the number of surveys conducted, new taxpayers added and the amount of taxes collected. |
| P1-1-1 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; All necessary and relevant information on taxpayers is captured in the taxpayer database. The registration database is centralized and computerized. Information on each taxpayer’s obligations across all core taxes, including their compliance history, nature of business, location, turnover and taxpayer segment, is available online to frontline tax officials, thus providing a single nationwide view. The system offers a variety of management information, an important input in designing effective national compliance management strategies. |
| P1-2 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; Actions are taken to identify unregistered taxpayers. National control plans specify actions to detect unregistered taxpayers, and there is crosschecking of information supplied by third party sources. Reports that show actions and results detecting unregistered taxpayers exist. There are active programs for field surveys, inspections and verification of taxpayer’s addresses, for example, in 2016 throughout the visits and control programs, the Tax Administration has identified 4,926 new taxpayers. |
| P1-1-1 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; Information held in the registered taxpayer database is complete, accurate and up-to-date. All necessary and relevant information on taxpayers is captured in the taxpayer database. Information held in the database includes: name, address, contact details, nature of business activity, and tax obligations across all core taxes, including their compliance history. Details of related parties for individual taxpayers are registered in the database. Associated entities and related parties for companies (e.g., directors of registered companies) are easily available from IT sub-systems. The registration database is centralized, computerized and provides a full countrywide view of all taxpayers. Each registered individual taxpayer is issued with a unique National Identification Number at birth, which facilitates identification and issuance of a Taxpayer Account Number for tax purposes. Non-citizen resident are issued with a Non-Citizen Identification Number. A business registration number is required to do business in LG156. The initial registration for a BRN is provided by the Central Business Registration Database (CBRD) and used by all governmental agencies, including the Tax Administration. Once registered, the IT system allows taxpayers to electronically request for updates of details held in the database subject to approval by the Tax Administration. The IT system interfaces with other IT sub-systems and generates tax declarations and enforcement lists. The system generates reports for registration-related management information, and provides audit trails of user access—these are monitored regularly. |
| P1-1-2 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; Routines are in place to secure the accuracy of information held in the database. Inactive taxpayers are continuously identified and systematically removed from the database. Procedures on identification and segregation/removal of dormant and inactive taxpayers are described in Standard Operating Procedures (SOP) manuals and published on the Tax Administration’s intranet. Action plans for reviewing the taxpayer register are in place and are monitored regularly through the Tax Administration performance/appraisal management system. Routines for post-registration verification of data held in the database, as well as the authenticity and the legal basis of registrants are in place for all taxpayers. Internal audits are regularly undertaken and reports indicate a high level of accuracy for the information held in the taxpayer register. Automated processes are in place and routinely applied to crosscheck new information from third-parties and for updates from taxpayers. |
| P1-2 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; A range of initiatives are undertaken to identify unregistered businesses and individuals. The Tax Administration Action Plan specifies various initiatives to detect unregistered taxpayers. The Tax Administration extensively uses third-party information to identify unregistered individuals and businesses. Information obtained from government departments and agencies (e.g., Customs; Immigration; and National Transport Authority) are used to identify unregistered businesses (e.g., recent start-ups, importers, exporters) and individuals (e.g., foreign workers and investors).Reports documenting actions and results detecting unregistered taxpayers are present. The Key Performance Targets/Benchmarks for Fiscal Year 2016/17 specifies a range of activities to detect unregistered taxpayers, including regular inspections and unannounced visits to business premises such as supermarkets, restaurants and hotels. The results are monitored and documented as a part of the Tax Administration performance/appraisal management system. |
| P1-1-1 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; The information held in respect of registered taxpayers meets standards of international good practice. The electronic taxpayer registration database is centralized and interfaces with other Tax Administration’s IT subsystems for tax filing, payment and audit. Each registered taxpayer has a unique taxpayer identification number (TIN) that includes a check digit. The taxpayer registration IT subsystem provides a frontline staff with a whole-of-taxpayer view with a taxpayer’s registration, identity of related parties and associated entities, and other details across all taxes. The system allows for deregistration and deactivation of taxpayers. The list of active taxpayers from whom a declaration is expected is determined by automated cross-checking from other databases. The IT subsystem uses registration details to generate electronic tax declarations and provides secure online access to both individual and business taxpayers. Individuals can update registration data through the Tax Administration portal while businesses and individual entrepreneurs update registration data through the Ministry of Justice portal. Documented procedures and integration with cross-government databases provide a high level of management confidence in the database. Tax Administration verifies the accuracy of the information held in the taxpayer registration database and identifies active and dormant taxpayers through large-scale automatic cross-checking with other government databases, such as the Social Register maintained by the Social Fund, Single Register for Legal Entities, Property Sales Database, Cadaster, Bank Accounts Database maintained by the National Bank and others. The procedures for automated cross-checking are documented in protocols for the Tax Administration’s IT subsystem. There is no large-scale automated cross-checking with the Motor Vehicles Database. |
| P1-1-2 | EUR | A | First | 2015 | English | Scored A because good practice was detected in;The Tax Administration’s quarterly operational plans include initiatives to detect unregistered individuals and individual entrepreneurs but there is no reporting on outcomes. Such initiatives comprise: systematic use of third party information, such as the Customs Database, Electronic Invoice Register, Social Register, Cadaster Database and others; thematic cameral audits and inspection of individual entrepreneurs and individual taxpayers. |
| P1-1-1 | EUR | A | First | 2015 | English | Scored A because good practice was detected in;The registration database reflects all the information necessary for effective administration. A new integrated computer system for the administration of VAT and excise was introduced in mid-February 2018 and has formed the basis for this part of the assessment. The tax admistration registration data is stored in a central national computerized database, with each taxpayer having a unique tax identification number, validated through the use of check digits. This number is derived from: either a modified version of the taxpayer registration number issued by their relevant Income Tax Entity - RS, FBiH and BD, or in the case of taxpayers not required to be registered with one or more of those entities, an ITA generated number. All numbers have the same format and their uniqueness is assured via automated system business and database rules. The registration database contains a comprehensive list of taxpayer details (e.g., name, address, contact details, date of birth or date of incorporation, related entities, and nature of business activity), as well as the tax types for which the taxpayer is registered. Alterations and accesses to the registration data are recorded at the business and IIS levels. Reporting on registration information can either be via the application of pre-specified filters to real-time queries to the database, or by a range of pre-defined batch-processed reports. The introduction of the new system also allows taxpayers to electronically update registration data. This function is available to taxpayers who have registered to use the “e-portal” to make on-line changes to registration data which do not require a court decision e.g. email address, telephone/SMS contact numbers, contact person etc. The registration processes to be followed by Tax Administration are detailed in a rulebook , which is supported by instructions, guidelines and manuals. Staff are trained in its requirements. The rule book was most recently updated in 2016 and supplementary material is updated as needed. There are updates to training material to support processes altered by the introduction of the new IT system. The identity of registrants is verified. Entry to the register can be via the trust-chain process with the other Tax Administrations described above, or by direct registration action within the Tax Administration. In either case, proof of identity is required, either for natural persons by an on-line cross-check with the National Identity Register, or in the case of legal persons, by the production of certified copies of registration documentation issued by the companies register. Levels of shareholding in private companies are recorded in documents required for the registration process and these documents are uploaded to the registration module. |
| P1-2 | EUR | A | Repeat | 2015 | English | Scored A because good practice was detected in; Tax Administration has an active program to identify non-registered businesses and individuals. In mapping Tax Administration’s compliance risks, the 2018 Risk Treatment plan identifies unregistered taxpayers as a significant risk and provides milestones for measuring Tax Administration’s actions to address that risk, in particular, by increasing the numbers of VAT and other registrants through operational activities. Tax Administration has also targeted a public education campaign to six industry categories where there are significant non-registration risks, including the construction, real estate, agriculture, and mining sectors, and to employers who have failed to identify unregistered employees. Tax Administration uses third party data to detect unregistered businesses. The linkages between the ompany registry and the Tax Administration databases ensure that Tax AdmiNIstration has ready access to information on all businesses registered by the company registry. Regional offices regularly work with counterpart labor inspectors to identify unregistered employees of businesses. Tax Administration’s reporting systems show the results of its program to identify non-registered taxpayers. In 2017, 346 targeted visits resulted in the imposition of significant penalties for unregistered taxpayers. For 2018, Tax Administration’s reporting system shows the detailed results of 135 visits completed to end-May. |
| P1-1-1 | WHD | A | First | 2015 | English | The taxpayer registry is solid and follows good international practices. The ICMS registration process is provided for in Article 19 of the ICMS/2000 Regulation (RICMS), which specifies all the documents necessary to register. To start a company, taxpayers register online through a single registration platform, Rede 20 Nacional para a Simplificação do Registro e da Legalização de Empresas e Negócios (REDESIM), from where the data is transmitted to the Junta Comercial of the State of São Paulo (JUCESP). After verification, JUCESP transfers all information electronically to the federal (RFB), state (SEFAZ-SP) and municipal tax authorities. These three entities register the firm in their respective databases with distinct and separate high-integrity taxpayer identification numbers, which are linked via JUCESP.16 SEFAZ-SP uses a high-integrity 12-digit tax identification number with control digits. The registration database contains all the details |
| P1-1-2 | WHD | A | First | 2015 | English | There are documented procedures for identifying and deactivating or deregistering inactive taxpayers, and there is a high level of confidence in the accuracy of the information in the registration database. CAT Ordinance no. 95/2006 documents procedures by which contributors can be deactivated or canceled. Taxpayers may be deactivated based on: (i) moto suo of taxpayers who have interrupted business; (ii) information from a local tax department; or (iii) quarterly decommissioning exercise carried out at the state level. The quarterly deactivation exercise automatically obtains information from the database about taxpayers who have not filed three monthly returns and then uses e-invoice matching to verify that none |
| P1-2 | WHD | A | First | 2015 | English | Initiatives to detect unregistered companies and individuals are appropriate. There is a systematic use of third-party information to locate and register companies operating in the shadow economy. Electronic invoice matching and tracking of goods in transit are used to check whether a company that has reached the Normal regime bands is still hidden under the Simple regime. Consumers are incentivized through discounts on their taxes if they require invoices from sellers, using the Nota Fiscal Paulista program. Ordinance CAT 156/2010 obliges e-commerce and financial intermediaries to inform SEFAZ-SP if a seller has carried out more than nine transactions of accumulated value |
| P1-2 | AFR | A | First | 2015 | English | The Tax Administration carries out systematic activities to detect businesses and individuals not registered for tax purposes. The tax administration's strategic plan and the division's annual plans include, as one of the objectives, the identification of unregistered taxpayers operating in the informal sector and those not registered for urban property tax purposes. These plans include registration campaigns and inspections of commercial facilities to determine whether businesses and urban households are registered. The tax administration has a dedicated anti-fraud unit that focuses on tax risks made up of two divisions – Risk and Information Management, and Investigations. The main responsibility of anti-fraud units is to detect unregistered businesses and individuals and get them to register. Data from third parties from the Ministry of the Interior, the Border Police, local authorities, the Financial Information Unit (UIF), as well as information exchange agreements with neighboring countries are used. The tax administration, through mobile tax services, registered a significant number of companies in the informal sector and families subject to paying property tax. Additionally, the tax administration's Tax Research Center is currently conducting studies on a single tax for microeconomic commercial activities. |
| P1-1-1 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; The registered taxpayer’s database is well structured and meets the requirements of good international practice. Registration for the three main taxes (ICMS, ISS and IPTU) is well defined in the respective legislation. For ICMS and ISS, (except for rural producers and independent professionals) the registration is done through the National Network for Simplification of Registration and Legalization of Businesses. The integrated approach simplifies the registration process and also allows the sharing of information between the three levels of government. For the IPTU, the registration is carried out in the real estate registries and specialized units manage this process. All information necessary for tax management is included in the registers. The Número de Identificação Tributário(NIT) or taxpayer identification number is unique, contains 12 digits with a self-validating mechanism that ensures integrity. The taxpayer register interfaces with the other subsystems of filing and payments, and this allows cross-checking of information and a global view of the taxpayers. The system allows deactivation or deregistration of inactive taxpayers and archives information for ease of retrieval. The system can generate reports with managerial statistics and provides an audit trail of user access. The system also permits secure access for taxpayers to update their information through the taxpayer portal. |
| P1-1-1 | AFR | A | Repeat | 2015 | English | Scored A because good practice was detected in; Information held in the registration database adequately supports interactions with taxpayers and tax intermediaries. A 10-digit unique taxpayer identification number (TIN), with a check digit, is issued centrally through the tax system. Apart from facilitating routine identification of taxpayers for compliance actions, the TIN is used for other purposes such as importation of motor vehicles by individuals. Identifying information held in the database includes name, address, contact details, nature of business activity, tax obligations by tax type, and details of associated entities and related parties of the taxpayer (e.g., directors of registered companies). The registration information technology (IT) sub-system provides frontline staff with a whole-of-taxpayer view across core taxes, subject to user access controls. The system is able to readily generate registration-related management information (e.g., statistics of registered taxpayers by segment, location, and economic sector). In addition, administrative assessments are generated using taxpayer information in the database. The system provides an audit trail of user access and changes made to taxpayer data. Taxpayers are able to securely update their demographic details online. |
| P1-2 | AFR | A | Repeat | 2015 | English | Scored A because good practice was detected in; A wide range of initiatives have been undertaken to detect unregistered businesses. The Tax Administration has signed collaboration and information-sharing memorandums of understanding (MOUs) with the Ministry of Local Government, the City Authority, Financial Intelligence Authority . Further,the Tax Administration is involved in the Registration expansion project that is part of the government’s strategy of improving efficiency in revenue collection and compliance through expansion of the tax base. Additionally, the Tax Administration introduced a block management system in which central parts of the City have been divided into logical geographical blocks. A team of tax officers are assigned to systematically manage tax compliance of each taxpayer within their block on a day-to-day basis. From these efforts, during the 2017/18 financial year, Tax Administration increased the number of value clients to 166,820 taxpayers—of these, 19,214 new value clients were identified through the Expansion project, block management system and information sharing activities discussed above. |
| P1-1-1 | EUR | A | First | 2019 | English | The AEAT taxpayer database is unique (national), centralized and computerized. It pivots on the Tax Identification Number (NIF), unique for each taxpayer, containing updated and detailed information ideal for achieving effective interactions with other systems. It provides a holistic vision, allows you to generate statements and statistical information, as well as control access and actions carried out. There is secure access for companies and individuals. The NIF is unique and permanent; In accordance with the legislation, every natural or legal person will have a NIF for their relationships of a tax nature or significance. This NIF will be provided by the General State Administration (Ministry of the Interior and AEAT), ex officio or at the request of the interested party. The information available in the Centralized Database (BDC) of each taxpayer includes data of all types: identification, relationships, representatives, links with other taxpayers, declarations, tax payments, communications and imputations. The taxpayer registration subsystem (pivoting on the NIF) is connected to the rest of the applications that the AEAT uses to develop tax procedures, as well as to provide information and assistance to taxpayers, such as pre-filled returns (IRPF, some VAT cases) or periodically provide tax data. Through the Electronic Office, taxpayers can carry out various operations, such as submitting returns or paying their tax debts. They can also modify their identifying information (such as address). Taxpayer access is always carried out through secure systems that prove their identity. Taxpayers' census data can be modified by them or by the AEAT itself ex officio. In the cases of defunct entities or deceased persons, their obligations are eliminated through a 'low logic' process that allows, however, to preserve the available information in case it is necessary to consult it later. AEAT employees view and process taxpayers' BDC data through a corporate Intranet, which offers officials access to all registered information (holistic view). Of all the accesses made to a taxpayer (information, modification of data), a computerized record remains that allows, where appropriate, the corresponding justification to be requested. Several AEAT applications (Info-classes, ZUJAR) allow obtaining overall information, in which taxpayers appear qualified with different attributes, and obtaining information by segments and groups. |
| P1-2 | EUR | A | First | 2019 | English | Obtaining the NIF by taxpayers is necessary to carry out any economic activity or operation, in such a way that there are no people or entities that are not registered in the census of taxpayers. The AEAT carries out processes and visit plans to correct or adjust the obligations of the taxpayers to reality, in accordance with the information available, both internal and from third parties. The AEAT is the only body authorized to assign the NIF of legal entities and at the time of its assignment, the entity is registered in the database. Therefore, all registered entities are included in it, because without the NIF you cannot operate (it is mandatory to open a bank account, for example). On the other hand, as for natural persons, the Ministry of the Interior is the authorized body for the assignment of both DNI for nationals and NIE for foreigners. These DNI or NIE are communicated to the AEAT by the Ministry of the Interior. In addition, there is a direct service from the AEAT with the database of the Ministry of the Interior (General Directorate of the Police), which allows the identity data provided by a citizen to be compared with those that appear on their identification document. The assignment of the NIF by the Ministry of the Interior (individuals) and by the AEAT itself (entities) ensures the inclusion of all taxpayers in the census of taxpayers. The entire AEAT system maintains a high level of confidence in the accuracy of taxpayer registration information, monitoring the corresponding indicators of this objective by the Steering Committee and the Territorial Steering Committee. In conclusion, the existence of persons or entities not registered in the census of taxpayers is not possible. There is, however, the possible existence of imbalances in a taxpayer's obligations if the data they declare does not coincide with reality. Such imbalances are corrected with periodic census rectification campaigns to clarify obligations or to verify the presentation of declarations. There are also campaigns (non-declaring) or visit plans (Management, Inspection) that make it possible to detect undeclared economic activities or those with lower than actual performance. As each person or entity has a NIF that acts as an imputation center, it is possible to detect these situations by crossing information from third parties (Commercial Registry, Social Security, Immediate Information Supply (SII) invoices or model 347, declaration of lease of business premises, information from financial entities on account movements, ownership of point of sale (POS) terminals, etc.). |
| P1-1-1 | AFR | A | First | 2019 | English | Scored A because good practice was detected in; The registration database is computerized, centralized and provides a countrywide view of all taxpayers. Registration of companies which may be owned by an individual or a group of persons is done in accordance with Law No. 5000 on Tax Procedure as amended in Article 600 and 700. Registration is done via secure online services offered by LG83 Development Board. A nine-digit unique taxpayer identification number (TIN) which comprises of nine digits with a unique ninth check digit generated by the IT system, is assigned to individual taxpayers, business enterprises or organizations through the Tax system. Apart from facilitating routine identification of taxpayers for compliance actions, the TIN is used for customs purposes. All necessary and relevant information on taxpayers is captured in the taxpayer database which includes: name, address, contact details, nature of business activity, and tax obligations across all core taxes and compliance history. Although the LG83 law does not currently cater for partnership and trusts, information of Managing Directors, Board of Directors and Shareholder information is easily accessible through the Tax and Business Intelligence System. Once registered, taxpayers have secure online access to update their details such as addresses, phone numbers and emails addresses. The registration system provides frontline staff with a whole-of-taxpayer view across core taxes subject to user access controls. The system can generate registration-related management information (e.g. statistics of registered taxpayers by segment, location, economic sectors and new registrations), tax declarations and enforcement lists. In addition, the registration system allows for deactivation and deregistration of taxpayers and provides an audit trail of user access and changes made to taxpayer data. |
| P1-2 | AFR | A | First | 2019 | English | Scored A because good practice was detected in; A range of initiatives are undertaken to identify unregistered businesses and individuals. The Tax Administration Action Plan and CIP specifies various initiatives to detect unregistered taxpayers. The Tax Administration extensively uses third-party information to identify unregistered individuals and businesses. The Tax Administration has signed a memorandum of understanding (MOUs) with National Statistics Organization and the Social Security Board . Information obtained from government departments and agencies (e.g., Customs; Private Sector Federation (PSF)) are used to identify unregistered businesses and individuals. In addition, the quarterly report provided by the Corporate Risk Department and information from the Business Intelligence systems are systematically used to detect unregistered taxpayers. A range of initiatives are undertaken to identify unregistered businesses and individuals. The Tax Administration Action Plan and CIP specifies various initiatives to detect unregistered taxpayers. The Tax Administration extensively uses third-party information to identify unregistered individuals and businesses. Information obtained from government departments and agencies (e.g., Customs; Private Sector Federation are used to identify unregistered businesses and individuals. In addition, the quarterly report provided by the Corporate Risk Department and information from the Business Intelligence systems are systematically used to detect unregistered taxpayers. |
| P1-1-1 | MCD | A | First | 2019 | English | Scored A because good practice was detected in; The registered taxpayer database meets the standards of international good practice. The database is centralized and computerized and interfaces with other subsystems for tax filing, payment and audit. All individuals above the age of 16 years must obtain a taxpayer identification number (TIN) and are required to register a business only when they start an economic activity. This business registration is provided by the one-stop-shop of the TC. Each registered taxpayer has a unique 9-digit TIN that includes a check digit. The database contains all relevant information which allows frontline staff with a whole-of-taxpayer view of a taxpayer’s details including identity of related parties and associated entities across all taxes and generates management information by entity type, economic sectors and tax types. The system enables quick identification and tracking of inactive taxpayers and which allows for deregistration of taxpayers who have stopped economic activities. Dormant taxpayers are highlighted and followed up without the need for deactivation. The registration database and linked subsystems are used to generate pre-filled tax declarations. The subsystem provides secure online access to taxpayers to register businesses and update information. There is audit trail of user access to the system. |
| P1-1-2 | MCD | A | First | 2019 | English | Scored A because good practice was detected in; Documented procedures are applied routinely to ensure the accuracy of the taxpayer database. The accuracy of information for taxpayers is authenticated by automated cross-checking of information from other databases such as property registry, motor vehicle office, social security and bank information. The system identifies duplicate as well as bogus registrations because of the unique TIN provided to every resident who is above 16 years of age. The Tax Administration conducted a cleanup operation in 2018 where 29,000 duplicate registrations belonging to a legacy registration system of 1999 to 2018 where deleted. The system tracks non-filers and if it is found that they have ceased economic activities, they are required to apply for deregistration through a stepped process of suspension before they are finally deregistered. A government resolution issued in 2017 requires taxpayers’ registration to be suspended if inactive for more than six months; and to be excluded from the taxpayer register if delinquent for more than 12 months based on the findings of the TC’s exclusion commission. The annual reports for 2017 and 2018 indicated a good level of confidence in the accuracy of the taxpayer database. |
| P1-2 | MCD | A | First | 2019 | English | Scored A because good practice was detected in; Actions are undertaken to identify businesses that fail to register. The Tax Administration issues orders every six months directing the field offices to conduct field inspections of specific sectors to detect new taxpayers Third party information from a variety of sources are also used to detect unregistered businesses. Quarterly/monthly reports indicate how many new taxpayers were added to the register as a result of these actions. In addition, the annual report mentions the action taken by the Tax Administration to detect new taxpayers. The Tax Administration’s journal BEAU also reports from time to time efforts made by the Tax Administration on detecting new taxpayers. |
| P1-1-1 | WHD | A | First | 2019 | English | The Register of Individuals and the National Register of Legal Entities contain the relevant and necessary taxpayer data. The RFB has databases to determine declaration and payment obligations. The Registry is centralized and computerized, assigns a unique identification number and interacts with other IT systems. The RFB is the only body responsible for the administration and regulation of the Individual Taxpayer Registry (CPF) and the National Legal Entity Registry (CNPJ). The registration obligation7 is very broad. Table 2 of Annex III shows how, in 2018, the number of registered individuals reached almost 202 million8 – practically the entire estimated population of Brazil –, of which 30.6 million are required to present the IRPF declaration9. In summary, legal entities10 and similar entities (including Simples Nacional, Individual Entrepreneurs, MEI, etc.) must register with the CNPJ. Table 2 of Annex III shows that of the 5.4 million registered with the CNPJ required to present IRPJ11 declarations, it is expected that just over 3 million will present the declaration. Both records contain information such as the taxpayer's full name, address, contact details, date of birth and incorporation, type of activity based on the National Classification of Economic Activities (CNAE), identity of partners and related entities, administrators, final beneficiary data , representatives and administrators, responsible for accounting, taxpayer segment and economic sector or branch of activity and, eventually, additional information (e.g. reader title, passport photograph). |
| P1-1-1 | WHD | A | First | 2019 | English | The necessary and relevant information on taxpayers is collected in the tax registry database and the tax administration has the parameters for taxpayer segmentation for internal use. However, the Single Tax Registry (RUT) does not yet contemplate this segmentation, and its incorporation is planned in its modernization project (RUT Version 2.0). The RUT5, 6 is centralized and computerized with a number 5 Single Tax Registry constitutes the unique mechanism to identify, locate and classify people and entities that have the status of taxpayers declaring income tax and non-taxpayers declaring income and assets; those responsible for the Common Regime and those belonging to the simplified regime; retaining agents; importers, exporters and other customs users, and other subjects of obligations administered by the National Tax and Customs Directorate, for whom registration is required. Registration also occurs ex officio, either from an external administrative or judicial authority or through format 6331 “Resolution by which ex officio registration is ordered in the RUT.” only one that is also used for customs procedures. For natural persons, the Tax Identification Number (NIT) is made up of their citizenship card, plus a verification digit. For legal entities, the NIT is assigned through a joint process between the tax administration and the corresponding Chamber of Commerce. The NIT is made up of 9 digits and an additional verification digit. The registration system in the Single Model of Income, Services and Automated Control (MUISCA) allows: (i) the interface with other DIAN systems, such as the tax current account (declarations and payments); (ii) provide frontline staff with a holistic view of taxpayer data for all major taxes; (iii) deactivate or deregister taxpayers and archive the information so that it can be recovered if necessary; (iv) generate management information related to the registry, such as a report on RUT economic activities by municipality, by type of economic activity, by requests and by RUT services; (v) offer audit trails of user access to the systems and generate alerts about modifications made to taxpayer information; (vi) use the details of the RUT information to generate the header of the declarations and the suggested declaration; and (vii) register and send all documentation in cases that require confirmation of the data7 (although the data update must be partially carried out in person). Despite the identified strengths, the RUT still does not include information on taxpayer segments. However, it is important to indicate that the DIAN has made great strategic and operational efforts to apply segmentation criteria for internal use.8 The automation of customer segmentation (incorporation and updating) is planned in the RUT modernization project in its version 2.0. |
| P1-1-2 | WHD | A | First | 2019 | English | Registration in the tax administration is done electronically with a digital file loaded into the system whose data is verified against the database of the National Registry of Civil Status, or certified by the Chamber of Commerce. There are documented procedures for the registration and maintenance of the tax administration. The tax administration has access to information from the National Registry of Civil Status10 and the registration of legal entities is done through the Chamber of Commerce, when registration is required in this entity. However, updating the information in the registry is not done through large-scale automatic processes. The Registry and the Chamber of Commerce11 periodically send files of their bases for updating procedures. In the case of the Registry, the information refers to the deceased. The identification and elimination (cancellation) of inactive taxpayers is done at the request of the taxpayers or by purification actions (ex-officio cancellation) by the tax administration. The DIAN modernization plan includes massive, large-scale updating with direct access to the records of the Chamber of Commerce and the Civil Status Registry. Campaign 36013 includes self-evaluation visits to the Sectional Directorates to verify procedures and update the RUT14. The 2020 Anti-Evasion Shock Plan contemplates actions to improve the quality of the RUT. Information quality management reports are provided that show a high degree of consistency and internal audit reports15 on the reliability of the record. |
| P1-2 | WHD | A | First | 2019 | English | There are operational plans for the detection of compliance inconsistencies, including unregistered taxpayers, through which external information sources are systematically used, obtaining positive results in the identification of unregistered taxpayers. The tax administration has an operational program of inspection visits to company headquarters and commercial premises, normally carried out by the sectional offices. It also has the Omissions Program that makes systematic use of exogenous information to detect omitted and unregistered taxpayers. The 2019 results show 2,082 taxpayers not registered in the RUT, equivalent to 0.5 percent of the identified omissions. |
| P1-1-1 | EUR | A | First | 2019 | English | Scored A because good practice was detected in; The information held in the Tax Administration’s new taxpayer register is aligned with international good practice. Since February 2020, Tax Administration has established a central national computerized registration database, that holds all the relevant taxpayer information—including core taxpayer obligations and business activity. Each taxpayer has a unique high integrity identification number.[1] The registration database: (i) interfaces with the filing and payments system; (ii) provides frontline staff with a whole-of-taxpayer view across all core taxes; (iii) allows for the deactivation of taxpayers and archives information in a way that can be restored if needed; (iv) generates registration-related management information; (v) provides an audit trail of user access and changes made to taxpayer registration data; (vi) uses taxpayer registration details to generate tax declarations; and (vii) provides secure online access—via the taxpayer portal—to register and modify details. |
| P1-2 | EUR | A | First | 2019 | English | Scored A because good pratice was detected in; Tax Administration’s initiatives to detect non-registrants include systematic use of third-party information and inspections of business premises. The initiatives in place rely on the systematic use of third-party data from ten government agencies, including the State Procurement Agency, utility companies and e-commerce sites. A workforce including staff from the Analytics Department and the Methodology Department has identified, analyzed and prioritized high-risk groups (e.g. owners of rental properties and taxi drivers). District Tax Officers undertake physical visits to businesses, as planned in the Tax Monitoring Operational Plan, although the number has been reduced due to COVID-19 pandemic. A change in the tax law allows enforced registration by Tax Administration. Results of actions are included in periodic reporting. |
| P1-2 | AFR | A | First | 2019 | English | Scored A because good practice was detected in; The Compliance Program 2020 contains 15 initiatives aimed at improving registration. They include taxpayer service initiatives and internal procedural and system enhancements. The Program also details activities to grow the registered taxpayer base and identify and resolve fraudulent registrations. The VAT registration process provides for inspection visits to businesses newly registering for VAT, where risk analysis raises concerns about a business’s authenticity. A Regional Tax Base Growth Program aims to identify unregistered taxpayers by matching a range of third-party data indicative of income, wealth, and economic activity. Following the initial research and analysis, field visits are planned (and some already conducted) to selected areas to scan the local business environment and identify unregistered businesses. Reports were provided that evidence regional office activities in detecting unregistered business and bringing them into the tax system. For example, an initiative in one of theProvince resulted in the identification of over 1,100 unregistered businesses. A significant focus is placed on supporting these businesses through the registration process and helping them to understand their obligations. |
| P1-1-1 | WHD | A | First | 2019 | English | Scored A because good practice was detected in;The registered taxpayer database meets all the standards of good international practice. The Tax Administration Information System database is centralized and computerized. The registration subsystem interfaces with other subsystems for tax filing, payment, and audit. The database contains all relevant information allowing frontline staff with a whole-of-taxpayer view, including identity of related parties and associated entitiesacross all taxes. The Information System generates many management information reports by entity type, taxpayer segment, economic sectors and tax types. The system enables quick identification and tracking of inactive taxpayers and allows for the deregistration of taxpayers who have ceased economic activities. Inactive taxpayers are highlighted and followed up without the need for deactivation. All individuals and businesses are required to register as soon as they start an economic activity. Each registered taxpayer has a unique, high integrity, 9-digit Taxpayer Registration Number that includes a check digit. Persons are also required to obtain a registration number for non-tax purposes such as getting a driver’s license, government contract, passport, or social security benefits, even if they are not liable to pay taxes. Businesses registering (using the “Superform”) with the Companies Office of LG141 are issued a registration number, which is then automatically transmitted to the Tax Administration database. The registration information and linked subsystems are used to generate and send tax declarations and withholding tax certificates to taxpayers. The subsystem provides secure online access for taxpayers to register businesses and update their information through the e-Service of the Tax System. There is also an audit trail of user access to the system, and a few staff are granted access to the registration system based on job requirements. Staff access is approved at the supervisor level. |
| P1-1-1 | WHD | A | First | 2019 | English | Scored A because good practice was detected in; The taxpayer database meets all the standards of good international practice. The taxpayer registration database, includes all relevant details of taxpayers from approved application forms and provide staff with a whole-of-taxpayer view. The mission was provided with a virtual demonstration of the centralized and computerized system which confirmed that information in the registration database includes all relevant taxpayer details, including industry classification, taxpayer segment and identity of related parties, e.g., intermediaries. The system also provides information on what taxes the taxpayer is registered for, as well as filing and payment history and generates tax declarations. The system generates management information reports by economic sectors and tax types. A unique six-digit Taxpayer Identification Number (TIN) exists and is used for both tax and customs purposes. The TIN is a numeric code generated by the system and used by taxpayers for all tax types. A secure online portal exists for taxpayers to register and update information. The IT-system allows for deregistration and updating information and leaves an audit trail of user access. Staff is granted access to the registration system based on responsibilities. |
| P1-1-1 | WHD | A | First | 2019 | English | The registration system is computerized and provides a robust basis in compliance with the principles of best international practices regarding registered taxpayers, corporate bodies and intermediaries. The main tax in the State of Rio Grande do Sul is the tax on operations relating to the circulation of goods and on the provision of interstate, intermunicipal and communication transport services – ICMS. The registration uses unique numbering at state level and is made up of 10 high-integrity digits, 3 of which identify the municipality, six numbers are granted sequentially and the last digit is the verifier. The registration base is centralized and has the necessary information to identify the name or business name of taxpayers, corporate structure, address, intermediary data (accountant), economic activity, among other information. An Information and Communications Technology (ICT) subsystem interfaces with other subsystems and provides service and inspection personnel with a global view of registration data. Allows you to check the tax status of registration cancellation, write-off or suspension, among others. Generates management information such as statistics by economic activity and location. Records the access audit trails of the responsible user and the respective registration changes made. It uses registration details to generate the declaration called ICMS Information and Calculation Guide (GIA) based on the data contained in the Digital Tax Bookkeeping (EFD), with the taxpayer being responsible for validating it. Provides secure access for legal entities to generate registration, using the National Network for the Simplification of Registration and Legalization of Companies and Businesses (Redesim). The time for granting state registration was 3 days in January 2021 and just one day in October 2021. |
| P1-1-1 | APD | A | First | 2019 | English | Scored A because good practice was detected in; The Tax Administration maintains a comprehensive taxpayer registration database as part of a central, national computerized system. Taxpayer registration is primarily done by the LG140 Registration Authority with information on new registrants automatically shared with the Tax Administration, which validates information against various third-party data sources. The registration system issues each taxpayer with a unique taxpayer identification number (TIN) that includes three check digits and incorporates an extensive range of information about the taxpayer and associated entities. The information system interfaces with other IT sub-systems, provides frontline staff with a whole-of-taxpayer view, allows for the deactivation or deregistration of taxpayers while still restoring relevant information, and provides an audit trail of user access. Data in the dashboard is updated on a daily basis, and is used to generate comprehensive, customizable management information reports. |
| P1-1-2 | APD | A | First | 2019 | English | Scored A because good practice was detected in; Other good practices ensure the adequacy and accuracy of the tax register. Taxpayers have the option to update their information on an online portal. Documented procedures exist and are routinely applied to identify and remove inactive taxpayers. Extensive use is made of large-scale automated data matching processes. Management reports on the accuracy of the register are developed on a monthly basis and are validated on a quarterly basis by internal audit. For deceased individuals, the deregistration process is triggered automatically by a government notice of their death. A separate process follows up on the status of non-filing taxpayers to trigger a deregistration review process. Taxpayers who are closing their business can also request to be deregistered. Additional data updates are done using large scale automated matching processes. |
| P1-2 | APD | A | First | 2019 | English | Scored A because good practice was detected in; The Tax Administration has a series of activities to detect unregistered taxpayers. The Tax Administration makes systematic use of third-party information from various sources – including the banking system, property ownership records, customs data and an invoice matching system – to detect unregistered businesses and individuals. Marketplace visits are also conducted, which are made easier by providing registered taxpayers with a QR code that they display at their place of business. In 2021, a key focus of these marketplace visits was on the construction industry and on a book fair. In addition, tax inspectors at the field office report that they conduct physical checks on a monthly basis to identify unregistered entities during marketplace inspections, as a result of which they identified 25 new individual taxpayers and 85 unregistered legal entities during 2021. The taxpayers identified in this process are notified of their obligation to file and have their details sent to the central registry to ensure that they are included in future automated notification processes. The data of the newly identified taxpayers is subject to third-party data matching to assess overall risk and consideration of whether an audit or other compliance activity is immediately required for the taxpayer. |
| P1-1-1 | EUR | A | Repeat | 2019 | English | Scored A because good practice was detected in; The taxpayer database meets international good practice standards. The database is centralized and computerized, and interfaces with other subsystems for tax filing, payment and audit. Registration of new businesses is given by the one-stop-shop of the Business Registration Agency (BRA) that provides each registered taxpayer with a unique nine-digit taxpayer identification number (TIN) that includes a check digit. Categories of taxpayers for which the BRA is not the competent registration authority, as well as non-resident individuals, need to file an application for registration to the Tax Administration. Resident natural persons who are not entrepreneurs, and taxpayers with income from agriculture and forestry, obtain a unique 13-digit personal identification number assigned by the Ministry of Interior. The database contains all relevant information, which allows frontline staff with a full view of taxpayer’s details across all taxes and generates The Tax Administration and specified management information reports. The information in the database by entity type, economic sectors and tax types includes the identity of related parties and associated entities. The system enables quick identification and tracking of inactive taxpayers and taxpayers whose TINs have been suspended. This allows for segregation of taxpayers who have stopped economic activities for follow up action without the need for deregistration. The subsystem provides secure access to taxpayers to update limited types of information. There is an audit trail of user access to the system. The registration database is used to generate generic demographic information for tax declarations. |
| P1-1-2 | EUR | A | Repeat | 2019 | English | Scored A because good practice was detected in; Documented procedures for identifying inactive taxpayers and ensuring the authenticity of information of new registrants exist. Procedures for registration and cancellation of registration are documented in articles 500 to 700 of the Law on Tax Procedures and Tax Administration. Registration and deregistration of taxpayers is not undertaken by the Tax Administration but under a ‘single window’ by the BRA and the professional associations responsible for registering their members. The BRA and the professional associations are tasked with ensuring the authenticity of the information regarding the registrants. Under Article 400, the BRA and all professional associations that register members of their respective professions, are required to inform the The Tax Administration within five business days of any registration or of any cancellation or withdrawal of registration. The Tax Administration can suspend the TIN of the taxpayer based on this information or if there is an issue of tax fraud, tax evasion or registration under a fake address. Once a taxpayer’s TIN is suspended, this is treated as an inactive taxpayer and the taxpayer database is updated accordingly. An internal audit conducted in 2018 pointed out some weaknesses in the registration and deregistration of individual taxpayers and recommended development of documented procedures for this purpose which were addressed. That is, the Law on Tax Procedures and Tax Administration was amended to include these procedures. |
| P1-2 | EUR | A | Repeat | 2019 | English | Scored A because good practice was detected in; Tax Administration initiatives for detection of unregistered taxpayers include information from other government agencies or individual informants. The annual Tax Administration compliance plan includes control of business premises specifying initiatives to detect unregistered businesses. There is systematic use of third-party information from Custom and the Central Bank (to monitor foreign exchange transactions). The Tax Administration Manual for Unregistered Businesses 2018 focuses on initiation of control procedures based on information received from other government agencies as well as private citizens. The Annual Report 2020 mentions about searches and seizure of assets recovered from unregistered businesses as part of the effort the overall Government Action Plan to fight the informal economy. |
| P1-2 | APD | A | First | 2019 | English | Scored A because good practice was detected in; Tax Administration's CIP contains the annual operational plan outlining the activities proposed and undertaken to identify unregistered taxpayers. Tax Administration conducts quarterly and annual reviews of the registration database, using third-party information (primarily from the Ministry of Finance (MOF) and MOT, although other third parties are being added in 2022) and conducts compliance activities, such as Compliance Days and registration campaigns, to detect unregistered taxpayers. The results of these compliance activities are documented and reported to senior management. |
| P4-12-1 | EUR | A | First | 2015 | English | Scored A because good pactice was detected in; The on-time filing rates are good. For CIT 88.4 percent were filed on-time. Tax Administration has an enforcement framework it uses to identify and engage taxpayers who fail file returns on-time. |
| P4-12-1 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; On-time filing rates are very high across all tax. The number of CIT declarations filed by the Tax Administration due date expressed as percentage of the number of declarations expected from registered CIT taxpayers for 2015 was 94 percent. The Tax Administration does have other software applications and access to other data that has enabled it to quantify the number of taxpayers required to file declarations with respect to PIT, CIT and PAYE for the purposes of this assessment. |
| P4-12-1 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; On-time filing rates are high for all core taxes, except for PIT. The rate for CIT (91 percent for all taxpayers, 99 percent for large taxpayers). |
| P4-12-1 | MCD | A | First | 2019 | English | Scored A because good practice was detected in; Tax Administration System does a real time tracking of all declarations that are filed and follows up immediately with a notice to taxpayers when there is a delay. As a result, 91.5 percent of all CIT taxpayers, and 100 percent of large taxpayers submit their declarations on time. |
| P4-12-2 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; The on-time filing rates are good. For PIT 99.4 percent of the expected returns were filed on time in 2013. Tax Administration has an enforcement framework it uses to identify and engage taxpayers who fail file returns on-time. |
| P4-12-2 | APD | A | First | 2015 | English | Scored A because good practice was detected in; On-time filing rates for PIT are high. PIT rates are 95 percent. |
| P4-12-2 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; Tax Administration IT system has an automated process to follow-up nonfilers. Reminders are automatically sent to taxpayers who do not file on time. A list of nonfilers is automatically generated for each regional office for follow-up. If the filing issue is not resolved within a set period, default assessments are issued. The filing rates are relatively high. For all PIT taxpayers, 98.9 percent. |
| P4-12-2 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; PIT on-time filing rate for 2017 is 99 percent. Adequate actions are taken by the Directorate for Tax Compliance to filter out taxpayers who are shown as active on the register but are unlikely to have a filing obligation for particular taxes. This is achieved by applying a number of criteria and a comprehensive range of crosschecks with information from internal and external sources to identify taxpayers who may have been active in any tax period. Number of expected returns are determined for each tax period on basis of these filters |
| P4-12-2 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; Most of the taxpayers file on time On time filing rates for all taxpayers are high, that is, above 90 percent of expected declarations were filed on time, across all core taxes including PIT. |
| P4-12-2 | MCD | A | First | 2015 | English | Scored A because good practice was detected in; On time filing performance is sound. Filing of annual declarations for PIT (94.6 percent) and PAYE (92 percent) comfortably meet international good practice. General reminders of impending filing dates are publicized in mass media and on the Tax Administration social media presence. Reminders of approaching filing dates are also sent by email or SMS to taxpayers for whom such contact details are held. |
| P4-12-2 | MCD | A | First | 2019 | English | Scored A because good practice was detected in; Tax Administration System does a real time tracking of all declarations that are filed and follows up immediately with a notice to taxpayers when there is a delay. 93.3 percent of PIT declarations are filed on time. |
| P4-12-2 | WHD | A | First | 2019 | English | The tax administration carries out a series of communication campaigns in order to encourage the submission of returns on time and, in recent years, has made a coordinated effort to facilitate the submission of declarations for different categories of taxpayers. categories of taxpayers. Taxpayers file their accounting books23 and/or tax returns tax returns electronically24 and this has been happening for many years, with the RFB being the main administration in the region in this regard. |
| P4-12-2 | EUR | A | Repeat | 2019 | English | Scored A because good practice was detected in; Tax Administration uses electronic services and pre-filled tax returns to lower taxpayers cost of compliance with tax regulations. Taxpayers can use electronic services, including submission of returns and checking their tax accounting online 24/7. For personal income tax, pre-filling with taxpayer data is available and used. The overall PIT on-time filing rate is 98.7 percent |
| P4-12-2 | EUR | A | Repeat | 2019 | English | Scored A because good practice was detected in; Filing rates are high across all core taxes. Filing rates range from 80.9 percent for the CIT to 100 percent for the excise tax. The Tax Administration maintains sub-registers for VAT and for excise taxpayers that enable a quick and efficient identification of non-filers. Sub-registers are not maintained for taxpayers who are obliged to file declarations with respect to other taxes. Taxpayers required to file declarations are identified based on the taxpayer type data maintained in the taxpayer register. |
| P4-12-3 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; On-time filing rates are good. For VAT, 90.8 percent were filed on-time respectively. LG118 has an enforcement framework it uses to identify and engage taxpayers who fail file returns on-time. |
| P4-12-3 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; Filing rates are high across all core taxes. The number of VAT declarations filed by the statutory due date relating to large taxpayers expressed as percentage of the number of declarations expected from large taxpayers registered for VAT for 2015 was 99.9 percent. The number of VAT declarations filed by the statutory due date expressed as percentage of the number of declarations expected from registered VAT taxpayers for 2015 was 94 percent. The LG101 maintains a sub-register of VAT taxpayers that enables a quick and efficient identification of non-filers. Headquarters distributes details of non-filers to branch offices that quickly seek to contact the errant taxpayer. If filing is not finalized within a relatively short period of time, the taxpayer business bank account is frozen. |
| P4-12-3 | EUR | A | First | 2015 | English | Scored A because good practice is detected in; High-rates for on-time filing are reported for all VAT taxpayers at 93 percent. For large VAT taxpayers: 98 percent |
| P4-12-3 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; On-time filing rates are high for all core taxes, except for PIT. The rate for VAT (95 percent for all taxpayers, 99 percent for large taxpayers). |
| P4-12-3 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; A separate register for VAT allows the Tax Administration to monitor and actively manage the on-time filing of VAT declarations. This active monitoring of VAT taxpayers and a program of swift and forceful interventions to deregister repeated non-filers results in an on-time filing rate of over 95 percent (99 percent for large taxpayers). |
| P4-12-3 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; Data gathered shows that 100 percent for Large taxpayers only, 83.5 percent of CIT declarations are filed on-time, 85.6 percent of PIT declarations (of sole proprietors and individuals) are filed on-time, 97.9 percent of VAT declarations are filed on-time, and 83.5 percent of PAYE declarations are filed ontime. For the one-year period (January 2016 to December 2016), the average on-time filing for all taxpayers was 97.9 percent. The Ministry of Finance uses a range of measures to encourage on-time filing of tax declarations. PIT filing for individual entrepreneurs and individual taxpayers is mandatory only for those with income other than wages. Quarterly CIT declarations include information on PAYE filing. The Ministry has access to the third-party information and can establish the number of expected PIT and PAYE tax declarations. The later are cross-checked with social security contributions for each employee. |
| P4-12-3 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; The VAT on-time filing rate for 2017 is 98 percent for all taxpayers and 99 percent fo the large taxpayers. Adequate actions are taken by the Directorate for Tax Compliance to filter out taxpayers who are shown as active on the register but are unlikely to have a filing obligation for particular taxes. This is achieved by applying a number of criteria and a comprehensive range of crosschecks with information from internal and external sources to identify taxpayers who may have been active in any tax period. Number of expected returns are determined for each tax period on basis of these filters |
| P4-12-3 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; Most of the taxpayers file on time. On time filing rates for all taxpayers are high, that is, above 90 percent of expected declarations were filed on time, across all core taxes, including VAT. |
| P4-12-3 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; On-time filing rates for core taxes are generally high. The IT system automatically generates a list of non-filers to be used by tax offices for filing enforcement purposes. The relatively high on-time filing rate for VAT is partly due to the robust arrangements in place to follow-up VAT taxpayers who fail to file a declaration or pay the VAT due for two consecutive periods, including ex officio deregistration when taxpayers are identified to be inactive. |
| P4-12-3 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; On-time filing of joint goods tax and normal services tax declarations was 90.1 per cent of the expected. Joint declaration for both taxes is mandated for taxpayers who carry out both sales of goods and provision of services, and are thus subject to both the state and municipal taxes |
| P4-12-3 | MCD | A | First | 2019 | English | Scored A because good practice was detected in; Tax Administration System does a real time tracking of all declarations that are filed and follows up immediately with a notice to taxpayers when there is a delay. As a result, 95.9 percent of all VAT taxpayers and all large taxpayers file their declarations timely. |
| P4-12-3 | EUR | A | Repeat | 2019 | English | Scored A because good practice was detected in; Filing rates are high across all core taxes. Filing rates range from 80.9 percent for the CIT to 100 percent for the excise tax. The Tax Administration maintains sub-registers for VAT and for excise taxpayers that enable a quick and efficient identification of non-filers. Sub-registers are not maintained for taxpayers who are obliged to file declarations with respect to other taxes. Taxpayers required to file declarations are identified based on the taxpayer type data maintained in the taxpayer register. |
| P4-12-4 | WHD | A | First | 2019 | English | The presentation of excise tax returns reaches the level of international good practices in terms of timeliness. The declarations made by the sole taxpayer of fuel tax are made within the legal period in all months of the fiscal year under observation. |
| P4-12-4 | AFR | A | First | 2019 | English | Average on-time tax filing rates for all basic taxes are very low compared to best practice, with the exception of excise taxes 91%. |
| P4-12-4 | WHD | A | First | 2019 | English | The personal income tax filing timeliness rate meets minimum standards, is healthy for CIT, PIT and VAT and is at the level of international good practices for personal income taxes. consumption and special taxes (96.4% for all taxpayers, 100% for large taxpayers. |
| P4-12-4 | EUR | A | Repeat | 2019 | English | Scored A because good practice was detected in; Tax Administration uses electronic services and pre-filled tax returns to lower taxpayers cost of compliance with tax regulations. Taxpayers can use electronic services, including submission of returns and checking their tax accounting online 24/7. For personal income tax, pre-filling with taxpayer data is available and used. The excise taxpayers on-time filing rate is 100.0 percent across the whole population |
| P4-12-4 | AFR | A | Repeat | 2019 | English | Filing rates for the main basic taxes are quite high. Excise duties are declared at 100.0%. These performances of the tax administration are the result of the combination of the availability of a wide range of online services (declaration, payment, etc.), the professionalization of assistance to users (operating ©streamlining the online tax services center) and an aggressive communication and tax compliance promotion strategy. |
| P4-12-4 | EUR | A | Repeat | 2019 | English | Scored A because good practice was detected in;Filing rates are high across all core taxes. Filing rates range from 80.9 percent for the CIT to 100 percent for the excise tax. The Tax Administration maintains sub-registers for VAT and for excise taxpayers that enable a quick and efficient identification of non-filers. Sub-registers are not maintained for taxpayers who are obliged to file declarations with respect to other taxes. Taxpayers required to file declarations are identified based on the taxpayer type data maintained in the taxpayer register. |
| P4-12-5 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; Filing rates are generally good. The filing rates for PAYE returns for the 2012/13 income year is 99 percent. |
| P4-12-5 | APD | A | First | 2015 | English | Scored A because good practice was detected in; On-time filing rates for PAYE are high. PAYE rates are 97 percent. |
| P4-12-5 | MCD | A | First | 2015 | English | Scored A because good practice was detected in; On-time filing rates are higher for PAYE (95.9 percent), GST (91.0 percent), and PIT (79.7 percent) taxpayers, and higher still for large taxpayers: 98.1 percent for CIT and 97.6 percent for GST. |
| P4-12-5 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; The number of PAYE withholding declarations filed by the statutory due date expressed as percentage of the number of declarations expected from registered employers was 94 percent. Tax Administration does have other software applications and access to other data that has enabled it to quantify the number of taxpayers required to file declarations with respect to PIT, CIT and PAYE for the purposes of this assessment. |
| P4-12-5 | APD | A | First | 2015 | English | Scored A because good practice was detected in; On-time filing rate for PAYE is 90.2 percent. 100 percent of PAYE withholding declaration are filed electronically. All (352) large taxpayers file electronically. |
| P4-12-5 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; Tax Administration IT system has an automated process to follow-up nonfilers. Reminders are automatically sent to taxpayers who do not file on time. A list of nonfilers is automatically generated for each regional office for follow-up. If the filing issue is not resolved within a set period, default assessments are issued. |
| P4-12-5 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; High-rates for on-time filing are reported for all Withholding taxpayers at 91 percent. |
| P4-12-5 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; On-time filing rates are high for all core taxes, except for PIT. The rate for PAYE withholding (99 percent). |
| P4-12-5 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; On-time filing rates are high for all core taxes, except for CIT. For PAYE, 99 percent for all taxpayers. Close monitoring of filing compliance by the Tax Administration has ensured relatively high overall rates. In addition, then Tax Administration has recently (July 2017)introduced mandatory e-filing for all CIT, VAT and PAYE returns. Return filing obligations and penalties for late submission are clearly set out in tax legislation. PAYE returns are filed monthly on the 20th of the following month. |
| P4-12-5 | MCD | A | First | 2015 | English | Scored A because good practice was detected in; On time filing performance is sound. Filing of annual declarations for PAYE (92 percent) comfortably meets international good practice. A range of taxpayer-friendly measures is applied to encourage timely filing. The Tax Administration website and dedicated mobile application contain a tax calendar of forthcomingevents, including filing dates. General reminders of impending filing dates are publicized in mass media and on the Tax Administration social media presence. Reminders of approaching filing dates are also sent by email or SMS to taxpayers for whom such contact details are held. |
| P4-12-5 | MCD | A | First | 2019 | English | Scored A because good practice was detected in; Tax Administration System does a real time tracking of all declarations that are filed and follows up immediately with a notice to taxpayers when there is a delay. As a result, 91.5 percent of all CIT taxpayers, and 100 percent of large taxpayers submit their declarations on time. |
| P4-12-5 | APD | A | First | 2019 | English | Scored A because good practice was detected in; On-time filing rates are high across all core taxes for most of 2020. However, overall filing performance was impacted by the introduction of e-filing in late 2020, especially on VAT and Special Tax, when the provision on mandatory e-filing for medium and large taxpayers came into effect. Tax on Salary: For monthly withholding filing by employers, the average on-time filing rate is 90 percent |
| P4-12-5 | EUR | A | Repeat | 2019 | English | Scored A because good practice was detected in; Filing rates are high across all core taxes. Filing rates range from 80.9 percent for the CIT to 100 percent for the excise tax. The Tax Administration maintains sub-registers for VAT and for excise taxpayers that enable a quick and efficient identification of non-filers. Sub-registers are not maintained for taxpayers who are obliged to file declarations with respect to other taxes. Taxpayers required to file declarations are identified based on the taxpayer type data maintained in the taxpayer register. |
| P4-13 | WHD | A | First | 2019 | English | The tax administration has automatic processes and documented procedures to quickly identify taxpayers who failed to submit declarations within the deadline. They use tax meshes with automated resolution in most cases. Uses manual analysis, only for dispute cases. For taxpayers who did not submit their declarations, penalties are generated automatically. Systematized procedures are in in force to monitor these taxpayers and their registration is updated based on the sanctions carried out. |
| P4-13 | AFR | A | Repeat | 2019 | English | Taxpayers who have not filed their return on time receive an automatic reminder and the resulting penalties are automatically generated in SIGICI. and penalties s that result from this are automatically generated in the system. The application of the system systematically identifies and recalls all defaulting taxpayers. At the end of the 7-day period, the system calculates the applicable penalties and automatically generates recovery notices. The agents responsible for monitoring taxpayers have a procedures manual which describes the actions to be taken to monitor and tax defaulters, as well as the rules for updating the situation of taxpayers. in the system with regard to their tax obligations. This work of permanent monitoring, profiling This ongoing monitoring, profiling and risk rating work in System feeds into the taxpayer rating system. The operational structures and the tax information center have dedicated staff trained in customer relations techniques. The creation of the online tax center in 2018, with appropriate organization and staff, made it possible to support the deployment of e-Taxation for large taxpayers. services for large taxpayers (2019) and gradually for all taxpayers (2020). (2020). Given the high rate of use of e-procedures, it will gradually replace reception, census and location offices at the tax administration, at the ministry and in regional directorates. These offices have staff responsible for physically supporting taxpayers who have not yet These offices have staff responsible for physically supporting taxpayers who have not yet adhered to electronic declaration and payment procedures. |
| P4-14 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; Taxpayers make extensive use of electronic filing and payment facilities. Electronic filing and payment facilities are available for all core taxes. More than 96 percent of returns overall are filed electronically (2013 figures). The e-filing rates for the core taxes are: PIT (99.7 percent), CIT (95 percent), VAT (95 percent) and PAYE withholding (97.5 percent). Similar rates apply to electronic payments where 96 percent of payments overall are made using e-payment facilities. |
| P4-14 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; Taxpayers make extensive use of electronic filing and payment facilities. Electronic filing and payment systems are available for all core taxes. The 2013 e-filing rates for the core taxes are: PIT individuals (91.3 percent), PIT self employed (83.1 percent), CIT (89.7 percent), and PAYE (94.0 percent). |
| P4-14 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; There has been strong take-up of e-filing across all core taxes. Electronic filing rates have risen steadily over the past three years, from 67.9 percent in 2011 to 82.6 percent in 2013 for CIT, and from 76.9 percent in 2011 to 88.4 percent in 2013 for PIT. From 2014, e-filing for CIT is mandatory. |
| P4-14 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; Electronic filing is mandated for business taxpayers with respect to all core taxes. The phased introduction of electronic filing has been a success with 100 percent of VAT declaration and PAYE/Social Contribution declarations being filed electronically since mid-2014. Likewise, CIT and PIT declarations have been required to be filed electronically since April 1, 2015. |
| P4-14 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; More than 99 percent of declarations received are filed electronically. For instance, CIT(99.99 percent), PIT (99.96 percent), VAT(100 percent), Withholding (100 percent) |
| P4-14 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; Electronic filing is mandated for taxpayers with respect to all core taxes. The implementation of a new core processing system at the start of 2015 provided full filing facilities (including amended filings) as well as a secure information/message exchange facility enabling electronic reminders, messages, requests, etc. |
| P4-14 | EUR | A | First | 2015 | English | Scored A because good practice was detected in;The e-filing rates are high due to a universal e-filing requirement for all taxes. Taxpayers and their authorized agents have access to an online secure portal to file their declarations. Simplified electronic tax returns and reduced frequency of filing have been introduced for small businesses such as sole entrepreneurs and family businesses. |
| P4-14 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; Electronic filing has been mandatory for all taxes since October 2015 and this has proven to be very successful. LG34 provides a range of supportive actions to assist taxpayers, including those with challenges, to file electronically. Taxpayers and their authorized agents can access account details, register, file, and pay online through a secure system. A number of cross-government centers have opened around the country to assist taxpayers to fulfill their obligations. Through these efforts, Tax Administration supports taxpayers to meet their filing obligations electronically. |
| P4-14 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; Electronic filing, encouraged by the LG42 since 2000, became mandatory for all taxes, and has proven to be very successful. The LG42 provides a broad range of supportive actions to assist taxpayers, including those with challenges, to file electronically such as simplified VAT returns, ebooks secure taxpayer portal, e-invoices, and pre-filled tax declarations for personal income tax. Through these efforts, the LG42 supports taxpayers to meet their filing obligations electronically. The mechanisms for filing declarations are the same for all taxpayers. |
| P4-14 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; Electronic payments account for 100 percent of the value of total collection for basic taxes in the last three fiscal years, a result that exceeds international good practice. A few years ago, the electronic system "Declaraguate" has been implemented throughout the country. Declarations and all payments have to be processed by this system which accepts electronic payments exclusively. |
| P4-14 | WHD | A | First | 2015 | English | scored A because good practice was detected in; All declarations are submitted to Tax Administration by electronic means. In the years 2014 - 2016, the declarations of the Tax Administration were filed only in the electronic form. |
| P4-14 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; Mandatory electronic filing applies for all core taxes. Across all taxpayer segments, close to universal electronic filing was achieved in 2017. The lowest rate was in respect of VAT (98 percent). For large taxpayers, 100 percent electronic filing was achieved for PAYE withholding, while CIT and VAT are close behind at 97 percent. Officials advise that exceptions from electronic filing arise only in narrow circumstances e.g., for companies in liquidation and for companies making applications under development laws. The high rate of electronic filing is a strong effort that is significantly reducing costs and providing greater efficiencies to LG81 and the community. |
| P4-14 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; All declarations are submitted to Tax Administration by electronic means. In the years 2015 -2017, tax declarations were filed only in electronic format. The program to e-file the Tax Administration return, is provided by Tax Administration System and the program to generate and file electronically the digital fiscal bookkeeping - is provided by the Tax Administration. |
| P4-14 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; All declarations are submitted to Tax Administration by electronic means. For the years 2015 to 2017, the declarations were submitted only in electronic format. All taxpayers are obliged to deliver digital monthly statements. Those under the regime file electronically an annual declaration to the Tax Administration. Individual microentrepreneurs under the LG246 regime file electronically. |
| P4-14 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; All declarations are submitted to Tax Administration by electronic means. The obligation to file tax declarations electronically is contained in the Tax Act. During 2015-2017, Tax Administration System declarations were filed only in electronic format. The program to e-file the tax return is provided by a private company, and the program to generate and file electronically the by the Tax Administration. Electronic filing is mandatory and widely accepted among all taxpayers especially since most tax procedures must be conducted electronically. |
| P4-14 | WHD | A | First | 2015 | English | The tax administration receives 99 percent of major tax returns electronically and 100 percent of returns from large taxpayers. Electronic filing of returns is done through the virtual office on the tax administration portal and is available for all forms. The high levels of electronic filing are due to the obligation of electronic filing for large taxpayers and a strategy to promote and facilitate electronic filing for the rest of the taxpayers (training, brochures, explanatory videos on social networks, advertising spots). The tax administration has made a great effort to facilitate the submission of electronic returns to taxpayers without Internet access or knowledge with the installation of tax kiosks in its offices. |
| P4-14 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; All declarations (100 percent), between 2015 and 2017, were submitted electronically |
| P4-14 | WHD | A | First | 2015 | English | For each of the major taxes, at least 85% of the returns filed are electronic. All the declarations of large taxpayers are electronic. According to 2017 figures, electronic declarations with respect to the total declarations filed represented 99.59 percent for the CIT, 99.97 percent for the PIT, 89.49 percent for VAT and 87, 89 per cent for employers' PAYE. These figures reflect the positive effects of the various actions undertaken by the LGX to increase the use of electronic declarations, such as the implementation of an Online Services Portal (which offers taxpayers a modern and friendly service for the presentation of declarations), the establishment of the mandatory use of electronic declarations for large taxpayers and various dissemination and orientation campaigns. |
| P4-14 | AFR | A | Repeat | 2015 | English | Scored A because good practice was detected in; Electronic filing is mandatory for all core taxes. On-time filing data can be extracted directly from the tax system. |
| P4-14 | AFR | A | First | 2015 | English | In the period from 2016 to 2018, all tax declarations, including those relating to withholding tax, were delivered electronically. The obligation to deliver declarations electronically is provided for in legal provisions |
| P4-14 | AFR | A | Repeat | 2019 | English | Scored A because good practice was detected in; E-filing is mandatory and rates across all core taxes were high during FY2017/18. The respective e-filing rates exceed 97 percent for most tax types and reaching 100 percent for PAYE (all taxpayers) as well as the large taxpayer segment across all core taxes. The Tax Administration promotes electronic filing through a number of avenues and provides a range of opportunities and support to encourage taxpayers to use the e-Tax filing portal and mobile declarations (all phones). The Tax Administration also has plans to improve electronic filing services by expanding pre-population of forms which is expected to help improve on-time filing rates |
| P4-14 | WHD | A | First | 2019 | English | Taxpayers file virtually all tax returns by electronic means. As a whole, tax returns are submitted through electronic means, except for very isolated cases that are practically irrelevant in number. In the case of large taxpayers, the returns are submitted entirely through said means. |
| P4-14 | WHD | A | First | 2019 | English | All declarations from the respective taxpayers were submitted to the LGXRA by electronic means. Between the years 2016 and 2018, declarations for the main tax, the IRC, were submitted only in electronic format |
| P4-14 | WHD | A | First | 2019 | English | All declarations from the respective taxpayers were submitted to the LGX electronically. Between 2016 and 2018, declarations for the main tax, IRC, were only presented in electronic format |
| P4-14 | MCD | A | First | 2019 | English | Scored A because good practice was detected in; There is a mandatory requirement for all tax declarations for the core taxes to be submitted electronically. Because of the low internet penetration in remote areas of Tax Administration, the Tax Administration has provided e-terminals in many tax offices with dedicated fiber optic lines |
| P4-14 | WHD | A | First | 2019 | English | All taxpayers submit all returns (as well as accounting books) electronically to everyone electronically for all major taxes and have done so for many years. O taxpayers must submit their declarations electronically (the tax administration does not accept declarations on paper) and you can do it via the Internet or mobile phone. O e-file rates are 100% for all taxes and for all taxpayer segments. all segments of taxpayers. |
| P4-14 | EUR | A | First | 2019 | English | Scored A because good practice was detected in; Tax Administration issues pre-populated and assessed property tax invoices. The municipality issues assessed tax invoices for all taxpayers using information it collects on the market values of the properties. The invoices are printed in massor can be accessed online by taxpayers for their printing and verification every First week of April. |
| P4-14 | EUR | A | Repeat | 2019 | English | Scored A because good practice was detected in; E-filing rates across all core taxes and taxpayer segments are 100 percent. The Tax Administration promotes e-filing through a number of avenues. The Tax Administration has a range of initiatives to reduce taxpayer compliance costs, including simplified reporting for small and micro business taxpayers. A secure taxpayer portal accommodates online filing and payment for all core taxes. It provides a range of opportunities and support to encourage taxpayers to use the Taxpayer Portal. |
| P4-14 | EUR | A | Repeat | 2019 | English | Scored A because good practice was detected in; Electronic filing of taxes is high across all taxes. Starting from January 1, 2019, the Customs Administration established a full electronic system for monitoring movements of goods eligible for excise tax. This system includes electronic filing of declaration, an automated system for calculation of excise debt and a system for the management of payments. |
| P4-14 | AFR | A | Repeat | 2019 | English | Scored A because good practice was detected in; Taxpayers and their authorized agents can access account details, register, file, and pay online through a secure system with 24-hour access. Additionally, simplified record keeping is afforded to small taxpayers who qualify for TOT. Mobile applications are available to small traders and individuals to file and pay taxes. Furthermore, simplified filing arrangements are in place for employees via pre-filled tax declarations and on residential rental income. Frequently asked questions and common misunderstandings of the law are detected with verification activities and are routinely analyzed to improve information products and services. Furthermore, changes on tax declarations and other forms are made in response to customer and management demands. However, this is not managed proactively and on a regular basis. |
| P4-14 | APD | A | First | 2019 | English | Scored A because good practice was detected in; Most of tax declarations are filed electronically. Data gathered for 2020 shows that all of CIT, VAT, PAYE, and domestic excise tax declarations are filed electronically, and 98.5 percent of PIT declarations are filed electronically. There is a mandatory requirement for tax declarations for the core taxes to be submitted electronically. |
| P4-14 | WHD | A | First | 2019 | English | All taxpayer declarations were submitted to the tax administration electronically. Between the years 2018 and 2020, declarations of the main tax, the IRC, were presented only in electronic format |
| P4-14 | EUR | A | Repeat | 2019 | English | Scored A because good practice was detected in; Electronic filing is mandatory for all core taxes. All tax declarations for 2021 were filed electronically. |
| P4-14 | AFR | A | Repeat | 2019 | English | Scored A because good practice was detected in; Electronic filing rates are high across all core taxes and taxpayer segments. LG73 promotes e-filing through several channels, activities and measures through, for example, LG73 website, brochures, media spots. A range of opportunities and support are provided to facilitate the process. Compared to manually lodged tax returns, the due dates for electronically filed tax returns are longer, and large taxpayers must submit only electronically filed tax returns. |
| P3-8-2 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; Information provided by the Tax Administration is current and changes in policy and law are communicated in advance. A dedicated team is responsible for updating the website of the Tax Administration, and the process and procedures are documented. Changes to the legislation and procedures are communicated before the changes take effect through the general communication through the website, various media (including radio and television), regional offices, printed materials posted or distributed in the Tax Administration regional offices and through other public institutions. |
| P3-8-3 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; Information is easily accessible through a variety of channels at no cost. The Tax Administration conducts a broad range of proactive outreach activities. Information is provided through the Tax Administration website, the personalized taxpayer portal, a call center, and Tax Administration’s tax offices. The Tax Administration conducts workshops in schools, organizes and publishes books for children. There is no cost to taxpayers for service or information received from the Tax Administration, with the exception of a weekly printed journal published by the Tax Administration. |
| P3-9 | EUR | A | First | 2015 | English | Scored A because good practice was detected in;Tax Administration call center responds to all calls from taxpayers within two minutes. The Tax Administration call center operates during normal business hours, and a self-service automatic answering system is available to taxpayers 24/7. There are strict requirements with regard to response times for emails and letters. There are not yet service delivery standards for telephone calls to the call center. The call center received 52,916 requests during September 2016 – August 2017 (on average about 145 per day). |
| P3-11-1 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; The Tax Administration obtains regular feedback from taxpayers, and a survey of taxpayer perceptions is conducted regularly. The Tax Administration gathers feedback through the website, email, telephone, taxpayer service centers, public events, meetings with stakeholders and surveys. Every two years, a statistically significant survey of small and medium-sized enterprises is completed by the Analytical and Information Center under the Presidential Administration. A statistically significant survey is also completed by one of the universities on a yearly basis. An electronic system of assessing performance of the services provided to the taxpayers is introduced in the taxpayer centers. Representatives of the Tax Administration and its tax offices regularly meet with taxpayers during the visits to enterprises and field trips meetings. Starting with 2018, the Tax Administration plans to conduct surveys through the online taxpayer portal and a mobile application for obtaining feedback from individuals will also go live in 2018 |
| P3-11-2 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; Taxpayer input is taken into account in the design and testing of new processes and products. The Tax Administration has an Advisory Council, which is a public-private dialogue platform for consultations on the issues of taxation. There are 35 members in the Council. Approximately two thirds of the members are representatives of various business associations, private businesses, and tax experts, while around one third of the members represent various government bodies, including the Tax Administration. This Council provides inputs and advice to the Tax Administration in the design of new processes and products before they are introduced. Taxpayers are regularly invited to take part in testing of new processes and products before they are rolled out. |
| P3-8-1 | AFR | A | Repeat | 2019 | English | Scored A because good practice was detected in; Taxpayers have convenient access to information, in various local dialects, through a range of user-friendly channels. The Tax Administration has a robust program to promote client service and public confidence in the tax system. The program is coordinated by the Communication Department in liaison with the operational departments and field stations and delivers tax information for all core taxes, main compliance obligations and all categories of taxpayers via: The Tax Administration website. A self-help tax education portal which has videos, instructions, and guides. Generic and sector-based tax literature which is presented in print, audio, or digital formats and active participation on social media—Facebook, and Twitter. A centralized inbound call center that is operated during normal working hours and for extended hours during peak filing and tax payment periods. Active engagement with private sector associations. Staff visits to small and medium taxpayers premises and other personalized assistance and public seminars and tax clinics for specific taxpayer groups. Client relationship managers in the large taxpayer office (LTO) and medium taxpayer office (MTO). Walk-in service centers in all field offices. Letters, e-mails, text messages, and brochures. The hosting of an annual “Taxpayers Appreciation Month.” The Tax Administration also seeks to educate future taxpayers (e.g. school children) through innovative collaborative arrangements with various institutions. |
| P3-8-2 | AFR | A | Repeat | 2019 | English | Scored A because good practice was detected in; Tax Administration has documented procedures for preparing and communicating tax education material, including that related to changes in tax laws or process. This process is coordinated by dedicated Communication Department staff and includes: identification of changes in tax laws or process and making a case for the need for education material; preparing education material in liaison with subject matter experts; preparing training and taxpayer sensitization material in various local language dialects; and communicating changes in tax laws or process via the Tax Administration website, newspapers, radio and television announcements; and meetings with targeted stakeholders to present the changes, including publication of a Budget booklet which is presented the day after the financial statement is read by the Minister of Finance. |
| P3-8-3 | AFR | A | Repeat | 2019 | English | Scored A because good practice was detected in; Tax Administration has documented procedures for preparing and communicating tax education material, including that related to changes in tax laws or process. This process is coordinated by dedicated Communication Department staff and includes: identification of changes in tax laws or process and making a case for the need for education material; preparing education material in liaison with subject matter experts; preparing training and taxpayer sensitization material in various local language dialects; and communicating changes in tax laws or process via The Tax Administration website, newspapers, radio and television announcements; and meetings with targeted stakeholders to present the changes, including publication of a Budget booklet which is presented the day after the financial statement is read by the Minister of Finance. |
| P3-9 | AFR | A | Repeat | 2019 | English | Scored A because good practice was detected in; Tax Administration has a call center and calls are answered promptly. During 2017/18, the call center received an average of 5,500 telephone enquiry calls per month and answered 98.3 percent of these calls within 6 minutes’ waiting time. While impressive and meeting the TADAT score for good practice, taxpayer feedback via a September 2018 contact center satisfaction survey shows general dissatisfaction with the quality of service. For example, 44 percent of respondents felt that their issues were not resolved conclusively while 40 percent were dissatisfied with feedback from the call center. The survey made recommendations for improvement. |
| P3-11-2 | AFR | A | Repeat | 2019 | English | Scored A because good practice was detected in; There is also evidence that results of such engagements were used to design tax policy changes and refine administrative procedures (e.g. design of a presumptive tax regime for small and micro enterprises) |
| P3-8-1 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; Tax Administration provides extensive information on all core tax obligations and entitlements. The Tax Administration has robust programs to promote client service and public confidence in the tax system, covering all core taxes, taxpayer obligations (registration, filing, payment, and reporting), and entitlements. The information is tailored to the needs of all key taxpayer segments, key industry groups, intermediaries, and disadvantaged groups. The material is also is translated into the 11 main languages used in LG28. Education programs and materials are also available for visual and audio-impaired taxpayers. |
| P3-8-2 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; Tax Administration provides information that is current in terms of the law and administrative policy for all core taxes. The taxpayer education system is centralized and standardized, with delivery taking place across all the country’s nine regions. Standard Operating Procedures (SOPs) exist for updating taxpayer education material. There are dedicated and trained staff for updating public information when changes to the law and administrative procedures occur. Taxpayer education is also provided by a dedicated technical team of educators in the regions. Mobile units bring tax education to people. However, under the COVID-19 period, taxpayer education is mainly through teleconferencing and webinars. Dedicated web pages are also available to provide customized tax education to students and small businesses. Taxpayers are made aware of the changes through targeted and general communication before the law or policy takes effect. |
| P3-8-3 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; Taxpayers have convenient access to a broad range of information in various local dialects and through a range of user-friendly channels. Information is conveyed through multiple channels, including website, mobile app, email-automation/The Tax Administration online query system, social media; contact center; and text messages that are available outside normal business hours. Other channels include walk-in service centers, letters, emails, brochures, billboards, radio, television, and free community newspapers used to drive the message to the lowest level. These are provided to the taxpayers and intermediaries at no cost. The Tax Administration avails information and self-service facilities to both taxpayers and intermediaries even after working hours. Besides providing taxpayer education to those running or about to start a business, the Tax Administration also provides education to future taxpayers (e.g., school children). |
| P3-9 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; Over 90 percent of the telephone enquiry calls are answered within six minutes of waiting time. The Tax Administration makes all business clusters accountable to the service charter, which among other requirements, commits the organization to answer all telephone calls within four minutes and serving walk-in clients within three hours during peak seasons. During the FY 2019/20, The Tax Administration received an average of 278,894 telephone enquiry calls per month. |
| P3-10 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; Tax Administration has put in place initiatives to reduce taxpayer compliance. There is a simplified regime (turnover tax) for taxpayers whose turnover is less than 1 million in local currency per year. Additionally, the Tax Administration issues pre-filled tax returns for taxpayers using third party information on employment income and dividends. Documentation for simplified recordkeeping and reporting arrangements are available for small taxpayers. Other measures include simplified tax clearance (in various languages), small business compliance leaflets, and website enhancements. Taxpayers’ frequently asked questions and misunderstandings are routinely analyzed on a day-to-day basis to improve information services and products. Tax returns and forms are reviewed regularly to ensure taxpayers are requested to provide only information that is used by the Tax Administration. A taxpayer portal and App are available for taxpayers and the authorized agents to access registration and account details at any time. |
| P3-11-1 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; Tax Administration actively seeks performance feedback from clients using a variety of methods. These include client satisfaction surveys at the contact centers, social media, and face-to-face engagements. The customer satisfaction surveys are run by the contact center monthly, and usability studies are done where the Tax Administration engages with taxpayers on a one-on-one basis. The last public opinion survey conducted by an independent party was done within the last three years. |
| P3-11-2 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; Tax Administration routinely and systematically considers taxpayers’ input in designing administrative processes and products. The Tax Administration’ processes and products are driven by user-demand, and taxpayers’ input is regularly sought when products are designed and/or redesigned. For instance, the e-filing solutions are designed based on taxpayer input. The Tax Administration has also adopted appropriate methodology where product design is continuously updated and tested based on the feedback obtained from the market. |
| P3-8-2 | MCD | A | First | 2015 | English | Scored A because good practice was detected in; Tax Administration has documented procedures and a dedicated department - Taxpayer Service Department - which provide specific and general dissemination of updates to information. In addition, the weekly journal provides information to taxpayers. Taxpayers are also informed through proactive engagement before the law takes effect. During 2018, for targeted communication, the Tax Administration conducted 2,500 seminars, 677 TV and radio bulletins and regular internet feeds to keep taxpayers updated with general and specific information |
| P3-8-3 | MCD | A | First | 2015 | English | Scored A because good practice was detected in; A broad range of proactive taxpayer education programs is regularly conducted. During 2019, so far, 20 universities and schools have been covered to impart education on taxation and citizens’ responsibilities. On 21st December 2019, a competition was organized for university students to award those who have the best knowledge of tax laws and procedures. Information is available regarding core taxes and all taxpayer segments through a number of channels like websites, regular seminars and meeting with business associations at the headquarters and local offices. The Tax Administration website runs 24 hours and throughout the year with dedicated staff regularly updating the information regarding changes in tax laws and administrative procedure. All information is available to the taxpayers free of cost except for the annual subscription to Tax Administration’s weekly journal . There are 37 e-Terminals with dedicated fiber optics lines in remote tax offices where internet access is weak—this enables taxpayers meet their tax declaration and payment obligations electronically. |
| P3-9 | MCD | A | First | 2015 | English | Scored A because good practice was detected in; All telephone enquiries by taxpayers are handled promptly. There are three dedicated call centers in the capital city and two other locations have an automated recording and monitoring system through which calls are recorded and answered by operators. Logs of all responses by operators are kept on a daily basis and consolidated into weekly and monthly reports. These reports show that 100 percent of taxpayer enquiries were answered in less than six minutes. The Tax Administration instructions laying out the methodology for the call center require calls to be answered within three minutes. |
| P3-11-1 | MCD | A | First | 2015 | English | Scored A because good practice was detected in; Feedback from taxpayers is obtained routinely using a variety of methods. Based on instructions issued by the Chairman, the Tax Administration obtains regular feedback from taxpayers through taxpayer’s personal cabinet, seminars, call centers, surveys and business meetings, and replies to all relevant questions. As part of the World Bank perception surveys have been regularly conducted by an independent expert survey agency. The last two perception surveys were conducted in 2017 and 2019. The surveys were based on statistically valid samples and tested. |
| P3-11-2 | MCD | A | First | 2015 | English | Scored A because good practice was detected in; Tax Administration regularly consults with taxpayer groups and intermediaries to identify deficiencies. Letter in 2019 from the Head of the Legal Department to the Head of the Tax Administration . Tax Administration demonstrates that out of 80 suggestions by taxpayers, 27 were recommended for resolution and consideration. By decision in mid 2019, the Head of the Tax Administration responded to taxpayers’ suggestion regarding e-token, accepting their request to make them free of charge. Tax Administration’s website has a section where taxpayers can report suggestions for improving IT processes, forms and products. |
| P6-19-1 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; Tax Administration undertakes a range of intelligence gathering and research initiatives to build knowledge of the level of declaration compliance. These activities include random audits—conducted as a component of the Tax Administration’ wider audit program—to test the level of declaration compliance across a representative sample of segments of the taxpayer population (the program currently covers 0.5 percent of all PIT and VAT returns filed) and compares results against those achieved through risk-based audits. |
| P6-22 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; Tax Administration undertakes a range of intelligence gathering and research initiatives to build knowledge of the level of declaration compliance. These activities include: VAT gap analysis, completed in early 2014, using a recognized structured top- down methodology. |
| P6-19-1 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; Tax Administration’s tax audit program meets international good practice. The Compliance Improvement Plan covers all core taxes and taxpayer segments, including high net worth individuals and the public sector. The Compliance Improvement Plan focuses on the highest risks and financial relevance using an automated risk engine. Cases are selected centrally. Tax Administration uses a wide range of audit types, including compliance audits, return examinations, refund audits, and compliance visits. To expand audit coverage, Tax Administration has allocated its resources to provide greater focus on compliance advisory visits and desk audits. Both direct and indirect audit methods are used. Tax Administration’s post assessment review evaluates the impact of audits on the level of compliance |
| P6-19-2 | AFR | A | Repeat | 2019 | English | Scored A Because good practice was detected in; Audit case selection is undertaken centrally and is a two-step process. Initially, potential cases are identified by the Civil Case Selection System - an analytical tool that uses taxpayer return information and third-party data to produce a risk score. Cases in the higher scoring range are then reviewed by an Audit Case Profiling Team that determine the type of investigative audit to be undertaken (limited or full). Cases are then allocated to the regions based on their available audit case capacity. Although there is no formal random audit program that could be used to check CCSS and the profiling process, or to provide further input into estimating the level of incorrect reporting, the CCSS has an inbuilt random case generator that provides for a number of cases to be selected on a random basis. The Audit Plan is separate from the above plan. It specifies the number of audits to be undertaken and identifies the risk areas that will be focused on for the year. The plan identifies both the tax and the specific risk that will be the subject of the audit. Risks listed in the plan include: transfer pricing; mergers and acquisitions; and international tax arrangements. The plan also identifies industries that will be covered in the audit plan with reference, particularly, to the financial services and mining industries. Detailed reports are prepared on audit results. These are prepared on a monthly basis and include for small/medium taxpayers: achievements against plan; case flows; complaints/objections; and future case forecast. There is no evidence of an overall evaluation of the impact of audit activity on taxpayer compliance levels. For large business the monthly report focused on case numbers; results and progress against the plan. The audit process is supported by detailed procedures. These are referred to as SOPs and cover all stages of the audit process (planning/execution/finalization). SOPs reviewed had all been recently updated and were well structured and cross referenced. Separate SOPs are available to cover special types of audit, for example, use of indirect methods and audits of certain industries such as construction, mining and primary production. |
| P6-19-3 | AFR | A | Repeat | 2019 | English | Scored A because good practice was detected in; Tax Administration’ Enterprise Business Enablement Unit routinely monitors audit quality. A formal documented audit quality review process is detailed as an SOP and covers all stages of the audit process covering both the adherence to procedures through to the appropriateness of the audit cases findings. Evidence to support cases where quality standards were not met was reviewed. Such cases are documented in a “Non-Conformance Report” which is followed up with the auditor and their manager. Outcomes of the quality review process are reported through to The Tax Administration management on a monthly basis. |
| P3-9 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; The service delivery standards in the taxpayer charter are consistently met. The charter—publicized on the Tax Administration website—makes a number of service commitments (e.g., The Tax Administration will respond to all written information request from taxpayers within 14 days). Performance against the service commitments is monitored continuously and publicly reported in the print media quarterly. Recent statistics show that 90 percent of taxpayers who request information from the Tax Administration receive a response within 1.7 days. |
| P3-8-1 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; Information on all the core taxes’ obligations and entitlements is readily available to the public. A comprehensive range of information to businesses and citizens on registration, filing, payment, reporting of information in tax returns and their entitlements is provided by the Tax Administration. Small taxpayers such as those in agriculture are provided with information specifically tailored to their unique needs and take into account the possibility that they might be unable to afford services of accountants and tax practitioners. Tax information is provided to the general public through booklets, guides, pamphlets, newsletters, stakeholder forums, radio, TV and the web page (there is a guide specifically providing detailed information on how to use the IT system and how to access various tax information). Tax Administration educates and provides the public tax information during stakeholder forums to the public. The major channel of engaging and providing information to taxpayer used by Tax Administration is the email |
| P3-8-2 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; Tax information is updated in terms of the law and administrative policy for all core taxes. Tax Administration has a system that provides for regular and systematic updating of information. The Promotion and Taxpayer Education Unit has a team of trained staff whose responsibility is to update public information when changes to the law and administrative procedures occur. They are also responsible for raising taxpayer awareness of changes, using various means ranging from public campaigns to direct communication with taxpayers |
| P3-8-3 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; Information on all core tax obligations can be obtained easily through a variety of channels. In addition to walk-in, taxpayer needs for information and advice are met through the use of the website, mainly email, and other means. Tax Administration reaches out to taxpayers and provides taxpayer education through an innovative service solution of using mobile offices, especially in rural areas. In addition, the provision of taxpayer education to citizens in the rural areas is provided in the local language jointly with language experts from the Institute of Languages. Information is provided at no cost. In pursuit of modernizing its operations the Tax Administration has developed a Communication Strategy that will encapsulate the service delivery channels that will be used in 2015. |
| P3-8-1 | EUR | A | First | 2015 | English | Scored A because the good practice was detected in; The public is provided with readily available and comprehensive information on all the core taxes’ obligations and entitlements. All citizens and businesses have access to publicly available information on registration, filing, payment and how to access information. Information on taxpayer entitlements is also publicly available. The country is one of the countries with high Internet access and usage, most of the taxpayer information is made available through the website. The website has different categories tailored to the specific needs of a given group of taxpayers for example employees/pensioners, business entities, and professional advisors (tax attorneys. The other channels used include television, radio, guides, pamphlets, booklets and taxpayer education forums such as newly established companies, educating the Repeatary school students and others. |
| P3-8-2 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; Taxpayer information is regularly and systematically updated in terms of the law and administrative policy for all core taxes. Tax Administration has documented procedures providing guidance to staff responsible for updating taxpayer information. A dedicated team of technical staff makes regular and systematic updates of taxpayer information. |
| P3-8-3 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; Information on all core tax obligations can be obtained easily through a variety of channels. The Tax Administration has a documented service delivery channel strategy that provides guidance on which channel to use in any given circumstances. Tax Administration supports voluntary compliance through various channels that include the website, social media, call center and walk-ins. Public information is made available to taxpayers at no cost except for private rulings where a fee is charged. Tax Administration website was developed using software that enables differently able people such as the colourblind to access it easily. In addition, the website was designed using a responsive design that enables the webpage to automatically fit on any device with a different screen configuration. Tax Administration uses gadgets such as computers, tablets and mobile phones. The language used on the website and others documents is plain and is user-friendly. |
| P3-11-1 | EUR | A | First | 2015 | English | Scored A because the good practice was detected in; A wide variety of methods are used to obtain performance feedback from taxpayers. Various mechanisms are used by the Tax Administration to obtain feedback from taxpayers on its services and products. The key mechanisms used include inviting taxpayers to participate in website and electronic forms design testing in the Tax Administration laboratories. The Tax Administration also uses scientific research to determine the best way of informing/educating taxpayers. One such outcome from the scientific research was use of gaming solutions to educate pupils and students the importance of complying with one’s tax obligations. Benefits of paying taxes such as financing the welfare system are explained. This is available on the website which is a collaborative effort between The Tax Administration, MOF, Organizations representing LG118 enterprises, labor organizations, local and regional authorities aimed at combating the informal economy. Through systematic use of a variety of methodologies, The Tax Administration seeks feedback from taxpayers on their perception of the Tax Administration’s services and products. Recently taxpayers were engaged in developing a self-service solution that they now use in determining their tax deductions when one commutes to work. |
| P3-11-2 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; Taxpayer input is routinely and systematically taken into account in designing The Tax Administration’s products and service. Feedback from selected segments of taxpayers is an important input during the development of new information products and/or redesigning those in existence. The systematic use of input from taxpayers allows the Tax Administration to deliver customized information products and solutions for self-service. After the design stage the Tax Administration analyzes and evaluates how the taxpayers are responding to the services and products |
| P3-8-1 | APD | A | First | 2015 | English | Scored A because good practice was detected in; A wide range of information on taxes, tax forms, practice statements and frequently asked questions (FAQ) is available on The Tax Administration website. The information is easily accessible and the available website hit-rate statistics for the period January 2013– February 2015 show increasing usage of the facility. For example, the total sessions recorded on the website in 2013 were 187,602; and 213,241 in 2014. Access by citizens over the period averages 70 percent of the total hit rates (134,768 in 2013; 148,924 in 2014). The Tax Administration also regularly conducts outreach sessions to advise taxpayers on their rights and obligations and the executive management team is actively involved in many of these sessions. A nationwide campaign to explain new PAYE processes and procedures was started in 2013. Numerous press releases have been issued by the Chief Executive Officer (CEO) and surveys conducted internally by the Tax Administration to assess taxpayer satisfaction with the service. |
| P3-8-2 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; The information in the materials obtained from the Communications and Image Office and the Service Center are updated in terms of current legislation. When there is a change is legislation or procedures or a new service is installed, the Tax Administration makes a good deal of information available. The legislation on the Tax Administration and Internet website is up-to-date, although there are difficulties accessing, for example, the entire VAT Code Regulations. While legal texts appear on the Tax Administration site, there are few cases in which there are explanations or presentations to facilitate the taxpayers’ understanding of their obligations and rights, other than the list of questions and answers that clarify the most frequent doubts. |
| P3-11-1 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; The Audit Committee’s website and meetings are systematic methods for obtaining feedback from taxpayers and their their representatives. Through the website, taxpayers are able to continuously make suggestions, comments, and complaints. The powers of the Audit Committee, which is made up of significant representation from civil society, include promoting legislative measures to improve the tax system and actions to make Tax Administration more effective. The Audit Committee’s meetings were held every six months until 2009 and became annual meetings as of 2010. During these systematic and documented meetings, Tax Administration and taxpayer representatives as well as political representation, Tax Administration discuss and evaluate subjects related to tax policy and administration. |
| P3-8-1 | EUR | A | First | 2015 | English | Scored A because good practice was detected; Tax Administration provides to taxpayers extensive information using various channels. The Tax Administration supports voluntary compliance through various channels including a taxpayer portal, website, YouTube, television, radio, call center, and walk-ins at local offices. The public is provided with information that explains what are the taxpayer’s obligations and entitlements on registration, filing, payment, and reporting. Information across all core taxes is tailored to the needs of key taxpayer segments. Tax Administration routinely conducts tax seminars for new businesses and other taxpayer segments when the need arise, for example, when there is a change in the tax law and/or administrative procedures. Education programs are also provided for schools and students. The internet is a major channel for distributing information to taxpayers. Since The the Country has the highest rate of internet access and usage across the region, most taxpayer 76.6 percent of the Country's population uses internet. Information is available through the website. Information on the website is in LG150, LG101 and English. A wide range of pamphlets, brochures, and guides from Tax Administration and is available to download from the webpage. Taxpayers can communicate with Tax Administration through a personalized web portal. Information and services on this portal can be tailored to the needs of individual taxpayers or taxpayer segments and include e-filing of tax returns. |
| P3-8-2 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; Information is current in terms of the law and administrative policy for all core taxes. Procedures are in place for dedicated staff to regularly and systematically update public information when changes to the law and administrative procedures occur. |
| P3-8-3 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; Taxpayers can obtain information on all core tax obligations easily. Information is available on the web page and in printed materials. There is a documented service delivery channel strategy outlined in the Strategic Plan 2010–15 aimed at shifting taxpayer service to more cost-efficient channels. The Compliance Strategy contains initiatives for increasing voluntary compliance through a range of activities. |
| P3-9 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; Tax Administration responds to all requests from taxpayers and intermediaries within 30 days. Responses to request are provided either by letter or by e-mail. |
| P3-8-1 | AFR | A | First | 2015 | English | Rated A Because good practices were detected in , the tax administration offers a wide range of information to users, available via numerous and varied sources. The tax administration has a communications and quality department responsible for developing and publishing tax documentation. The actions carried out can concern either all taxpayers (via seminars, forums for presenting reforms, information campaigns, etc.) or specific audiences (creation of approved management centers for small and medium-sized businesses, campaigns information for medium-sized businesses, etc.), or for the entire population (press articles, radio and television broadcasts, primary school programs and Repeataires, and |
| P3-8-3 | AFR | A | First | 2015 | English | Rated A Because good practices were detected in, The documentation provided to taxpayers is easily accessible. The material is available on the website, through taxpayer service units and through several channels (for example, through print, radio, television and schools). |
| P3-8-1 | APD | A | First | 2015 | English | Scored A because good practice was detected in; Tax Administration provides extensive information on taxpayers’ obligations and entitlements for each core tax. The information is tailored to the needs of most key taxpayer segments. Printed material explaining taxpayer obligations and entitlements is available at local branches and on the website. Tax Administration conducts taxpayer education programs for taxpayers to assist voluntarily compliance. These include reaching out to children through the Junior Tax Office Program and organizing visits to Tax Administration for students and other agencies |
| P3-8-3 | APD | A | First | 2015 | English | Scored A because good practice was detected in; Taxpayers can obtain information on all core tax obligations and entitlements easily and at minimal cost. The service delivery channel strategy is included in the strategic plan with a clear direction towards increasing the use of electronic services. In 2004 efiling was introduced through e-platform which is an online tax management system provided and implemented by Tax Administration for cost effective support of voluntary compliance. This system now comprises 16 electronic services. A variety of service delivery channels are used, including: printed material, web page, service counters at local branches, a call center handling both in- and outbound calls and use of television and radio to draw attention to announcements and press releases. Other outreach activities programs (programs to promote e-filing), mobile exhibitions and use of social media are all examples on innovative initiatives using different channels to reach out to taxpayers with information and to strengthen voluntary compliance |
| P3-8-1 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; A wide range of information is available for all taxes and main taxpayer obligations. This primarily takes the form of guides, bulletins, press releases, radio and television spots, social media (e.g., Facebook, Twitter), and regularly updated content on the Tax Administration website. The website includes links to tax legislation, tax forms and instructions, and frequently asked questions (FAQs) and features information tailored to business and non-business taxpayers, tax intermediaries, and charities as well as to specific taxpayer groups, such as hotels and financial institutions. A 'Tax Kit' for newly registered businesses is available both on-line and at Tax Administration offices covering the range of applicable taxes and tax obligations. The Tax Administration also regularly conducts outreach sessions to advise taxpayers on their rights and obligations, legislative changes, and new requirements (e.g., mandatory e-filing for specified groups), and the Tax Administration runs a schools tax education programme to build tax awareness among primary, Repeatary, and tertiary students. |
| P3-8-3 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; Taxpayers can obtain information and assistance easily, quickly and at minimal cost through various channels. These include brochures and other print materials, in-line (walk-in) support at tax offices, Customer Care Centre support for telephone and e-mail queries, the website, and the Tax Administration-sponsored workshops and seminars. For LTO taxpayers, a dedicated Client Relationship Manager is assigned to provide the full range of taxpayer services. For smaller taxpayers, the Tax Administration offers free sessions at tax offices around the island to assist with end-of-year income tax filing. Furthermore, at select offices, self-service filing centres have been set up where taxpayers can file their returns and conduct other routine transactions online with technical assistance readily available. The range of service delivery channels reflects the reality of LG141 society, where internet penetration remains low among large segments of the population |
| P3-9 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; Response times for routine enquiries conform to international good practice. The Tax Administration reports that 100 percent of email correspondence is acknowledged within 24 business hours. While acknowledgment is not the same as a substantive reply, the monthly log of taxpayer contacts (via e-mail and telephone) indicates that 99 percent of issues are resolved with the First contact. Furthermore, while monitoring of taxpayer interactions is fragmented at present, the Programmes Unit Plan for 2015/16 introduce new guidelines for operating units to report progress against KPIs and other performance indicators using a standardized planning and reporting template. As mentioned in POA 2, the new reporting arrangements, including quarterly performance reviews, will formally commence in November 2015. |
| P3-11-2 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; Taxpayer input is routinely and systematically considered in the design of taxpayer service programs and products. For example, feedback from taxpayer focus groups was used when designing the Tax Administration new income tax forms, which consolidate reporting for income tax and social contributions in one return. Content on website’s home page is regularly refreshed to reflect issues and suggestions resulting from taxpayer interactions. Additionally, in response to feedback from participants at taxpayer workshops, Tax Administration recently launched a program enabling taxpayers to schedule one-on-one sessions or request a the Tax Administration advisory visit to facilitate compliance with tax obligations. |
| P3-9 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; As measured by telephone response times, with over 90 percent of calls answered in less than 6 minutes, The Tax Administration is readily available to answer taxpayer questions and concerns through that vehicle. However, at around 200 calls concerning core taxes per month, the volume of calls is rather small, implying that many taxpayers are receiving their information by other means such as inquiring in the regional offices. Looking beyond the call center, Tax Administration publishes relatively exacting service level standards; it does not, however, systematically monitor nationwide fulfillment of all of them. |
| P3-11-1 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; Tax Administration routinely obtains feedback on its performance from a variety of sources. The Taxpayer Service and Education Department solicits feedback in its forums and meetings with taxpayer groups and notes the schedule for responding to issues raised. Complaints arrive and are logged in the call center according to topics and in person in the regional office. Tax Administration conducts comprehensive perception surveys approximately as discussed below |
| P3-8-1 | MCD | A | First | 2015 | English | Scored A because good practice was detected in; Tax Administration provides easily obtainable, clear taxpayer information explaining taxpayer obligations and entitlements in respect of each core tax. Tax Administration provides information to taxpayers on their obligations of registering, filing, payment, and reporting through its website (http://www.The Tax Authority.gov.gl/ ), guides, manuals as well as taxpayer education events. Available information covers all core taxes and is tailored for key taxpayer segments and industry groups. Tax Administration utilizes e-newsletters, press releases, internet ads, and social media platforms such as Facebook, Twitter and WhatsApp. It also conducts public education workshops that target chambers of commerce, trade unions, universities and other interested groups, and is collaborating with the Ministry of Education to develop curriculum about taxes for students |
| P3-8-3 | MCD | A | First | 2015 | English | Scored A because good practice was detected in; Taxpayers can obtain information and assistance easily, quickly and at minimal or no cost through a wide range of channels. These channels include The Tax Administration’s website, taxpayer instructions, manuals and brochures, newsletters and educational events. Taxpayers can also contact the Tax Administration call center for assistance. The range of service delivery channels reflects the Tax Administration’s understanding that taxpayers in different segments need information tailored to their specific needs—for instance, providing walk-in service at district offices to accommodate small taxpayers. In addition to frequently asked questions (FAQs) on The Tax Administration website, the Tax Administration also produces policy papers on various tax issues |
| P3-9 | MCD | A | First | 2015 | English | Scored A because good practice was detected in; Tax Administration responds to taxpayer requests in a timely manner. The Tax Administration service standards are contained in its Service Manual and associated Matrix, both of which are posted on the The Tax Administration website. The call center answers all calls within six minutes. Moreover, the Tax Administration has received regional awards for its service standards, including response times |
| P3-11-1 | MCD | A | First | 2015 | English | Scored A because good practice was detected in; Tax Administration is proactive in obtaining taxpayer feedback and uses a variety of methods to do so. The Director of Media gathers information daily. In addition, the Department conducts a taxpayer survey every six months and holds focus groups every three months or as needed. Survey results are analyzed by an independent third party |
| P3-11-2 | MCD | A | First | 2015 | English | Scored A because good practice was detected in; Taxpayer feedback is routinely taken into account in designing programs and improving services. The Tax Administration uses information from customer surveys to improve its services. Examples are: piloting and preparing for a “single window” at the Large Taxpayer Office and three other offices; installing ramps and making wheelchairs available for disadvantaged customers; improving sanitation at tax offices; and searching for a new location for headquarters for improved taxpayer convenience |
| P3-8-1 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; Information is available to taxpayers on their obligations and refund entitlements. The information is easily accessible at branch offices and through media outlets. The information covers all core taxes and is tailored to the needs of taxpayer segments. For example, separate and unique information is provided to micro-taxpayers, large taxpayers, as well as various industries (e.g., construction, coffee) through newsletters, brochures, seminars, and outreach programs in the local language as well as English. Tax intermediaries also are provided with information to meet their service obligations. |
| P3-8-2 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; Taxpayer information is kept current by a dedicated unit, responsible for updating the website and social media and for issuing tweets and press releases. A small team (with a staff of four) within the Education, Communication and International Cooperation Department is charged with keeping public information up-to-date. There is a standing instruction to all departments to provide regular updates to this team, who update the website and push the updates out to taxpayers through Facebook, Twitter and press releases. The text of law changes is provided on a ‘same day’ basis by the legal department and the website is immediately updated. |
| P3-9 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; The contact center reports excellent results on call waiting times. The contact center has 32 staff, who provide information to taxpayers by phone and email. It does not publish written standards, but its practice is to respond to email enquiries within two business days. Data produced by the Tax Administration in the pre-mission questionnaire (Attachment III, Table 3) shows that of 107,194 calls received in the year to February 28, 2016, almost 92 percent were answered within 45 Repeats. |
| P3-8-2 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; Information is kept current by specific staff, responsible for updating the website and social media, and for issuing press releases. A small team is charged with keeping public information up-to-date and this team relies on subject matter experts for technical input. There is a standing instruction to all departments to provide regular updates to this team, who update the website and issue press releases. The text of law changes is provided by the legal department and the website is updated when new laws come into effect |
| P3-8-1 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; Tax Administration provides citizens, businesses, and foreign investors with a range of information about core tax obligations and entitlements. Summary information in clear and understandable terms is publicly available on all core taxes, key taxpayer obligations (registration, filing, payment, and reporting of information in tax declarations), and associated rights (e.g., right to dispute an assessment). Tax Administration website, for example, includes short descriptions of the main taxes and associated requirements, frequently asked questions, almost 450 case studies (public rulings) on how specific provisions of the law are interpreted by the Tax Administration, topical news items, and forms to be completed by taxpayers. A comprehensive ‘Tax Pocket Book’ (published only in English) describes the main taxes, who is liable for each, and what is required of taxpayers to comply with the law. |
| P3-8-3 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; Telephone enquiry calls received by the call center are answered within acceptable time standards. As shown in Table 3 in Attachment III, 98.6 percent of telephone enquiry calls received are answered within 6 minutes’ waiting time. The Table 3 data does not, however, take account of the impact on taxpayers of line overload. The call center system can accommodate a maximum of 60 callers at a time, meaning that during peak enquiry periods some taxpayers may not be able to get through to the call center. In light of this capacity constraint and potential impact, the assessment score has been adjusted to ‘B.’ |
| P3-11-2 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; Strong engagement with taxpayers is shown through a system whereby public rulings are developed in collaboration with taxpayers and intermediaries. Since 2010 the Tax Administration has engaged with accountancy bodies to develop case studies (equivalent to public rulings) to clarify difficulties of legal interpretation that commonly arise in audits and disputes. The Coordination Council in Charge of Reviewing Tax Code Explanations and Case Guides for the Purpose of Improving Tax Legislation currently has 33 members, 17 of whom are tax intermediaries or lawyers. The ombudsman’s office is also represented. The council meets regularly to devise the case studies, which are published on The Tax Administration website. There is also evidence of the active involvement of taxpayers on form design and testing of new processes. One example relates to the design of a new form on petroleum products, which changed significantly following taxpayer input. There is also a training version of the taxpayers’ portal where taxpayers can test the system in ‘demo’ mode. |
| P3-8-1 | APD | A | First | 2015 | English | Scored A because good practice was detected in; Tax Administration, centrally and through its provincial and district offices, provides information to taxpayers on each of the core taxes. The information is provided through Tax Administration’s website and 63 websites of provincial tax offices (PTOs), publications as well as through targeted communication by phone and mail. The information is tailored to most taxpayer groups. The website (www. The Tax Administration.gov.in) allows for searching through administrative procedures, sorting them by characteristics of the taxpayer including size, industry, legal status, and foreign capital (joint ventures and foreign investors). The Tax Administration engages with Country's Tax Consultants Association to reach out to tax agents. The intercommunity working groups include staff that have ethnic minority language skills and reach out to ethnic minority taxpayers, who otherwise have difficulty in using the national language. Tax rulings are issued by The Tax Administration Headquarters or PTOs, are published in a single database, and Tax Administration ensures the rulings are not contradictory. The MoF’s Decision 78/2010/TRE governs the responses to taxpayers on Tax Administration matters and provides guidance to the Tax Administration on how responses are managed. |
| P3-8-2 | APD | A | First | 2015 | English | Scored A because the good practice was detected in; Dedicated resources are assigned to ensure tax information is current. The procedures to update the publication and materials are published on the web exist. The update process is regulated by the Tax Administration Decision 1002. The update is done simultaneously throughout all 63 PTO websites and the Tax Administration website, as the database of tax legislation and procedures in a single one and referenced by each PTO website. There is dedicated staff within taxpayer service and IT departments in charge of updating this information |
| P3-8-3 | APD | A | First | 2015 | English | Scored A because good practice was detected in; Taxpayers can obtain information on all core taxes easily and at no cost through a variety of service delivery channels. The channels include printed materials, websites, one-stop shops in each local tax office, calls with PTO and The Tax Administration HQ staff, rulings, and use of television and radio. The service delivery vision and training program are outlined in the annual action plan and multi-year strategy. For example, there is a clear direction towards increasing use of electronic services, including already introduced e-filing, e-payment, enotifications channels; education campaigns include programs for schoolchildren and there is a regular Tax Administration television show on the Radio. According to the 2015 Annual Report, The Tax Administration organized Listen to Taxpayers Week in which a there was proactively reaching out to taxpayers nationwide. Tax Administration does not charge for any of the information provided to taxpayers. There is a link on the www.The Tax Administration.gov.xe to access online filing, which also provides 24-hour access to taxpayer information, as well as allows submission of queries on tax issues. To support the taxpayers, Tax Administration has developed a dedicated website http://www.The Tax Administration.gov.xe to help taxpayers try online filing in a test environment prior to actual submission. |
| P3-11-1 | APD | A | First | 2015 | English | Scored A because good practice was detected in; Tax Administration regularly obtains feedback from taxpayers through the website, email, telephone, public events and meetings with stakeholders. Tax Administration receives feedback through the website, which provides for comments by taxpayers on different area of Tax Administration. In course of 2015 there were 1300 meetings with taxpayers organized by the Tax Administration and district tax authorities to seek feedback on issues with Tax Administration as specified in The Tax Administration's annual report for 2015. Tax Administration has been carrying out a survey based on a statistically valid sample of key taxpayer segments on an annual basis. Until 2015 Tax Administration was undertaking this survey by itself, however, starting 2015 the survey was contracted out to the LG16 Chamber of Commerce and supported by an international Organization. The 2016 survey has been contracted out using The Tax Administration budget resources |
| P3-11-2 | APD | A | First | 2015 | English | Scored A because good practice was detected in; Taxpayers are regularly consulted to identify key deficiencies of the Tax Administration procedures and products as well as new draft processes, legal acts, and e-services. As mentioned, above the feedback is obtained regularly and taken on board through the multiple meetings with taxpayer representatives as well as large-scale events with business associations, and associations of tax consultants and accountants. An example is the Business Dialogue Conference in 2015 with businessmen from the neighbouring country co-organized by the MOF and the Embassy of the foreign country. Every legal act including those by MOF and Tax Administration are published on the website ahead of approval for comments and feedback from civil society. The Tax Administration shared the evidence of the feedback received prior to the issuance of the circular to revise seven circulars to simplified tax procedures in August 2014 |
| P3-8-1 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; A wide range of tax information including the law, tax forms, and frequently asked questions is available in various media and Tax Administration’s website. Tax Administration provides all taxpayers with information on their obligations, that is, registration, filing, payment and accurate reporting of information in declarations. Taxpayer entitlements under tax laws and procedures exist, and are tailored to the taxpayers’ specific needs. Information is available for all segments (small taxpayers, medium taxpayers and large taxpayers). There is specialized information for industry groups, e.g. the mining industry. Some of the available material is translated into local languages. The wide range of information products in place includes: television commercials, advertisements in printed media, billboards, leaflets and information on the website including FAQ’s. Taxpayer outreach programs are also carried out on a regular basis—the activities are planned and reported upon. There are also specific events focused on tax intermediaries. |
| P3-9 | AFR | A | First | 2015 | English | Scored A because good practice was detectedin; Tax Administration responds to taxpayer requests for information quickly. Although an expected response time is not mentioned in the Taxpayer Charter, Tax Administration handles over 81.1 percent of the telephone enquiries within international good standards of 6 minutes (Attachment III, Table 3). The waiting time for telephone enquiry calls is used as a proxy for measuring The Tax Administration’s performance in responding to information requests generally. A field visit to Tax Administration’s customer contact center showed that the waiting time for taxpayers with walk-in enquiries is also short. Management monitors waiting times and performance is reported in the quarterly Taxpayer Charter Monitoring report. |
| P3-11-1 | AFR | A | First | 2015 | English | Scored A because good practice was detected ; Tax Administration obtains feedback on the standard of services on a regular basis. If a taxpayer visits the customer contact center in the City Centre, at the end of the meeting he or she is asked to fill out a Customer Service Monitoring Form. Focused meetings are also held with stakeholders where feedback is collected. On the website, it is possible to provide feedback to the Tax Administration or directly to its Integrity Committee. Every two years the Tax Administration commissions a taxpayer perception survey. An external consultant with an academic background carried out the 2013 and 2015 surveys. The information is gathered from taxpayers in all segments, from across the country. The survey uses a statistically valid sample of taxpayers. The 2015 survey provides a comparison between the 2013 and 2015 outcomes and addresses all core services and products of the Tax Administration |
| P3-8-1 | APD | A | First | 2015 | English | Scored A because good practice was detected; Tax Administration provides easily accessible and clear taxpayer information that explains taxpayer obligations and entitlements in respect of each core tax. The information is available on registration, filing, payment, and reporting through the website, guides, manuals, as well as taxpayer education events. It is tailored for individuals, individual entrepreneurs and legal entities. Also, the information is provided in separate sections of the website on taxes for traders in key sectors of the economy (for example, natural resources), businesses trading with the EEU countries and taxpayers in the alcohol industry. In addition to the Tax Administration website, there is a specialized website on annual tax declarations The information on the Tax Administration website is provided in the National language and one foreign language and thus is fully understandable by the population. |
| P3-8-3 | APD | A | First | 2015 | English | Scored A because good practice was detected in;Taxpayers can obtain information on all core taxes easily and at no cost through a variety of service delivery channels. The channels include the Tax Administrationwebsite, printed materials posted or distributed in the Tax Administration offices, press releases published on the website and in local media, frequently asked questions on the Tax Administration website, explanation letters and one-stop shops in territorial tax offices. Taxpayers can also contact the Tax Administration call center for assistance at no charge. According to Article 800 of the Tax Code, rulings are provided by the MoE but they are not binding. The Tax Administration can also only recommend how tax legislation should be applied. The Tax Administration Order No. 24 approved a media plan for 2015. Further, the Tax Administration Development Strategy for 2015-2017 includes actions to improve the call center’s efficiency and the information delivery channels including social media, such as Facebook and Twitter, and to develop a training course for schools and universities |
| P3-11-1 | APD | A | First | 2015 | English | Scored A because good practice was detected;Tax Administration regularly obtains feedback from taxpayers through the website, email, telephone, public events, meetings with stakeholders and surveys. Web-based surveys, a permanent feature of the Tax Administration website, are used to gather taxpayers’ opinion about various areas of tax administration. At the time of this assessment, the Tax Administration had surveyed taxpayers’ opinion about the information available on the Tax Administration website. The Tax Administration carried out tax compliance cost surveys based on a statistically valid sample of key taxpayer segments in 2012 and 2014. Both surveys were conducted with support of an International Organization by an independent survey firm – selected by the international body. These surveys measured tax compliance of the Tax Administration and taxpayers’ perception of the Tax Administration performance and information services provided. In 2013, the Tax Administration with support of a Development Bank, also carried out a taxpayers’ perception survey. The Tax Administration regularly conducts workshops for taxpayers to provide the information and collect their feedback. In 2015, there were 724 workshops with taxpayers organized by the Tax Administration headquarters and territorial tax offices as evidenced by the Taxpayer Service Unit’s annual report. |
| P3-11-1 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; Regular feedback is obtained from taxpayers and trends in taxpayer perceptions of its services are independently surveyed. There are a number of regular feedback mechanisms, including Facebook and Twitter, as well an extensive program of seminars and meetings with stakeholders. As a part of the World Bank modernization program, the Tax Administration has commissioned a number of statistically valid and independent surveys which included taxpayer perceptions of services and products. |
| P3-8-1 | EUR | A | First | 2015 | English | Scored A because good practice was detected . Information on taxpayer obligations and entitlements is readily available for all core taxes and it is tailored to meet the needs of a range of taxpayers. The Administration, Methodology, Procedure and Service Department oversees efforts to ensure that taxpayers are well informed on their main obligations and entitlements in respect of all core taxes. The Tax Administration website is the First source of information for taxpayers and it contains information on various taxes, services and procedures in; The website also features video clips explaining tax procedures and featuring frequently asked questions (FAQs). Taxpayers can sign up on the website for notifications and have access to a tax calendar that highlights key events in relation to tax obligations. A weekly 30-minute television (TV) slot addresses issues related to tax procedures and it provides additional information to support voluntary compliance. Taxpayers are also able to access the tax legislation and other related laws on a portal – LG61 Legal Information System . Twenty service centers are located in regional offices across the country and they support taxpayers with walk-in enquiries and each center implements a training program for taxpayers. Outreach activities and delivery channels are also tailored to specific segments or industry groups and intermediaries. In limited cases, paper notices and forms are used for small entrepreneurs and taxpayers in remote locations.The national language is the language used by virtually all taxpayers and the adult literacy rate is 99.7 percent |
| P3-8-2 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; Information available to taxpayers is kept current in terms of law and administrative policy. The process and procedures for updating taxpayer information is outlined in Order No. 8000/A dated December 13, 2010, which also designates responsibility to specific units within the Tax Adminisration for updating particular sections of the website. Changes to legislation and administrative policy are communicated to all field offices and to relevant taxpayers before the changes take effect. Tax Administration also publishes quarterly legislative digests on its website which outline any changes in tax law |
| P3-8-3 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; Information required by taxpayers on their obligations and entitlements is easily accessible through a variety of channels and at no cost. Tax Administration conducts outreach activities tailored for specific segments of taxpayers such as small, medium and large, taxpayers. Staff from headquarters is dispatched to various regions to supplement training efforts undertaken across the country. An example is contained in Order no 700/A from the MoF where officials from head office were sent to hold meetings across the country from September 03-24, 2014 in support of a Small, Medium and Micro Enterprise assistance package adopted by the government in May 2014. Taxpayers and intermediaries have access to the website and the online portal that allows secure access for filing declarations. In addition, taxpayers can access information through the website, call center, by email, letters and through rulings from the Tax Administration. There is no cost to taxpayers for any services or information received from the Tax Administration. |
| P3-9 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; The amount of taxpayer enquiries that are responded to by the Tax Administration call center in under 6 minutes is 77.8 percent of total calls received. A fully functional call center is based at the Tax Administration’s headquarters. It receives taxpayer enquiries in addition to providing inputs in enhancing the FAQs that are posted on the website. The Tax Administration uses service-level standards that apply to all government departments in relation to response times on enquiries from the public. Public service regulations stipulate a maximum of 15 days for the resolution of enquiries but the Tax Administration has, through an internal order, set an even reduced internal target of five days. |
| P3-11-1 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; Tax Administration receives feedback from taxpayers regularly, including the use of perception surveys. A Tax Council made up of officials from the MoF, business community and taxpayer rights groups was created in 2014. The Council is a forum to engage taxpayers and provides an avenue for their contributions into legislative, policy and administrative issues. A new forum under the Tax Administration was established in October 2016 with a specific focus on Tax Administration, and it also includes development partners as observers. In addition to interactions with taxpayers through the 20 service centers, the Tax Administration has an interactive survey on its website that enables taxpayers to submit their feedback on its services and products. A taxpayer perception survey, based on a statistically valid sample of key taxpayer segments, was conducted by a think tank in 2013. A follow up survey commenced in August 2016, with the report expected to be finalized in December 2016. |
| P3-8-3 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; Taxpayers can easily obtain information from the Tax Administration through a range of channels at little to no cost. The Tax Administration has documented service delivery strategies, and information is provided through a website, brochures, guidelines, public notices, radio and TV programs, YouTube, and social media. During the annual ‘taxpayer’s month,’ The Tax Administration holds a Tax Summit to provide information and a platform for taxpayers and key stakeholders to engage. Information is also provided to taxpayers and tax intermediaries through a range of proactive and targeted channels including seminars, clinics, trainings, stakeholder meetings, as well as email and telephone. The call center is available outside of normal business hours, and has extended hours during filing season (including weekends), and the cost is minimal to taxpayers. Furthermore, taxpayers can access their accounts 24 hours online. |
| P3-11-1 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; Tax Administration regularly obtains feedback from taxpayers and stakeholders on its services through a variety of channels. Taxpayers and professional associations provide feedback through emails, telephone, website, service centers, as well as through stakeholder meetings and public forums such as the Tax Summit. Tax Administration is also active in conducting customer satisfaction surveys every two to three years. The surveys cover a statistically valid sample of key taxpayer segments as well as other stakeholders, and are conducted by an independent third party |
| P3-8-1 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; International good practices are in place for every aspect of scope, currency, and accessibility of information. The Tax Authority provides the public with a range of information about core tax obligations and entitlements. A variety of access services – website, public media (YouTube, Facebook, Twitter) brochures (both on-line and in paper) are publicly available on all core taxes, key taxpayer obligations (registration, filing, payment, and reporting of information in tax declarations), and associated rights (e.g., right to dispute an assessment). Tax Administration website, for example, includes descriptions of the main taxes and associated requirements, topical news items, and forms to be completed by taxpayers. Information is tailored to the needs of key taxpayer segments, intermediaries and disadvantaged groups. A magazine, ‘Upfront," for higher-level taxpayers is published monthly. Videos and brochures are produced in simple language for less sophisticated taxpayers. The service delivery channel strategy is contained in the Strategic Plan 2014-2017. |
| P3-8-2 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; The website information is up-to-date. Most publications and brochures (paper and on the website) were updated in 2016; and questions asked by taxpayers are responded to. The service department also has dedicated staff to review, analyze and update frequently asked questions (FAQ), which are also available on the intranet to staff when providing information to taxpayers. Taxpayers are informed of changes in the law and procedures through the website, radio (monthly radio program), news media. There is also a section on the website where drafts of proposed laws are available in advance so that taxpayers can provide their comments before final approval. |
| P3-8-3 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; Taxpayers have access to information through a variety of user-friendly channels. Tax Administration website, An internet forum staffed with two people where taxpayers pose questions (around 200 per month) and the Tax Administration answers them spontaneously. A centralized inbound call center operating during normal business hours with a free telephone number. Kiosks in shopping malls with tax information. Walk-in taxpayers get information and assistance in the local offices. Letters, e-mails, and social media. Newspaper, radio, and television announcements to alert taxpayers on changes in the law and administrative practices. New app for mobile phones where taxpayers can check their own registration status or that of any other taxpayer. Articles in business and professional journals, and in the Tax Administration institutional magazine (4,000 copies are issued free of charge every month). A taxpayer portal provides taxpayers with a secure authenticated electronic gateway through which they can, for example, view their tax filing, payment information and request for certificates. Further support to taxpayers is provided through the The Tax Administration public education and assistance program. The Tax Administration has investment greatly in this area, as evidenced by: A comprehensive school education program—an initiative designed to teach school and university students about taxes, and provide training and instructional guides to teachers—these guides are refreshed annually in preparation for the next school year. Further, education agreements with LG92 universities are in place. On-line games and puzzles are offered on a dedicated tax education portal. Seminars and assistance are offered to different economic sectors through the Ministry of Trade. Tax Administration also conducts general seminars and workshops designed to raise taxpayer awareness on obligations, changes to the law and common tax issues. |
| P3-9 | WHD | A | First | 2015 | English | Scored A because good practice was detected in;Telephone inquiry calls received by the call center are answered within good international practice time standards. As shown in Table 3 in Attachment III, 98 percent of telephone inquiry calls received are answered within six minutes’ waiting time. The call center has a contact staff of 25 people, and around 80 percent of calls are answered within 20 Repeats; three minutes are used to assist taxpayers. Call center service delivery standards are part of the Strategic and the Annual Operational Plans (publicly available on the website) and these are used to measure the level of service and waiting times at local offices and the call center. When a taxpayer walks into a local office, a receipt is issued with the estimated time of response |
| P3-11-2 | WHD | A | First | 2015 | English | Scored A because good practice was detected; Tax Administration consults regularly with taxpayers, business groups and intermediaries to discuss and remedy deficiencies in administrative products and their training needs. They are also consulted in the testing of new products and approaches, mainly for the website, and drafts of changes in the law. |
| P3-8-2 | MCD | A | First | 2015 | English | Scored A because good practice was detected in; Tax information on the The Tax Admininstration website is current in terms of law and administrative policy. Procedures are in place and dedicated technical staff are assigned to updating regularly information on the website. Changes in law and policies are communicated widely prior to their effective date. Some attempts have also been made to use social media for dissemination of basic information. The VAT Wing of the Tax Administration has a detailed Strategic Communication Plan covering 2015-19. It includes communications through, for example, call centers, public relations agencies and TV talk shows. |
| P3-8-3 | MCD | A | First | 2015 | English | Scored A because good practice was detected in; Tax Administration provides a wide range of information from its website—it is easily available and is free of cost. Delivery channels used to provide information to taxpayers include the website (www. The Tax Administration.gov.gn), printed taxpayer service literature in National Language and English, public circulars and guidelines, conducting public seminars, and annual tax fairs. Tax Administration also conducts Taxpayer Education Programs and workshops to communicate proposed changes in tax laws. It has also started tax awareness programs for students. |
| P3-9 | MCD | A | First | 2015 | English | Scored A because good practice was detected in; Telephonic enquiries are answered through call centers in six minutes or less in 70 percent of cases. Service delivery standards relating to the time taken to respond to taxpayer and intermediary requests for information are not prescribed. [See Table 3 in Attachment III.] |
| P3-11-1 | MCD | A | First | 2015 | English | Scored A because good practice was detected in; Tax Administration consults regularly with its main stakeholders, including Chambers of Commerce and the Institute of Chartered Accountants, for feedback and suggestions. Independent taxpayer perception surveys were conducted in 2013 and 2015 through third party professional agencies as part of two different projects, and a survey is underway through the VAT Online project |
| P3-8-1 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; Taxpayers have convenient (ease) access to information through a variety (range) of user-friendly channels. Tax Administration website include all categories of taxpayer obligations, and a chat line for online service; An additional website for medium, small taxpayers, and new entrepreneurs;Social media – YouTube, Facebook, Chat and Twitter; A taxpayer portal—provides taxpayers with a secure authenticated electronic gateway through which they can request and receive information on various tax matters;Walk-in service centres (105) throughout the Country;A centralized inbound call centre (175 lines) operating during normal business hours, and Saturdays at the local call rate;Letters, e-mails, text messages, brochures. The Tax Administration visit businesses and other personalized assistance, and public seminars; Newspaper, radio, and television announcements to alert taxpayers to changes in the law and administrative practices like filing deadlines; radio programs in the local language;Twelve mobile vans to reach isolated areas and local language interactions;Training trainers to deliver tax seminars to university students;One hundred and ten customized “channels of attention” where large and medium taxpayers are assigned a Tax Administration representative to receive service including via phone and email. |
| P3-8-2 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; Staff ensures information is current in terms of law and policy. Technical staff resources are assigned to keep publicly available information up-to-date; the above stated services focus on specific taxpayer groups. Information to taxpayers is updated before any changes take effect. |
| P3-9 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; Telephone enquiry calls received by the call center are answered within acceptable time standards. As shown in Table 3 in Attachment III, 67 percent of telephone enquiry calls received are answered within 20 Repeats. In addition, the give-up rate is 9 percent. Further discussion and the assessment team’s field visits to a service center and the call center justifies an ‘A’ rating for this dimension. |
| P3-10 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; Numerous services are offered to taxpayers to reduce cost—simplified VAT returns, ebooks, secure taxpayer portal, e-invoices, and pre-filled tax declarations for personal income tax. Frequently Asked Questions (FAQs) as well as responses to questionnaires obtained through discussions with taxpayer focus groups are analyzed to identify areas in which services can be improved |
| P3-11-1 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; The use and frequency of methods to obtain performance feedback from taxpayers meets or exceeds international good practice. An independent survey is conducted every three months to gather taxpayer feedback on all processes. Feedback is also obtained through service centers (client satisfaction electronic device), in-depth interviews, an “incognito taxpayer” initiative and telephone contact. There is also a channel to obtain comments from taxpayers through the Taxpayer Ombudsman where the taxpayer can file written complaints. |
| P3-11-2 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; Taxpayer input is taken into account in the design of administrative processes and products through, for example, focus groups (e.g., on the new simplified regime, rental incomes, PIT filing), interviews and independent surveys |
| P3-8-3 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; Taxpayers can easily and conveniently obtain information through a variety of delivery channels. Tax Administration provides a range of education programs, including partnering with the Secretary of Education to educate high school students that are participating in a work-study promotion on tax obligations and administration. Other user-friendly delivery channels include telephone, website, brochures, walk-in service, social media, advertisements, and a Help Desk. Information is readily available to the taxpayers or intermediaries at no cost |
| P3-8-1 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; A relatively new communication service has made good progress in providing a wide array of information and services to taxpayers. A range of information on taxpayer obligations is available through the Tax Administration website. This information includes all taxpayer segments, and all the obligations of taxpayers. Key taxpayer segments (forestry, oil, mining, tax treaties) are addressed on the website. Taxpayers can file their returns electronically. Reception centers were created in the regions (12) and local offices (100). Taxpayers are informed about their tax obligations via radio (Tax Minute), television (Morning Safari) and print media, both in the official and local languages. Newspaper, radio and television ads alert taxpayers to changes to the legislation on the annual Finance Law. Taxpayers receive written responses to information requests, email enquiries, and telephone services in offices. Brochures on various tax issues are published both in French and English. Tax Administration organizes seminars, workshops and meetings with industry and professional associations. One-stop shops were established in the regions for the registration of new companies, and they are staffed with relevant government agencies . |
| P3-8-1 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; Tax Administration provides extensive information on taxpayers’ obligations and entitlements. The information is readily available for each core tax and is tailored to the needs of all key taxpayer segments. Printed material explaining taxpayer obligations and entitlements is available at the customer service area in the tax office and on the Tax Administration’s website. Radio, TV and social media are used to reach out to different taxpayer segments depending on needs and preferred channel communication. Information is delivered in different languages (including sign language on TV) to meet the needs of the relevant recipients. |
| P3-8-2 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; Dedicated resources are assigned to the task of ensuring that information is current in terms of the law and administrative policy. The Education and Communication Department , together with the compliance departments are tasked to ensure that information is current in terms of the law and administrative policy. The Education and Communication’s SOPs and KPIs list a range of actions to be undertaken to ensure that information is current. Taxpayers are made aware of changes in the law or administrative policy through general communication such as on the website, press conferences and newsletters. Tax Administration also uses targeted communication such as letters to specific groups affected by changes in law or administrative policy. Information is updated and communicated before any changes take effect. |
| P3-8-3 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; Taxpayers can easily obtain information on all core tax obligations and entitlements. Tax Administration conducts a range of proactive taxpayer education programs to assist voluntary compliance, including seminars for new businesses and reaching out to school students. Information is available through a variety of user-friendly delivery channels and gives taxpayers convenient access at minimal or no cost. These include: • Seminars and stakeholder meetings for different taxpayer segments. • Leaflets available at the Customer Service Center at the tax office. • Tax Administration website includes information for different taxpayer segments and obligations. • A call center is available for taxpayers to make telephonic enquiries. • Use of television and radio to draw attention to announcements and press releases and to alert taxpayers to changes in the law and administrative policy. • Programs to promote e-filing. • Social media – YouTube™ and Twitter™. • A taxpayer portal for individual taxpayers provides secure electronic access. • A walk-in Customer Service Center. • Newsletters available on the website and by email subscription. • Letters and emails targeted to specific taxpayer segments affected by a change in the tax law and/or administrative policy. Tax Administration also makes information easily available to taxpayers and intermediaries by conducting field visits during the filing and payment seasons. |
| P3-9 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; Telephone enquiry calls received are answered within the minimum waiting time. As shown in Table 3 in Attachment III, 97 percent of telephone enquiry calls received are answered within 50 Repeats. Additional resources are assigned to the call center during peak enquiry periods. The assessment team, on two separate occasions, called the call center and on both occasions the calls were answered in under one minute. Tax Administration monitors waiting- and response-times for telephone enquiries and consultations given at the walk-in center at the Customer Service Center. |
| P3-10 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; Regular monitoring of Frequently Asked Questions (FAQs) and misunderstandings of the law help target and refine public information, products and services. Tax Administration interacts with focus groups and stakeholders to identify areas in which services and products can be improved. A secure Taxpayer Portal service is available 24/7 for individual taxpayers where the taxpayer or their authorized agent can view the status of refunds/payments, filing and payment obligations, and transaction history. The portal enables the taxpayer to file tax returns and pay taxes by Mobile Payment or Credit Card and edit profile information. Tax declaration and other forms are reviewed regularly to minimize compliance costs resulting in a recent re- design of the annual income tax return. |
| P3-11-2 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; Statistically valid surveys, which included taxpayer perceptions of services and products were undertaken in 2008, 2012, and 2016. These surveys are conducted by Tax Administration itself, and only every four years. While the integrity perception survey is conducted independently and includes aspects relating to service, it too is not conducted once every three years (the TADAT standard)—the last survey was in 2016 and the one before that in 2011. |
| P3-8-3 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; Tax Administration has a range of proactive taxpayer education programs delivered through different channels. There are various service delivery channels, for example: (i) a taxpayer can request information at the tax office, a call center and i-Tax website; (ii) brochures are available at all Tax Administration offices; and (iii) Tax Administration has an educational program for students and there are frequent seminars and meetings with several associations. Information is available at no cost to taxpayers and intermediaries and self-service facilities are available to taxpayers and intermediaries at their convenience including outside normal business hours. |
| P3-11-2 | WHD | A | First | 2015 | English | Scored A because good practice was detected in;Tax Administration consults regularly with key taxpayer groups and intermediaries and take their input into account. Feedback and suggestions from taxpayers are considered in the design and testing of new processes and products. For example, during the i-Tax platform implementation, panels were formed to receive input, enhance the website and to identify navigational and usability issues. Financial institutions were also consulted for targeted program implementation |
| P3-8-2 | WHD | A | First | 2015 | English | Scored A Because a good practice was detected in, The TA makes adequate efforts with results so that the information is updated in relation to legislation and administrative policies. The Administration of Attention to The taxpayer has a web portal administration procedure that includes the routine information updating and also has a production procedure for virtual teaching material. On the portal there is a frequently asked questions area, the last of which update dates back to August 2017. All laws and regulations found in the Tax Record are available on the portal and are completely updated |
| P3-8-3 | WHD | A | First | 2015 | English | Scored A Because a good practice was detected in, Taxpayers have access to information through a variety of friendly channels. The Tax Authority's web portal includes all categories of taxpayer obligations, email queries, online chat (working hours), taxpayer service telephone number and access to public information; In addition, there is additional information on the web portal for medium taxpayers and small and new entrepreneurs; The Tax Authority makes use of social networks, provides information services quick service in specialized agencies, telephone service, mobile services attention “Tax Authority at your fingertips”, training and tax education programs in markets, virtual training, collaborations with the Ministry of Education, among others, |
| P3-8-3 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; Information is available through a variety of user-friendly service delivery channels at no or minimal cost. The main service delivery channels are the website, a national call center, and help desks in the territorial offices. Apart from online declaration and payment facilities, the electronic services website includes (for registered users) access to tax account details, an “e-enquiry” service (which can, for example, automate the issue of tax certificates), and a message dissemination facility where taxpayers are automatically informed on subjects of interest to which they have subscribed. The electronic services website is available 24/7 and, for legal entities, multiple access authorizations are allowed, subject to identity validation protocols. Answers to significant questions of tax practice that are submitted to the Tax Administration – these are essentially binding public rulings – are published on the website. |
| P3-9 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; Telephone enquiries received by the call center are answered within acceptable time standards. As shown in Table 3 in Attachment III, 99 percent of telephone enquiry calls received are answered within 6 minutes’ waiting time. The call center staff of 20 is crosstrained to respond to both tax and technical/system enquiries. Tax calls are limited to general enquiries only. Technical support calls make up over 80 percent of call volume. During peak periods, management supplements the dedicated telephone staff by shifting other resources to handle the higher volume and maintain the level of service. The call center uses VOIP17 technology so that line expansion is available on demand, preventing overload |
| P3-8-3 | WHD | A | First | 2015 | English | Score A Because good practices were detected, the Tax Authority website and other modern information service channels are made available free of charge to taxpayers. In addition, seminars are regularly held for taxpayers as part of a tax education program. The Tax Authority's website and other modern information service channels are provided to taxpayers free of charge. Additionally, seminars are held regularly for taxpayers as part of a tax education program |
| P3-8-3 | AFR | A | First | 2015 | English | Rated A Because good practices have been detected in, Taxpayers obtain information relatively easily from the tax administration. Operational services welcome users during opening hours and answer their questions. Press campaigns, seminars and open days are regularly organized. An Info newsletter is published every quarter and the tax administration has a website and a Facebook page. Information sessions in which the tax administration participates are organized for new businesses. Awareness-raising activities are sometimes carried out in schools at the request of school principals. The information is available free of charge. The information is available online on the tax administration website but the collection of tax texts is not there. |
| P3-9 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; Tax Administration responds to taxpayer’s requests for information quickly via its call center Data provided show that the Tax Administration handles just over 79 percent of telephone enquiries—well within the TADAT standard of 6 minutes (see Table 3 of Attachment III). The waiting time for incoming calls is used as an indicator for measuring the Tax Administration’s performance in responding to information requests generally. Monthly and annual reports are produced by the Tax Administration in which waiting times and time to process enquiries are reported. |
| P3-8-1 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; Tax Administration provides information to taxpayers on a wide range of topics and customizes it to the needs of different taxpayer segments and groups. There is an elaborate website that contains information which covers all the main taxes and taxpayer obligations and entitlements, as well as social security single contribution payments. The information is tailored to the needs of different sectors of the economy, industry groups, tax intermediaries, and disadvantaged groups such as rural taxpayers, people with disabilities and minorities. Tax Administration also uses social media such as Facebook, Twitter and YouTube. Tax Administration has printed several thousand different brochures on a wide range of topics. Also, there are 475 service centers that provide information to taxpayers who do not have internet access. Tax Administration publishes the monthly Tax Service Herald which clarifies taxpayers’ rights and duties on different topics. |
| P3-8-3 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; The information is provided to taxpayers through a wide range of cost-free service delivery channels and taxpayer education programs. In addition to the Tax Administration website, service centers, social media, and information brochures and publication, taxpayers have access to targeted seminars and information campaigns. Procedures are updated annually for advance e-services (e.g. Tax Administration Order 00/2000). The Public Council, which is a body consisting of taxpayers, Ministry of Finance and Tax Administration meets regularly to discuss tax issues and provide information on new provisions in law and procedures. In addition, the Tax Administration holds consultations with the Investment Council which includes heads of international and domestic companies, international institutions, industry associations, unions and NGOs. Tax officials conduct competitions for school children to improve their knowledge about taxes. The Tax University at NNN conducts classes for college student. An annual report on the taxpayer education program is published. |
| P3-9 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; Service delivery standards exist in relation to e-services provided to taxpayers. More than 70 percent of calls are responded to within 3 minutes. A modern call center, with electronic monitoring and recording, exists. The service standard is set for calls to be responded within three minutes. According to the system, 71.3 percent of calls are answered within three minutes. (Attachment III, Table 3) |
| P3-11-1 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; Tax Administration regularly obtains feedback from taxpayers by commissioning perception surveys. Statistically valid surveys were conducted nationwide by independent expert groups 2017 and 2016. Only one report was published. In addition, there is a telephone hotline where taxpayers can provide feedback on service received. The LTO has a customer survey on their website. |
| P3-11-2 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; The Tax Administration involves taxpayers in the design of new products. The Tax Administration engages taxpayers, from various segments, to identify deficiencies in the Country's tax system including with: (i) banks in 2016 under the Doing Business initiatives to improve the payment system; (ii) the country's Institute of Chartered Accountants to make improvements to the refund process and network issues when interacting online with Tax Administration systems; and (iii) top audit firms on improving the e-filing platform. With respect to the Project, the Tax Administration has collaborated extensively with stakeholders including the Oil Producers Trade Section, the National Petroleum Corporation and the Institute of Chartered Accountants on redesigning e-forms, e-filing, configuration and developing terms |
| P3-9 | MCD | A | First | 2015 | English | Rated A Because good practices were detected in, The response time to telephone calls is very short. Three quarters of calls are made in less than six minutes (see table 3, annex III). A mystery call conducted by the evaluation team was successful |
| P3-8-3 | MCD | A | First | 2015 | English | Scored A because good practice was detected in; The MoF website gives guidance to taxpayers on all tax obligations. It includes form completion and a comprehensive calendar of tax events including filing and payment dates. Other important delivery channels for service and information include 24 taxpayer portal that provides secure electronic access to view refunds/payments, filing and payment obligations and transaction history; Brochures available at the walk-in service centres and at the regional offices; A call center is available for taxpayers to make enquiries during and outside business hours; Use of television and press releases to alert taxpayers to changes in the law and/or administrative policy; Use of social media (YouTube and Facebook); A Mobile App available for download; and Seminars and stakeholder meetings for different taxpayers segments. |
| P3-11-2 | MCD | A | First | 2015 | English | Scored A because good practice was detected in; Tax Administration consults regularly with taxpayers and stakeholders when redesigning administrative processes and products. This includes consultations with stakeholders such as the Country's Association of Accountants, representatives from the legal profession and other industry groups. These initiatives facilitate an on-going active involvement to identify areas for improvement in administrative processes and products. IT consultants for the Tax Administration have recently analyzed patterns in taxpayers’ use of electronic services, with the view to improving taxpayer interactions and the redesigning of on-line forms. |
| P3-9 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; In 2017, 98.7 percent of telephone enquiry calls were answered within a 6-minutes’ wait time. Tax Administration has a dedicated call center where all calls are electronically monitored. The assessment team tested the response time of the call center on April 23, 2018 and the call was answered in less than one minute; a visit to the center was also undertaken on April 24, 2018 (refer to Table 3 of Attachment III) |
| P3-8-1 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; Information about core tax obligations and entitlements is readily available and is tailored to the needs of key categories and groups. A wide range of information is available on the main taxpayer obligations (registration, filing, payment and reporting) and entitlements, in respect of all core taxes. The language used in information material is mostly easily understandable, but could be more user-friendly in certain areas. Information on the website, which is the primary information source, is organized around people, businesses and tax specialists. There is further segmentation around types of person (e.g., employees, students, pensioners) and types of business entity (e.g., freelance trades, business companies, non-profits and those obliged to operate virtual cash registers). Tailored information is provided for smaller businesses with simplified bookkeeping arrangements and certain industry groups subject to special tax regimes, such as accommodation and transport sectors affected by the “digital platform” tax. There is also some customization for disadvantaged groups, for example, providing forms and guidance in the minority language. |
| P3-8-1 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; Tax Administration provides a range of information to taxpayers on the main areas of tax obligations and entitlements. Information is also provided on all obligations, all core taxes, key segments, disadvantaged groups and intermediaries. Tax Administration utilizes the website, brochures, social, and electronic media to conduct taxpayer education. The information contained therein is targeted to the needs of the key taxpayer segments, industry groups, intermediaries and disadvantaged groups. |
| P3-8-3 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; Taxpayers can obtain information easily and quickly through various delivery channels. Tax Administration offers a broad range of proactive education programs, using several avenues (such as social media, its website, walk-ins, electronic media and face-to-face interactions) at no cost to taxpayers. Information provided on the website and social media is available outside business hours. |
| P3-8-1 | WHD | A | First | 2015 | English | Score A Because good practices were detected, the Tax Authority provides information on the main areas of taxpayers' obligations and rights; the information is adapted to the needs of the main segments of taxpayers, intermediaries and disadvantaged groups. The information is available not only for the main tax, but also for all other taxes administered by the Tax Authority. Taxpayers can ask questions on the easily accessible portal and these are answered by the Tax Authority. Specific banners are used to highlight specific topics for the attention of different types of taxpayers and tax regimes. Frequently asked questions and answers and guidance manuals that cover all taxpayers' needs are available on the Tax Authority portal. Specific information aimed at tax accountants, small taxpayers and individual entrepreneurs is also available on the portal. As an example, regular meetings are held with farmers to educate them about tax issues. |
| P3-8-1 | WHD | A | First | 2015 | English | Score A Because good practices have been detected, the Tax Authority provides taxpayers with information on the main obligations and rights and these are adapted to the needs of the main sectors of taxpayers, intermediaries and disadvantaged groups. Information is available not only for the basic tax for which large and medium-sized businesses are eligible, but also for the smaller taxes paid by small taxpayers and individuals. The information is especially targeted at certain sectors, such as electricity and transport. There are also special facilities for communicating information to visually impaired taxpayers. |
| P3-8-3 | WHD | A | First | 2015 | English | Score A Because good practices were detected, the Tax Authority provides a wide range of information to taxpayers through various communication channels. Taxpayer education programs aim to sensitize citizens from an early age (e.g. students) about the collection of public revenue and expenditure through seminars and visits to universities and schools within the scope of the City Constitutional Project. Seminars for taxpayers and their representatives are conducted by third parties in conjunction with the Revenue Department. Information not related to the seminar, including clarifications and orders) is mainly available through the Tax Authority website. Telephone answering services are limited due to fear of fraudulent calls. There are other channels where taxpayers can ask questions by email and these must be answered within 24 hours. Due to the widespread use of the internet and email, information is made available to taxpayers at a time convenient to them and at no cost. |
| P3-8-1 | EUR | A | Repeat | 2015 | English | Scored A because good practice was detected in; Information on the main areas of core tax obligations and entitlements is readily available through various channels. There is an extensive range of material available on the website in relation to the main areas of taxpayers’ obligations. This includes videos providing step-by-step guidance on completing declarations and refund claims, easy to read pamphlets covering specific issues, frequently asked questions shown in a user-friendly way, and all legal provisions. The information on the web-site is in regional languages, and partly in English. On the Tax Administration Facebook page taxpayers are informed about latest news and upcoming taxpayer education activities organized by Tax Administration. Taxpayers can communicate with Tax Administration through a web-portal. Each regional office has a walk-in enquiry service (there is a dedicated Taxpayer Service Center in the capital city) which provides a range of hard-copy explanatory material. Information is also made available in response to telephone and email queries through taxpayer service specialists in each regional office |
| P3-8-2 | EUR | A | Repeat | 2015 | English | Scored A because good practice was detected in; Taxpayer information is kept current by a dedicated unit and upcoming changes in law or administrative policy are generally flagged in advance. The Department of Taxpayer Service and Education is responsible for updating the website and other public information and for media releases. All legislation and administrative policies are kept current on the website and taxpayers are generally made aware of changes to law and procedures before they take effect. Specially targeted awareness-raising and training exercises are undertake in advance of significant upcoming changes (for example, the Government’s recent fiscal package) |
| P3-8-3 | EUR | A | Repeat | 2015 | English | Scored A because good practice was detected in; Self-service activities are available to taxpayers and intermediaries at a time convenient to them. All digital services (website, Facebook page, and e-filing) are available 24/7 and are 26 free of charge. Tax Administration provides a range of free tax seminars and workshops for taxpayers and intermediaries. |
| P3-9 | EUR | A | Repeat | 2015 | English | Scored A because good practice was detected in; Tax Administration responds to all phone calls within six minutes and they try to respond to all written inquires within 15 days. In Tax Administration’s 2015–20 Strategic Plan the response time for written requests is set at 15 days. In the Taxpayers Right and Obligations pamphlet, Tax Administration has committed to a goal to answer all phone calls immediately. Table 3 in Attachment III shows all telephone enquiries to the Call Center are answered within six minutes |
| P3-11-1 | EUR | A | Repeat | 2015 | English | Scored A because good practice was detected in; Tax Administration obtains feedback from taxpayers via the website, Facebook, email, and during educational seminars. All feedback is registered and considered. A taxpayer perception survey has recently been conducted by an independent third party. The survey focuses on the perceptions of taxpayers, individuals and businesses in the country in relation to interactions with Tax Administration staff and services and how procedures are applied. The survey is being analyzed and steps are being taken to publicize the survey in late June 2018. A similar survey was conducted two years ago and actions were taken by Tax Administration to improve services and procedures. These kinds of perception surveys are planned to take place every two years. |
| P3-8-1 | WHD | A | First | 2015 | English | Score A Because good practice was detected, information on the main obligations and rights of taxpayers is available and adapted to the needs of different segments of taxpayers. The Tax Authority portal offers a wide catalog of services and easily accessible information, classifies them by topics and taxes and highlights the most frequent queries. The tax legislation section of the portal offers a complete collection of tax rules |
| P3-8-3 | WHD | A | First | 2015 | English | Score A Because good practices were detected, several taxpayer assistance channels are available free of charge, even outside office hours; and extensive taxpayer education programs are in place. In addition to the portal, face-to-face interactions are available at 54 service points and one-stop shops. The following additional channels are also available: (i) call center with operators available 11 hours a day; (ii) 24 hours for recorded answers to frequently asked questions; (iii) consultations via email; and (iv) individualized counter response to queries. The Tax Authority promotes educational programs for taxpayers, as well as students at various levels, and holds a significant number of courses, lectures, meetings and seminars. These programs include online courses. |
| P3-9 | WHD | A | First | 2015 | English | Score A Because the good practice was detected in, The response time to questions from taxpayers and tax intermediaries is of a high standard. Around 81% of telephone queries are answered within 6 minutes. The call center operates 11 hours a day (from 8am to 7pm) on three levels: the first, with an outsourced team for operational issues; the second, through the Multimedia Relationship Center; and the third, with auditors from specialized technical units (Table 3 of Annex III) |
| P3-11-1 | WHD | A | First | 2015 | English | Score A Once good practices have been detected, taxpayer feedback is obtained through various means. A survey on the standard of taxpayer education program was carried out by an independent research group in 2016. There are other internal mechanisms to measure taxpayer satisfaction with service delivery. The Ombudsman also receives general information, complaints, suggestions, compliments and requests for information. There is an exclusive service for taxpayers to comment on the quality of the tax education program. The State Taxpayer Defense Council receives and monitors complaints and comments. This is a broad forum in which everything that concerns the interests of taxpayers can be dealt with quickly. Additionally, monthly seminars are held between the tax administration and various groups of taxpayers |
| P3-8-1 | WHD | A | First | 2015 | English | Scored A Because a good practice was detected in, The Tax Agency provides information through different channels adapted to the needs of taxpayers about their main obligations and rights with respect to all main taxes. The information contained in brochures, guides, pamphlets and videos tutorials is adapted to the specific needs of the main taxpayer segments (for example, consultants, self-employed and trades, transporters, artisans, merchants and nurseries). During the registration of new taxpayers, they receive an information brochure and are invited to an introductory session course on their rights and obligations.15 Accountants receive specialized training provided by the SIN (22 sessions in 2017) and have updated regulations on the portal. from Internet. In the PACs, preferential attention is given to people with special needs, assigning them absolute priority. In addition, verbal information is provided in local languages, with all public servants required by law to know one of these languages. |
| P3-8-3 | WHD | A | First | 2015 | English | Scored A Because a good practice was detected in, Taxpayers obtain information easily and free of charge through a wide variety of service channels. The Tax Authority uses the following means and initiatives: • Extensive network of 16 PACs with first-class facilities, including queue management, information panels and tax kiosks (computers with internet connection and staff who help with online procedures). • Dedicated telephone line. • Digital Media: Internet portal with self-service facilities in the virtual office, email, Facebook, Twitter, Instagram, Online Chat, WhatsApp and YouTube channels • Accounting and tax support centers, press conferences, trade fair events, informative newsletters, training, promotion of tax culture. |
| P3-8-3 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; Tax Administration offers an impressive variety of taxpayer education programs and service delivery channels at no cost to taxpayers. Seminars are organized for small and medium enterprises, new registrants and high school students (on request by Ministry of Education). The website, brochures, and notices ensure that taxpayers have information at a time convenient to them. Taxpayers are informed of their tax obligations via television, radio and print media, in the official and local languages . Regional centers are open Monday through Friday and Saturday mornings |
| P3-11-1 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; Tax Administration regularly seeks performance feedback from taxpayers through a variety of channels. These include random interviews, questionnaires, suggestion boxes and stakeholder meetings. Feedback is gathered and analyzed. An independent third-party survey was completed in December 2015 and preparations are being made for the completion of the next independent survey by year-end. |
| P3-8-1 | WHD | A | First | 2015 | English | Score A Because good practices were detected, the Tax Authority makes information available to the public about taxpayers' obligations and rights. The information is adapted to the needs of the main segments of taxpayers, intermediaries and disadvantaged groups – including micro-enterprises and taxpayers in rural areas. The SEF-DF service portal allows queries on topics of interest – it has sections for the most requested and current topics, as well as frequently asked questions and answers (FAQs). |
| P3-9 | WHD | A | First | 2015 | English | Score A Because good practices were detected in, The timely response to questions from taxpayers and their intermediaries demonstrates a high quality of service. Of a total of 310,402 calls received over a period of one year, 95.8% had a waiting time of less than six minutes. (Table 3 of Annex III) |
| P3-10 | WHD | A | First | 2015 | English | Score A Once good practices have been detected, the Tax Authority offers a simplified tax system, including simplified filing and payment obligations for small taxpayers that are consistent with their size. Additionally, tax return forms are reviewed regularly to ensure that only necessary information is requested from taxpayers. Frequently asked questions and misunderstandings in the interpretation of laws and regulations are routinely analyzed to improve information products and services. 27 Active use of the 24-hour secure online taxpayer portal minimizes the need for visits to tax offices |
| P3-8-2 | MCD | A | First | 2015 | English | Rated A Because good practice was detected in, Extensive information is available on the rights and obligations of taxpayers for all base taxes in terms of registration, declaration and payment. The declarations and their forms, accompanied by the detailed notes to be served on them and submitted to the tax administration, are available on the tax administration website. |
| P3-8-2 | AFR | A | First | 2019 | English | Rated A because good practices were detected in, the Department of Taxpayer Services is responsible for regularly updating the information provided via the web. Taxpayers are informed by various means of legislative and procedural changes, including specific and general communications, before the standards come into force. In addition to constantly updating the website, the tax administration carried out clarifications to taxpayers and intermediaries, distributed leaflets and flyers, sent written communications, such as letters and newsletters, in addition to the use of Facebook, to clarify and provide up-to-date information to taxpayers. |
| P3-8-3 | AFR | A | First | 2019 | English | Rated A Because good practices have been detected in , the tax administration promotes a variety of educational and proactive programs through the use of various channels and makes information and services available online. Examples of such programs include the National Citizenship Seminar and the student-focused National Tax Citizenship Program. A project dedicated to taxpayers who are starting a new business has been developed, which includes sending emails and messages, in addition to organizing specific events. The tax administration has several channels of information services for taxpayers, with information available, free of charge to taxpayers and intermediaries, at convenient times. The task of making tax education effective falls to the Department of Taxpayer Services, which has defined a program intended for different audiences, with the following intervention modules: Integrated Basic Education, Repeated Education, Professional Education, Higher Education, Employees Public Bodies and the Community in general. Several channels are available for service: face-to-face, via the web and telephone. The face-to-face service is provided by 70 units installed on the nine islands. The tax administration also works in partnerships with other organizations, such as municipal councils, the Ministry of Education and Pro-business. |
| P3-11-2 | AFR | A | First | 2019 | English | Rated A Because good practices have been detected, the tax administration regularly consults groups of taxpayers and accountants to identify gaps and opportunities to improve its processes and products. Contributors and intermediaries are involved in the process of defining models or testing new processes or products. Examples of such practices are: holding a webinar to obtain taxpayers' opinions on the new electronic declaration to be implemented, the Annual Declaration of Accounting and Tax Information; the creation of a commission with representatives of intermediaries, the Professional Order of Auditors and Chartered Accountants, aimed at the implementation of electronic invoicing; hear taxpayers from the start of the implementation process; consultation with taxpayers in the development of codes (such as the Tax Enforcement Code and the Tax Procedure Code). |
| P3-8-1 | EUR | A | First | 2019 | English | Score A because a good practice was detected in; Information is available in various formats on the obligations and rights of taxpayers. In addition, it is appropriately segmented in relation to various groups of taxpayers, including some such as large families or people with special needs. Information on the rights and obligations of taxpayers is available in various formats: website, brochures, in-person assistance, telephone. On the other hand, the information is sufficiently segmented according to the characteristics of the taxpayers. For example, on the website there is an initial segmentation, distinguishing between “Citizens” and “Businesses and professionals”. Information about the different tax figures is included. And there is specific information for certain groups: large families, people with special needs, etc. In relation to people with special needs, there is an agreement with the main associations that is verified annually and help is offered through sign language interpreters in some offices. In addition, information is included in the different official languages. There is also an English version. |
| P3-8-1 | EUR | A | First | 2019 | English | Score A because a good practice was detected. Information is available in various formats on the obligations and rights of taxpayers. In addition, it is appropriately segmented in relation to various groups of taxpayers, including some such as large families or people with special needs. Information on the rights and obligations of taxpayers is available in various formats: website, brochures, in-person assistance, telephone. On the other hand, the information is sufficiently segmented according to the characteristics of the taxpayers. For example, on the website there is an initial segmentation, distinguishing between “Citizens” and “Businesses and professionals”. Information about the different tax figures is included. And there is specific information for certain groups: large families, people with special needs, etc. In relation to people with special needs, there is an agreement with the main associations that is verified annually and help is offered through sign language interpreters in some offices. In addition, information is included in the different official languages. There is also an English version. |
| P3-8-2 | EUR | A | First | 2019 | English | Score A because a good practice was detected. Information on rights and obligations is permanently updated by personnel specifically dedicated to this work. The website systematically highlights modifications or news of interest to different collaborators and in some cases individualized communications are sent. On the Ministry's website there is an access point to facilitate citizen participation in the rule-making procedure. The purpose of prior public consultation procedures is to gather the opinion of citizens, organizations and associations before preparing a regulatory project. The public hearing and information procedures are intended to obtain the opinion of citizens who have rights and legitimate interests affected by a legislative project already drafted, either directly or through the organizations or associations that represent them, as well as to obtain additional contributions. that may be carried out by other people or entities. |
| P3-9 | EUR | A | First | 2019 | English | Score A because good practices have been detected. More than 70% of incoming calls are answered within 6 minutes on hold. The Tax Agency carries out monthly monitoring of the waiting times for telephone and in-person calls. According to the data provided, 83 percent of the calls received during the last year were answered in this period. |
| P3-10 | EUR | A | First | 2019 | English | Score A because good practices were detected. Accounting and tax obligations are simplified for certain segments of taxpayers. The information provided to taxpayers is updated due to regulatory changes or to provide criteria in relation to doubts that may arise. Taxpayers and intermediaries can securely access the existing information held by the Tax Authority through its electronic headquarters without interruption. Both the design and content of the declarations, models and forms are constantly reviewed to incorporate new standards, techniques and procedures. There are special VAT regimes (simplified, equivalence surcharge), Corporate Tax (small companies) or Personal Income Tax (module regime) that include facilities to declare or simplify the formal requirements required. Sometimes the obligation to present some models or declarations is exempt. There are support programs for the main taxes, as well as for the keeping of joint accounting books and records (Web income for personal income tax, Web companies, virtual assistance for VAT,...). On the other hand, the Tax Agency has signed agreements of various kinds with other public administrations that need the information held by the Tax Agency to carry out their own actions. In order that taxpayers do not have to provide documentation or information that the Tax Authority already has, the agreements signed with these public organizations - with due legal support - establish the possibility that they can request the information directly from the Authority. Tax, avoiding procedures and travel for taxpayers A routine analysis of frequently asked questions (FAQs) is carried out, which is supported by computers, with a continuous update that allows the review of the declaration models and their adaptation to the service they support. Taxpayers and intermediaries can securely access the information that the Tax Authority manages about them through the electronic headquarters without interruption. Both the design and content of the declarations, models and forms are constantly reviewed to incorporate new standards, techniques and procedures, and to ensure that the strictly necessary information is requested to facilitate compliance with taxpayers' obligations. |
| P3-11-1 | EUR | A | First | 2019 | English | Score A because a good practice has been detected. In interaction with taxpayers, groups and tax intermediaries, the Tax Agency continually obtains opinions on the services provided. There are a number of external organizations that prepare statistics from significant samples of taxpayers to obtain the public's opinion on the products and services of the Tax Agency. The information and opinion of taxpayers about the services provided is obtained through different channels: in-person attention; phone calls; satisfaction surveys in rental campaigns; complaint log. In particular, the Tax Agency monitors the complaints submitted and the reasons that motivate them, and may make changes to rules, procedures or forms to avoid doubts on the part of taxpayers. Several independent agencies prepare statistics based on surveys of significant samples of taxpayers, which include statistical samples on the opinion of the products (completion of declarations) and the assessment of the services offered to the taxpayer. |
| P3-11-2 | EUR | A | First | 2019 | English | Score A because good practices were detected. To identify deficiencies in procedures and services, the Tax Authority not only takes into account the information and opinions of taxpayers, but also permanently engages with certain significant groups, such as large companies and tax professionals. Likewise, meetings are held with software companies in order to provide adequate IT support to companies and professionals. The Tax Authority holds periodic meetings with certain groups of taxpayers to facilitate collaborative compliance through the Forum of Large Companies and the Forum of Tax Professional Colleges and Associations. In both forums there are working groups for different areas such as analysis and rationalization of indirect tax burdens, analysis of tax regulations, reduction of conflict, models, campaigns or measures to promote legal certainty. Meetings are also held with software development companies, which have their own developer portal, in which the technical specifications and all the versions that are developed in tests are published. Regarding the preparation of tax regulations, a public consultation is planned in advance on the Ministry's website in order to gather the opinion of the potential recipients of the regulation. Once the project or preliminary project has been prepared, if it affects the legitimate rights and interests of citizens, the text will be published to substantiate the public information procedure or to grant a hearing to the affected people, directly or through the organizations or associations that represent them. as well as to obtain additional contributions that other people or entities may make. |
| P3-8-2 | AFR | A | Repeat | 2019 | English | Scored A because good practice was detected in; The Tax Administration has documented procedures for keeping the information current and informing taxpayers of any changes in law and administrative policy. The Taxpayer Services Department is responsible for designing new and updating existing material and its mandate includes: identification of changes in tax laws or process and making a case for the need for education material; preparing education material and products for existing processes in consultation with subject matter experts and affected taxpayer groups and intermediaries; preparing training and taxpayer sensitization material in various local language dialects; and communicating changes in tax laws or process via Tax Administration website, newspapers, radio and television announcements; and organizing meetings with targeted stakeholders to present new changes, including publication of explanatory guidance notes in preparation for the implementation of new laws announced by government through the national budget process |
| P3-8-3 | AFR | A | Repeat | 2019 | English | Scored A because good practice was detected in; Communicating changes in tax laws or process are done via tax administration website, newspapers, radio and television announcements; and organizing meetings with targeted stakeholders to present new changes, including publication of explanatory guidance notes in preparation for the implementation of new laws announced by government through the national budget process. |
| P3-11-1 | AFR | A | Repeat | 2019 | English | Scored A because good practice was detected in; The tax administration routinely seeks client feedback via customer satisfaction surveys, public contact centers, face-to-face engagements and social media platforms. The surveys include independent third-party (conducted every two years) and internal surveys. The results collected through the various methods are used to refine existing services, products, and administrative processes. |
| P3-8-2 | WHD | A | First | 2019 | English | Score A because good practices have been detected. The information available is up to date and changes to the regulations are communicated through general and specific communications before they come into force. and specific communications before they come into effect. The Information and Assistance Subdirectorate of the Taxpayer Services Directorate has personnel dedicated exclusively to updating information and has a documented procedure for systematic updating. It has a documented procedure for systematic updating of information. The modifications are communicated to taxpayers in a general way (radio, television, internet portal and social networks), television, internet portal and social networks) and specifically (SMS messaging and notices when entering the virtual office) before than the virtual office) before its entry into force. In addition, large taxpayers receive communications through their tax managers in the Large Taxpayers Directorate. |
| P3-8-3 | WHD | A | First | 2019 | English | Score A because good practices have been detected. Taxpayers obtain information easily and free of charge through a wide range of channels. Variety of service channels. The TA uses the following means and initiatives: Network of 9 local tax administrations with first-class facilities that include queue management and kiosks (computers with Internet connection and staff to help with online procedures). Digital media: online portals with self-service facilities (Digital Taxation), email, Facebook, Twitter and YouTube. Tax assistance centers in universities, fair events, quarterly newsletters, communications of interest, training (for example, electronic invoice), Tax Education and Culture Program. For large taxpayers, a tax model has existed since 2010. attention (by telephone, email and in person) through tax managers, who are entrusted with a portfolio of approximately 46 large taxpayers. |
| P3-8-1 | AFR | A | First | 2019 | English | Scored A because good practice was detected in; The tax administration offers a broad range of information to guide taxpayers on their obligations and entitlements under each of the core taxes. The information products include: brochures, rulings, guidelines, factsheets, responses to frequently asked questions, forms, presentations to various stakeholders, and newsletters. Measures are also taken to tailor the information to the needs of various taxpayer groupings and they include: (1) quarterly meetings with tax intermediaries and sharing information with them on WhatsApp; (2) seminars for newly registered businesses; (3) quarterly VAT seminars; and (4) educating newly registered taxpayers on their tax obligations and entitlements in a one-on-one setting immediately after registration. The information provided adequately covers compliance needs of key taxpayer segments and industry groupings. |
| P3-8-2 | AFR | A | First | 2019 | English | Scored A because good practice was detected in; The information provided to taxpayers is current in terms of the law and administrative policy. Dedicated staff in the Taxpayer Education and Services Department ensure that information provided to taxpayers is current. The mission observed that this department makes taxpayers aware of the changes before they come into effect through general communication over various channels including the radio, posters displayed in all tax administration offices, and newspapers articles and targeted seminars and workshops with various taxpayer groupings and intermediaries. |
| P3-8-3 | AFR | A | First | 2019 | English | Scored A because good practice was detected in; The tax administration provides taxpayer information using a variety of products and public outreach programs. The broad range of taxpayer information is readily available over the Tax aAdministration website and all the walk-in assistance centers. The Tax Administration also posts information on Facebook, YouTube and in newspapers, and runs various public tax programs over the radio. A pilot program for teaching school students about taxes was launched in 2020 with the School of Business Studies and Accounting. Targeted workshops are also regularly held to educate and guide new businesses and newly registered taxpayers for VAT. |
| P3-11-1 | EUR | A | First | 2019 | English | Scored A because good practice was detected in; Various methods are used to obtain feedback from taxpayers, including an independent, third-party survey of taxpayer perceptions of the Tax Administration’s services. Users of the website are invited to complete two surveys: one on the content and ease of navigation of the website; and the other on the standard and responsiveness of all channels of communication. Where dissatisfaction is indicated, free-form comments and suggestions are canvassed. Meetings and seminars with stakeholders on wider topics will often also invite feedback on Tax Administration services and products. The First independent survey of taxpayer perceptions of services and products was carried out in 2018. The survey was conducted by an international research firm using statistically valid sampling of legal entity, entrepreneur and citizen segments. It is intended to repeat this independent survey at regular intervals (at least every three years) to monitor perception trends over time. |
| P3-8-1 | EUR | A | First | 2019 | English | Scored A because good practice was detected IN; Information on tax obligations and entitlements are available through various channels. There is a range of material available on the website in relation to the main areas of taxpayers’ obligations and entitlements. This includes videos providing general information on tax types and the benefits from paying taxes. Taxpayers can communicate with The Tax Administration through e-mails. The Tax Administration has a walk-in enquiry service and telephone queries through taxpayer service specialists. Information is also provided through pamphlets, brochures, and public education programs. The information is tailored according to the needs of key taxpayer segments (natural/residential property, legal entities/commercial property, and agricultural properties). It is also tailored to three spoken languages. |
| P3-8-2 | AFR | A | First | 2019 | English | Scored A because good practice was detected in; The Tax Administration has documented procedures for keeping information current and informing taxpayers of any changes in law and administrative policy. The Operational Policy and Communications divisions have dedicated staff that regularly update information provided to taxpayers to ensure it is current and relevant including any changes in tax laws or processes. Taxpayer sensitization material is developed and communication of changes in tax laws or processes are provided in advance using various modes such as via the Tax Administration website, newspapers, radio and television announcements; and organizing meetings with targeted stakeholders to present new changes. Explanatory guidance notes are also published. |
| P3-8-3 | AFR | A | First | 2019 | English | Scored A because good practice was detected in; Taxpayers have convenient access to information through a range of user-friendly channels at no cost, and a documented taxpayer education program has been implemented. The Tax Administration has a range of taxpayer education programs that are comprehensive and routinely conducted. They include different taxpayer segments, new businesses and collaboration with the Junior Achievement, targeting school children and young entrepreneurs. Information on all core taxes and main compliance obligations are also available via: Tax Administration Website; Toll-free contact center operated during normal working hours; Customer service desks in all tax offices; Frequently asked questions on the website; Tax dialogue sessions with groups of taxpayers and an annual “Customer Service Week”; Generic and specific tax information presented through seminars/workshops and print and audio means; Engagement with private sector associations and intermediaries; Practice notes and fact sheets/guidance notes; Social media platforms such as Facebook; and Client relationship managers in the large taxpayer unit |
| P3-11-1 | AFR | A | First | 2019 | English | Scored A because good practice was detected in; The Tax Administration routinely seeks client feedback via customer satisfaction surveys, public contact centers, face-to-face engagements and social media platforms. The surveys include independent third-party (conducted every two years based on a statistically valid sample of key taxpayers) and internal surveys. The Tax Administration has a Taxpayer Charter and a Customer Service Standards handbook. Taxpayer service centers and border posts’ service delivery are monitored routinely using a closed feedback loop. The results collected through the various methods are considered when refining services, products, and administrative processes. |
| P3-8-1 | EUR | A | Repeat | 2019 | English | Scored A because good practice was detected in; The Tax Administration provides information to the taxpayers on a wide range of topics and tailors it to the needs of different taxpayer segments, industries and intermediaries. The recently launched new website contains a wide range of information covering all taxpayer obligations (registration, filing, reporting and payment) and entitlements (e.g. VAT refunds and the right to dispute). The information Tax Administration provides is tailored to the needs of small business taxpayers, e.g. clarifying their accounting and filing obligations, and gives specific attention to disadvantaged groups and minorities that use other languages than the National Language. Information related to specific topics is available via approximately 600 methodological guidelines and procedural manuals. Tax Administration also uses social media such as Facebook and YouTube. There are 15 regional service centers that provide information to those taxpayers who prefer face-to-face interaction. |
| P3-8-2 | EUR | A | Repeat | 2019 | English | Scored A because good practice was detected in; The Tax Administration ensures that information is current and that taxpayers are made aware of changes in the law and administrative policies before they take effect. As a follow up of the previous TADAT assessment, Tax Administration has established a working group which is operational since February 2020. This dedicated working group is responsible for keeping information up-to-date. Current and draft tax laws are monitored on a daily basis, and information provided by the operational departments to taxpayers is monitored regularly. |
| P3-8-3 | EUR | A | Repeat | 2019 | English | Scored A because good practice was detected in; Taxpayers have access to information through a broad range of user-friendly channels. Tax Administration’s service development strategy 2019-2020 outlines the direction in service delivery to improve voluntary compliance by using a wide range of services and further development of new communication channels such as online chats and chatbot. In addition to information provided via the website, taxpayers portal, social media, the call center and the 15 regional service centers, taxpayers have access to a variety of targeted seminars and information campaigns. Provision of information to taxpayers, intermediaries or other interested groups is free of charge. Tax Administration asks a fee for the Privé service, a private tax advisor program, mainly used by large taxpayers, for personalized assistance. The Tax Administration is planning to make this service free of charge. |
| P3-9 | EUR | A | Repeat | 2019 | English | Scored A because good practice was detected in;Telephone enquiry calls received by the call center are generally answered within six minutes. Taxpayers are actively informed about the service levels they can expect when dealing with the tax administration. Standards to respond to requests are: (i) six minutes for telephone calls; (ii) ten working days for letters; and (iii) two working days for official e-mails. The call center currently has 39 agents deployed in the front and back offices. A new system, which meets the current international standards for a call center system, was introduced in July 2020. The previous system was outdated and was not capable of determining the overall performance level of the call center, nor to keep track of lost calls. To address this problem, tax administration has developed a work-around to provide the necessary management information. Data provided shows that 95 percent of all calls are answered within 6 minutes for the period until March 2020. Accurate measurement in the April-July 2020, was affected by the working-fromhome arrangements that were put in place due to the COVID-19 pandemic. |
| P3-11-1 | EUR | A | Repeat | 2019 | English | Scored A because good practice was detected in; Tax Administration obtains feedback on its services from the taxpayers. Tax Administration engages with key stakeholders, and monitors telephone calls and taxpayer visits to its premises. Meetings with the representatives of business associations are organized at the initiative of the Tax Administration, and discuss the challenges that businesses face and options for improvement. The interaction via telephone calls and taxpayer visits to the contact center also provides Tax Administration with feedback regarding the services provided. A report by USAID on the attitude towards the tax system in the country shows a high level of trust towards the services from tax administration. It reports that 99 percent of the close to 2000 respondents were satisfied with the services from the service center and information on the website and 94 percent were satisfied with the services from the call center. |
| P3-11-2 | EUR | A | Repeat | 2019 | English | Scored A because good practice was detected in; The Tax Administration consulted taxpayers on the design of the new Tax Administration website. Primary focus of the design of the new website was that taxpayers understand the information and can easily navigate the site. To this end, a large variety of groups of taxpayers, such as small business, intermediaries, and business associations were consulted. There are some other examples where tax administration has reached out to key taxpayers’ groups and intermediaries to identify deficiencies in administrative processes and products, such as the design of the current VAT declaration form. The Tax Administration consults business associations and intermediaries for the development of the methodological guidelines and procedural manuals as published on the website. |
| P3-8-2 | AFR | A | First | 2019 | English | Scored A because good practice was detected in; The Tax Administration has documented procedures for keeping information current and informing taxpayers of any changes in law and administrative policy. Information on the County website is updated routinely, and taxpayers are made aware of changes to the law or administrative policy in advance. The County is guided by the Finance Act, which is updated annually. Twitter and Facebook pages are updated and current. The Department of Information and Communication Technology has three dedicated staff headed by a Webmaster responsible for both the web and mail servers. They ensure that the information is current and relevant, including any changes in tax laws or processes. Requests for updating from the various departments are sent to the Webmaster email. The County also uses volunteers to disseminate information to 300 villages. Communication of changes in tax laws or processes are provided in advance using various modes such as via the website, Tax Administration public participation meeting and seminars, public notice, gazette notice, assembly and organizing meetings with targeted stakeholders such as the Chamber of Commerce, Hawkers Association and Bar owners Association. Additionally, the County radio station communicates any relevant taxpayer information. Public participation meetings are conducted in accordance with documented procedures. |
| P3-8-3 | EUR | A | Repeat | 2019 | English | Scored A because good practice was detected in; Taxpayers can obtain information 24/7, as most of it is provided via the website. Taxpayers also have 24/7 access to their personalized e-services. Provision of information takes place through multiple channels of delivery: counter service, emails, telephone calls, letters, and educational courses. Educational courses are available free of charge to all. The courses include both general education about taxes and their payment (e.g., for school students or newly registered businesses) or designed to address a specific need or an event (e.g., a seminar on a specific tax law change) |
| P3-9 | EUR | A | Repeat | 2019 | English | Scored A because good practice was detected in; Taxpayers receive timely consultation services to their questions through phone calls and emails. More than 95 percent of contact center calls are taken within a set 6 minutes’ time limit. Also, approximately 75 percent of written enquiries are responded to within 15 days. In case of an office visit, 75 percent of counter-service cases are resolved on the same day. |
| P3-10 | EUR | A | Repeat | 2019 | English | Scored A because good practice was detected in;The Tax Administration uses electronic services, pre-filled tax returns, and special simplified tax regimes to lower taxpayers’ cost of compliance with tax regulations. Taxpayers can use electronic services, including submission of returns and checking their tax accounting online 24/7. For personal income tax, pre-filling with taxpayer data is available and used. A Frequently Asked Questions (FAQ) system is used by tax officials extensively when responding to taxpayers’ enquiries to keep the response times short. A national legislative secretariat reviews all tax forms prior to their adoption to restrict information collected from citizens to aspects prescribed by the law. |
| P3-8-1 | AFR | A | Repeat | 2019 | English | Scored A because good practice was detected in; The tax administration provides a wide array of up-to-date information and services to taxpayers to meet all obligations and claim entitlements across all core taxes. This is done mainly through the tax administration’s Taxpayer Service Office and service centers. Service delivery is refined through a streamlined process within cooperative working arrangement between the Domestic Taxes Department and the Marketing and Communication Department. The information is customized to meet the specific needs of key sectors (e.g. manufacturing, construction), particular customer segments, such as small traders who cannot afford the services of tax intermediaries, and persons with disability. |
| P3-8-2 | AFR | A | Repeat | 2019 | English | Scored A because good practice was detected in; The The tax administration has documented procedures for keeping the information current and informing taxpayers of any changes in law and administrative policy. Dedicated personnel in the customer touch points follow set procedures to ensure information is current and taxpayers are made aware of changes in the law or administrative policy through targeted and general communication before the law or policy takes effect as demonstrated through for example website updates, YouTube videos, and private rulings. |
| P3-8-3 | AFR | A | Repeat | 2019 | English | Scored A because good practice was detected in; Taxpayers can easily obtain information from The tax administration through a range of channels at little to no cost. The Tax Administration has a service charter also called a Citizens’ Service Delivery Charter and information is provided through an up-to-date website, emails, SMS, brochures, guidelines, public notices, practice notes, private rulings, radio and television programs, YouTube, and social media. The Tax Administration also offers an expansive variety of taxpayer education programs with seminars organized for small and medium enterprises, key industry sectors such as industry and manufacturing, trade and investment, and financial and insurance services. A plethora of tax education forums, tax summits, and tax roundtables are also regularly organized. Programs for teaching school students about taxes are organized in collaboration with the Country's Institute of Curriculum Development. Finally, The Tax Administration offers extended working hours on weekends across Contact Centers countrywide, especially during filing season, and self-service facilities (mobile, website, customer portal, etc.) to taxpayers and their intermediaries, at a time convenient to them. |
| P3-11-1 | AFR | A | Repeat | 2019 | English | Scored A because good practice was detected in; The tax administration regularly monitors taxpayer perceptions of service and seeks taxpayer feedback on information products and services. This includes web page content and layout and forms design. Taxpayers and professional associations provide feedback through emails, telephone, website, service centers, as well as through a variety of regular stakeholder meetings and public forums such as tax education forums, tax summits, and tax roundtables. The Tax Administration is also very active in conducting customer satisfaction surveys every two years. The surveys are based on a statistically valid sample of key taxpayer segments and stakeholders and are conducted by an independent third party. During these meetings and public forums, key taxpayer groups and tax intermediaries discuss issues and challenges in the law and are consulted on administrative processes and products. |
| P3-11-2 | AFR | A | Repeat | 2019 | English | Scored A because good practice was detected in; There is also evidence that taxpayers and intermediaries are involved in the design and testing of new processes and products. |
| P3-8-1 | AFR | A | First | 2019 | English | Scored A because good practice was detected in; The Finance Act is current and available to the public at all The Tax Administration Revenue Offices. The Finance Act is reviewed and updated annually with public participation. A dedicated technical staff is in place to ensure that information is current. |
| P3-8-3 | AFR | A | First | 2019 | English | Scored A because good practice was detected in; The tax administration provides a broad range of taxpayer education programs made available to taxpayers via various delivery channels. Information is availed to taxpayers through channels including: (i) regular workshops to business including to newly registered taxpayers; (ii) publicity campaigns and expos; (iii) brochures; (iv) The Tax Administration Website; (v) by telephone via the call centre; (vi) customer service centres distributed in strategic points across the country; (vii) postings to Facebook; and (viii) television and radio shows. The information is provided at no cost to taxpayers. Additionally, the website, postings to Facebook and in the main, the e-services platform all provide self-service facilities at a time convinient to taxpayers and intermediaries. |
| P3-9 | APD | A | First | 2019 | English | Scored A because good practice was detected in; The tax administration’s call-center delivers a high standard of service with all calls received being dealt with promptly. The call-center is at an early stage of development and demand for the service so far is low but is showing evidence of growth with call volumes roughly doubling since commencement. The center currently receives up to around 40 calls per month. Resources assigned to the call-center are limited and supporting infrastructure is still being fully established. Service delivery standards, which cover the majority of taxpayer interactions and services, are in place. Performance monitoring and evaluation against these standards is undertaken internally; however, performance results and outcomes are not published externally. |
| P3-8-1 | APD | A | First | 2019 | English | Scored A because good practice was detected in; Information on taxpayer obligations and entitlements is readily available for all core taxes, and it is tailored to meet the needs of taxpayers.The Tax Administration has an extensive engagement program, delivered in a variety of formats and targeted at different taxpayer groups, intermediaries and disadvantaged groups such as linguistic minorities. The Facilitation and Taxpayer Education unit within the tax administration is responsible for the dissemination of information to taxpayers in a timely manner. The Tax education unit designs and delivers taxpayer products, campaigns, and events focused on a variety of taxpayer segments to support taxpayers. The Tax Administration has a published Taxpayer Charter, setting out clearly the rights and obligations of the taxpaying population. Information is available on all core taxes and it is tailored to segments based on risk or capabilities, including dedicated outreach activities with representative groups. |
| P3-8-2 | APD | A | First | 2019 | English | Scored A because good practice was detected in; The Tax Education Unit unit designs and maintains all taxpayer guidance and support material. There is a designated office for issuing regular updates and clarifications. The tax administration website also contains the latest updates on all the applicable tax rules and regulations. The information to taxpayers is communicated before the law or policy takes effect using the website and the print and social media. Publicity campaigns are in place to tackle common areas of taxpayers’ needs. |
| P3-8-3 | APD | A | First | 2019 | English | Scored A because good practice was detected in;The Tax Education Unit regularly conducted taxpayer education and awareness programs across the country. The information is generally available to taxpayers at no cost. The campaigns and outreach programs come in a variety of formats, including workshops, seminars and personal visits to prominent institutions and organizations in the country. These initiatives focus on highlighting the importance of filing tax returns along with detailed briefings that include guidance on how file tax returns on The tax administration’s Income Tax portal. |
| P3-9 | APD | A | First | 2019 | English | Scored A because good practice was detected in; Almost all calls were answered within six minutes in FY 2020-21. The capital city -based member of the TADAT assessment team visited the The Tax Administration call center and noted that it was properly staffed. It was found that because of adequate staff, all the calls are replied in person and calls are not diverted to an answering machine. As a sample check, the record for Nov 2020 was verified with the data provided and was found to be accurate. |
| P3-8-1 | WHD | A | Repeat | 2019 | English | Scored A because good practice was detected in; The Tax Administration provides wide-ranging information, using a variety of media and support approaches to explain obligations and entitlements across all core taxes. The Tax Administration website and Facebook page provide information for the core taxes (IIT, CIT, PAYE and GCT) across all obligations (registration, filing, reporting and payment) and entitlements (for example, GCT refunds and the right to dispute). Information is tailored to taxpayer segments (for example, smaller businesses), sectors (for example, financial sector and real estate sector), intermediaries (accountants), and disadvantaged taxpayers (Special Taxpayer Assistance Program, at The tax administration Customer Care Centres). “How To” segments and publications covering a range of topics can be found on The tax administration website, Facebook page and/or YouTube channel. The Tax Administration participates in business expos and provides localized advisory services upon request. In-person, services are available during business hours at 29 offices across the country. The Tax Administration also has a comprehensive school program on teaching taxes that has been recognized by the OECD in its sourcebook on taxpayer services. In FY2020/21 The Tax Administration launched a Mobile App giving users the ability to query and pay property taxes while “on-the-go,” and it is expected that the app will be expanded to allow for payment of other core taxes. |
| P3-8-2 | WHD | A | Repeat | 2019 | English | Scored A because good practice was detected in; Information is current and taxpayers are made aware of changes in the law or administrative policies before they take effect. Changes to the law, procedures, and policies are subject to a communication strategy directed to the parties that are most impacted. A media release is prepared if the change affects a broad community, and a technical and/or web advisory is issued (SMS messaging may also be employed). Facebook, Instagram and Twitter are also used to push messages pertaining to new laws and policy/procedural changes. Stakeholder groups are consulted on changes to legislation or the implementation of new laws, such as the Chartered Accountants. A Memorandum of Understanding exists with the Chartered Accountants that states that they will be consulted on changes to legislation and policies where possible. Sector-specific changes typically involve discussions with sector representation, for example, financial groups. The Tax Administration subject-matter experts from the technical specialist group (legal) work with the communications group to ensure the accuracy of updates to publications and website material. |
| P3-8-3 | WHD | A | Repeat | 2019 | English | Scored A because good practice was detected in; Information is easily and freely accessed from a wide variety of information sources. The Tax Administration provides information through multiple channels with a heavy reliance on electronic media (Facebook, YouTube, Twitter, Instagram, the The Tax Administration website , and hosted webinars). Information sources include technical advisories, rulings, practice notes, fact sheets and Frequently Asked Questions (FAQs). Face-to-face interaction with the The tax administration occurs at all offices across the country, which provide extended service during particularly heavy periods throughout the year. The teaching taxes programs are available to young ones through primary to postRepeatary education institutions. The Tax Administration sponsors an annual debate at the university level on the role of taxation in the community. Service delivery channel plans are explained, monitored, and reported in the Annual Report and National Compliance Plan. |
| P3-9 | WHD | A | Repeat | 2019 | English | Scored A because good practice was detected in; The telephone enquiries standard adopted by the Tax Administration is well within the 6-minute standard of the TADAT framework. Service standards have been specified in the Citizen Charter relative to written correspondence, e-mails, in-person visits, and telephone enquiries. Performance levels against the standards were not available except for telephone. The Tax Administration’s call center system offers instant access to a menu of enquiry options upon completion of dialling. It is configured to monitor the number of calls answered within a standard of 20 Repeats and does not identify the number of calls answered within the 6 minutes. The data provided shows thst 62.3 per cent of calls answered for The Tax Administration’s 20-Repeat standard. In light of this, and to assess calls answered within 6 minutes, the TADAT team members undertook random calling of the call center and found that the average time to respond was 28 Repeats, indicating that all calls were answered within the TADAT’s six-minutes standard. Therefore, using professional judgment, the team concluded that The tax Administration meets and exceeds the TADAT assessment standard. |
| P3-11-1 | WHD | A | Repeat | 2019 | English | Scored A because good practice was detected in; Performance feedback on taxpayer services and service channels is obtained regularly through multiple means. Perception surveys are conducted regularly – in-house surveys are conducted annually, and externally commissioned surveys are conducted bi-annually. Surveys are statistically valid and cover businesses and individuals. Web polls and customer feedback systems are reported to exist within each of the tax administration offices. Meetings with stakeholder groups are held regularly, the taxation committee (every two months), and other specific bodies. Public presentations on various tax issues are made to various groups and sectors, and feedback surveys are conducted often. Regular feedback is also provided and monitored through the social media sites where The tax administration has a presence – Facebook, Instagram and Twitter. |
| P3-11-2 | WHD | A | Repeat | 2019 | English | Scored A because good practice was detected in; Taxpayer input is sought on changes to forms, publications and The Tax Administration website through focus group participation and other means, such as the Institute of Accountants. The Tax Administration forms design team uses taxpayer feedback and accesses stakeholders to provide input on proposed changes to forms. Currently, the website portal is undergoing modifications on which focus group input is being sought. The MOU with the Chartered Accountants is also an example of the proactive nature of the tax administration in seeking and securing input from third parties on any proposed changes impacting taxpayers. |
| P3-8-1 | APD | A | First | 2019 | English | Scored A because good practice was detected in; Information is available to taxpayers to explain their main obligations and entitlements for each core tax. The information needs of different taxpayer segments are addressed through separate Taxpayer Services Bureaus in the Department of Large Taxpayers and the Department of Small & Medium Taxpayers respectively. Materials are also produced to address the needs of new taxpayers. |
| P3-8-2 | APD | A | First | 2019 | English | Scored A because good practice was detected in; Maintaining and updating information for taxpayers is the responsibility of the Public Relations Bureau in the Department of General Affairs. A process is in place to deal with changes in the law or other changes to taxpayer obligations. This process is internally wellunderstood and includes undertaking proactive consultation with groups of taxpayers. Tax intermediaries play an active role in consultation activities. Tax Administration Taxpayer Service staff and auditors proactively advise taxpayers of any changes to their obligations arising from changes in the law, regulations or tax administration working procedures before such changes take effect. |
| P3-8-3 | APD | A | First | 2019 | English | Scored A because good practice was detected in; Tax Administration provides information to taxpayers through a variety of channels. These include the Tax Administration website , an active social media presence, a range of explanatory brochures, technical practice notes and a public and private rulings program. An in-house call center was established in 2018 to address telephone enquiries, and the Tax Administration also provides a physical taxpayer service center in City Centre. All public services are provided free of charge. |
| P3-9 | APD | A | First | 2019 | English | Scored A because good practice was detected in;The Tax Administration’s call-center delivers a high standard of service with all calls received being dealt with promptly. Tax Administration has set an internal service delivery target to answer taxpayer enquiry calls within 3 minutes, and data provided indicates that more than 99 percent of all calls are answered within the international good practice standard of 6 minutes. The call-center was established in 2018 and has a dedicated staff of 10 with six inward lines. The is a call-forwarding system in place to transfer callers to Tax Administration headquarters staff if the main call center becomes overloaded. |
| P3-10 | APD | A | First | 2019 | English | Scored A because good practice was detected in; Initiatives to reduce compliance costs for small taxpayers are in place. Micro-businesses are not required to register with the Tax Administration or pay tax. Small businesses are required to keep records of sales and expenses, and only medium and large businesses are obliged to comply with International Accounting Standards. Taxpayer forms, including those used for registration and declaration, are regularly reviewed and updated. This is done to ensure that only necessary information is sought and that taxpayers are not required to spend time and effort providing information that is not needed. The Tax Administration website allows taxpayers and their agents secure access to account information. At present this does not extend to making changes to such information online. Frequently asked questions and common misunderstandings are subject to ongoing review to identify areas in which clarification of taxpayers’ obligations is required. These are addressed through a range of taxpayer information and education products, including a regular series of taxpayer/stakeholder seminars at which feedback information is provided and feedback sought. |
| P3-11-1 | APD | A | First | 2019 | English | Scored A because good practice was detected in; Taxpayer feedback on tax administration’s service delivery is obtained through a variety of methods. A program of regular taxpayer seminars delivers information on a variety of issues and is also used to solicit taxpayer feedback and suggestions for improvement. Independent taxpayer perception surveys were conducted in 2013, 2015 and 2018 – and although the independent survey schedule has been interrupted by the COVID-19 pandemic, the Tax Administration reported its intention to recommence the survey program on a biennial basis as soon as possible. Survey results are not published but were reported as being used in the strategic and operational planning process to develop improvements in taxpayer service. |
| P3-11-2 | APD | A | First | 2019 | English | Scored A because good practice was detected in; The taxpayer seminar program is also used to pilot proposed changes affecting taxpayers. Such changes include the introduction of new forms and procedures, and the seminars are used to gather feedback that is used to validate and improve these changes before they are introduced. |
| P3-8-1 | APD | A | First | 2019 | English | Scored A because good practice was detected in; The Tax Administration has placed significant focus on providing taxpayers with a broad range of information. Information on the main taxpayer obligations and entitlements is readily available for all core taxes and is tailored to meet the needs of all taxpayer segments. Self-service activities are available to taxpayers at a time convenient to them. All digital services (website, Facebook pages, and e-filing) are available 24/7 and are free of charge. The Tax Administration provides tax programs for school students and free tax seminars and workshops for taxpayers and intermediaries. There is a special section on the web page, along with a guide, containing information for disabled persons. |
| P3-8-2 | APD | A | First | 2019 | English | Scored A because good practice was detected in; Taxpayers are made aware of changes in law or administrative policy through information on the website, by email and text message alerts and use of social media. The Tax Administration produces videos and posters to be used on the webpage and in social media and the segment strategies for the different taxpayer groups highlight the timeliness of information to the taxpayers. The webpage has a special section where new laws and changes to the laws are posted. Many taxpayers (more than 60 percent) use the webpage and the social media platforms and the Tax Administration is currently developing the webpage and their electronic services to encompass new services for the coming year. Each department unit has one dedicated person responsible for updating the website in cooperation with the media department specialist. |
| P3-8-3 | APD | A | First | 2019 | English | Scored A because good practice was detected in; The Tax Administration has historically organized face-to-face meetings with industries impacted by changes in the law. These events are now conducted virtually due to the pandemic. Once information on new legislation is posted on the website or otherwise disseminated (brochures, emails, and text messages), the Tax Administration provides training to the relevant segments. |
| P3-9 | APD | A | First | 2019 | English | Scored A because good practice was detected in; Almost 90 percent of all phone calls to the call center are answered within six minutes. Also, 60 percent of the questions are answered directly during the call or within 24 hours. Taxpayers can leave questions in the automatic answering machine and the questions will be answered the next working day. Questions not answered by the call center are transferred to the Legal Department. Time to respond to taxpayers’ written requests are in 30 days according to the law but in urgent cases the Tax Administration will answer within three days. The Tax Administration is currently reviewing its service delivery standards and will update their internal procedures accordingly. |
| P3-11-1 | APD | A | First | 2019 | English | Scored A because good practice was detected in; The Tax Administration obtains feedback from taxpayers via the website and meetings with stakeholders. Taxpayers actively use the separate feedback tool provided in the portal while filing their tax returns, paying their taxes, or seeking information on the website. The Tax Administration YouTube channel was visited by more than 330,000 users in 2021, making more than 900,000 comments. The channel has 1,800 subscribers and 3,470 users receive regular information. The feedback is used by the Tax administration to improve training programs and guidance to taxpayers. |
| P3-8-2 | EUR | A | Repeat | 2019 | English | Scored A because good practice was detected in; The Tax Administration has a procedure, and dedicated staff is assigned, to update information in a timely manner when needed. Mainly using the Tax Administration website, taxpayers are made aware of changes in tax laws and procedures. This is done both on a general level and through targeted information. The task is delegated to the taxpayer service sector, which has staff allocated to make the updates. A good example of this is the awareness campaign for adopting fiscal cash registers, which was targeted at small and medium-sized retailers and service providers |
| P3-8-3 | EUR | A | Repeat | 2019 | English | Scored A because good practice was detected in; Proactive educational programs are provided e.g., for newly registered businesses, schools and for university students. The program in schools is targeted for fourth grade students and has been running since 2016. Information is provided mainly through the Tax Administration website, but also through a call center and one-stop-shop service points throughout the country. By request, the documents published on the website can also be obtained as hard copies. Information is free of charge. The Tax Administration encourages taxpayers to move towards a digital environment with their tax affairs and the Tax Administration website self-services are available 24/7. |
| P3-9 | EUR | A | Repeat | 2019 | English | Scored A because good practice was detected in; Taxpayers receive timely responses to their questions through telephone enquiries. Over 70 percent of contact center calls are taken within a set 6 minute time limit over 12 months total average. |
| P3-8-1 | AFR | A | Repeat | 2019 | English | Scored A because good practice was detected in; Information on the main areas of registration, filing, payment and reporting is readily available for the core taxes. Guidance is available on how and when taxpayers can meet their tax obligations. Information is available for: (i) all taxpayer segments; (ii) specialized sectors such as mining and construction; (iii) disadvantaged groups that cannot read or write English—tailored to their needs through presentations in their local languages— for example, provision of radio jingles in two Native languages. The tax administration’s website includes Frequently Asked Questions (FAQs). |
| P3-8-3 | AFR | A | Repeat | 2019 | English | Scored A because good practice was detected in; A broad range of information is available to taxpayers at no cost. For example, taxpayer education programs are available through tax clinics, roadshows, and different service channels. The latter include the Tax administration’s website, brochures, information sheets, TV clips and radio jingles, and WhatsApp and text message clips. Information is also available (at any time) through TaxOnline II and mobile applications (TaxOnApp and TaxonPhone). Walk-in service centers and the call center are also available for use by taxpayers. |
| P3-9 | AFR | A | Repeat | 2019 | English | Scored A because good practice was detected in; The Tax Administration responds promptly to customers’ calls through a dedicated call center. At least 92 percent of telephone inquiries are answered within the 6 minutes’ waiting time TADAT standard. Data provided shows average response times of over 95 percent of all telephone inquiries. Tax Administration’s Taxpayer Services Charter has set a standard for answering calls within 3 minutes during non-due date periods and 5 minutes during (filing) due date periods. Dropped calls reported were minimal. |
| P3-11-2 | AFR | A | Repeat | 2019 | English | Scored A because good practice was detected in; The Tax Administration actively considers taxpayers’ input in designing administrative processes and products. Stakeholders are invited to contribute to developing new systems and enhancing existing products. For example, there was extensive consultation and engagement in recently introduced ICT-related systems, including providing feedback on technical plans and testing of the TaxOnline IV system. |
| P3-8-2 | APD | A | First | 2019 | English | Scored A because good practice was detected in; The Tax Administration ensures that information is current and that taxpayers are made aware of changes in the law and administrative policies before they take effect. Taxpayers are educated on impending changes to the laws, which are also published in the government gazette and all Tax Administration’s engagement channels. The Tax Administration has dedicated staff from marketing, technical units, and the tax academy that are responsible for regular updates to the frequently asked questions and for keeping information on the website up to date. |
| P3-8-3 | APD | A | First | 2019 | English | Scored A because good practice was detected in; Taxpayers have access to information through a broad range of user-friendly channels. Information is available via information guides on Tax Administration’s website, Tax Administrationconnect, the call center, and multiple engagement channels, including online chats using the Viber chat application, Tax Administration’s social media channels, such as Facebook and Tax Administration’s YouTube channel. There is also a dedicated service center that provides information to those taxpayers who prefer face-to-face interaction and taxpayers in atolls can visit the local office. Taxpayers also have access to various targeted seminars, media campaigns and dedicated email queries service. Provision of information to taxpayers, intermediaries, or other interested groups is free of charge. Under taxpayer service standards, information is provided free of cost to taxpayers. The dedicated hotline is not enabled for toll free calling, but taxpayers have an option to request a call back and thus incur only minimum cost. |
| P3-9 | APD | A | First | 2019 | English | Scored A because good practice was detected in; Telephone inquiry calls received by the call center are almost all answered within six minutes. Tax administration uses the two IT systems to monitor telephone calls. Data provided shows that on average, 98.4 percent of all calls are answered within six minutes for the year 2021. Callers can request a callback if they do not want to wait and Tax Administration’s service standards require the callback to be made within the current day. |
| P3-8-2 | AFR | A | First | 2019 | English | Rated A because good practices were detected. Taxpayers are made aware of changes to the law and administrative policy through targeted and general communication before the texts come into force. Updating information materials is entrusted to the communications and quality office attached to the Director General. Responsibilities for raising taxpayer awareness of tax morale are clearly defined. The office is responsible for setting up a communication system on normative reforms, in particular strategies to raise awareness of user consent, and for informing taxpayers on the methods of implementing the new measures. Significant legislative or administrative policy changes are systematically brought to the attention of taxpayers through general and targeted communication before their adoption or entry into force. |
| P3-8-3 | AFR | A | First | 2019 | English | Classified A because good practices were detected. Taxpayers have easy access to tax information from the tax administration. The operational departments have dedicated user services which welcome taxpayers during opening hours and are responsible for helping them fulfill their tax obligations and providing them with services. Press campaigns, seminars and open days are regularly organized. A newsletter is published quarterly by the tax administration to share tax news and inform about new products and services. As an illustration, 45 training sessions were Training sessions were organized to popularize the tax guide intended for small and medium-sized enterprises (SMEs). A tax compliance awareness brochure aimed at schools was distributed. The Minister of Finance and Budget and the Minister of National Education have set up a working group responsible for developing a system for introducing tax awareness into primary school curricula. The information is The information is available online, in the form of brochures and is also communicated by telephone and SMS for those who subscribe to this service. |
| P3-10 | AFR | A | First | 2019 | English | Classified A because good practices have been identified. All taxpayers can access their data online and small taxpayers benefit from simplified procedures. Individuals who declare a turnover of less than $5 million are subject to the single global contribution with a single declaration per year which includes six taxes (income tax, VAT, CEL, flat-rate contribution payable by the employer and liquor license) and payment in three installments. Companies with a turnover of less than $10 million are subject to the simplified real tax regime, which provides for a reduction in VAT and other withholding obligations and the benefit of the taxable event established in the reception. The pre-established declaration is not in force but the Remuneration paid by identified third parties (salaries, interest, dividends) is subject to withholding tax. The questions frequently asked by taxpayers and the most difficult interpretations are systematically analyzed and published on the website. Large and medium-sized businesses have access to their accounts online via the etax application, while other taxpayers can also access their data via My Personal Space. The forms are regularly revised to avoid unnecessary questions. |
| P3-11-2 | AFR | A | First | 2019 | English | Rated A because good practices were detected. Large groups of taxpayers and tax intermediaries are regularly consulted when new products such as electronic declarations are introduced or in the event of major changes to tax laws and provisions. Their reactions are collected during meetings, seminars and demonstration sessions; Their opinions are mainly taken into account in the design of procedures and products. For example, a pilot phase was organized during the launch of the Mon Espace Perso product and an acceptance test was carried out on a group of 100 taxpayers. The concerns of the private sector and the opinion of employers were also taken into account during the reform of the business license and during the introduction of the visa on the summary financial statements. |
| P3-8-3 | WHD | A | First | 2019 | English | Score A because a good practice was detected. The Tax Education program carries out actions aimed at raising citizens' awareness of the obligations and rights related to state taxes. There are specific lectures for tax intermediaries and small companies. Furthermore, the current taxpayer education program focuses on raising awareness of new, micro and small businesses. There is also a "citizenship bus" that travels around the State taking the tax education program to the most distant locations. The administration provides in-person service channels in various parts of the State, with specific service hours. Virtual information, through the website, is available 24 hours a day, free of charge. |
| P3-8-2 | WHD | A | First | 2019 | English | Score A because good practices were detected. The information is updated regularly. The Tax Authority encourages taxpayers to use its services online and by telephone, as part of a general effort to avoid the need to contact them in person (this channel represented less than 5% of total contacts in 2019). The procedures adopted to maintain the page are documented in detail to ensure that it is always up to date. Responsibility for maintaining the page is assigned to people from different areas of the organization. These responsibilities apply to communications in general. The focal points within the organization are: the general services coordinator, for services, and the communication advisor, for the availability of information on the website, both supported by technical teams from their respective areas. |
| P3-8-3 | WHD | A | First | 2019 | English | Score A because good practice was detected. Taxpayers have several channels at their disposal through which they can receive information and guidance. The tax administration mainly relies on its website as the main platform for disseminating information. Taxpayers can schedule in-person services, seek specific guidance or use a postal contact to interact with the tax administration. Taxpayers can present themselves to tax units across the country and can also receive services through the post office and some banks. A telephone service is also available. Requests for guidance by post are less frequent and there is no national management of this type of correspondence. Tax administrations have partnerships with different institutions (e.g. universities) to be able to offer educational programs tailored to needs. All services are free. |
| P3-9 | WHD | A | First | 2019 | English | Score A because good practice was detected. This difficulty, combined with budget restrictions, led to the decision to invest more heavily in the various forms of online or telephone service. The “chat” function was launched in 2019 and is perhaps the closest thing to a “call center”. It is available throughout the country and attendants can provide a range of services22. Taxpayers enter a virtual queue and their activity is monitored in real time. A total of 92 percent of taxpayers wait six minutes less for a call. Telephone service Automatic machines can respond to two types of requests (consultation of registration status and consultation on income tax refunds, both for individuals) |
| P3-10 | WHD | A | First | 2019 | English | Score A because good practice was detected. The tax administration has been investing considerably in reducing the compliance burden for taxpayers. There are simplified procedures for small taxpayers, which include a shorter form that can be completed and sent via a request cell. Filing rules have also been simplified thanks to the virtual elimination of this requirement for many taxpayers; Furthermore, the taxpayer himself can access his data on some taxes. Simplified compliance procedures for individuals (e.g. domestic workers) are also available and pre-filled declarations are available. The website is robust and comprehensive and any employee with Internet access has a full range of information and services at their disposal 24 hours a day. Dedicated teams analyze the most common errors, either through control activities or service verification. These teams come up with solutions to inform high-level decisions. and help with implementation. |
| P3-11-2 | WHD | A | First | 2019 | English | Score A because a good practice was detected. There is a strong commitment to seeking taxpayer input for the development of processes and procedures. The tax administration holds meetings with specific target groups to test service innovations, both during the development process and before the official launch of the new service. For example, accountants are regularly consulted regarding service improvements. The Tax Administration seeks equitably contribution of individuals and specific organizations or groups to improve processes (e.g. industry confederation, association of pharmaceutical companies) |
| P3-8-2 | WHD | A | First | 2019 | English | I wrote it down because a good practice was detected. The information is updated regularly. The tax administration encourages taxpayers to use its services online and by telephone, as part of a general effort to avoid the need to contact them in person (this channel represented less than 5% of total contacts in 2019). The procedures adopted to maintain the page are documented in detail to ensure it is permanently updated. Responsibility for maintaining the page is assigned to people from different areas of the organization. These responsibilities apply to communications in general. The focal points within the organization are: the general services coordinator, for services, and the communication advisor, for the availability of information on the website, both supported by technical teams from their respective areas. |
| P3-8-3 | WHD | A | First | 2019 | English | I wrote it down because a good practice was detected. Taxpayers have several channels at their disposal through which they can receive information and guidance. The tax administration essentially relies on its website as the main platform for disseminating information. Taxpayers can schedule in-person services, seek specific guidance or use a postal contact to interact with the tax administration. Taxpayers can present themselves to tax units across the country and can also receive services through the post office and some banks. A telephone service is also available. Requests for guidance by post are less frequent and there is no national management of this type of correspondence. The tax administration has partnerships with different institutions (e.g. universities) to be able to offer educational programs tailored to needs. All services are free. |
| P3-9 | WHD | A | First | 2019 | English | I wrote it down because a good practice was detected. The service provided to the taxpayer is recognized as a fundamental element in encouraging voluntary compliance. A full 92 percent of taxpayers wait less than six minutes for an appointment. Taxpayers have several options for contacting the Tax Authority, including the website, an online “chat” service, various cell phone requests and an automatic response function. Until 2015, there was a “call center” service outsourced, but this was suspended because it was considered too difficult to maintain sufficiently well-trained staff to accurately respond to taxpayers' questions. This difficulty, combined with budget restrictions, led to the decision to invest more heavily in the various forms of online or telephone service. The “chat” function was launched in 2019 and is perhaps the closest thing to a “call center”. It is available throughout the country and attendants can provide a range of services. Taxpayers enter a virtual queue and their activity is monitored in real time. A full 92 percent of taxpayers expect less six minutes for a call. Telephone service Automatic machines can respond to two types of requests (consultation of registration status and consultation on income tax refunds, both for individuals) |
| P3-8-1 | AFR | A | Repeat | 2019 | English | Classified A because good practices were detected. The tax administration offers users a wide range of information, available through numerous and varied sources. The Directorate of Communication, Quality and Promotion of Citizenship and the Sub-Directorate of Publications and Documentation under the Directorate of Legislation, Litigation and Documentation are responsible for the development, publication and communication of tax documents. By decree of November 2016, the sub-directorate for the promotion of tax citizenship, responsible for the promotion of tax citizenship. Customer users are informed of their main rights and obligations through several media: seminars, reform presentation forums, information campaigns, awareness caravans, press articles, radio and television broadcasts, school training in primary 23 and repeater, etc.). Actions taken concern all taxpayers and specific groups (e.g. creation of approved management centers for small and medium-sized businesses, leaflets for informal sector service providers, etc.) |
| P3-8-2 | AFR | A | Repeat | 2019 | English | Classified A because good practices were detected. The documentation and information made available to users/customers are regularly and systematically updated. regularly and systematically updated. There are procedural manuals for this purpose, such as procedures for making legislation and services available, designing texts and documents and preparing tax annexes. Taxpayers are kept informed of changes in law or administrative policy before their effective date through targeted communications (e.g., training meetings for taxpayers, presentation of new tax guidelines to the private sector, etc. .) and general communications (press articles, press releases, etc.). |
| P3-8-3 | AFR | A | Repeat | 2019 | English | Rated A because good practices were detected. The information made available to user-clients is easy to access. The tax administration website is widely used to disseminate information and carry out certain tax procedures. The general tax code, the calendar of tax obligations, the tax doctrine, the printed documents, can be consulted online. The information is available at little or no cost. |
| P3-9 | AFR | A | Repeat | 2019 | English | Rated A because good practices were detected. Maximum wait times associated with call center telephone inquiries are monitored and on average 86% of calls are answered within a maximum 6 minute wait time between October 2020 and September 2021. The tax administration responds quickly to customer calls thanks to a dedicated call center. The tax administration is committed to respecting the service delivery standards documented in the Tax Administration Quality Charter available online, with performance evaluation reports carried out against the standards and published in the tax administration reports. activity. The tax administration's quality charter defines response times for each type of service. In particular, the response to letters must be made within one month to |
| P3-8-1 | WHD | A | Repeat | 2019 | English | Score A because good practice was detected. The Tax Authority provides the public with comprehensive information on the obligations and rights of taxpayers and meets the needs of different segments of taxpayers. The Tax Authority Portal allows you to consult current legislation and its recent changes, as well as providing taxpayers with access to services to fulfill their obligations online, such as registration, change of registration, payment of taxes, consultation of documents, declarations and processes. The information is adapted for different segments, such as small businesses, rural producers, accounting companies, with access to the Virtual Taxpayer Service Center via password or digital certificate. Explanatory videos are produced about rights and duties aimed at small taxpayers in order to facilitate understanding of the content. |
| P3-8-3 | WHD | A | Repeat | 2019 | English | Score A because good practice was detected. A wide range of information is available to taxpayers at no cost. For example, taxpayer education programs are available through tax clinics, roadshows and different service channels. The latter include the Tax Authority website, brochures, information leaflets, TV clips and radio jingles, and WhatsApp clips and text messages. The information is also available (at any time) through TaxOnline II and mobile applications. The service stations and call center are also available for taxpayers to use. |
| P6-20 | EUR | A | First | 2019 | English | Scored A because good practice was detected in;There is high coverage of automated information cross-checking. Tax Administration extensively uses third party information received from employers, banks, public agencies and others. This information is automatically cross-checked, used in making tax assessment and prepopulating tax returns for all PIT taxpayers. In 2013, Tax Administration received 58.4 million pieces of third party information. |
| P6-22 | WHD | A | First | 2015 | English | Score A because a good practice was detected. Studies are carried out annually on the scope of inaccurate declarations of both VAT and ISR. The Tax Authority makes periodic estimates of the VAT gap. In 2015, the IMF was asked to estimate the VAT gap using the Tax Administration Gap Analysis. The internal studies of the Tax Administration from 2007 to 2013 show consistency with the results of the RA GAP study and confirm that the methodology used is solid. The results are made public and used to improve reporting accuracy. |
| P6-19-1 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; Audit programs of the tax administration are comprehensive and effective. There are two audit programs, one for the Large Taxpayer Department, and one for the Medium and Small Taxpayer Department. They cover all core taxes, key taxpayer segments, and highrisk areas. Cases are selected centrally by the Tax Risk Management Unit based on 36 assessed risks in the compliance risk register. A range of audit types together with direct and indirect methods are used and results of audits are evaluated to assess impact |
| P6-20 | EUR | A | First | 2019 | English | Scored A because a good practice was detected. Information cross-checks are constantly carried out between available data and information obtained at the request or supply of third parties. Mass automated cross-checks are carried out to verify the accuracy of the declared amounts. Among the entities can be mentioned Banks, Stock Market, Internet providers and with respect to the government organizations included in the crossings, Social Security, Customs, Commercial Registry and Property Registry among others. Mass automated cross-checks are carried out to verify the accuracy of the declared amounts. Among the entities can be mentioned Banks, Stock Market, Internet providers and with respect to the government organizations included in the crossings, Social Security, Customs, Commercial Registry and Property Registry among others. |
| P6-21 | EUR | A | First | 2019 | English | Scored A because a good practice was detected. The Tax Authority has a system of binding public and private rulings and different cooperative compliance agreements have been signed. The Tax Authority has a system of binding queries carried out by the Tax DG, which includes the publication of responses to queries made by taxpayers. Consultations can refer to any tax and affect natural or legal persons. The doctrine of the Economic Administrative Courts is also published. In addition to binding queries, there is a repository of queries classified by tax subject, which, although not strictly binding, relieve you of tax obligation. Likewise, and as a preventive measure, Preliminary Valuation Agreements are established regarding transfer prices and distribution of costs or benefits. With a collaborative approach, and in order to manage the risks of inaccurate information and reinforce legal certainty in the interpretation of tax regulations, actions such as the constitution of a Large Companies Forum, Code of Good Tax Practices, Social Collaboration, Networks Social and Advisory Forums have been held. |
| P6-19-3 | WHD | A | First | 2019 | English | Scored A because a good practice was detected. A unit at a central level monitors and quality controls the actions following a standardized procedure and issuing reports regularly. Dependent on the Supervision Directorate, there is a unit -Subdirectorate of Control of Inspection Processes- which is responsible for evaluating the performance of the inspection bodies and the quality and productivity of the actions, defining performance indicators. The officials of this unit regularly visit the supervisory bodies, take note of the most relevant facts of the case, the risks established by the officials in charge of the analysis or supervision, and make recommendations on the actions to be adopted in the course of the investigation. process. There are action manuals that standardize this activity and evidence of “minutes” or reports of the monitoring carried out is provided. |
| P6-20 | WHD | A | First | 2019 | English | Score A because a good practice was detected. The tax administration carries out automatic data crossing on a large scale based on the information provided in the system's declarations. Cross-checking data with information from employers, stock exchanges, social security agencies and real estate registries is not applicable as the system has the characteristics of VAT. Automated data crossings cover all electronic tax documentation that has the taxpayer as the sender or recipient of goods or services, and verify the declared data with information from financial institutions, such as credit card operators, customs, commercial boards, free zones, online suppliers, among others. All tax documents issued by taxpayers are electronic, which allows the structuring of tax networks for systematic data verification and validation of tax credits and debts, in addition to contributing to the analysis of refund requests from the system |
| P6-19-2 | WHD | A | First | 2019 | English | Score A because a good practice was detected. There are several manuals – general and specific – that guide and define the procedures to be carried out by auditors during the execution of an inspection, which meet the minimum requirements required by TADAT. The Inspection Procedures manual guides auditors regarding the execution of inspection procedures. The Audit Manual is permanently updated. It is divided into Titles, Sections and Chapters, each covering the inspection and audit procedures to be adopted at each stage, including guidance on subpoenas and the documents that must be analyzed and requested. The reasons are included legal and binding administrative and judicial jurisprudence. The TADAT team verified that the The inspection manual defines, among other aspects, procedures for i) planning audit cases (roadmap), ii) communicating to the taxpayer the scope and nature of the inspection, iii) examining the taxpayer's documentation and records, iv) presenting to the taxpayer the results of the audit and possible infraction notices, and v) inform the taxpayer about the defense mechanisms available to them. It should be noted that national legislation does not provide for mechanisms to agree/reconcile the results of an external audit with the taxpayer. For now, it is worth noting that auditors do not waste time preparing dossiers with the profile of the taxpayer to be audited, since these are provided directly by case programming. Regarding the management of inspection case documentation (notifications, working papers, files, etc.), it should be mentioned that it is fully automated through the Tax Action System. Finally, the existence of more specific manuals or guides imposed by other entities was found, selective taxes on consumption, VAT, Cide Combustíveis, Cide Remittances Abroad), due to fiscal risk (Exchange Regularization, Fraudulent Interposition, Destruction of Goods, Money Laundering , Corporate Reorganization, Abusive Tax Planning), by economic sector (Real Estate Activities, Beverages, Cigarettes and VISE - Comprehensive View of the Economic Sector and by taxpayer segment (economic groups, family groups, immune and exempt institutions, exporting companies) |
| P6-19-3 | WHD | A | First | 2019 | English | Score A For having detected a good practice. In addition to being monitored by those responsible for inspection, the quality control of the inspection is routinely monitored by the General Coordination of Internal Audit and Risk Management (AUDIT), in accordance with previously approved revised procedures. Their findings are duly communicated to the units and have an impact on improving the quality of audits. in addition to the quality analysis carried out by two national bodies in the at regional level, and by the Head of the Police Inspection Service, and at local level, the AUDIT internal audit teams routinely verify that external audits and credit rights analysis audits (refund, compensation and reimbursement) follow established procedures. In their audit work, AUDIT teams follow the procedures established in the Internal Audit Manual. Among others, there are terms prepared by the Tax Auditors, as well as all the documents contained in the inspection and notice of infraction (process for establishing tax credits). The results are reported, through specific individual reports28, to managers, regional or local authorities of Police Stations, Heads of Inspection Division of the Superintendencies of each Fiscal Region), process managers, National Inspectors and Undersecretary of Collection, Registration and Service, in the case of credit rights analysis audits. At the end of the year, these findings are referred to in the Annual Internal Audit Activity Report. compiled evidence of actions taken as a result of internal audit findings. |
| P6-20 | WHD | A | First | 2019 | English | Score A for having detected a good practice. The Tax Authority has great capacity to automatically check large volumes of data from internal and external sources to check for inaccuracies in key tax returns. The legislation gives the Tax Authority broad powers to establish information obligations. Furthermore, the Tax Authority reuses information made available by government agencies at all levels of government and shares the information with other jurisdictions. In this regard, it routinely captures: - VAT data from Digital Tax Bookkeeping for Contributions - information from financial institutions, stock exchanges and/or shareholder registers of companies listed on the stock exchange through the e-Financeira ancillary obligation, - information provided by employers through the ancillary obligation (Declaration of Income Tax Withheld at Source), in addition to the information provided by employers who fulfill their labor, social security and tax obligations through the Digital Bookkeeping System for Tax and Social Security Obligations and Work and the Time and Attendance Guarantee Fund Collection Guide and Social Security Information and the information provided in the Declaration of income paid to Consultants by International Organizations, - government purchases through a cooperation agreement with the Secretariat of National Treasury to access system data (integrated information from the Motor Vehicles Registry, - information from the Financial Information Unit, - data from the main payment service providers, in addition to data on transactions using credit cards, Statement of Credit Card Transactions) credit), - information on transactions with cryptographic currencies, such as bitcoin, and The Tax Authority has a Data Lake solution, Revenue Data, which allows agile processing of large volumes of data and has the main tools and technologies for analyzing used on the market. It also has an internally developed tool for data crossing. All crossing rules are contained in the selection and programming manuals managed by a separate unit. The TADAT team was able to verify the functioning of the crossing rules responsible for the notary, registration of real estate and titles and documents, through the declaration of ancillary obligation on the Financial Administration of Real Estate Operations of the Federal Government), - data from Foreign Trade systems administered by the Tax Authority, - accounting data from States and Municipalities through cooperation agreements, - information from electronic invoices from the State Secretariats through cooperation agreements, - data on the acquisition or sale of real estate registered by bailiffs |
| P6-19-2 | WHD | A | First | 2019 | English | Scored A because a good practice was detected. The standardization of audit procedures follows good international practices. There are several manuals – general and specific – that offer guidelines and definition of audit procedures. The Official Determinations Procedure Manual (June 2019) and Expanded Control Instruction (December 2019) have standardized audit procedures in the directorates of large taxpayers, and the regional and departmental directorates at the national level. Among other elements, these documents establish guidelines for the following stages of the process: action planning; analysis of the taxpayer profile; scope of the review, including criteria for its extension, suspension and extension; issuance of audit plans and working papers; communication protocols to the audited taxpayer about rights and dispute resolution procedures; and procedures to follow for the discussion of adjustments and the proposal for liquidation and regularization. Regarding document management (orders of performance, work papers, files, etc.), it is necessary to point out that this is standardized and automated through the Tax Audit System. Finally, the existence of action or instruction guides by economic sectors (telecommunications, |
| P6-19-3 | WHD | A | Repeat | 2019 | English | Scored A because good practice was detected in;The Quality Review Unit regularly reviews completed audits for quality and issues reports on the findings, which are taken into account to improve audit program delivery. Under the Operations Division, the Quality Review Unit follows a structured work plan and adheres to SOPs. It issues checklists, reports and scoring (satisfactory& above, improvement needed or unsatisfactory), which are used to assess the quality of the audits. Results are presented in senior management meetings to standardize and monitor the audit process, develop audit training, and support future audit work plans. |
| P6-20 | WHD | A | First | 2019 | English | Score A because a good practice was detected in, The tax administration performs the automatic cross-checking on a large scale of the information provided in the system declarations. Cross-checking data with information from employers, stock exchanges, social security agencies and real estate registries are not applicable as the system has the characteristics of VAT. Coverage of automated data crossings all electronic tax documentation in which the taxpayer appears as the sender or recipient of goods or services, and verify the declared data with information from financial institutions, such as credit card operators, customs, commercial boards, free zones, online sellers from other states and State Department of Transit. All tax documents issued by taxpayers are electronic, which allows the structuring of tax networks for systematic data verification and validation of tax values, in addition to contributing to the analysis of refund requests from the system. |
| P6-19-2 | APD | A | First | 2019 | English | Scored A because good practice was detected in; The Tax Administration has a tax audit manual prepared by the System Deployment Unit and audit process regulations. The manual provides extensive details on how to prepare, conduct, and close an audit from the systems perspective. There are a number of sector speciality audit guides including the construction sector, trucking, mining, real estate, wholesale and retail, restaurants, e-commerce, and the motor vehicle trade. In addition, the process regulations include calculation sheets, multiple templates, interview notes, and details for excisable products like alcohol and tobacco. There are clearly detailed steps for an auditor to follow once the audit case has been assigned to them.Screenshots were provided from the audit module. This includes an audit plan, a declaration of no conflict of interest, electronic approval of the audit plan, a place for daily notes, and preparation, execution, and completion phases of the audit. |
| P6-19-2 | EUR | A | Repeat | 2019 | English | Scored A because good practice was detected in; Auditors are required to follow the tax administration audit manual that lays out the appropriate steps to conduct an audit that meets tax administration’s quality standards. The audit manual is detailed in its explanations of the steps needed to be followed once a case is assigned including preparing an audit plan, creating a taxpayer profile, engaging the taxpayer, examining records, advising taxpayers of the findings, and informing taxpayers of their appeal rights. The manual provides a comprehensive overview of audit methodologies, techniques, and procedures. There are also a number of special manuals detailing audit steps for economic sectors – audit manuals exist for VAT in the construction industry, the road freight industry and agriculture. The Tax Administration has also establsihed an audit standards document that summarizes key steps and approaches in completing the audit, including informing taxpayers of dispute resolution procedures. |
| P6-19-3 | APD | A | First | 2019 | English | Scored A because good practice was detected in; Audit quality is maintained through a peer review process, followed by approval by an audit committee. The peer-review process evaluates a percentage of files prior to completion to ensure quality standards have been met. The manager of the audit department also reviews each file as part of the completion process. The final step in the approval process is a review by the audit committee which is comprised of the heads of the audit department and other senior staff. A standard checklist is used. The Audit Committee documents its findings in meeting minutes, which include instructions to auditors where additional work is required. The overall findings from the audit committee reviews are used to identify training needs, which are then incorporated into the training plan for auditors. |
| P5-15 | AFR | A | First | 2019 | English | Scored A because good practice was detected in;Taxpayers make extensive use of electronic filing and payment facilities. Electronic filing and payment facilities are available for all core taxes. More than 96 percent of returns overall are filed electronically (2013 figures). The e-filing rates for the core taxes are: PIT (99.7 percent), CIT (95 percent), VAT (95 percent) and PAYE withholding (97.5 percent). Similar rates apply to electronic payments where 96 percent of payments overall are made using e-payment facilities. |
| P5-16 | AFR | A | First | 2019 | English | Scored A because good practice was detected in; Withholding arrangements are in place and there is systematic use of a variety of third party information sources. Withholding at source exists for employment income and dividends paid by public companies to resident taxpayers. Withholding reduces the ability of taxpayers to understate income, reduces the incidence of unpaid taxes, is cost efficient, and ensures a steady flow of tax revenue to government. |
| P5-17-1 | AFR | A | First | 2019 | English | Scored A because good practice was detected in; A high percentage of VAT is paid on time. Around 81 percent of the number of VAT payments due are received on time (2013 figures). A major contributor to performance is the use of e-payment facilities. |
| P5-17-2 | AFR | A | First | 2019 | English | Scored A because good practice was detected in; A high percentage of VAT is paid on time. Around 95 percent of the value of total VAT payments due is paid on time of the number of VAT payments due are received on time (2013 figures). A major contributor to performance is the use of e-payment facilitie |
| P5-17-1 | WHD | A | First | 2019 | English | Scored A because good practice was detected in;A high percentage of VAT is paid on time. Some 87 percent of the number of VAT payments due are received on time (2013 figures). A major contributor to performance is the established withholding mechanisms (Sistema de Retenciones), which assures 48 percent of total VAT collections administered by the Tax Administration. |
| P5-17-2 | WHD | A | First | 2019 | English | Scored A because good practice was detected in;A high percentage of VAT is paid on time. Around 94 percent of the value of total VAT payments due is paid on time. A major contributor to performance is the established withholding mechanisms (Sistema de Retenciones), which assures 48 percent of total VAT collections administered by the tax administration. |
| P5-18-1 | EUR | A | First | 2019 | English | Scored A because good practice was detected in; Arrears management is sound. On average, the end-year stock of arrears was equivalent to 6 percent of annual tax collection for the 2011-13 review period. Collectable tax arrears represented 5.8 percent of annual collections, on average for the same period. |
| P5-18-1 | APD | A | First | 2015 | English | Scored A because good practice was detected in; The level of tax arrears is very low, indicating sound debt management practices. Arrears data shows that on average the year-end stock of arrears was equivalent to 3.2 percent of annual tax collections during the 3-year period 2012– 14. ‘Collectible’ tax arrears represented less than one percent of annual collections, on average, for the same period. |
| P5-18-2 | APD | A | First | 2015 | English | Scored A because good practice was detected in; Old debts account for a large proportion of total tax arrears. Data shows that 75.8 percent, on average, of total year-end arrears during the 3-year period 2012–14 was more than a year old. While high, this needs to be viewed in a context that the debt inventory is low overall. |
| P5-18-1 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; The level of tax arrears is relatively low compared to core taxes collected. According to the data provided, the value of core tax arrears represents only 5.03 percent of average annual collections for the period 2012-2014. Similarly, the value of collectible core tax arrears is equal to 2.96 percent of annual collections (average for 2012-2014). |
| P5-18-2 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; Old debts represent a large portion of total debts and the number of tax arrears is increasing significantly. The data provided indicates that taxes more than 23 months past due represent nearly 85 percent of total taxes past due (average of 84.66 percent for the period 2012-2014). In addition, the average of tax arrears in the years 2012-2104 (143.85 percent) shown indicates significant growth. |
| P5-18-2 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; Arrears management is satisfactory. An analysis of the data provided shows that total arrears represent 13.2 percent, 10.4 percent and 7.2 percent of the amount of tax revenues collected by the DGI in 2012, 2013 and 2014 respectively. With respect to collectible arrears, this proportion is 4.2 percent, 3.1 percent and 1.7 percent for the same periods. |
| P5-18-2 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; Similarly, the value of collectible core tax arrears is equal to 4.4 percent of annual collections (average for 2012-2014). |
| P5-18-1 | APD | A | First | 2015 | English | Scored A because good practice was detected in; The total value of tax arrears is low, and has trended downwards over the past three years. The three-year average ratio of total core tax arrears to total core tax collections stands at 8.4 percent for the period 2012 – 14. |
| P5-18-2 | APD | A | First | 2015 | English | Scored A because good practice was detected in; The value of collectable core tax arrears relative to total core tax collections has also fallen over the three-year period. The ratio has progressively reduced from 6.1 percent in 2012, 3.0 percent in 2013 and 3.9 in 2014. |
| P5-18-1 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; The 3 year average of the value of total tax arrears at fiscal year-end in percent of total tax revenue collections for the fiscal year is 5.6 percent. For 2012/2013, the value of total tax arrears at fiscal year-end (187.4 million) in percent of total tax revenue collections for the fiscal year (5,182.7 million) is 3.6 percent. For 2013/2014, the value of total tax arrears at fiscal year-end ( 314.2 million) in percent of total tax revenue collections for the fiscal year (5,940.5 million) is 5.3 percent. For 2014/2015, the value of total tax arrears at fiscal year-end (564.1 million) in percent of total tax revenue collections for the fiscal year ( 7,184.7 million) is 7.9 percent. |
| P5-18-2 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; The 3-year average of the value of collectible tax arrears at fiscal year-end in percent of total tax revenue collections for the fiscal year is 3.7 percent. For 2012/2013, the value of collectible tax arrears at fiscal year-end ( 131.6 billion) in percent of total tax revenue collections for the fiscal year ( 5,182.7 million) is 2.5 percent. For 2013/2014, the value of collectible tax arrears at fiscal year-end (227.1 million) in percent of total tax revenue collections for the fiscal year (5,940.5 million) is 3.8 percent. For 2014/2015, the value of collectible tax arrears at fiscal year-end (341.5 million) in percent of total tax revenue collections for the fiscal year ( 7,184.7 million) is 4.8 percent. |
| P5-15 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; All taxes are paid electronically. The tax administration does not receive any cash payments at the tax offices. All payments cash or otherwise, are made at commercial banks that later transfer the funds to revenue accounts at the Central Bank using the IT System. There are two modes of payments: Manual/Automated and fully automated. |
| P5-16 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; Income taxes are collected through withholding at source and advance payment arrangements. PAYE, taxes on rental income, interest on bank accounts, management fees, royalties and dividends are paid on a withholding basis, while corporate and personal income taxes not subject to withholding including presumptive taxes are paid quarterly in advance subject to final returns at the end of the financial year. |
| P5-17-2 | MCD | A | First | 2015 | English | Scored A because good practice was detected in; The value of Sales Tax payments made on time is high. For Sales Tax returns on-time Sales Tax payments for 2014 by value is 91.3 percent |
| P5-15 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; All core tax payments are made through a bank and are then electronically transferred to prescribed public revenue payment accounts. Under the Law on Tax Procedure and Tax Administration, all core tax payments must be made through the commercial banking system which in turn electronically transfers the payments to the government’s accounts. The payment instruction to the bank must specify the prescribed Treasury account into which the tax payment should be made. The Treasury electronically transfers to Tax Adminstration on a daily basis, the data on transactions in the specified public revenue accounts. |
| P5-16 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; A strong framework of withholding at source and advance payment systems is in place. PIT on salary and wages is withheld by employers and interest on foreign currency bank accounts is withheld by banks. Tax is also withheld from dividends paid to natural persons (PIT). In all cases it is a final withholding. Dividends paid to companies are reported to the tax administration by payers for CIT purposes. Advance payment schemes apply for PIT payable by unincorporated businesses, and for CIT payable by companies, with the advance payments based on prior year income. While there is no mandatory reporting of interest paid on local currency accounts, interest-income earned on such accounts is not taxable. |
| P5-15 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; Payment of all tax liabilities via the banking system is mandated and payments are electronically transferred to the Treasury. Electronic payments account for 100 percent of the value of VAT, PAYE, CIT, and PIT collections. It is not possible to make any tax payment other than via the banking system. |
| P5-16 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; Withholding and advance payment regimes are in place for PIT and CIT. Withholding at source is in place for all employment income. Legal entities subject to CIT are required to make advance payments on a monthly basis. Advance PIT payments are required for a range of income sources including income from self-employment, capital, royalties, various forms of property rights, and capital gains. In the interest of Tax Administration efficiency, advance PIT payments are not required to be made by farmers subject to the simplified PIT regime since the annual amounts payable by these farmers are often small. PIT payable by farmers under the simplified regime is limited to two percent of the difference between total turnover and 300,000. Withholding tax is collected on a range of income payments. Article 21 of the PIT law prescribes a list of payments that a legal entity may make that are subject to withholding including dividends, royalties, various consulting fees, and rents from real estate. Interest income paid by a company is, prima facie, subject to withholding. Nonetheless, withholding tax is not collected on most interest payments (including interest paid by the government, and banks and financial institutions) (Article 21(2)), because those payments are tax exempt. |
| P5-15 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; All core taxes are paid electronically. |
| P5-17-2 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; The on-time payment rate is high in respect of filed VAT declarations. According to data provided, 87 percent of payments (by number) and 91 percent (by value) were received on time. |
| P5-16 | APD | A | First | 2015 | English | Scored A because good practice was detected in; The country has a strong mechanism for withholding at source and advance payment systems. The decree guiding the law on personal income tax stipulates that all employment income and dividend income are subject to a withholding mechanism, except that interest income is tax-free. From discussions with local experts and professional firms, it was confirmed that this requirement is being complied with in practice. For business income such as CIT and PIT, businesses are required to file annually, but advance payments are made quarterly. |
| P5-17-2 | APD | A | First | 2015 | English | Scored A because good practice was detected in; A high percentage of VAT is paid on time. Around 96.2 percent of the value of total VAT payments due is paid on time, and some 88.3 percent of the number of VAT payments due are received on time (2015 figures). A major contributor to performance is the effort from GDT to effectively follow-up overdue payments. |
| P5-18-1 | APD | A | First | 2015 | English | Scored A because good practice was detected in; The total value of tax arrears is low, around nine percent of total core tax collection for the past three years. The three-year average ratio of total core tax arrears to total core tax collections stands at 9.3 percent for the period 2013 – 2015. The Tax Administration takes early action on overdue payments, including measure to declare invoices issued by businesses that have overdue payments for more than 120 days as invalid. |
| P5-16 | AFR | A | Repeat | 2015 | English | Scored A because good practice was detected in; Withholding at source is available for all employment income, dividends and interest. The tax act provides for mandatory reporting of dividend and interest income. Advance payment arrangements are clearly spelled out in the Income Tax Act. This qualifies the the Tax Administration for an ‘A’ rating. |
| P5-16 | EUR | A | First | 2015 | English | Scored A because good practice was detected in;Withholding at source is available for all employment income, dividends and interest. The tax act provides for mandatory reporting of dividend and interest income. Advance payment arrangements are clearly spelled out in the Income Tax Act. This qualifies the the Tax administration for an ‘A’ rating. |
| P5-16 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; There are both withholding at source and advance payment arrangements for income taxes in the country. Withholding at source is in place for interest, dividends, royalties, license fees, mineral rights, gaming winnings, payers of rent, payments of wages or salaries to employees (PAYE), services rendered, acquisition price, etc. Furthermore, advance payments are required on a quarterly basis by persons filing and paying corporate and personal income taxes. |
| P5-15 | APD | A | First | 2015 | English | Scored A because good practice was detected in; Taxes are paid only through the banking system, thus approaching a universal coverage of e-payments. As of 2015, the key methods for making payments are through the credit/debit cards, banking wires. In addition, there are also mobile payments mainly used by the individual entrepreneurs and individual PIT payers. It is not possible to pay taxes by cash except through a commercial bank. However, most business entities make direct payments from their bank accounts into the Treasury. |
| P5-16 | APD | A | First | 2015 | English | Scored A because good practice was detected in; The Republic has a strong withholding at source and CIT advance payment mechanisms. CIT and a regular tax regime for individual entrepreneurs have an advance payment mechanism as defined in the Tax Code – on the 20th day of the Repeat month after each quarter, the estimated CIT amount is paid alongside with the brief calculation form. After the end of the tax year, and not later than March 1, the full declaration is submitted reconciling advance payments with tax assessment (Tax Code). Withholding at source is used for salary income, dividends, and interest. Only tax on capital gains on real estate is the responsibility of a taxpayer and does not have a withholding mechanism. |
| P5-17-1 | APD | A | First | 2015 | English | Scored A because good practice was detected in; A high percentage of VAT is paid on time. Around 99.5 percent of the value of total VAT payments due is paid on time. 90 percent of the number of VAT payments are made on time as well. A major contributor to this performance is the Tax administration's effort to effectively follow-up overdue payments. |
| P5-17-2 | APD | A | First | 2015 | English | Scored A because good practice was detected in; A high percentage of VAT is paid on time. Around 99.5 percent of the value of total VAT payments due is paid on time. 90 percent of the number of VAT payments are made on time as well. A major contributor to this performance is the Tax Administration's effort to effectively follow-up overdue payments. |
| P5-18-1 | APD | A | First | 2015 | English | Scored A because good practice was detected in; The total value of core tax arrears is low, averaging 1.7 percent of total core tax collection during 2013-2015. Earlier there used to be no regular reporting on time profiling of tax arrears, but in the last few years, the IT system captures individual arrears at a great level of detail, including the exact date when it was created. In May-June 2016, the Tax Administration carried out an inventory of tax arrears by the taxpayer and plans to conduct such reviews regularly. The core tax arrears as a share of core tax collection stood at 2.1 per cent in 2013 and 1.6 per cent since 2014 showing a declining trend. The Tax Administration carries out ad hoc campaigns such as the “May 2016 Reduce Tax Arrears Campaign”. |
| P5-18-2 | APD | A | First | 2015 | English | Scored A because good practice was detected in; The value of collectable core tax arrears relative to total core tax collections has also fallen over the three-year period. The ratio has stood at 1.4 percent in 2013 and 1.0 percent since 2014. There is a procedure on writing off non-collectible arrears, however it does not result in ensuring that arrears are collected in a timely manner. |
| P5-15 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; All taxes are paid electronically. Electronic payment is available for all tax types and all taxpayer segments through all commercial banks in the country. Payments can also be made via bank wire transfers from any location. Banks are co-located in 30 percent of all domestic tax offices and are in close proximity to the others. Payment details are then forwarded—up to 5 days later—to the Tax Administration for updating of taxpayers account balances. |
| P5-16 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; Income taxes are collected through withholding at source and advance payment systems. Withholding at source arrangements exist for PAYE, interest income, dividend income and other types of income, for example, rental and royalties income. Advance payment arrangements are in place for CIT and PIT through quarterly installments and taxpayers can adjust their initial projection twice a year in the 4th and 10th month of the respective tax years. |
| P5-16 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; A strong framework of withholding at source and advance payments is in place. A final withholding system is applicable to income from employment, dividends and interest, as well as certain payments to nonresidents with respect to income from services, commissions and royalties. Advance payment systems apply to CIT and to PIT payable by authorized individuals (self-employed). Advance payments are due quarterly. There are special arrangements in place with respect to advance payments in the agriculture sector (two payments per year). |
| P5-17-1 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; Data provided by tax administration shows a healthy level of VAT payment compliance. VAT payments are made monthly, except for micro-enterprises that pay and file quarterly. Data provided shows that, during 2015, 93 percent of the number of payments due were received on time, and 82 percent of the of the value of VAT payments due was paid on time |
| P5-16 | AFR | A | First | 2015 | English | Rated A because good practice was detected. Withholding and installment systems are used for all taxes on wages and on profits and profits. In accordance with the provisions of the Tax Code, professional taxes on remuneration are withheld at source directly by the employer. Likewise, taxpayers reporting to the tax administration, the head offices Modeled and Modernized of the Provincial Tax Directorates, as well as the Tax Centers pay the payment of income tax by means of installments during the year of revenue realization at 35 to the tune of 80 percent. The first payment (40%) is paid before August 1st and the second payment (40%) before December 1st. The balance is paid at the time of filing of the corresponding declaration within four months of the end of the financial year, and no later than April 30. For small businesses, income tax is paid in two installments: 60 percent representing the deposit by January 31 of the year following that of the income earned and 40 percent as the balance by March 31 of the same |
| P5-18-1 | AFR | A | First | 2015 | English | Rated A because good practice was detected. The overall outstanding arrears as a percentage of total revenue collected is low, but |
| P5-18-2 | AFR | A | First | 2015 | English | Rated A because good practice was detected. The value of the total arrears of the main basic taxes at the end of |
| P5-16 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; The Tax administration uses efficient collection systems to ensure that taxes are either withheld at source or provisional/advances payments are made. Withholding at source is in place for all employment income, i.e., PAYE is withheld by employers and paid over to the Tax administration monthly. Withholdings at source are also used for all interest and dividend income. Tax on interest withheld is paid over to the Tax administration monthly while tax on dividends withheld is paid over at the time dividends are paid out. Provisional/advance payment arrangements are also well entrenched for all business income, i.e., CIT and PIT. For CIT, one advance payment per year must be made by a company equaling 50 percent of the tax paid or payable in the preceding tax year. For PIT, three advance payments per year must be made by an individual, each payment equaling 25 percent of the tax paid or payable in the preceding tax year. |
| P5-15 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; All payments of taxes are made electronically. Taxpayers use commercial banks to make payments of all core taxes to the Tax Administration. No funds are handled at any of the service centers. In line with the definition of electronic payments outlined in the TADAT methodology (i.e. it also includes payments made by taxpayers to a third party, such as a bank, who then electronically transfers such funds to the Treasury account), information reflects that all payments are received electronically. Taxpayers who have access to online banking use such facilities through their banks to make their payments without the need to visit a bank. Future plans include enabling the payment of taxes through the Tax Administration filing portal and creating a single taxpayer account for all taxes that will allow taxpayers to make payment to only one account irrespective of which tax they are paying. |
| P5-16 | EUR | A | First | 2015 | English | Scored A because good practice was detected in;Withholding at source and advanced payment arrangements are in place and used by taxpayers. Articles 19 and 47 of the PIT and CIT legislations, respectively, make provisions for advanced payments. Employers withhold employee taxes and file declarations to the tax administration. Banks withhold tax on interest income to individuals and this is paid directly to the tax administration. Dividends that accrue to individuals are currently not subject to income tax. |
| P5-15 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; All taxes are paid electronically to tax administration. The tax administration does not receive any cash at its offices. Several electronic payment methods are available to taxpayers including electronic funds transfers, mobile phone payments, as well as via banks. A different Payment Reference Number (PRN) is required for each tax type to be paid, but multiple periods can be paid using a single PRN. A PRN expires after 30 days. |
| P5-16 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; Income taxes are collected through withholding at source and advance payment arrangements. PAYE, dividends, interest income and royalties are paid by way of withholding. Advance payment arrangements are applicable to corporation tax, turnover tax and tax arising from business income of individuals (except those whose final tax liability is below 40,000) and commercial vehicles. The installments are based on an estimated liability and paid quarterly in advance. |
| P5-15 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; ll core taxes are paid electronically above 80 percent. |
| P5-16 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; Sound use is made of withholding and advance payment systems including third party reporting. There is monthly withholding of PIT at source for employment income. Sole proprietors and independent professionals pay PIT through an advance payment system on a quarterly basis (50 percent of tax due on previous fiscal year in June, 30 percent in September, 20 percent in December, and balance due or credit request on March of the following year). Corporations pay CIT through a monthly advance payment system. The amount is the larger of 1.5 percent of sales of previous month or 1/12 of the tax assessed in the previous fiscal year. Besides this, there is an advance on the Tax on Assets twice a year— this is a minimum corporation tax assessed on fiscal value of total assets of the firm at a 1 percent rate. Additionally, the country has a semi-dual income tax system where all income from capital is subject to a 10 percent final withholding. It applies on all dividend and interest income as well as on royalties, capital gains, and other passive income earned. 30 Finally, the law requires mandatory automatic reporting of information by LG205n financial institutions and all businesses, including withholding on all capital income—this is considered to be good modern tax administration practice. |
| P5-17-2 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; The on-time payment rate is low in number but high in value of VAT payments. About 65 percent of payments (by number) and 93 percent (by value) were received on time. |
| P5-18-3 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; The stock of arrears more than 12 months old has doubled since 2013 but the threeyear average is 24 percent. For the period 2013 - 2015 the values of core tax arrears more than 12 months old as a percentage of all core tax arrears were 12.8 percent, 31.1 percent and 28.1 percent respectively. |
| P5-16 | MCD | A | First | 2015 | English | Scored A because good practice was detected in;The Tax Administration has a comprehensive withholding and advance payment system that meets international good practice. Withholding tax for PIT is in place for employment income and major employers are compliant with the requirements. Advance payment of CIT and PIT for business income is required and enforced. Withholding is also in place for dividend and interest income. Under the current VAT Act, an ‘account current’ is required with sufficient funding for advance payment of VAT on goods. For VAT on services, payment is required prior to filing. |
| P5-15 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; All core taxes are paid electronically. |
| P5-16 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; Sound use is made of withholding of employment income, interest and dividends, and advance payment systems. There is withholding of PIT at source for employment income. Corporations and entrepreneurs pay income tax (CIT and PIT) through an advance payment system. Withholding (5%) and mandatory reporting applies to interest and dividend. This data is used to pre-fill tax returns, a modern application for tax administration. |
| P5-16 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; Income taxes are collected through withholding at source and advance payment systems. Withholding at source arrangements exist for employment, interest and dividend incomes. Advance payment arrangements are in place to collect income tax from all businesses through quarterly installments. |
| P5-16 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; There are withholding and advance payment systems for all core taxes. Tax due by employees of the public and private sectors is withheld at source by the employer for each payment of more than $6200, and paid no later than the 15th of the following month. Tax due on income from movable capital is withheld at source by the person making the payment of such income, and paid within 15 days following the date of payment of that income. Revenues from dividends paid by public companies to resident taxpayers are subject to the withholding tax even when these public companies are exempt from corporate income tax. In addition, advance payment plans exist and are used to collect tax on the income of companies in the year where the said income is earned. |
| P5-16 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; Withholding at source and advance payment arrangements are in place. The Income Tax Act mandates withholding at source for all employment, interest and dividend income, and other income like rent and royalties. Advance payment arrangements are also in place to collect income tax from businesses on a quarterly basis. |
| P5-16 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; The Tax Administration makes good use of withholding in respect of employment income and advance payment systems for self-employed persons and corporate entities. PAYE is deducted by employers from income earned by employees and paid over to the Tax Administration monthly. Self-employed persons utilize the “Current Payment System” (CPS) to make three advance payments during the year. The same is true for corporate entities but under the “Advance Payment System” (APS). Both local dividends and local interest are not subject to income tax in the country. Nevertheless, reporting arrangements are in place for dividend and interest income and this information is gathered electronically from third-party sources by the Tax Administration. |
| P5-17-2 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; The the rate for VAT on-time payments by value is at nearly 95 percent. This meets expectations relative to international good practice. By value, most VAT is paid on-time, and this is very important from an administrative perspective. |
| P5-16 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; Withholding at source and advance payment arrangements are used to collect income taxes. PAYE, taxes on interest and dividends for non-residents, are paid on a withholding basis, while corporate and personal income taxes not subject to withholding taxes are paid quarterly in advance subject to final returns at the end of the financial year. |
| P5-15 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; Electronic payments account for 100 percent of the value of total collection for basic taxes in the last three fiscal years, a result that exceeds international good practice. A few years ago, the electronic system "Declaraguate" has been implemented throughout the country. Declarations20 and all payments have to be processed by this system which accepts electronic payments exclusively. To support this process, Tax Administration has signed agreements with 15 private banks that guarantee coverage throughout the country. In some locations the banks maintain an office at the Tax Administration. Details can be found in Table 9 of Annex III. . |
| P5-16 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; There is a system of withholding taxes covering employment income and interest and dividend income, as well as advance payment schemes for all corporate income. As stipulated in the Income Tax Law employers withhold, declare and pay monthly income tax on their employees' income. Income from movable capital is also subject to a withholding tax regime. Companies, whether natural or legal persons, make quarterly advance payments against their annual income tax. Companies that have enrolled in the Optional Simplified Regime have to settle monthly. |
| P5-17-2 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; During 2016, the most recent closed fiscal year, the amount of VAT payments made within the deadline accounted for 66.5 per cent of the due payments. At the same time, the total value of VAT payments made within the deadline has been 91.2 percent of the value due. These calculations were based on the data. Figures have been included for the small taxpayer regime regulated by the VAT law. It should also be borne in mind that the Tax Administration's interpretation of the legislation does not allow declarations without payment, which may influence the data used as the basis for the indicator. |
| P5-15 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; All core taxes are paid electronically. A Ministerial Order requires that all national taxes must be paid to the treasury by electronic bank transfer. |
| P5-16 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; Voluntary on-time payment is facilitated through a widespread and robust use of withholding at source. In common with most jurisdictions, the law requires the deduction of PIT and Social Security from wages and salaries. This requirement is supplemented by an early annual reporting requirement of all employee details by employers (January 25th), and a software application that identifies multiple employments that may give rise to additional PIT liability. The system prefills tax declarations for the affected employees, and reminds them to file by April 30th. In addition, dividends carry a final withholding tax of 6 percent, while interest income is taxed at 15 percent (not a final tax) except for interest on bank deposits, corporate bonds, and state securities – which are exempt. Income from renting movable or immovable property (except for agricultural land) is subject to a final withholding of 10 percent. Advance payment arrangements apply to the payment of PIT and CIT. All business profits taxes are required to be paid in advance by monthly instalments, apart from the regime for small taxpayers who are required to make one annual payment by March 25th. |
| P5-17-2 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; The on-time value of VAT payments is high, but the number of timely VAT payments is significantly lower. As shown in the data, only 72.3 percent of payments by number were received on time, but these payments comprised 94.6 percent by value. These figures suggest high compliance by the largest VAT payers, but much lower compliance by small and medium-sized VAT payers. |
| P5-18-2 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; The stock of tax arrears is mostly uncollectible debt. Based on data provided by tax administration as shown in data provided, total accumulated core tax arrears at the end of 2016 amounted to 13.7 percent of annual tax collections, and averaged 14.6 percent for the last 3 years, of which only about a quarter tax administration has determined is collectible. The figures show that collectible debt has been reducing, averaging 4.97 percent for the last 3 years, just under the 5 percent ceiling for an A score. |
| P5-15 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; All taxes are paid electronically. In the period from 2014 - 2016, the core tax (ICMS), as well as all other taxes, were paid electronically. |
| P5-16 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; An advance payment system is used, and there is ‘reverse charge’ withholding at source for specific cases. Both systems ensure that the Public Treasury prepaid: (i) the advance tax, which includes the estimate made by the taxpayer of the tax that would be due when the taxing event occurs; and (ii) the reverse charge, representing a withholding made by a link in the value-addition chain of certain goods and services in line with Complementary Law. |
| P5-16 | AFR | A | First | 2015 | English | Rated A because good practice was detected. There are withholding and advance payment schemes for income tax. basic data which demonstrate an effective collection system to limit the impact unpaid taxes. These measures are effectively implemented for the main taxes. The tax owed by employees is deducted at source by the employer with each payment and transferred no later than the 10th of the following month. Withholding tax also exists for interest and dividend income. |
| P5-16 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; The Tax Administration has a comprehensive withholding and advance payment system that meets international good practices. Withholding of tax at source is used for the payment of all employment income (ITS), dividends and interest. The advance payment system of the Tax Administration is regulated in law. |
| P5-15 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; All tax payments are transferred to the Treasury Single Account electronically. Taxpayers may make payments at commercial banks, which funds are then electronically transferred to a commercial bank using the electronic payment system. All payments require completion of a payment document specified by the commercial bank, which allows for payments to be accurately classified by TIN and tax type upon receipt, resulting in a high degree of accuracy in revenue classification. As reported in the data, 100 percent of payments for all core tax types are electronic. |
| P5-16 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; Withholding at source is in place for all employment, interest, and dividend income and advance payment arrangements are required for CIT and PIT. A flat tax is levied on employment income and it is mandatory for employers to remit PAYE during payroll processing. Similarly, financial institutions remit a flat tax on interest and dividends at the time of payment. As noted earlier, under this arrangement, individuals are not required to file income tax declarations or make additional tax payments unless they have other sources of income. CIT declarations and payments are required quarterly, while PIT taxes are remitted during each payroll cycle. |
| P5-17-2 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; VAT payments are received on time from large taxpayers, while some smaller taxpayers make late payments. As reported, 85.4 percent of payments are received on time, representing 99.1 percent of the total value of VAT due. Large taxpayers consistently comply with VAT filing requirements. The enforcement and penalty system applied by authorities is effective in ensuring on-time payment for almost all VAT revenues. |
| P5-18-1 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; The stock of core tax arrears is very low and old debts are limited. Core tax arrears at fiscal year-end represented 0.56 percent of total collections. |
| P5-18-2 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; Collectible core tax arrears represented 0.46 percent of total collections. |
| P5-18-3 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; Arrears older than 12 months represented approximately 18 percent of the stock of outstanding arrears. This indicates that most arrears are collected within less than one year, and authorities do not have a significant stock of old debt. Effective arrears management is the result of strong registries of taxpayer bank accounts and assets and procedures to request liquidation of insolvent businesses in a reasonable timeframe. |
| P5-15 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; A vast majority of payments of core taxes are made through banks or the post office and then electronically transferred to the tax administration Account. Each payment is made with reference to a number identifying the specific liability against which the payment is made. Data provided show that, for the three years 2015-2017, more than 85 percent of payments were made electronically for each of the core taxes. |
| P5-16 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; A strong legal framework of withholding at source and advance payment systems is in place: Withholding of tax is required at source for all employment income; Withholding of tax is required at source for interest and dividend income paid to resident legal entities; Final withholding of tax is required at source for interest, dividends and royalties paid to natural persons or non-resident legal entities; and Advance payment of tax (based on the prior year’s income) is required for business income for natural persons and legal entities. |
| P5-15 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; Electronic payments are mandatory for all core taxes and no other method of payment is allowed. As provided in the data, all tax payments were made electronically. Taxpayers can either make tax payment by going to their bank and requesting a bank transfer, or make an electronic payment from their home or office using apps or websites of the bank. |
| P5-16 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; Tax withholding at source and advance payment of taxes is widely available. Employers can withhold on salaries and wages, as can financial institutions on interest income and public companies on dividend. There is an advance payment regime to collect income taxes (CIT and PIT) from businesses within the year the relevant income is earned. As the assessment team found out, this is all covered by the country's Tax Code and is practised. |
| P5-17-1 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; A very high percent of VAT is paid on time. About 92.6 percent of the value of total VAT payment due is paid on time, and 90.1 percent of the total number of VAT payments are received on time. These 2017 figures are indicative of very high on-time payment. The high percent of VAT payment is partly explained by the fact that country uses an advance payment system for VAT, where taxpayers have to keep a running account from which VAT is paid, as and when it arises. |
| P5-17-2 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; A very high percent of VAT is paid on time. 92.6 percent of the value of total VAT payment due is paid on time, and 90.1 percent of the total number of VAT payments are received on time. These 2017 figures are indicative of very high on-time payment. The high percent of VAT payment is partly explained by the fact that the country uses an advance payment system for VAT, where taxpayers have to keep a running account from which VAT is paid as and when it arises. |
| P5-18-1 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; Arrears data shows that the end-of-the-year stock of arrears is under 9 percent of total annual tax collections in 2015, 2016 and 2017 |
| P5-18-2 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; During the same period, less than 1 percent of these arrears is considered to be collectible—the bulk of the uncollectible is older than 12 months. |
| P5-15 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; All core taxes are paid electronically. The Tax Administration has four online internet platforms that taxpayers can use to pay their taxes. Taxpayers can also use debit or credit cards to settle their tax liabilities. Taxpayers also have the option of paying directly through bank branches. Mobile payment applications are also being explored. |
| P5-16 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; Withholding at source and advance payment arrangements are used to collect income taxes. PAYE, and taxes on interest and dividends are paid on a withholding basis, while companies are required to pay, in one lump sum, provisional corporate income tax for the upcoming year of assessment not later than three months from commencement of each year of assessment. The provisional amount payable is equal to tax paid in the preceding year of assessment. |
| P5-16 | MCD | A | First | 2015 | English | Scored A because good practice was detected in; Withholding tax is very widely used. Employment income, interest and dividends are subject to it. A system of instalments calculated on the basis of the tax due for the previous year is in place for corporate tax and personal income tax. |
| P5-15 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; All VAT payments are made through banks to the tax administration Single Account. Under the Law on Indirect Taxation Procedure, all payments must be made through the commercial banking system or other electronic payment methods. VAT liabilities can also be satisfied by the application of carried forward VAT credits. |
| P5-17-1 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; The level of VAT payment compliance is high. Data provided show that 94 percent of VAT payments (by number) are received on time, According to the Law on the Indirect Taxation Procedure, VAT must be paid on the 10th day of the following month. Liabilities arising from audit assessments are due on the 15th day of the month following issuance of the final assessment. |
| P5-17-2 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; 95 percent of VAT payments (by value) are received on time. According to the Law on the Indirect Taxation Procedure, VAT must be paid on the 10th day of the following month. Liabilities arising from audit assessments are due on the 15th day of the month following issuance of the final notice. |
| P5-15 | MCD | A | First | 2015 | English | Scored A because good practice was detected in; Rates of electronic payment exceed 75 percent for the core taxes. Rates of electronic payment for CIT, PIT, VAT and PAYE were 98.4, 76.6, 99 and 98.6 percent respectively. Legislation requires that all core tax payments are made electronically. An exception to this rule is for audit assessment payments that may be paid in cash or by check in the Ministry of Finance offices for amounts less than $2,000. Most payments are made by the taxpayer through a third-party agent such as a bank, other payment operators or post offices. These are electronically transferred by the agent to the treasury accounts on the same day. |
| P5-17-1 | MCD | A | First | 2015 | English | Scored A because good practice was detected in; Payment performance indicates a clear focus by the tax administration on timely payment compliance and is high in relation to both the number and value of VAT payments. The number of VAT payments made by the statutory due date as a percentage of the total number of payments is 91.3 percent. |
| P5-17-2 | MCD | A | First | 2015 | English | Scored A because good practice was detected in; Payment performance indicates a clear focus by the tax administration on timely payment compliance and is high in relation to both the number and value of VAT payments. Amounts of VAT paid on or before the due date represent 90.5 percent of total payments. |
| P5-15 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; Virtually all payments in relation to core taxes are made electronically through the central bank and commercial banks. All The Tax Administration offices in the capital, have banking facilities located within their buildings and these are dedicated solely to taxpayer payments. Taxpayers outside the capital have to go to the nearest bank to make payments. In a few offices, particularly to the north of the country, taxpayers can pay their dues in cash at tax administration offices. Taxpayers are not able to use internet banking facilities to pay their dues at their convenience but Tax Administration staff indicated that discussions are ongoing with several banks to introduce mobile payment facilities, and one pilot is already underway with a telecommunications company. |
| P5-16 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; The tax administration uses withholdings and advance payment to support the collection of taxes. Employers are required to withhold taxes in respect of employment income, and employees are not required to file PIT declarations if they do not have any other income outside their employment. Banks and pension funds are required to withhold 15 percent and 30 percent of the interest earned respectively and pay it directly to the tax administration. Income from public tenders is subject to a withholding of 4 percent and before any payment is made; The tax administration has to be satisfied that the beneficiaries don’t have any outstanding tax debts. A withholding tax at the rate of 15% is also applied on dividend income but this does not apply to inter-company dividends. Advance payment systems are in place and they cover both PIT and CIT. Advance payment are due on 30 June, 30 September and 31 December. |
| P5-15 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; All payments of core taxes are made electronically. Payments may be made at banks or the post office and are then electronically transferred to the tax administration Account. Each payment is made with a reference number identifying the specific liability (by tax type and period) against which the payment is made. For each of the three years 2015 - 2017, 100 percent of payments were made electronically for each of the core taxes. |
| P5-16 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; A strong legal framework of withholding at source and advance payment systems is in place: • Withholding of tax by employers is required at source for all employment income; • Withholding of tax is required at source for interest and dividend income paid to both resident and non-resident natural persons and legal entities; and • Advance payment of tax (where the income tax liability on the prior year’s declaration is greater than €2,500) is required for business income for natural persons and legal entities. |
| P5-17-1 | EUR | A | First | 2015 | English | Scored A because good practice was detected in; Compliance levels for the timely payment of VAT are healthy. VAT payments are made either monthly or quarterly, depending on turnover in the previous year. Taxpayers with a turnover of less than €100,000 in the previous year can pay and file quarterly otherwise the obligation is to file a VAT declaration and make payments monthly. Close to 95 percent of the number of VAT payments due is received on time. |
| P5-15 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; All core taxes are paid electronically.The tax administration uses the Paydirect platform for the management of tax payments. The only mechanism available for payments is through the banks. Taxpayers can also use telegraphic transfers and debit or credit cards to settle their tax liabilities. |
| P5-15 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; All taxes are paid electronically. In the period from 2015 - 2017, the core tax , as well as all other taxes, were paid electronically. |
| P5-16 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; An advance payment system is used, and there is a “tax substitution” scheme which is a form of ‘reverse charge’ for specific types of tax transactions. These systems assure the Public Treasury of the country of prepaid taxes: (i) the advance tax, which includes the estimate made by the taxpayer of the tax that would be due when the taxing event occurs; and (ii) the reverse charge, representing a withholding made by a link in the value-addition chain of certain goods and services in line with Supplementary Law |
| P5-15 | EUR | A | Repeat | 2015 | English | Scored A because good practice was detected in; All payments of core taxes are made through a bank and are then electronically transferred to prescribed public revenue payment accounts. Under the Law on Tax Administration and Procedures, all payments must be made through the commercial banking system. The payment instruction generated by the Tax Administration system specifies the prescribed Treasury account into which a tax payment should be made. Daily, the Treasury electronically transfers payment data to the system and the payment will be shown on the taxpayer’s account within 24 hours. |
| P5-16 | EUR | A | Repeat | 2015 | English | Scored A because good practice was detected in; Withholding at source and advance payment systems are in place. PIT on salary and wages is withheld by employers and withholding is in place for interest, dividends and rents. Quarterly payment schemes apply for both CIT and PIT. |
| P5-15 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; All taxes are paid electronically. During the period 2015-2017 all taxes were paid electronically. These payments are typically made through fund transfers, check payments or credit/debit card. |
| P5-16 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; Efficient collection methods are used--these include tax prepayment and tax substitution systems (a form of "reverse taxation" for specific types of transactions). Two systems provide the country's treasury with advance collections of taxes: (i) the advance tax, or prepayment, which includes payment made in advance by the taxpayers themselves as part of the tax that would be due in the event of a taxable event—applied to some agricultural products (rice and wheat flour); and (ii) tax substitution, which is applicable to several products and represents an advance collection of the tax in the supply chain of certain products in accordance with the tax act. |
| P5-18-2 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; The stock of tax arrears is very low, but most of those arrears are old. The collectable arrears as a proportion of total annual collection 3.6 percent. |
| P5-15 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; All taxes are paid electronically. In accordance with the tax code, tax payments can only be collected and processed electronically. During 2015- 2017, taxes and all other taxes were paid electronically. The (Tax Collections Directorate) is responsible for collection enforcement. Electronic payment arrangements depend on the banks through which tax administration processes the tax payments. |
| P5-16 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; An advance payment system is used, and there is a “tax substitution” (a form of “reverse charge”) for specific types of tax transactions. These systems assure the Public Treasury of tax administration of prepaid taxes: (i) the advance tax, which includes the estimate made by the taxpayer of the tax that would be due when the taxing event occurs; and (ii) the reverse charge, representing a withholding made by a link in the value-added chain of certain goods and services in line with Complementary Law 1 |
| P5-17-2 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; The percentage value of payments made on time was high. 92.3 percent of the value of payments were made on time. |
| P5-15 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; All major taxes are paid electronically. The commercial bank centralizes all tax payments and coordinates the actions of other credit entities that provide cash services in the national territory, acting as branches of the bank. The bank also has offices dedicated only to the payment of taxes in some facilities, to make it easier for taxpayers. |
| P5-15 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; All core taxes are paid electronically by all taxpayer segments. Electronic payments can be made through internet banking at 17 banks and ATMs, and over the counters in 11 banks. Payments can be made using debit and credits cards; cash payments are not accepted. Banking facilities are available in all tax administration offices in order to facilitate tax payment. |
| P5-16 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; The Tax Administration utilizes withholdings and advance payment to support the collection of taxes. Withholding at source exists for: employment income, dividends income, interest income and royalties. Most types of services are also subject to withholding tax. Advance payments arrangements are in place for corporate taxes. An advance payment equivalent to 2 percent of sales is made during the First six months of the year. Urban property tax is paid on a quarterly basis. |
| P5-15 | AFR | A | First | 2015 | English | Scored A because good practice was detected in; All taxes are paid electronically. All taxpayers are required to make payments through 10 of 15 commercial banks in the country. These payments are transmitted to the taxpayers tax accounts via a bank IT system interface with Tax Administration. |
| P5-16 | AFR | A | First | 2015 | English | Scored A because good practice was detected. in; A broad range of withholding at source and advance payment arrangements are in place. The Income Tax Act mandates withholding at source for all employment, interest and dividend income. The Act also mandates withholding from other income including fees to non-residents, royalties to non-residents, withholding from contracts with state corporations, and commissions for property and insurance sales. Advance payment arrangements are also in place to collect income tax from businesses on a quarterly basis. The Head of the Tax administration may permit small and medium businesses, on their application, to pay provisional tax monthly. |
| P5-15 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; All taxes are paid electronically. |
| P5-16 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; Prepayment and withholding systems are used for ax in specific cases provided by law. Both requirements ensure that the anticipated taxes are collected. |
| P5-17-2 | WHD | A | First | 2015 | English | Scored A because good practice was detected in; While the value of timely tax payments made in 2017 is very good (95.5 percent). |
| P5-15 | WHD | A | First | 2015 | English | Scored A because the good practice was detected inMore than 75 percent of the total value of payments received is received electronically. The data provided shows that in 2017 the value of electronic payments reached 91.52 percent of the Corporate Tax, 88.22 percent of the Personal Income Tax, 99.99 percent of the VAT and 99.58 per cent of employers' PAYE. In addition to being able to pay their taxes through the country's main banks, taxpayers also have the possibility of using the online services of the tax administration. |
| P5-16 | WHD | A | First | 2015 | English | Score A because good practice has been detected. There is a withholding system at source that covers income from work, interest and dividends, as well as advance payment plans for income from economic activities. As stipulated in the Tax Code and the Income Tax Law, employers withhold, declare and pay monthly withholding taxes to their employees. Likewise, a withholding system is also applied to the income of the capital (among others, interests and dividends) in accordance with the provisions of the Tax Code. Finally, natural or legal persons subject to the tax make monthly advances. charged to its annual determination in accordance with the provisions of the Tax Code |
| P5-17-1 | WHD | A | First | 2015 | English | Pontuação A because the bad practice was detected. There is a withholding system at source that covers income from work, interest and dividends, as well as advance payment plans for income from economic activities. As stipulated in the Tax Code and the Income Tax Law, employers withhold, declare and pay monthly tax withholding to their employees. Likewise, a withholding system is also applied to the income of the capital (among others, interests and dividends) in accordance with the provisions of the Tax Code. Finally, natural or legal persons subject to the tax make monthly advances. charged to its annual determination in accordance with the provisions of the Tax Code |
| P5-17-2 | WHD | A | First | 2015 | English | Pontuação A because the bad practice was detected. At the same time, the total value of VAT payments made within the legal deadlines was 98.27 percent of the value of payments due for the same tax |
| P5-18-3 | WHD | A | First | 2015 | English | Rated A because good practices were detected. Of this stock, the 12-month debt reached a three-year simple average of 22.67% (20.8 in 2015, 17.12 in 2016 and 30.1 in 2017), a level consistent with best international practices. pending as tax debts |
| P5-16 | MCD | A | First | 2015 | English | Rated A because good practice was detected. Withholding tax and withholding tax systems have been introduced for payments of corporate tax, personal income tax and financial products. Payment of corporate tax is paid in 4 installments during the 3rd, 6th, 9th and 12th months of the tax year Payment of income tax is deducted monthly at source Interest income, dividends and investment income fixed returns are deducted at source |
| P5-17-2 | MCD | A | First | 2015 | English | Rated A because good practice was detected. 92.3% of the planned VAT amount (see table 10: VAT payments made in 2017) |
| P5-15 | AFR | A | First | 2015 | English | Noté A parce que la bonne pratique a été détectée. Most Direct Assessment, PAYE and withholding taxes are paid electronically through the banking system while a few (cash and cheques) are made using Point of Sale (POS) devices. The assessment team observed that more than 75 percent of payments were made directly through the banking system. Electronic payment methods include e-payment (direct electronic transfers), direct bank deposits and payments through the IT system. Zonal and area offices use POS devices to receive cash and cheque payments as necessary— these payments account for less than a quarter of total tax payments; the POS devices are linked electronically to the Paydirect system. |
| P5-15 | AFR | A | First | 2019 | English | Scored A because good practice was detected in; All core taxes are paid electronically. The Tax Administration does not receive any cash payments at the tax offices. All payments, cash or otherwise, are made at commercial banks that later transfer the funds to the Single Revenue Account using the designated payment platforms. |
| P5-15 | AFR | A | First | 2019 | English | Scored A because good practice was detected in; The majority of payments (by value) are made electronically. As part of the banking of the economy, the tax administration has allowed the payment of taxes since 2014 by (i) bank transfer; (ii) certified cheque; and (iii) payment of cash at the cash desks of the different taxpayer units. Taxpayers pay their taxes to banks before going to the tax administration counters with their declarations and the bank transfer order or with the certified cheque. Each unit of the tax administration has a Revenue Division made up of officials from the General Directorate of the Treasury, responsible for verifying payments and issuing receipts as well as a collection (execution of Collection). Notices are issued by the management department at the tax administration level unit level. According to the information obtained, 95% (in value) on average of payments of basic taxes recovered for fiscal years 2015, 2016 and 2017 were made by bank transfer or certified check through the banking system. This does not include payments made at the most basic level which, even if assumed to have been made in cash at 100%, represent a minimal percentage of the value of the payments collected (1.3% in 2017). |
| P5-16 | AFR | A | First | 2019 | English | Scored A because good practice was detected in; The Tax Administration has a complete withholding tax and advance payment system that meets international best practices. Withholding tax is used for the payment of all employment income, dividends and interest. The advance payment system is regulated by the General Tax Code (CGI). In the case of corporate tax, installments must be paid in the First fifteen days of the months of February, May, August and November of each year. After deduction of installments already paid, the liquidation balance is paid to the tax collector's cash desk at the latest on the day of expiry of the deadline set for the submission of the last declaration. |
| P5-16 | WHD | A | First | 2019 | English | Scored A because good practice was detected in; Advance payment arrangements and withholding at source are in place for income tax. Taxpayers are required to make quarterly advance payments on all business income. There is also withholding at source on interest and dividend income. Withholding at source for employment income was in place up to mid-2016 when income tax employment income was abolished. |
| P5-15 | EUR | A | First | 2019 | English | Scored A because good practice was detected in; All payments received for major taxes are made electronically. The data received show that 100 percent of the payments are made electronically. The General Collection Regulations and implementing regulations include electronic payment methods which, in addition to the possibility of payment through collaborating entities, provide for other electronic payment possibilities such as debiting a bank account by credit and debit card, direct debit and electronic banking. The Tax Autority's electronic headquarters has a payment gateway that allows electronic payment from the forms of presentation of settlements and self-assessments either through debit in account, card or direct debit. |
| P5-16 | EUR | A | First | 2019 | English | Scored A because good practice was detected in; There is a withholding system for all earned income, advance payment schemes for all business income and withholding and reporting obligations for interest and dividend income in accordance with established legal obligations.The obligation that regulates the system of withholdings and advance payments of monthly and quarterly payments applicable to the different types of obligated parties is established in the Income Tax Law and the Corporate Tax Law. |
| P5-17-2 | EUR | A | First | 2019 | English | Scored A because good practice was detected in; During 2018, the value of VAT payments made within the deadline in relation to the value and number of VAT payments due, represented 95 percent. |
| P5-18-3 | EUR | A | First | 2019 | English | Scored A because good practice was detected in; The value of basic tax arrears older than 12 months is 22 percent. |
| P5-15 | WHD | A | First | 2019 | English | Scored A because good practice was detected in; There is widespread use of electronic means for the payment of the main taxes. As a whole, electronic tax payments as a proportion of the total value of payments received reach 95 percent, above the minimum level of 75 percent to meet international best practice standards. In the case of large taxpayers, all payments are made through these means. |
| P5-16 | WHD | A | First | 2019 | English | Scored A because good practice was detected in; The tax system adequately contemplates the use of withholding taxes at the source of their generation as well as advance payments. This is the case of withholdings for salary payments and other sources of capital including interest and dividend payments. Likewise, the legislation on the matter contemplates partial payments on account of the annual tax for each fiscal period, using as a base the tax determined the previous year or the arithmetic average of the last three. |
| P5-16 | AFR | A | First | 2019 | English | Scored A because good practice was detected in; The tax administration makes full use of withholding and advance payment arrangements to support the collection of taxes. Withholding at source exists for: employment income, interest, dividends, royalties, technical service fees, natural resources and insurance. Advance payment arrangements are in place for income tax instalments for companies, individuals and partnerships to pay business tax at a fixed monthly instalment. The tax is calculated on estimated annual provisional taxable income. The monthly income tax instalment is due on the 21st of each month. |
| P5-16 | EUR | A | First | 2019 | English | Scored A because good practice was detected in; All core tax payments are made by way of electronic funds transfer from taxpayer bank accounts to prescribed public revenue accounts. The law requires that all core tax payments be made through the commercial banking system. Bank transfers can be initiated online (all licensed banks provide online banking facilities) or by simple instruction to a bank to make the transfer. Account information necessary for taxpayers to make bank transfers is provided on the Taxpayer website, including public revenue account numbers and core tax revenue codes. |
| P5-17-1 | EUR | A | First | 2019 | English | Scored A because good practice was detected in; Extensive use is made of withholding at source and advance payment systems. Employers withhold PIT and SSC from salaries and wages paid to employees and must transfer withheld amounts to the prescribed revenue accounts. Withholding arrangements also apply to payments made to foreign legal persons. There are no withholding arrangements for dividend and interest income derived by resident taxpayers since these payments are exempt from income tax. Advance payment regimes are in place for both PIT and CIT, where monthly advance payments are based on the previous year's data. Advance payment and withholding arrangements also exist for income tax taxpayers classified as small entrepreneurs |
| P5-16 | AFR | A | Repeat | 2019 | English | Scored A because good practice was detected in; Withholding and advance payment arrangements are in place for employment and business income as well as interest and dividends income. In addition, withholding tax arrangements are applied to the following: interest, royalties, payments to non-resident entertainers and sportspersons. |
| P5-16 | AFR | A | Repeat | 2019 | English | Scored A because good practice was detected in; Withholding arrangements and advance payment systems are in place for income tax. There is withholding at source for employment, interest and dividend income. Companies and sole proprietors are also required to make quarterly instalment payments to tax administration based on projected profits. |
| P5-16 | AFR | A | First | 2019 | English | Scored A because good practice was detected in;The Tax Administration makes use of withholdings in respect of employment income, interest, dividends, and advance payments. Withholding at source is prescribed in the Income Tax Act for all employment, interest, dividend income, royalties and management and service fees. Advance payment arrangements are also in place to collect income tax from businesses and self-employed individuals. |
| P5-16 | APD | A | First | 2019 | English | Scored A because good practice was detected in; Withholding at source is extensive and is a cornerstone mechanism for the administration of income taxes. Withholding at source is in place for PIT employment income, interest, lease, and rental payments for the residents. Payments to non-residents for services, interest, dividends, lease, and rental payments are also subject to withholding arrangements. Various control mechanisms are in place to support the correct operation of higher revenue elements of the withholding system, with the remaining elements relying on self-assessment principles. Advance payment regimes are available for all core taxes but are not subject to minimum thresholds or other mandatory requirements. |
| P5-16 | WHD | A | Repeat | 2019 | English | Scored A because good practice was detected in;The Tax administration makes full use of withholding and advances payment arrangements to support the collection of taxes. Withholding and advance payment regimes are in place for PIT and CIT, and withholding is in place for interest and dividend income. For some special services, arrangements are in place for customers to withhold tax and transfer it to the Tax Administration. |
| P5-17-2 | WHD | A | Repeat | 2019 | English | Scored A because good practice was detected in; The value of VAT payments made by the statutory due date in per cent of the total value of VAT payments due is 98.3 per cent for all taxpayers and 99 per cent for large taxpayers. The timeliness of the value of payments for all taxpayers meets the criteria for an A-score. |
| P5-16 | WHD | A | First | 2019 | English | Scored A because good practice was detected in; Advance payment arrangements and withholding at source are used in the collection of the income tax. Advance payments are due for CIT and PIT in three instalments—on the 25 of March, June, and September, respectively. The Income Tax Act mandates withholding at source for all employment income (PAYE), payments made to contractors and defined payments made to non-residents. However, the payment of interest made by financial institutions and the payment of dividends are exempt from income tax. Withholding tax, at 15 per cent, is in place for payment of other forms of interest paid to non-residents. |
| P5-15 | APD | A | First | 2019 | English | Scored A because good practice was detected in; Electronic payment of taxes is fully implemented in the country. The MOF and the tax administration introduced comprehensive electronic tax payment methods in collaboration with the Central Bank and other commercial banks. Tax can be paid only based on invoices and electronic payment orders issued by the system and through a wide variety of channels such as internet banking and the electronic tax system. Additionally, officials at tax offices have been prohibited from receiving cash for tax payments since 2018. |
| P5-15 | EUR | A | Repeat | 2019 | English | Scored A because good practice was detected in; All tax payments are made through the commercial banking system. This is prescribed by the Law on Tax Procedure and Tax Administration. All payments are deposited to prescribed public revenue payment accounts determined by the type of tax, type of liability and revenue recipient. The payments of taxes are electronically transferred to the Treasury accounts. The Treasury electronically transfers to the tax administration on a daily basis, the data on transactions in the specified public revenue accounts. A vast majority of tax payments are made electronically. All large taxpayers and more than 90 percent of other taxpayers pay their core taxes electronically. |
| P5-16 | EUR | A | Repeat | 2019 | English | Scored A because good practice was detected in; A strong framework of withholding tax at source and advance payment systems are in place. PIT on salary and wages is withheld by employers and, tax on interest on foreign currency bank accounts is withheld by banks. Tax is also withheld from dividends paid to natural persons (PIT). In all cases, this is a final withholding. Dividends paid to companies are reported to the Tax Administration for CIT purposes. Advance payment schemes apply for PIT payable by unincorporated businesses, and for CIT payable by companies. The advance payments are based on the prior year's income. There is no mandatory reporting of interest paid on local currency accounts as interest income on such accounts is not taxable. |
| P5-18-2 | EUR | A | Repeat | 2019 | English | Scored A because good practice was detected in; The ratio of total debt to revenue collected and the percentage of collectable debt is relatively low. |
| P5-16 | AFR | A | Repeat | 2019 | English | Scored A because good practice was detected in; Withholding-at-source, mandatory reporting and advance payment arrangements are in place and used. Withholding-at-source for employment income is provided for in the Income Tax Act, while Sections of the income tax law provide for mandatory reporting of dividend and interest income. The Income Tax Act provides for advance payment arrangements. |
| P5-18-1 | MCD | A | First | 2019 | English | Rated A because good practice was detected. The overall outstanding arrears as a percentage of total revenue collected is low The value of the total arrears of major basic taxes at the end of the financial year, as a percentage of the total revenue of major basic taxes for the financial year is by 8 percent. |
| P5-15 | AFR | A | First | 2019 | English | Score A because good practice was detected. Almost all major tax payments are made electronically. In the period from 2016 to 2018, 99.9% of total payments were electronic, which corresponded to 99.8% of the amount collected by the same taxes. The following tax payment methods are available: online banking, bank transfer (via home banking or through the portal, debit card at points of sale and checks at Tax Offices. In field observation, there is no possibility of receiving cash to pay taxes in the Offices. |
| P5-16 | AFR | A | First | 2019 | English | Score A because good practice was detected in. Withholding tax and prepayment systems are used by income tax payers. Income payers, or those involved in the transactions that give rise to it, in accordance with the withholding system, are obliged to withhold and deliver the withheld tax by the 15th of the month following the month in which the withholding is due. This applies to income from salaried employment, pensions and income paid to non-residents without a permanent establishment. Taxpayers and business and professional income are subject to payroll tax, calculated based on the tax calculated in the previous year. The deadlines for paying tax on account are the last day of March, August and November, and the amount payable is calculated by applying the percentages of 30%, 30% and 20%, respectively, on the tax paid in the previous year. On the last day of May, taxpayers must calculate the tax due for the previous year. If the estimated amounts exceed the tax due for the year, the taxpayer can make up the difference over the following 3 years, or, at the end of this period, request a refund. Taxpayers are subject to withholding tax on capital income, including interest, profits (dividends), and other capital income received. This retention is mandatory, except for taxpayers with organized accounting, in which case the retention is in the nature of a cable payment. |
| P5-16 | AFR | A | Repeat | 2019 | English | Scored A because good practice was detected in; Withholding and advance payment arrangements are in place for employment and business income as well as interest and dividends income. In addition, withholding tax arrangements are applied to the following tax types: royalties, service fees including management and technical service fees, performance payments, lottery and other gambling proceeds, and imports and public tenders. |
| P5-16 | AFR | A | First | 2019 | English | Rated A because good practice was detected. The extensive use of withholding and installment systems provided for by the country's tax regulations corresponds to the highest standards. Payment of corporate tax and personal income tax is subject to quarterly installments in accordance with tax laws. Payroll taxes are collected through withholding tax which is the responsibility of the employer in accordance with tax procedures. Income falling into the category of non-commercial profits, rental income, capital income (interest and dividends) is subject to withholding tax in accordance with the provisions of the Tax Procedures. Deductions, made as advance payments on income tax, are provided for wholesale purchases or imports, exports of livestock, agricultural and fishing products and on remuneration for services paid to the foreigner. |
| P5-16 | AFR | A | First | 2019 | English | Rated A because good practice was detected. There are withholding and prepayment tax schemes that demonstrate an efficient collection system. These devices are effectively implemented for the main taxes due, in particular on salaries, dividends, profits and VAT. In terms of corporate tax, a quarterly installment system has been put in place and payable in February, April and June. This deposit cannot be less than the fixed minimum and the last installment of which is equal to (1/3) the amount of corporate tax for the previous year. In terms of personal income tax, advance payments are provided in the form of monthly payments for taxpayers subject to the normal real regime and quarterly payments for taxpayers placed under the simplified regime. |
| P5-18-2 | AFR | A | First | 2019 | English | Rated A because good practice was detected. The level of recoverable basic tax arrears is satisfactory. It represents 3.5 percent in 2016, 4.8 percent in 2017 and 4.7 percent in 2018, respectively, of the basic taxes collected. |
| P5-16 | AFR | A | First | 2019 | English | Rated A because good practice was detected. There are withholding and prepayment systems for basic taxes that allow efficient collection. These arrangements are effectively implemented for major taxes, including personal income tax, interest income and dividends, and VAT. Regarding personal income tax and taxation, a system of quarterly payments has been established for taxpayers real tax system. The deposit is due within the first 10 days of March, June, September and December. The balance of the tax due is paid on the day of filing the annual declaration. |
| P5-16 | WHD | A | First | 2019 | English | Score A because a good practice was detected. Domestic tax payment and withholding systems provided for by law are used. The tax administration uses an advance payment and tax substitution system for internal taxes, in specific cases. The two systems ensure that the country's Public Treasury collects internal taxes in advance: (i) the tax on account, which includes the advance made by the taxpayer of part of the tax that would only be due in the event of the taxable event; and (ii) tax substitution, which represents a retention of tax in the sales chain of certain products, in accordance with the law. Both requirements ensure that the expected internal tax is collected in advance |
| P5-16 | WHD | A | First | 2019 | English | Scored A because a good practice was detected in, The tax system adequately considers the use of withholdings at source, as well as advances. Withholdings are made at source for all salary income, which is collected by the Social Security Fund, but there is a lack of monthly information on obligated taxpayers. There are also withholdings at source for dividend payments. Interest income is tax-exempt, except for interest paid to non-residents (the amounts of which are subject to withholding). Income tax legislation also provides for the obligation to make quarterly partial payments on account of each year's annual tax based on an estimate of income. |
| P5-18-1 | WHD | A | First | 2019 | English | Scored A because the good practice was detected in, The value of the total debt represented 10 percent of tax collection in 2018. This value is within the expected range, however, the non-performing portfolio shows an upward trend, In On the other hand, the non-performing portfolio management process benefits from the control exercised by the Tax Authority over the issuance of certificates, which are required to carry out different legal and administrative procedures. These certificates are issued only to taxpayers who have fully complied with the obligations derived from the provisions that regulate Income Tax and who are not in arrears with the National Treasury and the Social Security Fund for Income Tax, Tax on Property Transfers of Personal Property and Provision of Services, Educational Insurance, worker-employer fees and Professional Risks |
| P5-15 | MCD | A | First | 2019 | English | Scored A because good practice was detected in; All core taxes are required to be paid electronically. Data submitted using the IT system the database indicates that all the core taxes were paid 100 percent using electronic payment methods. Statistics for three calendar year in 2016, 2017 and 2018 were furnished. |
| P5-16 | MCD | A | First | 2019 | English | Scored A because good practice was detected in;Tax withholding at source and advance payments are routinely used. The Tax Code lays down the provisions for payment, collection and refund of taxes including deadlines for payment, and penalties and interest in case of late payment. Withholding at source for employment income, interest income and dividend income are in place. The withholding on interest and dividend incomes are final and no declaration is required from the taxpayer receiving the income. The law lays down that advance tax is required to be paid for CIT by the 15th of the month following the month in which the income was earned. This also applies to rental income received by individuals. Although advance tax is paid monthly, declaration for CIT is required to be filed annually. All information regarding payment schedules is available on the website. There is no need for mandatory reporting since the tax withholding is final. |
| P5-17-1 | MCD | A | First | 2019 | English | Scored A because good practice was detected in; VAT payments are largely made in a timely manner. Due dates for payment of PIT, withholding tax, and VAT are indicated in the Tax Code. Interest for late payment is charged at the rate of 0.05 percent per day. In terms of number of VAT payments, 90.4 percent of all taxpayers and 100 percent of large taxpayers made their payments by the statutory due date in 2018, according to the tax payments database. |
| P5-17-2 | MCD | A | First | 2019 | English | Scored A because good practice was detected in; Likewise, in terms of value of payments, 90.5 percent of payments by all VAT payers and 100 percent of payment by large taxpayers are made on time. |
| P5-18-1 | MCD | A | First | 2019 | English | Scored A because good practice was detected in; There is a dedicated department - Tax arears and Collection Enforcement Department - to deal with tax collection, debts and arrears. Chapter 12 of the Tax Code lays down the measures for ensuring enforced collection of arrears. Through public seminars, business meetings and TV channels, instructions are issued to taxpayers from time to time and taxpayers are made aware of payment requirements and due dates of payments. The three-year average of core tax arrears as a percentage of total core tax revenues collected is 8.2 percent. |
| P5-18-2 | MCD | A | First | 2019 | English | Scored A because good practice was detected in; The three-year average of collectible core tax arrears as a percentage of total core tax revenues collected is 3.1 percent |
| P5-16 | WHD | A | First | 2019 | English | Scored A because a good practice has been detected. There is a withholding system that covers income from work and income from interest and dividends, as well as advance payment regimes to the Public Treasury. Employees are subject to withholding from their wages by their employers at the applicable progressive cumulative rates. In addition, companies that pay compensation to residents (for example, charges for professional or technical services, commissions, awards and bonuses) retain 12.5% ??of the total salary amount. In both cases, the withholding constitutes an advance creditable against the income tax payment. On the other hand, dividends received by residents are subject to a 10 percent withholding as a final payment. Interest on bonds and deposits in financial institutions (for example, savings accounts, demand deposits and time deposits), as well as interest derived from stock market operations, are not included in the total income of the individual, but are subject to a 10 percent withholding. Finally, the law obliges the Tax Administration to submit payments to withholding on a quarterly basis, in accordance with the procedure established by law. |
| P5-15 | EUR | A | Repeat | 2019 | English | Scored A because good practice was detected in; Electronic payments account for 100 percent of the number of payments and the value of CIT, PIT, PAYE, VAT, and excise collections. Electronic payment of taxes is mandatory. |
| P5-16 | EUR | A | Repeat | 2019 | English | Scored A because good practice was detected in; The tax administration makes full use of withholding and advance payment arrangements to support the collection of taxes. Withholding and advance payment regimes are in place for PIT and CIT and withholding is in place for dividend tax. Interest paid by the government, banks, and financial institutions are exempt from tax |
| P5-16 | APD | A | First | 2019 | English | Scored A because good practice was detected in; Withholding at source and advance payments are routinely used and specified in the tax act including the withholding of tax from payments under the head “salary”, “dividend” and “profit on debt”. The advance payment regime is used for corporate income tax and personal income tax under sections of the Income Tax Act. Advance tax is paid quarterly and, for withholding tax, the reporting arrangements are in place. |
| P5-18-1 | APD | A | First | 2019 | English | Scored A because good practice was detected in; The three-year average of collectible core tax arrears of fiscal year-end as a percentage of total core tax revenue collections for the fiscal year is 4.5 percent. |
| P5-18-2 | APD | A | First | 2019 | English | Scored A because good practice was detected. The value of core tax arrears more than 12 months old as a percentage of the value of all core tax arrears is 15.2 percent which is a quite good performance compared with most countries. The report of the Auditor General provides an insight into the low volume of old arrears. |
| P5-16 | AFR | A | Repeat | 2019 | English | Rated A because good practice was detected. There are withholding and advance payment systems for basic taxes which demonstrate an efficient collection system. These devices are used for the main taxes due in particular on salaries, wages, pensions and life annuities, Taxes on securities income (dividends), Taxes on debt income (interest); and taxes on profits. In terms of industrial and commercial profits, a payment system in three equal fractions is put in place and due in April, June and September In addition, the taxpayers subject to agricultural profits tax are liable for the tax minimum flat rate when the amount of tax calculated for the same financial year is lower, or when the results are poor. |
| P5-18-1 | AFR | A | Repeat | 2019 | English | Rated A because good practice was detected. The total value of basic tax arrears is relatively small. It represents respectively 6% in 2018, 6% in 2019 and 3% in 2020, of the total basic taxes collected, therefore below the minimum required of 10% by TADAT. |
| P5-18-2 | AFR | A | Repeat | 2019 | English | Rated A because good practice was detected. In addition, the level of recoverable basic tax arrears is satisfactory. It represents respectively 6% in 2018, 4% in 2019 and 2% in 2020, of the basic taxes collected. |
| P5-18-3 | AFR | A | Repeat | 2019 | English | Rated A because good practice was detected. Finally, the amount of outstanding amounts to be recovered over more than 12 months represents an acceptable proportion of the overall outstanding amounts to be recovered. In 2020, the amount of outstanding debt to be recovered after more than one year represents 23% on average of the annual amount of outstanding debt. |
| P5-16 | AFR | A | Repeat | 2019 | English | Scored A because good practice was detected. The tax administration has a comprehensive withholding and advances payment system that meets international good practices. Withholding of tax at source is used for the payment of all employment income, dividends and interest. The advance payment system of the tax administration is regulated in by the law. |
| P5-16 | WHD | A | First | 2019 | English | Scored A because good practice was detected. The tax administration has a comprehensive withholding and advance payment system that meets international good practices. Withholding of tax at source is used for the payment of all employment income), dividends and interest. The advance payment system of the tax administration is regulated in the law. |
| P7-23-1 | EUR | A | First | 2015 | English | Score A because good practice was detected. The administrative and judicial review mechanism of tax acts is divided into three levels and is usually used by taxpayers. The first level is constituted by the reconsideration appeal, which is resolved by specialized personnel other than audit personnel. It's optional. The second level is the economic-administrative claim, which is the responsibility of the Economic-Administrative Courts, independent bodies that carry out a specialized and free review for claimants. This phase is mandatory to access, if applicable, the third instance. The third level is the contentious-administrative jurisdiction. |
| P7-23-1 | WHD | A | First | 2019 | English | Score A because good practice was detected. There is a three-stage administrative and judicial review mechanism that is widely used by taxpayers. widely used by taxpayers. According to tax legislation, there is a three-stage conflict resolution process. In the first stage, administrative review, an optional appeal for reinstatement can be filed against the administrative act of liquidation, an optional appeal for reinstatement. In the second stage, against the resolution of the revocation appeal, the interested party may appeal to the Tax Administrative Court, which is a body with full jurisdiction and independent in its functioning and competence of the Executive Branch. Its resolutions exhaust the administrative route. The Court enjoys independent judgment to resolve said appeal. In the third stage, against the resolutions of this Court, the taxpayer or interested party can initiate a contentious tax trial. The filing of the resources for reconsideration and appeal suspends, without the need for prior payment or any guarantee, the possibility of prior payment or any guarantee, the possibility of collecting the liquidated debt, which cannot be executed until they are resolved. these resources are resolved. In judicial proceedings it is possible to request a precautionary measure to suspend collection. The appeal procedure is widely used by taxpayers when the collection of liquidated amounts is suspended. of the collection of the liquidated amounts that their interposition entails. |
| P7-23-1 | AFR | A | First | 2019 | English | Scored A because good practice was detected. An appropriately graduated mechanism of administrative and judicial review is in place and used by taxpayers. A tiered review mechanism is in place and comprises: (1) a single administrative review process within the Tax Administration with taxpayers filing their requests for reviews to the Objections and Appeals unit; (2) a Revenue Tribunal reviewing disallowed objection decisions by the Tax Administration where the taxpayer is still dissatisfied; and (3) the Supreme Court and ultimately the Appeals Courts where the taxpayer is dissatisfied with the outcome of the Revenue Tribunal. Taxpayers use these review mechanism. |
| P7-23-1 | AFR | A | First | 2019 | English | Scored A because good practice was detected; A progressive dispute resolution process exists. According to the Tax Code, taxpayers have the right to request redress for errors made in the assessment or calculation of taxes or the benefit of a legislative or regulatory provision within a period of or calculation of taxes or the benefit of a legislative or regulatory provision within a three-month period for three months. Disputes raised by taxpayers are First compulsorily submitted to the Minister of Finance or his delegate, the Head of the tax Administration depending on the size of the amount involved. Any claimant who has not received a decision within the maximum period of six months or who is not satisfied with a decision received within a period of decision received within a shorter period of time may bring the dispute before the courts. The claimant may go to the administrative chamber of the Court of First instance and then may then initiate appeal procedures. Statistics exist that the administrative chamber of the court of First instance and the Supreme Court have expertise in tax law. |
| P7-23-1 | WHD | A | First | 2019 | English | Annotated A because the good practice was detected. A tiered administrative and judicial control mechanism is available to taxpayers and is used. The first phase provides that the taxpayer, within thirty (30) days after the assessment, may present a single response, addressed to the First Instance Judgment Authority of the Administrative Tax Appeals Court . The second phase provides for the possibility of filing an appeal with one of the Trial Chambers of the Administrative Court. The administrative Court is an independent body, at the same hierarchical level as the Secretary of Finance, being composed of It is composed of: a President; a Vice President; First Instance Judicial Authorities; 3 (three) judging sections, each composed of 4 (four) members; and the Full Court, composed of members present from the trial sections. The Judicial Chambers have six members appointed by the Tax Administration, and six appointed by representative entities designated by entities representing civil society, through lists of three names, and those chosen designated by the State Governor. At any time, the taxpayer may take legal action to review the assessments, using due legal process. Appeals can be filed with the Superior Courts of Justice and the Federal Supreme Court, especially in cases of interpretation and verification of the constitutionality of norms. As the litigation is well structured, and no fees or deposits are charged to present an opposition or appeal, the use of tax administrative litigation is quite common. |
| P7-23-1 | WHD | A | First | 2019 | English | Score A because good practice was detected. There is a three-stage administrative and judicial review mechanism that is widely used by taxpayers. widely used by taxpayers. According to the tax law, there is a duly staggered process for conflict resolution: - In the first stage, administrative review, an appeal for reconsideration can be filed with the tax administration against the administrative act of liquidation. In the first stage, administrative review, an appeal for reconsideration can be filed with the General Director of Revenue. - In the second stage, against the first instance resolution that resolves the reconsideration appeal, the interested party may file an appeal before the Tax Administrative Court, which is an autonomous, independent and specialized court of second instance with national jurisdiction and competence, a court autonomous, independent and specialized, with national jurisdiction and competence, to hear appeals against the decisions of the Authority. Their decisions exhaust the administrative route. The Court enjoys independence to resolve the aforementioned appeal.- In the third phase, against the resolutions of this Court, the taxpayer or interested party can file a contentious-administrative case before the Third Contentious-Administrative Chamber of the Supreme Court of Justice. The filing of reconsideration and appeal resources suspends, without the need for prior payment or any guarantee, the possibility of collecting the determined or liquidated debt, which cannot be executed until these resources are resolved. The appeal and replacement resources are widely used by taxpayers in the face of the suspension of the collection of the liquidated amounts that their interposition entails. |
| P7-23-1 | WHD | A | First | 2019 | English | Score A because good practice was detected. There is a three-phase administrative and judicial control mechanism, widely used by taxpayers. Dispute resolution follows the following process: - In the first phase, administrative appeal against administrative assessment act, it is possible to challenge it in the first instance with the Judgment Offices, collegial bodies of internal deliberation the Authority's internal decision-making bodies. - In the second phase, against the previous decision, the interested party can lodge a voluntary appeal in the second instance before the Administrative Council of Tax Appeals, a collegial body, It is a collegiate and joint body, integrated into the structure of the Ministry of Finance. It is also the responsibility of the Council It is also the responsibility of the Council to conduct resolution of special resources, in order to unify the criteria. - In the third phase, against the Council's decisions, the taxpayer or interested party can initiate legal proceedings before federal judges, Federal Regional Courts and Federal Courts Federal Courts and continue to appeal to higher courts at the Superior Court of Justice - for the interpretation of infraconstitutional rules - and, as appropriate, before the Federal Supreme Court Federal Court, responsible for interpreting the Federal Constitution. Appeals at first and second instance do not require the assistance of a lawyer, and the free. It is widely used by taxpayers, since opposition results in the suspension of the It is widely used by taxpayers, since the dispute results in the suspension of the tax credit's enforceability without the need to provide a guarantee. |
| P7-23-1 | EUR | A | First | 2019 | English | Scored A because good practice was detected. A graduated administrative and judicial review mechanism is available to taxpayers and is used. At the First stage, a taxpayer may file a complaint to the municipality against the property tax assessment value upon which the tax is calculated and/or the tax is billed. If the municipality has not adopted a decision within the deadline (90 calendar days), the person may complain directly to the property tax department. At third stage, the person may file a suit with the Lower Court if the department has not adopted a decision within 45 calendar days. The use of administrative reviews is common. |
| P7-23-1 | AFR | A | Repeat | 2019 | English | Scored A because good practice was detected; A tiered administrative review mechanism is in place and is used. A graduated mechanism that consists of an administrative review process, and courts for appeals is in place for resolving tax disputes. The First stage involves an internal administrative review of the objection. A taxpayer that is not satisfied with the outcome of the administrative review can lodge an appeal to the Tax Appeals Tribunal. Thereafter an appeal can be made to the High Court, Court of Appeal and Supreme Court in that order. While on appeal, either at Tribunal or in the courts, a taxpayer may opt to use Alternative Dispute Resolution mechanisms without prejudice under a mediation process facilitated by Tax Administration staff mediators, except in cases of fraud. Appeals to the court are only on matters of law. |
| P7-23-1 | AFR | A | First | 2019 | English | Scored A because good practice was detected; An appropriately graduated mechanism of administrative and judicial review is available to, and used by, taxpayers for dispute resolution. The dispute review mechanism comprises of: (i) an objections and appeals committee based at Head Office that conducts all administrative reviews within the Tax Administration; (ii) the Board of Adjudicators for those taxpayers not satisfied with the Head of the Tax Administration decision; and, (iii) both the taxpayer and the Head of the Tax Administration may approach the High Court if they are not satisfied with the decision of the Board of Adjudicators. Information on the dispute resolution process is published on the Tax Administration's website. |
| P7-23-1 | APD | A | First | 2019 | English | Scored A because good practice was detected; A dispute resolution process is in place and is independent of the audit and assessment processes. The Tax Administration Act stipulates a three-tiered review mechanism, namely: (i) administrative review process, which is conducted by the legal section; (ii) an Independent Tax Tribunal; and (iii) the Supreme Court. Staff guidance on the review process is clearly stated in an Objection Review Guide. |
| P7-23-2 | MCD | A | First | 2015 | English | Rated A because good practice was detected; Dispute resolution is independent of tax audit. Complaints are addressed to the general director who makes and signs the final decision after consulting the legal department. |
| P1-1-1 | EUR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: The registration database reflects all the information necessary for effective administration. The Tax Administration register is largely derived from the register maintained by the National Registration Center . The National Registration Center is where all registration activity for most businesses takes place. Only a small percentage of registrants, such as government institutions, trade unions, and nongovernment organizations are registered directly by the Tax Administration. The National Registration Center maintains a register of legal entities and most entrepreneurs and provides this database electronically in real time to the Tax Administration. The combined National Registration Center/Tax Administration registration data is stored in a central national computerized Tax Administration registration database, with each taxpayer having a unique tax identification number, validated through the use of a check digit. The registration database contains a comprehensive list of taxpayer details (e.g., name, address, contact details, date of birth or date of incorporation, and nature of business activity), as well as the tax types for which the taxpayer is registered. |
| P3-8-2 | EUR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in :Taxpayer information is kept current by a dedicated unit and upcoming changes in law or administrative policy are generally flagged in advance. A small team (with a staff of three) is responsible for updating the website and other public information and also for media releases. All legislation is kept current on the website and changes to the law are colorhighlighted for easy identification. Taxpayers are generally made aware of changes to law and procedures before they take effect and specially targeted awareness-raising and training exercises are sometimes undertaken in advance of some significant upcoming changes (for example, recent major changes to the VAT Law and the transition to e-filing). |
| P3-8-3 | EUR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in : Taxpayer information is available at no cost through different channels. As already indicated, information is available through a variety of channels—website, walk-in facilities and a telephone and e-mail enquiry service. The contact details of designated Taxpayer Service specialists in each regional office (including the individual’s name, direct telephone and email details) are clearly flagged on the website. There are plans to create a centralized contact center as part of a proposed reorganization of the Tax administration—the infrastructure for this is already in place. Access to information out of office hours is currently limited to the website, but it is intended to have 9:00–21:00 opening hours for the centralized contact center when it is established. |
| P4-12-3 | EUR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in : The Tax Administration IT system has an automated process to follow-up nonfilers. Reminders are automatically sent to taxpayers who do not file on time. A list of nonfilers is automatically generated for each regional office for follow-up. If the filing issue is not resolved within a set period, default assessments are issued. The filing rates are relatively high across all core taxes. Tables 4-8 of Attachment III show the following on-time filing rates for core taxes: ? For all CIT taxpayers: 76.8 percent ? For large CIT taxpayers; 92.1 percent ? For all PIT taxpayers: 98.9 percent ? For all VAT taxpayers: 83.5 percent ? For large VAT taxpayers: 95.9 percent ? For all PAYE taxpayers: 91.0 percent |
| P5-17-1 | EUR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in : Data provided by the Tax Administration shows a healthy level of VAT payment compliance. VAT payments are made monthly. Data provided in Table 10, Attachment III indicates that 82 percent of the number of VAT payments due is received on time, and 90 percent of the value of VAT payments due is paid on time. |
| P7-25 | EUR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in :Dispute outcomes of a material nature are analyzed and this is taken into account in developing legislative and administrative procedures. The head of the TAD makes periodic reports to the DG (and to the Minister of Finance) in relation appeals activity within the Tax Administration. These reports include commentary on certain significant decisions made by that directorate. The Legal Directorate also monitors dispute outcomes of a material or systemic nature. Examples were provided of analysis and follow-up input into the formulation of both legislative and procedural policy changes arising from the appeal process. However, decision impact statements are not routinely prepared. |
| P9-29-2 | EUR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in :The Tax Administration also has an organizationally independent internal investigation (anticorruption) directorate, which reports directly to the DG. This directorate, which has three staff (including the director), is responsible for the detection and prevention of staff corruption and violations of laws and procedures relating to conflicts of interest and ethical behavior. Where warranted, cases are put forward for consideration of criminal charges as well as administrative sanctions. Staff in this directorate have the same investigative powers as judicial police. The directorate cooperates with the prosecutor’s office, the police and the anti-corruption agency and procedures are in place for exchange of information—although joint investigations involving enforcement agencies are rare. The directorate had significant input into the development of the Tax Adminstration’s Code of Conduct. |
| P9-30-1 | EUR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in :The National Audit Institution audits the Tax Administration's financial statements and elements of its operational performance on an annual basis. The Tax Administration's financial statements are audited annually by the National Audit Institution. The National Audit Institution’s annual program of audits for the Tax Administration includes specified elements of operational performance. The findings of the National Audit Institution are responded to by the Tax Administration. |
| P7-23-1 | AFR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in : A tiered review mechanism is in place and used, but the administrative review process within the Tax Administration is multi-layered. If a taxpayer does not agree with the audit findings, a request can be made for a meeting with the management officials in the DTD. If a resolution cannot be reached, the taxpayer then has the right to appeal to the Tax Administration ’s CG. After the administrative review process, the taxpayer has the right to appeal with the Board of Tax Appeals , followed by the County's Tax Court. The number of objections and appeals to the CG and Board of Tax Appeals are low in an international comparison. |
| P8-26 | AFR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in : The Tax Administration provides input to the MFDP on forecasting and estimation of tax revenue, but does not undertake analysis on tax expenditures or the stock of tax losses. The Policy Statistics and Strategic Planning Division reports actual revenue collection figures including analysis on deviations from forecasted revenues to the MFDP on a monthly basis. Tax Administration contributes to the forecasting process by providing the MFDP with its own revenue forecasts as well as production forecasts for key economic sectors. The Policy Statistics and Strategic Planning Division also informs the tax policy process by providing analysis on tax revenue estimation for potential measures. |
| P3-8-2 | APD | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in : The Tax Administration has procedures in place and dedicated staff to regularly update information provided in publications and on the website ; however, there is no targeted communication before the law or policy takes effect. Procedures on updating information are provided in Tax Administration Order No. 151. The Head of the IT Department oversees departments responsible for keeping information in relevant sections of the website current. Taxpayers are made aware, through general communication in the press and website, of changes in the laws and procedures before the law takes effect but the communication is not targeted to any taxpayer segment. A mailing list for every press release consiTax Administration of approximately 300 journaliTax Administration representing mass media at the national and regional levels—the Tax Administration has dedicated staff for this activity. Additionally, the Tax Administration has an annual media plan and publishes its own newspaper. |
| P3-11-2 | APD | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in :Taxpayers are regularly consulted to identify key deficiencies of the tax administration procedures and products, as well as new draft processes, legal acts, and e -services, but they are not involved in the design and/or testing of new processes and products. The Methodological Council for Coordination of Fiscal Policy under the MoE is a public-private dialogue platform to consult on tax policy issues. Approximately half of its members are representatives of private businesses and independent tax experts, while the other half is represented by government bodies including the Tax Administration . Since its establishment on March 1, 2010, the Methodological Council has endorsed all main draft amendments to the Tax Code prior to their submission to Parliament. The Methodological Council also meets regularly to discuss taxpayers’ requeTax Administration forwarded by the MoE and provides an opinion on draft private rulings for taxpayers. As mentioned above, the feedback is obtained regularly and taken on board through the multiple meetings with taxpayers in local offices as well as large-scale events with business associations and the Chamber of Tax Consultants. The Tax Administration has cooperation agreements with main business associations, with the last two signed in November-December 2015. |
| P4-12-3 | APD | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in : On-time filing rates are high for VAT and PAYE, reasonable for CIT, but large taxpayers file less than 90 percent of declarations on time . On-time filing rate cannot be established for PIT due to absence of mandatory filing for taxpayers. The timing of filing is regulated by the Tax Code. Each November, the State Tax Service approves an action plan on ensuring filing compliance including an information campaign through mass media and the enforcement of timely filing with defined responsibilities of territorial tax offices. Timely follow up and enforcement actions are complicated by issues pertaining to the accuracy of the taxpayer registration database (see POA 1) and a low level of e-filing (see P 4-11). Article 22 of the Tax Code, also provides for a one-month grace period for filing CIT declarations, which is frequently used including by large taxpayers and causes lower rates of on-time filing. The rate of on-time filing of declarations for VAT is 79.8 percent (including 96.9 for large taxpayers), CIT — 77.0 percent (88.4 percent for large taxpayers), PAYE10 — 86.2 percent. Currently, there is no mandatory PIT filing except for individual |
| P4-12-5 | APD | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in :On-time filing rates are high for VAT and PAYE, reasonable for CIT, but large taxpayers file less than 90 percent of declarations on time . On-time filing rate cannot be established for PIT due to absence of mandatory filing for taxpayers. The timing of filing is regulated by the Tax Code. Each November, the State Tax Service approves an action plan on ensuring filing compliance including an information campaign through mass media and the enforcement of timely filing with defined responsibilities of territorial tax offices. Timely follow up and enforcement actions are complicated by issues pertaining to the accuracy of the taxpayer registration database (see POA 1) and a low level of e-filing (see P 4-11). Article 22 of the Tax Code, also provides for a one-month grace period for filing CIT declarations, which is frequently used including by large taxpayers and causes lower rates of on-time filing. The rate of on-time filing of declarations for VAT is 79.8 percent (including 96.9 for large taxpayers), CIT — 77.0 percent (88.4 percent for large taxpayers), PAYE10 — 86.2 percent. Currently, there is no mandatory PIT filing except for individual entrepreneurs. Individuals who have sources of income other than salary, who own a vehicle or real estate have to file an annual unified PIT declaration. However, since there is a limited access to the third party information (see POA 6), the Tax Administration cannot establish the number of expected PIT tax declarations and does not monitor it except for ad hoc efforts at the territorial tax offices. |
| P5-18-3 | APD | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in : Around one third of tax arrears are old. According to the data provided by the Tax Administration , an average of arrears over 12 months old in overall value of core tax arrears was 34 percent during 2013-2015. The share is fairly stable and was 34.5, 21.5 and 46.2 percent in 2013- 2015, respectively (see Table 11 in Attachment III). |
| P6-19-1 | APD | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in :The Tax Administration employs a limited range of automated crosschecking procedures to verify the accuracy of reporting. The Tax Administration has several automated data crosschecking procedures, for example, VAT returns data against VAT invoice data and import/export turnover against VAT registration threshold—but most of them are limited to internally sourced data. VAT invoice crosschecking does not feed into refund claim processing (see P-8-24) at the time of verification. The only automated external/third party data crosschecking applied by the Tax Administration pertains to the Customs database for the verification of import/export transactions against VAT return data. |
| P7-23-1 | APD | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in : The review process for dispute resolution (administrative and judicial) is independent, graduated and used by taxpayers. However, lower administrative courts serve as the first avenue of appeal for a taxpayer dissatisfied with the outcome of the administrative review process . Articles 146-152 of the Tax Code establish the review mechanism that consists Tax Administration of three stages: ? First stage—review by the Appeals Unit which is part of the Legal and Appeals Department in Tax Administration ; ? Second stage—review by lower administrative courts (administrative courts are independent but cannot be considered as specialized in tax matters as their mandate includes a wide range of issues that are governed by the administrative law); and ? Third stage – review by a higher appellate court which is an Administrative and Commercial Law Collegium of a regional court (if a taxpayer disagrees with the decision of a lower administrative court). |
| P7-23-3 | APD | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in : The Tax Administration publishes information on the dispute resolution process on its website and informs taxpayers in writing after concluding an audit; but there are no written instructions for auditors to inform taxpayers of their rights and procedures to dispute an assessment. The dedicated information as well as the Taxpayer Charter available on the Tax Administration website provide an explanation of the dispute resolution process that applies to a tax assessment resulting from an audit as well as other tax disputes. The Tax Administration includes information on a taxpayer’s right to dispute tax assessment and references a dispute resolution procedure as provided in the tax legislation, in audit finalization letters/notices of assessment, and in notifications of administrative review. However, there is no instruction requiring auditors to inform taxpayers about their rights and procedures concerning dispute resolution. In 2015, taxpayers filed 370 objections to tax assessment letters to audit departments in territorial tax offices. |
| P7-25 | APD | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in : The Tax Administration undertakes the analysis of dispute outcomes of a material nature which feeds back into the tax legislation, and tax administration policy and procedures. The analysis has been taken into account for adjusting administrative procedures, application of the tax law as well as proposals for amending the Tax Code. In March 2016, the Tax Administration established an internal working group for improving the effectiveness of tax administration (Tax Administration Order No. 70 of March 30, 2016). This working group comprises key functional departments of the Tax Administration , including the Legal and Appeals Department. The majority of disputes arise due to incorrect tax assessments as a result of tax audits. The Tax Administration has revised and made more stringent administrative processes for tax assessment and provided detailed guidelines in letters to audit departments in territorial tax offices. |
| P9-30-1 | APD | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in : The external review of the Tax Administration operational performance is conducted, however results are not publicly available. The external review of internal audits is assigned to the MoF, though no reviews have been conducted to-date. The Chamber of Accounts (Supreme Audit Institution) performs external audits of the Tax Administration on the annual basis. These audits cover the accuracy of financial statements and the alignment of the IT system and core business processes with the current legislation, as well as data security. The Tax Administration submits a report on the implementation of recommendations resulting from audit findings to the Chamber of Accounts. Audit findings are published on the website of the Chamber of Accounts; however, responses or the implementation of the recommendations by the Tax Administration are not made public. |
| P3-8-3 | AFR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in : Taxpayers can obtain information at minimal cost through a wide range of channels. Tax Administration provides outreach and education programs through seminars and information sessions including for small businesses, new businesses, employers and selected industries; as well as radio announcements, text messages, social media (e.g., Facebook, Twitter) and Tax Administration’s website. Tax Administration’s website provides over 150 separate public information documents (for example, forms, returns, general information, laws and brochures). Tax Administration also has a dedicated public relations staff that is actively involved in dissemination of information to the public mainly through radio and television interviews. Information is available at no cost to taxpayers and intermediaries. Tax Administration does not have a call center and interactive self-service facilities are not available. |
| P6-21 | AFR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in : Public and private rulings are issued to encourage accurate reporting. The Income Tax and GST Acts provide for the issuance of rulings and directives, respectively. Public rulings and directives are published on the Tax Administration website under Business Briefs. Private rulings are sent to the taxpayer and are binding on the taxpayer. Both public and private rulings are binding on the Tax Administration. No cooperative approaches to compliance have been adopted. |
| P5-17-2 | AFR | B | FIRST | 2015 | English | Rated B because sound performance fairly close to internationally accepted good practices was detected in: Although most VAT payments (in value) are made on time, the number of VAT payments before the deadline provided for by the regulations remain unknown. Data received (see Table 10 of Attachments III) indicates that 78.31 percent of payments (by value) were received on time. However, the lack of data on the number of VAT payments made on time leads to the note “D” on the board. |
| P6-19-1 | AFR | B | FIRST | 2015 | English | Rated B because sound performance fairly close to internationally accepted good practices was detected in: The tax control program is not established on the basis of an automated risk analysis system. Tax audit is governed by Article 25 Title II of the General Tax Code and memorandum no. 01/101/tax administration/DG/DIREF/MW/OS/2016 of May 20, 2016 on the organization and monitoring of tax declaration verification operations. The management of tax audits is centralized at senior management level. The verification program is established annually with the list of taxpayers to be audited both at the level of the City Province of Kinshasa and other interior provinces. The control program covers all types of taxes and is carried out both on documents and on site. However, although the memo specifies the criteria for selecting taxpayers to be audited, the establishment of the list does not result from an automated risk management approach taking into account strategic considerations. For example, the list of large companies selected for 2016 does not emphasize the banking sector despite the central role that this sector plays in the Congolese economy. Likewise, the verification program does not specify how the informal sector will be covered. The programming of the tax audit therefore suffers from the absence computer application. No statistics on the coverage of tax audits are available. produced to contribute in particular to improving tax compliance. |
| P7-23-1 | AFR | B | FIRST | 2015 | English | Rated B because sound performance fairly close to internationally accepted good practices was detected in: A progressive administrative and judicial review system is in place and used by taxpayers who disagree with the tax administration. In accordance with the General Tax Code, the first level of appeal against the actions of the tax administration - control, assessment, penalties, fines, etc. - is at the administrative level, where a division or administrative review office (Division or Office of Litigation) reviews complaints filed by taxpayers. If the taxpayer is not satisfied with the decision of the tax administration, he can bring the matter before the competent court. At the moment, there is no specialized tax jurisdiction or arbitration body available to taxpayers. During 2015, the Tax Administration received 2792 complaints, compared to 1133 complaints in 2014. All the main categories of taxpayers use the administrative examination system. In addition, of the 84 legal appeals introduced in 2015, 66 relate to recovery disputes, and 18 to disputes plate. |
| P1-1-1 | EUR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in : The taxpayer register is a single, national database that reflects all of the information needed for effective interactions with taxpayers. It includes information on filing and payment obligations (the “fiscal vector”) for all core taxes. |
| P2-3-1 | EUR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in : Dedicated staff are assigned to ensure that taxpayer information is kept current. Small headquarters team is responsible for updating the website and other public information and also for media releases. Legislative changes and orders amending procedures are posted on the website as soon as they are published in the official gazette. A weekly news bulletin is also published on the website highlighting any legislative changes and procedural orders made in the previous week. |
| P3-8-1 | EUR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in : Information about core tax obligations and entitlements is readily available. A wide range of information material is available covering all core taxes and the main taxpayer obligations—registration, filing, payment and reporting—and entitlements. The Tax Administration website, which is the primary information medium, contains summarized guidance for individuals, legal entities and foreigners doing business in Romania, including a full catalog of available services and how to access them. The information is mostly user-friendly although in some instances can be overly legalistic. The website also provides clear guidance on the completion of each form, a database of frequently-asked questions and appeal decisions, and a “tax calendar” to act as a reminder of upcoming filing and payment deadlines. |
| P3-8-2 | EUR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in : Dedicated staff are assigned to ensure that taxpayer information is kept current. A small headquarters team is responsible for updating the website and other public information and also for media releases. Legislative changes and orders amending procedures are posted on the website as soon as they are published in the official gazette. A weekly news bulletin is also published on the website highlighting any legislative changes and procedural orders made in the previous week. |
| P3-8-3 | EUR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in : Information services are generally available at no cost to the taxpayer, except for certain binding advance rulings. Almost all of the information needed by taxpayers to meet their obligations and claim entitlements is provided at no cost. However, charges are applied for binding advance rulings and advance pricing agreements (APA). While available to all taxpayers, the binding advance ruling system is targeted mainly at larger enterprises whose transactions are typically complex, and at multinational companies. |
| P3-9 | EUR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in : Telephone enquiry calls received by the call center are answered within acceptable time standards. As shown in Table 3 in Attachment III, over 90 percent of telephone calls received in the center are answered within 6 minutes’ waiting time. The Table 3 data does not, however, take account of the potential impact of line overload. The call center system can accommodate a maximum of 30 callers at a time, meaning that during peak enquiry periods it is possible that some taxpayers may not be able to get through to the call center. In light of this capacity constraint and potential impact, the assessment score has been adjusted to ‘B.’ |
| P3-10 | EUR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in : Simplified arrangements exist for certain taxpayers, but there are no prefilled declarations, and forms are not systematically reviewed to minimize compliance costs. All individual PIT taxpayers may use single entry bookkeeping and the taxable income of certain craft traders can be calculated according to published income norms. Microenterprises with an annual turnover of less than €100,000 may calculate taxable income based on a flat percentage of turnover depending of the number of employees. Such microenterprises also benefit from less frequent filing and payment obligations. Frequently asked questions are published on the website and help target and refine public information products and services. There is a secure online taxpayer portal for access to tax account and other information. Some activity is undertaken to review tax declarations and forms to ensure that only information needed and used is sought, but this is not done in a regular and systematic way. There is no prefilling of tax declarations. |
| P4-12-2 | EUR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in : Attachment III, Tables 4-8 show the following on-time filing rates for core taxes: • For all CIT taxpayers: 73 percent • For large CIT taxpayers: 98 percent • For all PIT taxpayers: 79 percent • For all VAT taxpayers: 93 percent • For large VAT taxpayers: 98 percent • For all PAYE taxpayers: 91 percent |
| P5-15 | EUR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in : Electronic payment rates are generally good, but separate data are not available for CIT and PIT. The extent to which payments are made electronically are shown in Attachment III, Table 9. There are high rates of electronic payment for VAT (89 percent). Tax Administration is unable to separately report electronic payment rates between CIT and PIT (76 percent as a combined ratio for CIT and PIT). Cash payments continue to be accepted at Tax Administration offices and this payment method is most common for the smallest taxpayers. Although the reported rate for electronic payment for PAYE withholding is markedly lower (56 percent), officials advise that the ratio excludes bank account transfers by government agencies, state owned enterprises and government contractors. |
| P5-17-2 | EUR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in : Data provided by Tax Administration shows a healthy level of VAT payment compliance. VAT payments are made monthly, except for micro-enterprises that pay and file quarterly. Data provided in Table 10, Attachment III shows that, during 2015, 93 percent of the number of payments due were received on time, and 82 percent of the of the value of VAT payments due was paid on time. |
| P6-20 | EUR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in : Wide use is made of large-scale automated data gathering and cross-checking. Amounts reported in CIT and PIT declarations are routinely and systematically cross-checked with information from VAT declarations, as well as information from other government agencies—e.g., trade register (registrar of companies), labor inspectorate, and financial intelligence unit (money laundering). This is in addition to the well-developed third party reporting regimes that coexist with final withholding arrangements (i.e., payers of income subject to final withholding taxes—such as wages/salaries, dividends, interest, prescribed business income, royalties/patents, and certain share transactions—are required to report payment information periodically to Tax Administration). There is no large-scale automated data gathering and cross-checking of PIT and CIT declarations with information from internetbased vendors. |
| P7-25 | EUR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in : Dispute outcomes are regularly monitored and outcomes of a material nature are analyzed and taken into account in formulating policy, law and administrative changes. There is a good system of monitoring dispute outcomes and anonymized case decisions are published—covering all stages of the appeal process—on the Tax Administration website. A review of the most significant case decisions is prepared twice yearly and important decisions are also communicated by email to auditors on an ongoing basis. While decision impact statements are not routinely prepared, examples were provided of impact analysis reports following significant appeal rulings (affecting a large number of taxpayers), and of follow-up input into the formulation of both legislative and procedural policy changes arising from appeal outcomes. |
| P8-26 | EUR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in : The Tax Administration has established a revenue estimates and analysis unit to provide inputs to revenue forecasts, but tax expenditures are not covered. This small expert group has produced annual estimates for each of the core taxes in 2016 and has developed models to support advice on revenue consequences of proposed changes in tax policies. The unit, which remains at an early stage of development, provides estimates on changes to tax laws, when requested by the MOPF. A separate group within Tax Administration monitors on a daily basis, tax revenue collections against budgeted forecasts and routinely liaises with MOPF officials. Monthly reports on discrepancies between forecasts and actual revenues are produced for The Tax Administration management and as an input for advice to government.The Tax Administration provides short term VAT refund forecasts on a monthly basis. The forecasts are provided by the 7th of each month. Tax Administration does not monitor and report on the cost of tax expenditures. The potential impact of the stock of unused tax losses on future collections is monitored by the MOFP but not by Tax Administration. |
| P9-30-1 | EUR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in : The COA annually audits the Tax Administration’s financial and operational performance, but the Tax Administration’s response to the COA’s findings is not published. Condensed reports of the most significant audit conclusions and recommendations arising from the audits are published on the COA website (as part of a general report on all public entity audits).The Tax Administration responds to the COA’s findings, and deadlines for implementing COA recommendations are provided for in legislation. However,the Tax Administration’s responses to the COA’s findings are not publicly reported. |
| P5-17-1 | WHD | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in : The on-time payment (by number) rate for the period April 2015 to March 2016 based on the data extracted from the VETAS system was 84.7 percent. Over the period 17,914 VAT payments were due of which 15,166 were made on-time. Data supplied by the Tax Administration and tested with staff may be found in Table 10 in Attachment III |
| P5-17-2 | WHD | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in : The on-time payment (by value) rate for the period April 2015 to March 2016 based on the data extracted from the VETAS system was 88.6 percent. Over the period a total of BDS$ 537,329,899 in VAT payments was due of which BDS$ 476,001,989 was received on-time. Data supplied by the Tax Administrationand tested with staff may be found in Table 10 in Attachment III. |
| P7-23-3 | WHD | B | FIRST | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in : General information on taxpayer dispute rights and resolution processes is publicly available. The information is included on the Tax Administration website and specifically included in audit finalization letters, notices of assessment, and notifications of administrative review outcomes. While auditors are generally expected to explicitly inform taxpayers of their dispute rights and the associated dispute procedures at the conclusion of an audit, there are no specific written instructions to auditors requiring them to do this. |
| P1-1-1 | EUR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in : The taxpayer registration database is sound, but it does not provide online access for taxpayers to update their details. Taxpayer registration is done simultaneously with business registration by the State Registry Agency (SRA) in the Ministry of Justice (MoJ) and a unique 8-digit Tax Identification Number (TIN), with a check digit, is automatically generated. All registrations are automatically sent to the Tax Administration through a web-based interface. The information on these registrations becomes public immediately. Registration can be done online or at one of the SRA’s locations. The Tax Administration Information Technology (IT) system—Taxpayer-3—houses the taxpayer database, which has all the essential information about taxpayers, such as name, contact details, taxpayer segment, economic sector and related parties. The national and computerized database permits a countrywide and whole of taxpayer view for headquarters staff and a regional view for frontline staff. Furthermore, the taxpayer database interfaces with other sub-systems including filing and payments. The database is linked to a ledger balance module from which lists of due filings and payments can be monitored. Registration related management information can be obtained from the Taxpayer-3 system on a daily basis. The systems at both the Tax Administration and SRA have audit trails of user access. The SRA allows deregistration on request from a taxpayer but this is subject to an audit by the Tax Administration. |
| P1-2 | EUR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in : The Tax Administration undertakes activities to detect unregistered businesses and individuals but there is no planned program for such activities. Analysis is conducted on a monthly basis using information from various sources such as the Armenian Police (AP), the Land Cadaster and Customs database. This is mainly done by comparing excel sheets received from these external sources. The Tax Administration does field inspections to detect non-registered entrepreneurs, but there is no planned program of such work. Reports on unregistered taxpayers detected are produced using a standardized template and this is also shared with the SRA. These reports are generated on a monthly, semi-annual and annual basis. |
| P2-3-1 | EUR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in : Intelligence gathering and research activities are undertaken but these are not part of a multi-year strategic planning process. The Tax Administration uses information from a range of external sources to enhance its knowledge of compliance risks in respect of the main tax obligations. Sources of this information include the Land Cadaster, the AP for vehicles and movable property ownership, and the State Procurement Agency. The Tax Administration does not carry out an environmental scan but uses one developed by the Ministry of Economy in addition to analyzing information on economic conditions, tax potential and other statistics from the National Statistics Service (NSS). Currently the Tax Administration does not conduct research into topical areas such as transfer pricing and aggressive tax planning by high-net worth individuals. An important source of analysis of economic activity, especially for the large number of inactive taxpayers, is information received through the e-invoicing and cash register initiative. This enables the Tax Administration to have access to all sales invoices and figures, which are captured on cash registers and transmitted through a connection to the Tax Administration. This has also enabled the Tax Administration to, for example, analyze utility bills for addresses where there has been increased activity as such expenditure may be an indication of unreported income. A range of internal sources is also used to determine levels and trends in relation to compliance risk. Sources of analysis include tax declarations, audit results and studies into specific sectors (e.g. Energy Sector Study and the Meat Industry Reports) and also include information from Customs. A Tax Gap Study was also conducted in 2014 (see POA 6-18 for further details). |
| P3-10 | EUR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in : A range of measures is in place to reduce taxpayer compliance costs but tax returns are not prefilled. Taxpayers and their authorized agents have access to an online secure portal to file their declarations and, as evidenced by Tables 9 in Attachment III, the level of electronic filing is high across all tax types. The Tax Administration has also provided access to an e-invoicing facility that enables businesses to exchange commercial invoices (See POA 2). Simplified electronic tax returns and reduced frequency of filing have been introduced for small businesses such as sole entrepreneurs and family businesses. Examples of reduced reporting include that only two types of annual reports are required for family businesses and only quarterly reports are required in relation to turnover tax. At the Arabkir field office, the assessment team was also able to observe the online tax declaration forms that were reviewed and simplified by reducing information required from taxpayers. Salaried employees who do not have any other source of income from natural persons are not required to file a declaration because employers withhold employee tax and file a consolidated return to the Tax Administration. Services and products are frequently updated using feedback and queries from taxpayers on tax laws and procedures. |
| P3-11-2 | EUR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in : The Tax Administration uses various measures as outlined above to engage key taxpayer groups and use their input to improve its processes and products. As an example, when the Family Business tax regime was introduced, regulations were developed based on taxpayer inputs. Taxpayers were also involved in piloting the project on cash registers. However,the involvement of taxpayers and intermediaries in the design and/or testing of new products and processes is not systematically built into the Tax Administration’s processes in order for it to happen routinely. |
| P5-18-1 | EUR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in : The three-year average ratio of total arrears at the fiscal year-end as a percentage of total core tax collection for the fiscal year is 11.8 percent (See Table 11 in Attachment III). There was about a modest 1 percent decline in total tax arrears for each year from 2013 to 2015, but this is not necessarily related to a more effective debt management system as discussed below. |
| P6-19-1 | EUR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in : The Tax Administration has an annual audit program, which covers all core taxes and all taxpayer segments. The annual audit program, which spans from July 1 to June 30, is publicly available on the Tax Administration’s website. The annual audit program focuses on large and high-risk taxpayers identified using the automated risk engine. Cases are selected centrally at the Tax Administration headquarters. There are various types of audits undertaken, including comprehensive audits covering taxpayers’ entire economic activities and the extent to which computed taxes comply with the law; however, comprehensive audits are considered the last resort. The Tax Administration predominantly conducts partial audits, covering areas such as VAT assessments and reviews of electronic cash registers and employers’ payrolls. The Tax Administration uses both direct and indirect audit methods. However, indirect methods are only applied when direct methods are not sufficient to estimate liability. The nature and scope of audits is guided by the law on inspections, a regulation for carrying out audits and reviews (order no. 754/A dated April 28, 2011), and decree no. 1636/A on the risk methodology dated November 10, 2011. Field offices prepare six-monthly feedback reports on the results of desk reviews. However, the Tax Administration does not undertake routine evaluations to determine the impact of audits on tax compliance (Also see POA 2-5). |
| P7-23-1 | EUR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in : There is a three-tier graduated dispute resolution process in place but the participation of the head of the Audits, Inspections and Monitoring Department in the first stage makes the process not entirely independent. The first tier consists of an Appeals Commission based at headquarters, comprising nine Commissioners appointed by the Tax Administration Chairman. The Commissioners are drawn from various parts of the Tax Administration such as Audit, Legal, Investigation and the LTI. The Commission was set up in April 2016. The second tier comprises a Unified Commission of Inspecting Bodies with nine members and chaired by the Prime Minister. The third tier is made up of three courts: the Administrative Court, Administrative Review Court and Court of Cassation. Data provided by the Appeals Commission on cases lodged by taxpayers in 2016 indicates that the appeal process is used. The Legal Department also tracks appeals cases in the courts. |
| P7-23-2 | EUR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in : The Appeals Commission is physically and organizationally separate from the Audit Department. However, the head of the Audits, Inspections and Monitoring Department is one of the Appeals Commissioners, creating a potential conflict of interest. The appearance of a conflict of interest is sufficient to compromise the perceived independent of the Commission in handling audit reviews and it may be beneficial for the process if the Tax Administration was to review the participation of the audit head in audit reviews. The decisions of the Appeals Commission are made through a simple vote. Each Commissioner has one vote, with the Chairperson having the casting vote (in the event of a deadlock). The Appeals Commission’s activities are guided by procedures issued on April 12, 2016. The procedures specify: the commission’s tasks and functions; how to consider and resolve complaints; and templates to be used to file an appeal and invite taxpayers to hearings. |
| P7-23-3 | EUR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in : The appeals procedure is accessible at the Tax Administration’s website and other websites. Auditors are not required by law to explicitly inform taxpayers of their dispute rights and procedures. Rather, before commencing an audit, the Tax Administration submits a written notice to the taxpayer. The back of the notice indicates the taxpayer’s right to dispute the audit and the procedure to be followed. The taxpayer must acknowledge that they have read their rights by signing the back of the form. |
| P8-28-1 | EUR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in : The VAT refund processing system involves an automated risk-based verification and provides for offsetting of VAT credits and allocation of dedicated budget funds; the current process however does not provide for any preferential treatment for refunds claims submitted by low-risk taxpayers. Taxpayers file VAT refund claims electronically. There is an automatically generated list of low-risk taxpayers that do not enjoy faster processing, but are exempted from pre-refund audits. The majority of taxpayers claiming VAT refunds are usually identified as high-risk and Subjected to pre-audit. When the Tax Administration processes refund claims, it consolidates cases for each business that submitted more than one refund claim into one case. VAT refunds are budgeted for under a dedicated expenditure program in the annual budget law of the Republic of Armenia. The amounts are allocated for a full fiscal year with allotments by quarter. In case amounts are insufficient, the MoF moves the fund allocation from the following quarter upwards, and initiates revision of the budget law in order to provide for supplemental funding for VAT refunds. In 2016, the budgeted refund amount was increased from AMD 29.3 billion to AMD 44.3 billion. Legal provisions allow for payment of interest to taxpayers on delayed refunds; however, according to the Tax Administration all tax refunds are processed within the statutory deadline. |
| P9-31 | EUR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in :An independent “Tax Perception in Armenia Household and Enterprises survey” was conducted in November – December 2013 to monitor trends in public confidence in the tax administration. The results of the survey were made public and Tax Administration has taken them into account in its operations. As also indicated in POA 3-9, an independent third party, Research Resource Center , carried out a survey on attitudes of the general public and business community towards the tax administration in 2013. The survey sample was stratified by the following criteria: (i) region and annual turnover for businesses, and (ii) region and type of settlement (urban or rural) for households. Taxpayers were randomly selected for the survey purposes. The results of the survey were made public in May 2014 at an event attended by representatives of L137 Government, the private sector, civil society organizations, independent researchers, international agencies and the members of the public. The Research Resource Center also posted the results on its website. The Tax Administration took results of the 2013 survey into account in strengthening its integrity framework by launching a course on Integrity for the Tax Administration’s staff in 2015.A follow up survey was commenced in August 2016 and results were expected in December 2016. |
| P3-11-2 | AFR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in : There is also regular consultation with taxpayers and stakeholders on administrative processes and products. On a regular basis, Tax Administrationholds stakeholder meetings with key taxpayer segments and industries, several professional bodies (e.g. accounting body, manufacturers association, law society) as well as other stakeholders (e.g. county governments, tax practitioners, tax tribunal) to discuss issues and challenges in the law as well as administrative processes and products. While there is some involvement of taxpayers, intermediaries, and stakeholders in the design and testing of new processes and products, it is not done on regular and systematic basis for all processes and products. |
| P7-23-1 | AFR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in : A tiered review mechanism is in place and used, but the administrative review process within Tax Administrationis multi-layered. A taxpayer who disputes a tax decision may lodge a notice of objection to the CG within thirty days of being notified of the decision. Within KRA, this objection may be addressed by the Technical Forum (TF), the Dispute Resolution Committee (DRC), or the auditors themselves. The establishment of the Alternative Dispute Resolution process (ADR) as an alternative process during the period allowed for objections, has added another layer to the objection process within KRA. After the objection process, a taxpayer has the right to appeal to the TAT (second stage) followed by the High Court and Court of Appeal (final stage). |
| P1-1-1 | WHD | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in : The tax register is a centralized, computerized data base, and contains all relevant information, but does not use taxpayer registration details to generate tax declarations nor to provide online access to update details. Each registered taxpayer has a single high integrity nine-digit National Registry of Taxpayers number; the data base includes filing and payment processing data; provides front line Tax Administration staff with a whole-of-taxpayer view; allows for deactivation or deregistration of taxpayers; and generates statistics of registered taxpayers by sector and changes to the taxpayer registration data. |
| P3-10 | WHD | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in :Important steps have been taken to reduce taxpayer compliance costs: (1) simplified accounting, record-keeping, filing, and payment arrangements for individual entrepreneurs, very small companies and farmers; (2) fiscal invoice printers to easily monitor sales; and (3) elimination of the obligation to file declarations for non-business individuals (e.g., employees whose salary income is taxed at source or pensioners). The introduction of modern electronic and communication facilities—particularly the taxpayer portal—has contributed to lower taxpayer costs associated with filing and payment, and communicating with Tax Administration. Regular monitoring of frequently asked questions and misunderstandings of the law help target and refine public information products and services. However, these initiatives do not extend to pre-filling of tax declarations for taxpayer segments where final withholding is not in place |
| P3-11-1 | WHD | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in :A variety of taxpayer feedback channels are used including public media, complaints and suggestion boxes, focus groups, feedback after seminars and post-audit surveys. Perception surveys are conducted about the services provided in both the physical and the virtual office. An independent taxpayer perception survey was conducted annually for the period 2006 to 20116 and feedback was used in the subsequent strategic plan. The next independent survey has not yet been organized. |
| P4-14 | WHD | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in :Three of the four cores taxes are filed electronically more than 85 percent (CIT – 86 percent, VAT – 88 percent, PAYE – 99 percent) and PIT at 78 percent -hence a score of B (Table 9 of Attachment III refers). All large taxpayers are required to file electronically— their filing rates are 99.2 percent, 99.7 percent and 99.7 percent respectively for Years 2013 - 2015 |
| P5-18-1 | WHD | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in : The value of tax arrears averages 17.8 percent for the past three years, as shown in Table 11 in Attachment III. The percentage has been increasing since 2013. |
| P7-23-3 | WHD | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in : Information on the dispute resolution process is published and taxpayers are explicitly made aware of it at the end of assessments. Information about taxpayer´s rights and dispute resolution procedures is publicly available on the website. Information on dispute rights and associated dispute procedures is specifically included in audit finalization letters and notices of assessment, using standard templates. There is a supervision procedure in the Audit Department to ensure that information on taxpayers’ rights and dispute resolution procedures is included; however, auditors are not required (through written instructions) to specifically inform taxpayers about these rights and procedures. |
| P8-26 | WHD | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in : The Tax Administration Economic Studies Unit fulfills the required revenue monitoring and analysis capability of a modern tax administration. It provides data and basic analytical input to the MoF, including revenue forecasting and estimation, and quarterly reviews of the estimations. Additionally, it regularly monitors and reports to the Tax Administration Director General and MoF on monthly revenue collections against budget projections and provides explanations of deviations. This unit also produces an annual report on tax expenditures. Tax Administration forecasts VAT refunds to ensure that sufficient funds are available to service claims. |
| P8-27 | WHD | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in : The automated tax revenue accounting system provides essential functionality and interfaces with the MoF but is not externally audited. The system interfaces with the MoF accounting system and is consolidated at Tax Administration. The latter maintains a single account for each taxpayer payment and posts payments within one business day. Tax Administration conducts daily reconciliations of all bank deposits and makes reports to the MoF. Tax Administration has internal but no external oversight of the revenue accounting system at the micro level (taxpayer paymentbank deposit-tax current account). The Government Auditor (CC) audits Tax Administration accounts annually at a macro level |
| P9-32-2 | WHD | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in : A multi-year Strategic Plan and an Annual Operational Plan are made public. The Tax Administration publish its Strategic Plan six months before is takes effect. The Plan sets out the mission, vision, and objectives of the administration over a four-year period. The Annual Operational Plan is also published every mid-January on the Tax Administration’s website, and includes the expected key operational achievements for the year. |
| P3-8-1 | MCD | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in : A range of information relating to the main obligations and rights of taxpayers is provided through different delivery channels but it is tailored to only some taxpayer categories. The Tax Administrationwebsite provides information, forms and guidelines related to core taxes for individuals, companies and entities that have withholding obligations. The Income Tax and VAT Wings of Tax Administrationhold separate public outreach programs for their respective taxpayers. In addition to special events and seminars, the Tax Administrationproduces pamphlets, TV scrolls, and newspaper ads. Twelve Income Tax Service Centers (ITSCs) across the country provide first level support to taxpayers for PIT, CIT and PAYE. Two call centers provide information on registration and online filing of returns. The NBR’s VAT Online call center became functional from September 2016, providing information relating to registration under the new VAT law. |
| P3-11-2 | MCD | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in : The Tax Administration consults regularly with its main stakeholders, including Chambers of Commerce and the Institute of Chartered Accountants, for feedback and suggestions. Independent taxpayer perception surveys were conducted in 2013 and 2015 through third party professional agencies as part of two different projects, and a survey is underway through the VAT Online project. There is no practice of conducting taxpayer surveys through phones or e-mails. Evidence of involvement of taxpayers and intermediaries in designing and testing of new processes and products was not available. |
| P6-21 | MCD | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in : A system of public and private binding rulings exists in the Tax Administration, but there is no cooperative compliance practice, such as advance pricing agreements, with qualified taxpayers. Public rulings are issued in the form of public circulars and Statutory Regulatory Orders , under both income tax law and VAT law. Private rulings are issued both under the VAT law and income tax law |
| P7-23-3 | MCD | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in : The taxpayers’ right to appeal is published and the assessment notice makes the taxpayers aware of their right to appeal and the procedure therefor. The tax laws both for VAT and income tax have chapters that lay down the right of the taxpayers to contest actions of the Tax Administration. These are published in print and on the web. There is also provision for e-appeal available to taxpayers on the Tax Administration portal. While auditors are not required by written instructions to explicitly inform taxpayers of their right to contest, the assessment order and demand notice makes the taxpayers aware when and where they can file appeal against an assessment order. |
| P7-25 | MCD | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in : The Tax Administration monitors the results of appeals and takes action wherever the matter involves significant revenues. For VAT, Member Legal and Enforcement monitors court cases. Whenever there is a significant issue, clarifications and rulings are regularly issued by the Tax Administration. For income taxes, Member Appeals monitors court cases. In cases of a material nature, Member Tax Policy is responsible for either giving instructions to assessing officers or suggesting amendment to the tax laws. The team reviewed cases where a Supreme Court decision resulted in amendment of law. |
| P8-26 | MCD | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in : The Tax Administration has a fairly sound tax revenue forecasting process. The policy desks of Tax Administration have dedicated staff which collect data and analyze tax collection against forecasted revenues. The Tax Administration provides regular inputs to the MoF for its forecasting function and there are regular meetings with the MOF for this function. The Tax Administration forecasts and provides sufficient budget for VAT drawbacks (refunds). The annual report of the Tax Administration contains a section on tax expenditure resulting from various exemptions and tax breaks. With this process the Tax Administration almost meets international good practice, with the exception of monitoring of tax losses carried forward by taxpayers. |
| P4-12-1 | APD | B | FIRST | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in : On-time filing rates are high across all core taxes for most of 2020. However, overall filing performance was impacted by the introduction of e-filing in late 2020, especially on VAT and Special Tax, when the provision on mandatory e-filing for medium and large taxpayers came into effect. • Tax on Business Income: On-time filing rates for both large taxpayers separately and all taxpayers are 95 percent and 94 percent, respectively (Table 4, Attachment III); • VAT: Large and all VAT taxpayers’ on-time filing rates are 89 percent and 90 percent, respectively (Tables 6 and 7, Attachment III); • Special Tax Domestic (Excise): Large and all excise taxpayers’ on-time filing rate are 91percent and 85 percent, respectively (Tables 8 and 9, Attachment III); • Tax on Salary: For monthly withholding filing by employers, the average on-time filing rate is 90 percent (Table 10, Attachment III). |
| P6-19-1 | APD | B | FIRST | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in : The Tax Administration has a national tax audit program that covers all core taxes and taxpayer segments. The tax administration has three audit programs developed independently of each other—for each of the three departments responsible for audit functions. Cases are selected and approved for audit in a decentralized manner using an unspecified risk regime. Auditors use a range of methodologies, including direct and indirect methods (including financial statements). There is no evidence to show that the Tax Administration evaluates the impact of audits on levels of compliance. |
| P6-21 | APD | B | FIRST | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in : Tax Administration has a system of public and private binding rulings in place. General instructions are in the taxpayer education brochures and on the Tax Administration website. However, Tax Administration does not have formal cooperative compliance arrangements. |
| P8-26 | APD | B | FIRST | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in : Tax Administration collects and provides regular data on revenue collection, and monitors collected revenue against budgeted revenue forecasts and reports it to MEF monthly. While the primary duty of revenue forecast and estimation rests with the MEF, much of the necessary data comes from the Tax Administration. Both MEF’s GDP and Tax Administration are using the Elasticity Approach in revenue forecasting. However, Tax Administration’s model includes more parameters, such as the administrative capacity, to enhance the accuracy of revenue estimates. Tax Administration monitors the VAT refund budget to provide information for liquidity planning. Tax Administration started to monitor the losses carried forward recently as a result of the impact of the COVID-19 pandemic on taxpayers. Some monitoring has been done on quantifying the cost to revenue of tax incentives, but not on a comprehensive and regular basis. |
| P3-10 | AFR | B | REPEAT | 2019 | English | Rated B because sound performance fairly close to internationally accepted good practices was detected in: Initiatives aimed at reducing costs linked to taxpayers' tax compliance have been implemented. Taxpayers and their authorized agents can access registration and account data online through the “e-tax” tax portal and the “Mobile Tax Administration” permanently accessible by large, medium and small businesses. taxpayers. The measures that govern the protection of the integrity and confidentiality of taxpayer data are described in the security policy of the information system of the tax administration. Simplified accounting and reporting arrangements are offered to small taxpayers (micro-enterprise tax declaration, withholding of payments made to informal sector service providers). However, simplified reporting provisions through pre-populated tax returns are not yet available. available. |
| P4-12-1 | AFR | B | REPEAT | 2019 | English | Rated B because sound performance fairly close to internationally accepted best practices was detected in: On-time filing rates for major basic taxes are quite high. Tables 4 to 10 [Attachment III] show declaration filing rates over the last 12 months of: IS (78.1% for total, 99.9% for large taxpayers), VAT (81% .4% for the total, 93.0% for large taxpayers), ITS (80.0%), IRPP (80.0%) and DA (100.0%). These performances of the tax administration are the consequences of the combination of the availability of a wide range of online services (declaration, payment, etc.), the professionalization of assistance to users (operationalization of the Teleservices Center tax) and an offensive strategy of communication and promotion of good citizenship tax. |
| P4-12-2 | AFR | B | REPEAT | 2019 | English | Rated B because sound performance fairly close to internationally accepted best practices was detected in: On-time filing rates for major basic taxes are quite high. Tables 4 to 10 [Attachment III] show declaration filing rates over the last 12 months of: IS (78.1% for total, 99.9% for large taxpayers), VAT (81% .4% for the total, 93.0% for large taxpayers), ITS (80.0%), IRPP (80.0%) and DA (100.0%). These performances of the tax administration are the consequences of the combination of the availability of a wide range of online services (declaration, payment, etc.), the professionalization of assistance to users (operationalization of the Teleservices Center taxes) and an offensive strategy of communication and promotion of tax citizenship. |
| P4-12-5 | AFR | B | REPEAT | 2019 | English | Rated B because sound performance fairly close to internationally accepted best practices was detected in: On-time filing rates for major basic taxes are quite high. Tables 4 to 10 [Attachment III] show declaration filing rates over the last 12 months of: IS (78.1% for total, 99.9% for large taxpayers), VAT (81% .4% for the total, 93.0% for large taxpayers), ITS (80.0%), IRPP (80.0%) and DA (100.0%). These performances of the tax administration are the consequences of the combination of the availability of a wide range of online services (declaration, payment, etc.), the professionalization of assistance to users (operationalization of the Teleservices Center tax) and an offensive strategy of communication and promotion of good citizenship tax. |
| P4-14 | AFR | B | REPEAT | 2019 | English | Rated B because a sound performance quite close to internationally accepted good practices was detected in: The declaration of taxes and duties electronically has become compulsory since 2020 for taxpayers in the real tax regime, in particular those managed at the DGE and in CMEs. Since 2018, the tax administration has started to introduce various teleservice offers, including in particular the possibility of declaring and paying taxes for large taxpayers online. We are currently witnessing an increase in the use of electronic procedures, supported both by the provisions of Order No. 00054/MPMBPE of March 10, 2020 making it mandatory to file declarations electronically and the operationalization of SIGICI as well as the e-tax web platform. The level of use of electronic declaration of the main basic taxes is very high, particularly at the DGE [Attachment III, table 11]. The launch of the Mobile Tax Administration application will gradually extend the use of teleservices to small taxpayers managed in the Tax Centers. |
| P5-15 | AFR | B | REPEAT | 2019 | English | Rated B because sound performance fairly close to internationally accepted good practices was detected in: Electronic payment methods are used for all basic taxes and their use represents more than half of the value of payments made and more than 90% of the value of payments made by large taxpayers. The two e-tax portals and mobile tax administration have become the main tools for collecting tax revenue following the deployment of SIGICI in almost all operational structures. These online payment service offerings are currently mandatory for all large taxpayers and those reporting to the Medium Business Centers. Access to the e-tax portal is via a Remote Declarant Number (NTD) allowing declarations and payments to be made online by direct debit or bank transfer. In 2020, the electronic payment rates were respectively 95% for IS, 93% for IRPP, 94% for VAT and 100% for DA. In addition, 99% of payments made by large taxpayers managed at the DGE were made electronically [Attachment III, table 11]. |
| P5-17-2 | AFR | B | REPEAT | 2019 | English | Rated B because sound performance fairly close to internationally accepted best practice was detected in:The number and amount of on-time VAT payments are relatively low compared to international best practice. According to art. 339 of the CGI, VAT applies to deliveries of goods and services carried out for consideration by a taxable person acting as such, with the exception of salaried and agricultural activities. It is paid monthly, no later than the 15th of each month following the declaration of turnover for taxpayers reporting to the DGE and CME. In view of the statistics provided by the tax administration, for all taxpayers subject to VAT, the rate of VAT payments within the prescribed deadlines is 72% in number of declarations and 84% in declared values. For large companies, the rates of VAT payments on time, in number and in value of payment are 92% and 89% respectively. [Attachment III, Table 12]. |
| P6-19-1 | AFR | B | REPEAT | 2019 | English | Rated B because sound performance fairly close to internationally accepted good practices was detected in:The tax control plan covers all basic taxes and uses both general audits and spot checks, adapted to the risks relating to each segment of taxpayers. The selection of tax audit cases is carried out and centralized at the level of the Investigations, Research and Risk Analysis Department. However, the impact of controls on taxpayer compliance levels is not assessed. The verifiers have an on-site inspection guide but there is not yet an on-site verification manual. Sectoral control manuals in the fields of buildings and public works, wood and coffee and cocoa are being developed. |
| P7-23-1 | AFR | B | REPEAT | 2019 | English | Rated B because a sound performance fairly close to internationally accepted good practices was detected in: A progressive dispute resolution process is in place and operates with several levels of decision in the administrative phase. The investigation of the dispute is carried out by the Department of Legislation, Litigation and Documentation (DLCD) whose responsibilities include making proposals to the Director General for the resolution of disputes. At the level of the administrative phase, there are several levels of appeal provided for in Art 183 of the LPF as follows: requests exceeding 500 million FCFA fall under the jurisdiction of the Director General of Taxes; those less than or equal to 500 million FCFA are processed by the central directors; and those less than 100 million FCFA fall under the jurisdiction of the Regional Tax Directors. In addition, there is a Joint Commission (which includes members from the tax administration and the private sector) which gives an opinion on questions of fact. If the taxpayer is not satisfied with the tax administration's decision, he can file an appeal before the Court of First Instance (TPI), then the Court of Appeal and finally the Court of Cassation. The dispute investigation service is not completely independent from the tax audit service. There creation of litigation departments within operational departments reduces physical independence and organizational structure of the said services in the processing of tax dispute files. |
| P7-23-2 | AFR | B | REPEAT | 2019 | English | Rated B because a sound performance fairly close to internationally accepted good practices was detected in: A progressive dispute resolution process is in place and operates with several levels of decision in the administrative phase. The investigation of disputes is carried out by the Department of Legislation, Litigation and Documentation (DLCD), which is responsible in particular for making proposals to the Director General for the resolution of disputes. At the level of the administrative phase, there are several levels of appeal provided for in Art 183 of the LPF as follows: requests exceeding 500 million FCFA fall under the jurisdiction of the Director General of Taxes; those less than or equal to 500 million FCFA are processed by the central directors; and those less than 100 million FCFA fall under the jurisdiction of the Regional Tax Directors. In addition, there is a Joint Commission (which includes members from the tax administration and the private sector) which gives an opinion on questions of fact. If the taxpayer is not satisfied with the tax administration's decision, he can file an appeal before the Court of First Instance (TPI), then the Court of Appeal and finally the Court of Cassation. The dispute investigation service is not completely independent from the tax audit service. The creation of litigation departments within operational departments reduces the physical and organizational independence of said departments in the processing of tax litigation files. |
| P8-26 | AFR | B | REPEAT | 2019 | English | Rated B because a sound performance quite close to internationally accepted good practices was detected in: The tax administration contributes effectively to the forecasts and estimates of tax revenues, however the deficits and tax credits reported by taxpayers do not subject to special monitoring. The Directorate of Planning, Studies and Fiscal Statistics (DPESF) is in close contact with the services of the Ministry of Budget and State Portfolio (MBPE) and those of the Ministry of Economy and Finance (MEF) responsible for preparing the finance bill. Since 2020, revenue estimates have been based on a new econometric forecasting model. The amount of VAT credit refunds is estimated annually to ensure sufficient availability of funds. |
| P3-8-1 | APD | B | FIRST | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in: Information on core tax obligations and entitlements is readily available and is tailored to key groups. The Tax Administration ’s website (Tax Administration WEBSITE) includes a wide range of information on the main taxpayer obligations (registration, filing, payment, and reporting) and entitlements, in respect of all core taxes. Information on the website is segmented according to the type of taxable persons (i.e. businesses and employers, individuals, trusts and other entities) as well as tailored to tax agents. A Facebook page was also launched in September 2019 to disseminate information on relevant events and taxpayer obligations. There is no customization for disadvantaged groups, but the mission was advised that Tax Administration ’s officers try to answer taxpayers’ questions in local language(s) during the annual roadshow. |
| P7-23-1 | APD | B | FIRST | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in: A graduated review mechanism is in place with a general jurisdiction court and specialist tribunal. The law provides for a tiered review mechanism, consisting of administrative review within the Tax Administration and external review by a Review Tribunal and National Court. A taxpayer dissatisfied with the Tax Administration ’s administrative review decision may appeal to the Review Tribunal or the National Court. The Review Tribunal consists of one person who was reappointed in 2019, after a five-year period with no Tribunal in place. The secretariat for the Review Tribunal is located in Tax Administration ’s Legal Services Division and is being manned by an Tax Administration staff under the supervision of the head of the Legal Services Division. Taxpayers’ appeals to the Review Tribunal are responded to by the lawyers of the Tax Administration ’s Legal Services Division with a position letter. A taxpayer who does not agree with the position letter, may request a hearing with the Review Tribunal. The mission was advised that the Review Tribunal has not delivered a decision for a long time. Appeals against a decision of the Review Tribunal can be made both by the taxpayer and the Tax Administration to the National Court, which is a generalist court. A final appeal may be made to the Supreme Court. The taxpayer’s appeal to the Review Tribunal or the National Court is only valid if the disputed amount of tax is paid in full. |
| P1-1-1 | AFR | B | FIRST | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in: The taxpayer registration system does not provide secure online access for taxpayers. The Revenue Management System (RMS) does not allow taxpayers to register and, once registered, to update details held in the registration database, nor does it generate tax declarations using taxpayer registration details. The taxpayer registration database includes all relevant details on taxpayers including full name, address, contact details, date of birth (individuals), date of incorporation (companies), industry sector, nature of business activity, segment, identity of associated entities (directors, shareholders, branches and public officers), and obligations for which the taxpayer is registered. It generates and allocates to taxpayers a nine-digit unique Tax Identification Number (TIN) with a built-in validation mechanism; provides frontline staff with a whole-of-taxpayer view across all core taxes; interfaces with the filing and payment subsystems; generates registration statistics and performance reports; provides an audit trail of activities by user in the system including changes made to taxpayer registration data; allows for suspension5 (deactivation) of taxpayers; and enables reactivation of taxpayers if needed. The registration database is centralized and computerized. |
| P2-3-1 | AFR | B | FIRST | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in:The Tax Administration gathers and analyzes information from a range of sources—primarily internal—to build knowledge on compliance levels. The Tax Administration analyzes the results of environmental scans it undertakes as part of its multi-year strategic planning, analyzes economic tax performance by sector,7 captures issues identified from tax declarations filed and tax audit activity and has undertaken tax gap studies biennially since 2015. Discussions with other government agencies, including the Registrar of Companies and government procurement functions, are currently underway to expand SRA’s access and use of third-party data sources. |
| P2-3-2 | AFR | B | FIRST | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in: The compliance risk management (CRM) process used by Tax Administration accords with good practice. The structured risk assessment process – developed in 2018 – allows Tax Administration to assess and prioritize compliance risks for all core taxes, the four main compliance obligations and key customer segments and industry groups. Seventy-one identified compliance risks were assessed, with 14 prioritized as high and approved for treatment in the 2019/21 period. The Tax Administration is currently embedding CRM planning into its multi-year strategic planning process. |
| P5-17-1 | AFR | B | FIRST | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in:The number of payments made by the statutory due date is high. However, the value of payments for large taxpayers (74.8 percent) is low relative to international good practice. The ontime payment rate for VAT by value of VAT payments is low. See Table 12 of Attachment III. |
| P6-19-1 | AFR | B | FIRST | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in:The Tax Administration has an audit program that covers all core taxes and is taxpayer segment focused. Cases are selected and approved for audit in a centralized manner using a growing range of risk criteria, supported by regular tax gap studies and sectorial analysis and research. Coverage is weighted towards large taxpayers and compliance risk. Auditors use a range of direct and indirect methods, including financial statement analysis and bank statement analysis, to ascertain the accuracy of reporting. Use of desk audits and extended audits is limited, with Tax Administration audits typically involving a comprehensive review of a taxpayer’s records for a three-year period. The Tax Administration is yet to undertake any evaluation of the impact of audits on taxpayer compliance. |
| P6-21 | AFR | B | FIRST | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in:The Tax Administration has a system of public and private binding rulings. Specific legislation provides the Tax Administration with the ability to issue binding taxpayer specific rulings. While tax legislation does not expressly provide for public rulings, the Tax Administration uses “practice notes” provided for in the Income Tax and VAT Acts, to publish binding rulings on issues of general interest. Recent examples include, the reverse charge applied to the forestry sector, deductibility of bad debts and the taxation of allowances. The Tax Administration does not have formal cooperative compliance arrangements. |
| P8-28-2 | AFR | B | FIRST | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in: Most VAT refunds are paid, offset, or declined in a timely manner. Data provided by the Tax Administration in respect of the time taken to pay (or offset) VAT refunds shows that 84 percent (by number of cases) and 80 percent (by value) are paid, offset, or declined within 30 calendar days. Numerical data provided in the pre-assessment questionnaire may be found in Table 15 in Attachment III. |
| P3-11-1 | WHD | B | FIRST | 2019 | English | It obtained a grade of B because a solid performance close to internationally accepted good practices was detected in: The Tax Administration collects the opinion of taxpayers on the quality of the services provided periodically through various feedback channels and conducts a survey annual based on statistical criteria to monitor said opinion, without there being a similar exercise carried out by an independent third party. Taxpayers have the opportunity to express opinions and suggestions about the quality of the services provided through telephone, in-person and virtual channels. For example, the Tax Administration has the PQRS and Complaints service in implementation from the Tax Administration portal through which taxpayers can send complaints, comments and suggestions for improvement. Through social media spaces (Facebook, Twitter and YouTube) citizens participate by sending comments and questions about the content and news published by the Tax Administration through its different communication channels, which are attended to following a defined response protocol. by customer service operational procedures. The feedback received from the taxpayer serves as input for the process of identifying and closing service gaps, the objective of which is to adapt the quality of the services to the customers' expectations about the quality of the products and services offered by the DIAN. There are guidelines and standards in operation for the evaluation of the service provided and the attention provided to the taxpayer that include measurements of the degree of taxpayer satisfaction for each communication channel. Every year, the Tax Administration carries out a service perception survey among the universe of taxpayers. This survey covers a sample of approximately 8,500 taxpayers following sampling criteria of randomness, stratification and segmentation. However, there is currently no similar sample carried out by an independent third party. |
| P3-11-2 | WHD | B | FIRST | 2019 | English | It obtained a grade of B because a solid performance quite close to internationally accepted good practices was detected in: There are feedback mechanisms through which the Tax Administration periodically consults groups of taxpayers about its products and operational processes, although there is no evidence on their participation in their design. As part of its corporate intelligence process, the Tax Administration carries out a monthly record of citizen participation and accountability actions. Through this process, the tax administration monitors the follow-up of the agreements and commitments reached with different groups of taxpayers that are collected through different communication channels, both in person and virtual. These participation actions are carried out through meetings, forums, training events, surveys, working groups and committees on different regulatory and operational topics, in relation to a wide range of topics and sectors of taxpayers and intermediaries, such as accountants. public, companies in the foreign trade, transportation, non-profit and agricultural sectors, among others. |
| P5-18-1 | WHD | B | FIRST | 2019 | English | It obtained a grade of B because a solid performance quite close to internationally accepted good practices was detected in: The average value of the arrears in relation to the total tax collection is 13 percent, within international good practice standards . However, the total arrears do not include the debt derived from the determinations or settlements of the administration challenged by the taxpayers pending resolution, as it is legally considered not enforceable. . |
| P6-19-1 | WHD | B | FIRST | 2019 | English | It obtained a grade of B because a solid performance quite close to internationally accepted good practices was detected in: The audit program -Crash Plan- covers the main taxes, selects cases centrally based on the risks analyzed, is weighted towards large taxpayers and economic sectors and uses different types and methods of auditing. There is no evidence that the impact of audits on compliance levels is routinely examined. The PCCE 2020 includes all actions to strengthen taxpayer compliance, covering the main taxes. The Shock Plan and the selection of cases are undertaken centrally with the participation, above all, of the SG of Operational Analysis and also of the Directorate of Control Management and the Directorate of Revenue. It is evident that the 2020 Shock Plan contemplates specific control actions towards Large Taxpayers and main economic sectors. The following are distinguished: (i) preventive and dissuasive control actions - verification visits -; (ii) actions of an extensive or massive nature - aimed at issuing invitations to payment and the correction of non-compliance by the taxpayer himself; and (iii) intensive control actions - with the corresponding settlements and imposition of sanctions44 -. There is no evidence that Routinely examine the impact of audits on space compliance levels for improving performance in this area. |
| P7-23-1 | WHD | B | FIRST | 2019 | English | It obtained a grade of B because a solid performance quite close to internationally accepted good practices was detected in: There is an administrative and judicial review mechanism, but without an intermediate step between both instances. The process has a single administrative review procedure within the tax administration itself and a second stage in which the taxpayer can appeal to the courts of administrative jurisdiction. There is no administrative court or intermediate step between the administrative appeal before the Tax Administration and the courts of law. There is evidence that the tax dispute resolution process is widely used by taxpayers. |
| P9-29-1 | WHD | B | FIRST | 2019 | English | It obtained a grade of B because solid performance close to internationally accepted good practices was detected in: There is a complete and detailed internal audit plan and an internal audit unit; However, this is not an independent entity from a structural point of view directly subordinated to an audit committee (the existence of an audit committee is a requirement of TADAT). The Office of Internal Control (OCI) reports directly to the director of the Tax Administration and the work he performs is based on a detailed annual internal audit plan with specific goals. The plan includes internal controls, audits of the main operational areas and the internal financial management of the institution. Auditors receive training based on an annual training plan. The Comptroller General of the Republic (CGR) supervises the work carried out by the OCI, reviews its annual reports, and rates the effectiveness of the internal control of the Tax Administration in a general manner. Internal control policies, processes and procedures are set out in various documents that are easily available to internal auditors. The OCI has carried out some management audits in relation to the DIAN information systems and also on aspects related to information security, although this last aspect is the responsibility of the Office of Security of the DIAN. Information from the DIAN, which also reports directly to the director of the DIAN. |
| P3-9 | AFR | B | REPEAT | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in : The Tax Administration responds promptly to customers’ calls through a dedicated call center. The Tax Administration commits to service delivery standards documented in the Citizens’ Service Delivery Charter with management reports of performance achieved against standards. Maximum wait times/response times associated with taxpayer requests for information through the call center are monitored and an average of 69.2 percent of telephone enquiry calls were answered within 6 minutes’ waiting time. Furthermore, in a bid to optimize business process, various departments in Tax Administration developed Service Level Agreements (SLAs) which describe the level of service expected by a customer from KRA. The SLAs are monitored to enhance operational excellence which in turn positively impacts compliance. |
| P3-10 | AFR | B | REPEAT | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in : Initiatives to reduce taxpayers’ compliance costs have been implemented. Taxpayers and their authorized agents can access account details, register, file, and pay online through a secure system with 24-hour access. Additionally, simplified record keeping is afforded to small taxpayers who qualify |
| P6-21 | AFR | B | REPEAT | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in : The Tax Administration has a system of public and private binding rulings. The enabling legislation is the Tax Procedure Act. Both private and public rulings are issued and are binding on KRA. However, the Tax Administration does not have cooperative compliance arrangements with taxpayers. |
| P7-24 | AFR | B | REPEAT | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in : A 60-day service delivery standard is adhered to and monitored for determining administrative reviews. The detailed monitoring report is maintained in a manual excel spreadsheet as the iTax system is being redesigned to accommodate the necessary tracking. The statistics provided in Attachment III, Table 14 show that 40 percent of cases were resolved in 30 days with 100 percent of the cases resolved within 60 days. |
| P7-25 | AFR | B | REPEAT | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in : Dispute outcomes of a material nature are regularly analyzed and decision impact statements routinely prepared, resulting in changes to policy, legislation, and administrative procedures. The LS&BC analyzes and communicates the outcomes of disputes to the operational departments for information or action. There is evidence that, based on their analyses, proposals to make changes in policy, legislation and administrative procedures have been formulated. Changes to legislation are proposed to address ambiguities in the law that create disputes. |
| P9-32-2 | AFR | B | REPEAT | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in : Tax Administration publishes a multi-year strategic plan and an annual plan. The 7th Corporate Plan was published within three months of the commencement of the period covered by the plan. The Annual Plan for 2020/21 contains an annual work-plan and is published in advance of the period covered by the plans. |
| P6-19-1 | AFR | B | FIRST | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in : A comprehensive audit program is in place. An annual audit program is developed centrally, with some input from the different groups involved in audit e.g., priority clients, essentially large taxpayers. It covers all core taxes and the main taxpayer segments as well as important economic sectors e.g., mining, and is weighted towards large taxpayers. However, the impact of audit on taxpayer compliance is not evaluated. |
| P7-23-1 | AFR | B | FIRST | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in : The administrative review process is multi-layered. The first level of administrative review is the Commissioner: Operations Support who invites a team of technical staff independent from those who conducted the audit to conduct the review. During the review process, the taxpayer is also invited to present their grounds for objection. Audit is also invited to clarify as needed any aspect of the auditor’s work and the resulting assessment. The Commissioner makes an objection decision, informed by this review. If the taxpayer remains unsatisfied, the objection escalates to the CG and if unresolved, the taxpayer can request review by an independent party such as the: (1) tax appeals tribunal or the court; (2) high court; or (3) court of appeal. Taxpayers make use of the formal dispute resolution process. |
| P7-25 | AFR | B | FIRST | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in : Dispute outcomes of a material nature are considered in the formulation of policy, legislation, and administrative procedures. Evidence provided indicates that dispute outcomes of a material nature are analyzed by the legal department and the analysis of the full judgement of a particular case is communicated to the technical officers in operations. The legal department interacts with technical officers on issues requiring legal interpretation thus providing clarity and guidance. Their analysis is used in the formulation or adjustment of policy, legislation, and administrative procedures e.g., the interpretation of fringe benefits and whether financial services provided were exempt from VAT. The outcome was used in revising legislation through the Income Tax (Amendment) Bill, 2021and the VAT (amendment) Bill, 2021, respectively. |
| P8-26 | AFR | B | FIRST | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in : There are dedicated expert staff in the Tax Administration’s research unit who provide tax administration input to government tax revenue forecasting and estimating. These staff routinely gather data on revenue collection and economic conditions to provide input to the government budgeting processes. They also monitor tax collections against budgeted revenue forecasts and report to government monthly. There are two inter-governmental committees that meet monthly, and when necessary bi-weekly, to provide input and to monitor revenue collections. The first is the macroeconomic working group represented by the Tax Administration’s head of strategy, and the second is the technical working group represented by the Tax Administration’s research unit. Government agencies include the Tax Administration, Ministry of Finance, Central Bank of Lesotho, and the Bureau of Statistics. The Tax Administration also forecasts VAT refund levels to ensure sufficient funds are available to meet all legitimate refund claims. Monitoring and reporting on the cost to revenue of tax expenditures and the stock of tax losses and credits/refunds carried forward do not occur at this stage. |
| P9-29-2 | AFR | B | FIRST | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in : Staff integrity assurance mechanisms in the Tax Administration are in place. They include ongoing communication of the Code of Ethics (CoE) and Code of Conduct (CoC) to staff by the Internal Affairs Unit, exercising investigative powers, cooperation with other enforcement agencies, and maintaining aggregate integrity-related statistics for the organization. The CoE and the CoC are integrated into the Human Resources Manual. The Internal Affairs unit lies within an organizational component reporting directly to the Commissioner-General. The CoE and CoC are covered in the onboarding of new staff. Attendance registers and signed and attendees sign a form acknowledging receipt of the CoE. The Internal Affairs unit convened sessions to update staff on the implications of the Revenue Authority (Amendment) Act 2022, in 2022. This amendment to the Act provides the Tax Administration) with the authority to investigate allegations of corruption against an employee. There is a Joint Memorandum of Understanding (MOU) and Cooperation between the Tax Administration and the Directorate on Corruption and Economic Offences (DCEO), the Financial Intelligence Unit (FIU), and the Lesotho Mounted Police Service (LMPS). Under this agreement, there is a police attaché to the RSL. The Internal Affairs unit maintains records of all investigations of employees, and reports containing aggregate statistics on the nature of the investigations and the outcomes are available. However, these statistics are not publicly reported. |
| P5-16 | WHD | B | FIRST | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in : Advance payment arrangements and withholding at source are used to collect the main income taxes. CIT and PIT are paid quarterly in advance. Withholding at source, as prescribed in the Income Tax Act, mandates withholding for all employment income (PAYE) and payments made to non-residents. However, payments of dividend and interest (not paid by banks) to residents are not subject to withholding or mandatory disclosure. Payment of interest by banks are exempt from income tax. |
| P8-26 | WHD | B | FIRST | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in : Tax Administration provides regular inputs to the government budgeting process. Tax Administration provides annual forecasting of tax revenues based on historical trends, adjustments for one-off transactions and economic conditions. The forecast includes monthly projections for all taxes administered by the Tax Administration. VAT refunds are forecasted to ensure that funds are available to meet all legitimate refund claims when they occur. The responsibility for providing inputs to the government budget process and monitoring revenue performance resides with a designated senior officer within the Tax Administration. |
| P5-16 | AFR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Systems of withholding tax at source for employment income, and advance payment for business income are used. According to Article 104 of the Tax Code (Code Générale des Impôts), the employer withholds employment-related income tax. Article 38 of Tax Code requires that quarterly advance payments of business income tax are made (30 June, 30 September and 31 December). A final payment of outstanding balances at the end of the year is required for all business income (both PIT and CIT). |
| P7-23-3 | AFR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Information on taxpayers' rights to appeal the decisions of AGID is publicly available and that on dispute rights is included in assessment orders. The rights to appeal in three stages are enshrined in the provisions of the tax code which is publicly available. The TADAT assessment team was shown a sample of the audit/assessment order which explained the taxpayer’s right to appeal the order. However, there is no documented procedure requiring auditors to inform taxpayers explicitly as to their right of appeal, or as to the dispute procedures to be followed. |
| P3-8-3 | AFR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in:Taxpayers can obtain certain information easily and quickly at no cost through various channels, but not always at convenient hours. The Tax Administration carries out a very extensive range of taxpayer education programs in the form of regular tax seminars for multiple business sectors, including starting and running a business and programs targeted to small businesses. Binding rulings are made available by statute, but they are infrequently requested, and no regulation sets out the procedure to be followed in seeking them. After hours service is not available in Tax Administration offices or in the call center. The website, with less than comprehensive information, is available at all times. |
| P7-23-1 | AFR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: A tiered review mechanism is in place and is used. There is a graduated mechanism of administrative and judicial reviews and it consists of a review process within the tax administration, a Tax Revenue Appeals Board, a Tax Revenue Appeals Tribunal and a Court of Appeal. |
| P7-23-3 | AFR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Information on the dispute resolution process is publicly available and taxpayers are explicitly made aware of it. The tax administration provides information on the taxpayers’ dispute rights and the dispute process: (i) on the notice of assessment; (ii) on the The Tax Administration website; and (iii) on the Tax Revenue Appeals Board website. However, there is no written instruction requiring auditors to explicitly inform taxpayers of their right to dispute the assessed amount and the dispute procedure. |
| P1-2 | MCD | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The Tax Adminstration systematically uses third-party information to detect unregistered businesses and individuals, and there is evidence of actions and results in relation to detecting and following up such cases. The Department has established e-links to numerous agencies and institutions and the Anti-Tax Evasion Directorate regularly queries and analyzes third-party information from those sources to detect unregistered taxpayers. Among other initiatives,The Tax Adminstration regularly cross-checks information from Jordan Customs Department to detect unregistered traders involved in commercial importation of goods officials. Officials also highlighted an effort to query hospital records to identify medical professionals performing surgeries and other procedures yet not registered for tax. Furthermore, operational units periodically receive orders from The Tax Adminstration Headquarters to conduct “spot visits” to business premises, and staff provided extensive statistical reports listing taxpayers registered as a result of The Tax Adminstration compliance interventions over the course of 2015. Notwithstanding these initiatives, vital third-party information sources are not always accessible to The Tax Adminstration. Notably, bank secrecy laws prevent the tax administration from accessing bank account information without a taxpayer’s consent. Nor has The Tax Adminstration undertaken substantive research to determine the extent of registration non-compliance by traders who escape the purview of the tax administration entirely. B |
| P2-3-1 | MCD | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: While there is no evidence of high level and systematic environmental scanning, ISTD does make use of data from a range of external sources to detect emerging compliance risks. For example, making use of data obtained from hospitals identified endemic noncompliance from doctors. In addition, and as part of a large-scale data matching exercise (see also POA 6), information is garnered from Social Security, Customs, Bureau of Employees, various associations, and registries of government tenders and rental income to assist The Tax Adminstration to gain a better understanding of the economic and taxpayer environment. |
| P3-10 | MCD | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Some initiatives are in place to reduce taxpayer compliance costs. Businesses with turnover of less than 100,000 value in local currency have access to simplified recordkeeping and reporting requirements. Some taxpayers, such as retirees and spouses, are not required to file income tax, and thanks to generous income tax allowances, nor are an estimated 95 percent of employees and individuals with income below the various thresholds.12 Forms are regularly updated to remove outdated information, and The Tax Adminstration has information sharing agreements with Ministry of Industry and Trade and the Social Security Corporation to reduce duplicate reporting obligations. Taxes can be paid at tax offices, at banks, by mail, and even on-line. Nevertheless, although The Tax Adminstration provides a broad range of electronic services, in general, less than 10 percent of taxpayers file and pay electronically. Moreover, taxpayers are able to register online and can access their account details online; however, pre-filled declarations are not available. |
| P4-12-2 | MCD | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: On-time filing rates provided by ISTD vary across the core taxes. As shown in Tables 4 to 8 in Attachment III, only 63.5 percent of total CIT taxpayers file on time. However, ontime filing rates are much higher for other core taxes: 95.9 percent for PAYE; 91.0 percent for GST; and 79.7 percent for PIT (non-PAYE) taxpayers. On-time filing rates for large taxpayers are higher still: 98.1 percent for CIT and 97.6 percent for GST. |
| P4-12-3 | MCD | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: On-time filing rates provided by ISTD vary across the core taxes. As shown in Tables 4 to 8 in Attachment III, only 63.5 percent of total CIT taxpayers file on time. However, ontime filing rates are much higher for other core taxes: 95.9 percent for PAYE; 91.0 percent for GST; and 79.7 percent for PIT (non-PAYE) taxpayers. On-time filing rates for large taxpayers are higher still: 98.1 percent for CIT and 97.6 percent for GST. |
| P6-19-1 | MCD | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: ISTD has an annual audit plan that covers all core taxes and taxpayer segments and employs centralized case selection. The plan is designed to meet the available audit resources, is evenly spread across all segments, and uses predefined risk criteria for the selection process. These risk criteria, by way of their scoring methodology, allocate cases based on the highest risk. Case selection is an automated, centralized function of the tax administration. The Compliance Section within the Audit Directorate determines the risk criteria for various taxpayer groupings. The Information Technology (IT) Directorate then undertakes an automated risk profiling exercise across the taxpayer segments as the primary case selection method. As of November 2015, 20 percent of all declarations were selected for some level of compliance verification activity during the 2016 fiscal year. Enhancements to the risk criteria have brought this figure down from 33-percent coverage, but the coverage rate remains high by international standards. ISTD employs a range of audit types, including comprehensive or full audits, thematic or specific issue audits, and desk audits, as well as direct and indirect methods to verify income and expenditure items. Once the audit case pool is referred to the respective directorate or office, supervisors undertake further risk profiling in order to determine the nature of the audit to be employed. This provides an appropriate level of flexibility to match the nature of risk and taxpayer circumstance with an appropriate treatment method. Auditors also use a range of indirect techniques, including mark-up rates and industry norms to enable further questioning and data requirements needed to verify reported amounts, and also to establish figures in the absence of reliable taxpayer data. |
| P7-23-2 | MCD | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Administrative reviews are undertaken by designated review officers located in the audit department. While organizationally under the head of the audit department, these 37 officers are assigned to objection panels by the ISTD DG and do not conduct any tax audits. Moreover, the objection panels’ decision reports are evaluated and approved by a Decision Approval Committee, which is independent from the audit department |
| P7-23-3 | MCD | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internatio: nally accepted good practice was detected inInformation on the dispute resolution process is published and taxpayers are explicitly made aware of it. General information on taxpayers’ right to dispute and the procedures to be taken is featured on the The Tax Adminstration website and in taxpayer guides posted on the walls of ISTD tax offices. In addition, there are standard forms used for audit finalization and other notifications that specifically instruct taxpayers of their right to dispute and the associated dispute procedures. However, auditors are not required by written instruction to explicitly inform taxpayers of these rights and procedures. |
| P7-24 | MCD | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: As shown in Attachment III, Table 12, 91 percent of administrative reviews are completed within three months, out of which 60 percent are completed in 30 days. ISTD is required by law to complete administrative reviews within 60 days, failing which applicable penalties will be waived. While most objections cases are closed within three months per the law, The Tax Adminstration indicated plans to move toward the 30-day standard per international good practice. |
| P8-26 | MCD | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The Tax Adminstration has a dedicated tax revenue forecasting capability located within the Financial Affairs Directorate. This is made up of well qualified staff, including at least one senior staff who has received specialized training in revenue forecasting from Duke University, North Carolina. The The Tax Adminstration contribution to the government forecasting process begins in June each year as part of the annual budget cycle. Such contribution is based on analysis of GDPrelated data, historical information, and context and inflation projections, all of which factor into a particular forecasting formulae and methodology |
| P8-28-1 | MCD | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: ISTD takes a cautious, risk-averse approach to the issuing of GST refunds, to the extent that 100 percent of refund claims are subjected to some degree of pre-issue verification. Refunds are not automatically triggered when the account is in credit, and the taxpayer must file a specific refund claim form to initiate a refund. Refund claims for historically compliant, low-risk exporters are not subjected to audit, per se, but must still cross several desks and receive a series of signatures before being processed. Even then, budgeted funds allocated to GST refunds are not always sufficient to allow payment of legitimate claims. In 2015, refund claims were extra-ordinary in relation to previous years, and ISTD needed to seek an additional allocation from the General Budget Department, which was subsequently approved. |
| P9-29-1 | MCD | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The Tax Adminstration has an independent internal audit unit reporting directly to the Director General and not to an audit committee. The unit operates according to an annual internal audit plan. The base requirements for its 30 employees include a university degree and at least five years’ work experience as an auditor. Employees receive skills training in audit, financial analysis, internal control, and other skills based on an annual training plan. The unit has four core functions: post-audit, administrative audit, financial audit and information security. The Procurement Division records all The Tax Adminstration assets, and there is an annual inventory of assets in the presence of an Internal Audit team member. When an employee retires, The Tax Adminstration conducts an inventory on that employee’s assets. ISTD also conducts random audits of assets. There is an independent review of internal audit operations no less than every five years. There is a central repository of policies, processes and procedures. The IT Security unit reports to the Internal Audit unit. The Government of Jordan has policies about government information security of a generic nature, and The Tax Adminstration’s Information Security unit has some of its own 43 unique features. It has an “intrusion prevention system” which is the “next generation firewall,” and its systems are capable of detecting incidents that threaten the confidentiality and integrity of tax administration data. At the time of the assessment, Information Security staff were conducting an exercise to identify system vulnerabilities. |
| P9-29-2 | MCD | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in:The Tax Adminstration does not have an Internal Affairs Unit and instead such responsibilities are shared by different entities that report directly to the The Tax Adminstration DG; moreover, integrityrelated statistics are not published. A Code of Conduct is issued by the Prime Minister’s office that all public servants must abide by. Each new employee is required to take courses in Code of Conduct for Public Servants and sign the code. The Internal Control Directorate and the Human Resources (HR) Directorate are responsible for ensuring that everyone within The Tax Adminstration adheres to the integrity and ethics policy stated in the code of conduct. Issues or allegations of staff misconduct are handled in the first instance by HR and the responsible department head. In some cases, incidents of misconduct or other breaches of integrity will be referred to the DG or a committee will be formed to address the issue. More serious incidents will be referred to the Internal Control Directorate, which has appropriate investigative powers and exercises them as needed. In such investigations, the Internal Control Directorate may cooperate with the Anti-Corruption Commission and/or the public prosecutor. Integrity-related statistics maintained by The Tax Adminstration are no more than figures reporting the number of complaints received and such statistics are not made public. |
| P9-30-1 | MCD | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The Audit Bureau, as Jordan’s supreme audit institution, performs an annual external audit andThe Tax Adminstration responds to the findings; however, responses are not published. Preaudit, post-audit and permanent audit exist. Under Article 119 of the Constitution, the Audit 44 Bureau presents an annual report to the Parliament. IThe Tax Adminstration responds to these findings by law. Audit Bureau findings are publicly reported; however,The Tax Adminstration responses are not made public. |
| P3-8-3 | AFR | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Taxpayers can obtain information at minimal cost through a wide range of channels. The information provided to taxpayers is available through a variety of user-friendly service delivery channels including brochures, leaflets, and newsletters, FAQs, emails, and radio/TV programs.The Tax Administration also has a broad range of proactive taxpayer education programs and regularly conducts outreach sessions including stakeholder meetings, school programs, and pubic seminars to advise taxpayers on their rights and obligations as well as for new persons starting a business. A nationwide campaign, “tax week,” occurs across Ethiopia on an annual basis. |
| P3-11-1 | AFR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The Tax Administration uses a variety of methods to elicit regular feedback from taxpayers on the standard of its service. These include suggestion boxes, stakeholder meetings, public forums, as well as feedback through the The Tax Administration website and Call Center (emails and phone). Stakeholder meetings and public forums are held on a quarterly basis. Targeted meetings with all key taxpayer segments are held to ensure feedback is received from large, medium, small, micro, and individual taxpayers. The feedback is recorded by the Education and Communication Directorate and reported back to the relevant operational units. The feedback received (and responses provided) through suggestion boxes at the branch offices are compiled and reported to headquarters on a monthly basis. Additionally, customer satisfaction surveys have been undertaken to seek feedback on the standard of services. The 2012/13 study conducted by The Tax Administration 14 showed 72 percent of taxpayers have high or medium satisfaction with The Tax Administration. The survey asked, for example, about the quality of SIGTAS, availability of staff, as well as staff capacity and integrity. The 2014/15 study conducted by Addis Ababa University15 measured taxpayer compliance costs and perceptions of governance but did not have an overall score for standard of services. Both studies covered a statistically valid sample. |
| P3-11-2 | AFR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: While taxpayer input is routinely considered in the refining taxpayer service programs and products, they are not involved in testing new administrative processes and products prior to their introduction. Feedback is received via stakeholder meetings and other means only to improve current service programs and products, not to test the original design of new services or products. For example, The Tax Adminstration has received feedback on the e-TAX module, cash registrars, as well as its organizational structure, but in all cases, the feedback was received after the launch or design, resulting in changes to existing policies and processes. While follow-up on the feedback received by the Customer Service Directorate via suggestion boxes and phone calls is well documented, the same cannot be said for the Education and Communication Directorate, who holds the stakeholder meetings and public forums. |
| P9-29-2 | AFR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The reporting lines of the Ethics and Liaison Directorate (ELD) are sound and it has the appropriate powers to satisfy its mandate. The directorate reports to the Director General and oversees the formulation of integrity strategies. It has powers to investigate cases of corruption amongst staff. However, none of its staff has a criminal investigation background, though they are regularly provided with training by the Federal Ethics and AntiCorruption Commission . The ELD maintains statistics about integrity but they are not publicly reported. |
| P3-8-1 | EUR | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Information on core tax obligations and entitlements is readily available through various channels, but primarily through The Tax Administration website. While the Tax Administration does not provide information on registration, information on all other core obligations and entitlements is readily available, and the SBRA website provides taxpayers with clear information on registration. The Tax Administration website has a “frequently asked questions” section and a link to the taxpayers’ charter of rights and obligations. One example of easily accessible information on access to entitlements is a scheme for refund of VAT on baby products. An application form can be downloaded from the website, along with instructions on how to claim. A press release is issued to remind taxpayers of the deadline for claims and the deadline is also highlighted on the website in the calendar of significant dates. |
| P3-10 | EUR | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Simplified record keeping and reporting arrangements are in place for certain taxpayer groups, but no use is made of prefilled tax declarations. Small businesses with an annual turnover below a certain limit pay a presumptive tax and are not required to keep books. |
| P4-12-2 | EUR | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The number of PIT declarations filed by the statutory due date expressed as percentage of the number of declarations expected from registered PIT taxpayers for 2015 was 75 percent. |
| P5-17-1 | EUR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Data provided by the Tax Administration shows a healthy level of VAT payment compliance. VAT payments are made either monthly or quarterly, depending on turnover in the previous year. Taxable persons with a turnover of less than 50 million Value in local currency in the previous year can pay and file quarterly; otherwise the obligation is for monthly returns. Attachment III, Table 10, shows that 82.9 percent of the number of VAT payments due is received on time, and 78.1 percent of the value of VAT payments due is paid on time. |
| P5-17-2 | EUR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Data provided by the Tax Administration shows a healthy level of VAT payment compliance. VAT payments are made either monthly or quarterly, depending on turnover in the previous year. Taxable persons with a turnover of less than RSD50 million in the previous year can pay and file quarterly; otherwise the obligation is for monthly returns. Attachment III, Table 10, shows that 82.9 percent of the number of VAT payments due is received on time, and 78.1 percent of the value of VAT payments due is paid on time. |
| P6-21 | EUR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: A system of public and private binding rulings is in place. These rulings are established by the MoF and are binding for the Tax Administration. Both the public rulings and private rulings (in an anonymous form) are published on the websites of the MoF and The Tax Administration. Interpretive advice is issued to taxpayers by the Tax Administration only where the matter is considered clear-cut or covered by an existing MoF ruling. Such verbal and written advice from the The Tax Administration is not legally binding. |
| P7-23-1 | EUR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The administrative review stage is not a single layered process. The law provides for a tiered review mechanism.There is a graduated system of appeals available to a taxpayer who is unhappy with a decision of the Tax Administration. A conclusion on the first instance appeal, which may involve an oral hearing, must be made by law within 30 days of the date of appeal. If the taxpayer is dissatisfied with the first instance decision, the appeal may proceed to the second instance, which reviews all the documents and decides on the merits of the appeal. The law requires this decision to be made within 60 days of the first instance appeal . The general Administrative Court is the first external appeal forum; the Court decides on the basis of written evidence, but may summon either the appellant or the Tax Administartion as witnesses. Either party can appeal to the Supreme Court, in certain circumstances, on a point of law. The formal dispute process is widely used. The extent to which taxpayers use the system can be inferred from Attachment III, Table 12 – of the 19,015 reviews finalized in 2015, almost one-third related to audits, which in turn represents approximately 30 percent of the number of completed audits in 2015. |
| P7-23-3 | EUR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected inInformation on the dispute resolution process is readily available to taxpayers but auditors are not instructed to advise on dispute rights. Information on appeal rights is publically available on the Tax Administration website, both in links to the law and to a charter of taxpayers’ rights. Audit determinations and other appealable instruments make explicit reference to a taxpayer’s right to appeal, but there is no written instruction to auditors to advise taxpayers about their dispute rights. |
| P7-25 | EUR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Dispute outcomes of a material nature are analyzed and this is taken into account in developing legislative and administrative procedures. The Tax Administration Tax-Legal and Coordination Department monitors dispute outcomes and there are various working groups in place whose tasks include making proposals in relation to legislative and procedural changes, including proposals relating to dispute outcomes of a material or systemic nature. Examples were provided of analysis and follow-up input into the formulation of both legislative and procedural policy changes arising from the appeal process. However, decision impact statements are not routinely prepared |
| P9-29-2 | EUR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Internal audit staff members are either accredited or working towards accreditation as certified public auditors. This involves undertaking mentored audits and other relevant training. Audit trails of user access to taxpayer information are maintained. |
| P3-8-1 | EUR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Information on core tax obligations and entitlements is readily available through various channels. The Tax Administration provides information on registration, obligations and entitlements. The website has a “frequently asked questions” section and links to a range of work sheets, templates, and forms. Press releases and targeted emails are used to remind taxpayers of deadlines. Important dates are also highlighted on the website in the calendar of significant dates. Information products have been specifically tailored to meet the needs of a limited number of taxpayer segments, including the self-employed, and new taxpayers. For example, information is available on the website concerning the procedures for small taxpayers with low turnovers who operate within the presumptive tax regime. No tailored information is provided for intermediaries, or particular industry groups other than farmers. |
| P3-8-3 | EUR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: There are tailored education programs for new businesses. Taxpayer education seminars are conducted through the regional office network, specifically targeted at new taxpayers and at tax intermediaries. To ensure a consistent approach educational material is prepared within headquarters and distributed for use in all regions. |
| P4-12-2 | EUR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: PIT: For PIT taxpayers, including individual entrepreneurs, citizens and farmers, the overall PIT on-time declaration filing rate is 82.6 percent (Table 5, Attachment III); |
| P4-12-3 | EUR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: VAT: Large and other VAT taxpayers’ on-time VAT filing rates are 98.7 percent and 96.2 percent respectively (Tables 7 and 6, Attachment III); |
| P4-12-5 | AFR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: PAYE: For monthly PAYE withholding filing by employers, the average on-time filing rate is 81.1 percent (Table 8, Attachment III). |
| P5-17-2 | EUR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The bulk of VAT due by taxpayers is paid on-time but the number of on-time payments is more problematic. Statutory VAT payment period is 25 days after tax period, which may be a month or a quarter depending on taxpayers’ s total sales in previous year. Of 27.008 billion value in local currency due in VAT payments in 2015, 20.417 billion value in local currency (75.6 percent) was actually paid on time. Of 107,030 payments due, 68,152 payments (63.7 percent) were made on time. Almost 40,000 VAT payments totaling 4.804 billion value in local currency were paid late in 2015. (See Table 10 in Attachment III) |
| P5-18-3 | EUR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: the three-year average for old debts (more than 12 months old) appears to be within reasonable bounds, the 2015 old debt figures indicate a disturbing trend. The three year (2013–15) average of old tax debts to total tax arrears was 29.0 percent (Table 11 in Attachment III). Debts older than 12 months expressed as percentage of total tax arrears increased by 100.0 percent from the 2014 to the 2015 year (from 18.0 to 36.0 percent). The actual amount of debt older than 12 months increased from 3.98 billion value in local currency in 2014 to 10.93 billion value in local currency in 2015. |
| P9-29-1 | EUR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The administration has an organizationally independent internal audit unit that reports directly to the Director (but not to an audit committee). An annual internal audit plan provides coverage of operations, revenue accounting and financial management. The internal audit function is subject to an independent review by the Public Audit Sector in the Ministry of Finance every two or three years, and through additional audits by the National Archives, and the Authority on Protection of Personal Data. Staff training is conducted by both the Tax Academy, and the MOF, typically twice a year. A central knowledge repository is maintained, and IT systems controls are in place to detect incidents that threaten the confidentiality and integrity of the administration’s data. |
| P1-1-1 | AFR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The design of the registration database and information required of the taxpayer is fairly sound. The New Business Division and the Small/ Medium Taxpayer Directorate Regional Offices are responsible for the registration of taxpayers through a computerized and centralized tax administration system – Tax Administration System (TAS) 6 . A seven-digit Taxpayer Identification Number (TIN) of high integrity, with a check digit, is issued centrally in TAS. The TIN includes tax-type specific identifiers. Other records found in TAS include records on filing and payment obligations across the core taxes. Frontline officers are able to access taxpayer accounts based on access rights and senior managers also have a national view of taxpayer population. National statistics on filing and population can be generated. The system allows for both de-activation or deregistration of taxpayers. However, the system does not provide taxpayers or their intermediaries access to register for core taxes and update demographic details held in the database, once registered. |
| P5-16 | AFR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Withholding at source is used for employment income (PIT) but not for interest and dividends; advance payment arrangements are made for CIT and PIT—semi-annual payments are made of at least 80 percent of estimated tax payable. The latter does not apply for interest and dividends. |
| P7-23-1 | AFR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: IRD has a tiered review mechanism but the review process within the administration is multi-layered. Taxpayer objections relating to issues of interpretation of the law and facts relied on by the auditor are handled by a committee at a central level, (the Central Committee) while those that relate to penalties are referred to a Penalty Committee in Regional Offices or the LTI for cases pertaining to large taxpayers. In instances where the taxpayer disagrees with the decision of the Central Committee, an appeal can be lodged with the Tax Tribunal or a Special Tax Court. However, decisions made by regional committees can be reviewed by the IRD’s Legal Unit particularly in cases where taxpayers provide additional information or where it is established that the tax administration may be at fault. Cases heard in the Tax Tribunal and the Special Tax Court can be appealed to the Supreme Court. |
| P1-1-1 | APD | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The Tax Administration maintains adequate information in respect of registered taxpayers (individuals and businesses) in a centralized computerized registration database to support effective interactions with taxpayers and intermediaries. The unique Taxpayer Identifier Number (TIN) is automatically generated and has a self-validating ‘check digit.’ The registration Information Technology (IT) sub-system interfaces well with other IT sub-systems, and provides frontline staff with a whole-of-taxpayer view. It allows for deactivation / deregistration of taxpayers, based on requirements, generates management information, and uses taxpayer registration details to generate tax declarations. At present, the e-Tax services (under Circular 110/2015/TT-BTC) for individual taxpayers is still under development. Once implemented, it will provide secure access for taxpayers to register online and update their details. In the case of businesses, the registration and updates can be done by taxpayer directly with the Enterprise Registration office through secure online access. The same digital information is used in GDT database and hence the requirement is satisfied. |
| P2-3-2 | APD | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in:TheTax Administration uses a structured risk assessment process to assess, rank and quantify compliance risks. It is linked to the annual business planning and focuses on key taxpayer segments. The risk management process is codified in Circular 204/December 2015, covering all four compliance obligations, and includes a range of interventions to address compliance risks with an emphasis on tax audit planning. It prioritizes risks for all core taxes, core tax segments and taxpayer obligations. The system includes 20 core criteria and additional other criteria applicable for each fiscal year. Taxpayers are categorized into six levels of risk based on which the mitigation strategy is determined. An IT based application (TTR) is used to manage the compliance risks and plan tax audits based on the risk ratings. |
| P3-10 | APD | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The simplified record keeping and reporting arrangements exist for small taxpayers, but no prefilled declarations are used for small businesses. There were several initiatives over last several years resulting in reduced filing frequency for small enterprises as legislated in the revised Tax Administration Law of 2012. The presumptive tax regime is based on tax rates that are differentiated by industry in which a household business operates and applied to the overall turnover of household business. Circular of MOF 92/2015/TT-BTC defines tax regime for household business. There is a separate section on the website and devoted publications summarizing documentation for household businesses. Website www.gdt.gov.vn provides access to online filing, which also provides 24-hour access to taxpayer information, as well as allows submission of queries on tax issues. The Tax Administration routinely analyzes frequently asked questions and common misunderstanding detected through service and verification activities. While The Tax Administration does not have a procedure for such review, the practice is that feedback from both service, verification and training activities are acted upon by the Tax Administration management to improve procedures, services provided, or tax forms and templates. This is evidenced by the simplification of the list of sales and purchases accompanying VAT tax returns provided by the Tax Administration to the assessment team |
| P4-12-1 | APD | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: On-time filing rates are high for CIT, VAT and PAYE, but cannot be established for PIT due to absence of mandatory filing for most taxpayers. The PIT declaration are only required from a sub-set of individuals who are double income earners or are foreigners. The PIT on capital income, lotteries, prizes etc. are withheld at source and by law are not included into an annual declaration. The business income is excluded from the regular PIT and included into a presumptive simplified tax regime for business households. As a result, the tax administration lacks data on expected number of declarations and the ratio for PIT cannot be established as a result. The VAT rate is 86 percent, CIT rate is 82 percent, PAYE rate is 90.2 percent. |
| P4-12-3 | APD | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: On-time filing rates are high for CIT, VAT and PAYE, but cannot be established for PIT due to absence of mandatory filing for most taxpayers. The PIT declaration are only required from a sub-set of individuals who are double income earners or are foreigners. The PIT on capital income, lotteries, prizes etc. are withheld at source and by law are not included into an annual declaration. The business income is excluded from the regular PIT and included into a presumptive simplified tax regime for business households. As a result, the tax administration lacks data on expected number of declarations and the ratio for PIT cannot be established as a result. The VAT rate is 86 percent, CIT rate is 82 percent, PAYE rate is 90.2 percent. |
| P5-18-2 | APD | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The value of collectable core tax arrears relative to total core tax collections has also fallen over the three-year period. As shown in table 11 of Attachment III the ratio has stood at 7.8 percent in 2013, 7.4 percent in 2014 and 5 percent in 2015. |
| P6-19-1 | APD | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The audit program covers all core taxes, key taxpayer segments, uses a range of audit types and is supported by an automated system. However, there is limited evaluation of its impact on taxpayer compliance. Based on revised risk analysis criteria from previous work program, annual audit plans are submitted for MOF approval. Audit plans guide the allocation of resources to high-risk cases, mainly focusing on large taxpayers, and some economic sectors on an ad hoc basis. Audit programs are approved at the tax administration HQ following a set of defined 20 risk parameters, but allowing PTOs to choose from a list of additional risk variables to better address regional compliance risks. This function is supported by the Audit Results Monitoring Application (TTR) software performing core case management functionalities, including audit multiphase tracking, type of audit and historical background. Type of audits include desk, field-based, comprehensive and limited scope audits addressing particular tax reporting issues arising from some economic sectors. |
| P6-21 | APD | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The Tax Administration undertakes proactive measures to strengthen accurate reporting among taxpayers through public and private binding rules. A system of public and private rulings is in place whereby taxpayers are aware of the interpretation criteria to be followed by the tax administrative on the application of the tax legislation to specific transactions. Aligned with good practices and specifically targeted to large taxpayers engaged in international transactions, the tax administrative also has in place a system of Advance Pricing Agreements (APAs) formulation as a tool to enhance a cooperative compliance stance with segments of high-risk taxpayers, such as multinational corporations. At the time of this assessment, seven APA requests were under review by the tax administration, but none concluded. |
| P7-23-1 | APD | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: An administrative and judicial review process for dispute resolution is independent, graduated and used by taxpayers, but lower administrative courts provide the first avenue of appeal for a taxpayer dissatisfied with the outcome of the administrative review process. The Tax Administration Law and the Law on Complaints provide the framework of the review mechanism that comprises three stages: • First stage.- review by an Internal Inspection Department of the tax administration • Second stage.- review by lower administrative courts (administrative courts are independent but handle a wide range of issues pertaining to the administrative law and thus cannot be considered as specialized in tax matters) • Third stage.- review by a higher appellate court in case a taxpayer disagrees with the decision of a lower administrative court A taxpayer who disagrees with a tax assessment resulting from an audit may take a dispute directly to the second stage by filing a lawsuit with a lower administrative court. |
| P7-24 | APD | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Most administrative reviews are completed within a statutory deadline, but the service delivery standard for determining objections does not align with international good practice. In 2015, 92 percent of administrative reviews were finalized within the statutory deadline which varies between 30-60 days and depends on the complexity of a case and the stage of the administrative review. At the first stage, it is 30 days for simple cases and 45 days for complex cases. At the second stage, the statutory deadline is 45 days for simple cases and 60 days for complex cases. The data provided (Table 12 in Attachment III) does not allow an assessment of how many administrative reviews were completed within 30 days. A dispute management module in the IT system tracks date of receipt and whether a statutory deadline for review is met or not for each case. Thus, the higher of the statutory deadline at 60 days is assumed for scoring this indicator at a ‘B’ rating level. |
| P7-25 | APD | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Dispute outcomes of a material nature are monitored and taken into account in the formulation of policy, legislation and administrative procedures.The Tax Administration routinely monitors and analyzes dispute outcomes, particularly decisions by the International Inspection Department with significant revenue implications and potentially affecting a large number of taxpayers. It communicates these to the MOF’s Tax Policy Department for appropriate action in semiannual and annual reports. In addition, the tax administration Policy Department routinely conducts the analysis of issues arising from taxpayers’ inquiries, results of audits and consultations with taxpayer groups, as well implementation of tax policies. The MOF’s Tax Policy Department and the tax administration Policy Department also seek feedback from the tax administration relevant functional departments on a regular basis. |
| P8-26 | APD | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in:The Tax Administration provides sound contribution to the government tax revenue forecasting process, but does not monitor and report on tax expenditures. Dedicated expert staff within the tax administration routinely provide input on tax revenue forecasts and estimates to inform the government budgeting processes, monitors tax revenue collections against budget targets, forecasts VAT refund levels and monitors and reports on the stock of tax losses carried forward by taxpayers. The Tax Administration uses a macro-fiscal projections model for tax revenue forecasting and an input-output model for tax revenue estimates for core taxes that include sensitivity analysis of key factors affecting tax revenue. The tax revenue forecasting functions comprises three levels: a Tax Revenue Forecasting Department at HQ, tax revenue forecasting departments at PTOs and tax revenue forecasting teams at DTOs. On a monthly basis PTOs submit tax revenue estimates and actual collection by DTOs to the Tax Revenue Forecasting Department at HQ which provides progress reports on tax revenue estimates to MOF. In addition, the tax administration reports on tax revenue estimates to the Government and the National Assembly twice a year—an interim report in September and a final report in March. Staff employed in the tax revenue forecasting function at the tax administration have background in economics and finance and are trained in econometrics and revenue forecasting techniques. |
| P9-30-1 | APD | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: There is a good framework of external oversight of the tax administration operations and financial performance in place and external oversight is carried out on an annual basis. The State Audit Office (SAO) under the National Assembly audits the financial statements and the Government Inspectorate (GI) audits the operations performance of the tax administration. The results are published on the websites of SAO and GI. In addition, the Vietnam Fatherland Front also conducted monitoring activities of the tax administration reform agenda, and the National Assembly periodically carried out oversight of the tax administration operations.The Tax Administration often responded to the findings of these reviews, but the responses are not made public |
| P1-1-1 | AFR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The Zambia Income Tax Act (Cap 323, sections 45 and 45A) and the Value Added Tax (VAT) Act (Cap 331, sections 27 – 29) provide for who should register for the core taxes. The VAT Act further stipulates who can register voluntarily and the related conditions. VAT registration requirements are amplified further in the VAT Guide (Part 2). The ZRA is the sole taxpayer registration body in Zambia, and the Taxpayer Services Unit (TSU) under the Design and Monitoring Department (DMD) of the Domestic Taxes Division (DTD) manages the registration function. The TSU has a headquarters complement of five staff, with a replication of the function across Zambia in the 13 DTD field offices; and the 35 Customs Services Division (CSD) stations. Taxpayers can also register at offices located at the Ministry of Lands and the Zambia Development Agency. The taxpayer registration database is fully computerized, centralized and its design meets international good practice standards. A unique 10-digit taxpayer identification number (TPIN) is used across all taxpayers and proof of identity requirements are in place. Since October 2013, taxpayers can register online using the TaxOnline integrated tax administration system. Taxpayers without access to online facilities have the option of registering using a paper form (Form 1) and its Annexures. The information is then keyed into the system by the tax administration staff. Information required of the taxpayer includes full name, address (personal, business and postal), other contact details, dates of incorporation of business, nature of business activity and filing and payment obligations. The system (TaxOnline) also identifies taxpayers according to segments, industry classification (the latest ISIC version 4 is used),and is capable of identifying entities and related parties to the taxpayer6—a function that is currently not fully utilized. |
| P3-10 | AFR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The tax administartionhas a number of initiatives to reduce taxpayer compliance costs although prefilled tax declarations are not available. There are simplified record-keeping requirements and tax declaration forms for smaller taxpayers. An example of this is the Turnover Tax for taxpayers with an annual turnover of less than Kwacha 800,000. Another example is the presumptive tax for small business in the bus and taxi industry. Information on these simplified procedures and the necessary forms can be found on the tax administration website. Pre-filled tax declarations using information gathered from third parties are not available. There are FAQs on the website. The field-visit to the call center showed that FAQs are collected and ranked. There are no documents indicating that FAQs are monitored and analyzed on a regular basis. |
| P3-11-2 | AFR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The tax administration takes taxpayer input into account in the design of administrative processes and products. In the ‘project management government framework manual,’ it is noted that stakeholder communication is relevant. Taxpayer input, on a case-by-case basis, is used in designing, testing and improving processes and products. Even though, there is no systematic tax administration-wide system to regularly obtain taxpayer input when designing new processes or forms, feedback is a part of engagement meetings and was, for example, taken into account when designing the TaxOnline system. |
| P4-14 | AFR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The tax administration facilitates and encourages filing of electronic declarations. The Income Tax Act Section 46 (3) provides the due dates for manual and electronic filing. The manual returns are expected by 5th June while electronic returns are expected by 30th June thus encouraging efiling. The Gazette notice number 323 of 2015 provides for electronic filing of all PAYE returns. Further, the tax administration has internet bureaus located in their offices to aid taxpayers file return electronically. The Law does not explicitly require large taxpayers to file tax declarations electronically but returns with more than 10 transactions must be filed electronically as stated by the VAT Act Section 16 (2a). According to Filing Method Report for 2014 and 2015, at least 90 percent of the large taxpayers file their tax declarations electronically and overall at least 70 percent of all tax declarations filed for the core taxes are filed electronically as shown in Attachment III, Table 9 and thus the score of B. |
| P5-17-1 | AFR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: A significant percentage of VAT is paid on time. Approximately 82 percent of the value of total VAT payments due is paid on time, 11 and approximately 89 percent of the number of VAT payments are received on time (2015 figures)—Attachment III Table 10. This may not be the case for all core taxes, but VAT is the most significant source of revenue, and the timely payment has an impact on revenue performance. However, it should be noted that these figures only consider taxpayers who actually filed a return; on-time payment rates among all taxpayers would be lower due to the low rates of on-time filing. |
| P5-17-2 | AFR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: A significant percentage of VAT is paid on time. Approximately 82 percent of the value of total VAT payments due is paid on time, 11 and approximately 89 percent of the number of VAT payments are received on time (2015 figures)—Attachment III Table 10. This may not be the case for all core taxes, but VAT is the most significant source of revenue, and the timely payment has an impact on revenue performance. However, it should be noted that these figures only consider taxpayers who actually filed a return; on-time payment rates among all taxpayers would be lower due to the low rates of on-time filing. |
| P6-19-1 | AFR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in:The tax administration has an audit program that addresses key elements, and selects audit cases centrally; however, it does not analyze or evaluate the impact of audits on levels of taxpayer compliance. Taxpayer segments underlay the tax administration compliance functions; and according to the 2016 Audit Tax Strategy there are approximately 105 auditors. Senior leaders monitor performance through monthly monitoring reports, and the use of the automated centralized case management system—TaxOnline. |
| P7-23-1 | AFR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: A tiered review mechanism is in place and is used. There is a graduated mechanism of administrative and judicial reviews; and it consists of a review process within the tax administration, a Tax Appeals Tribunal and the Supreme Court. However, the administrative review process within the tax administration is multi-layered. An objection to a raised tax assessment is usually addressed to the station manager but in cases where the taxpayers are not satisfied with the outcome, they can appeal to the Director and further on to the Commissioner DTD and to the Commissioner General. |
| P7-25 | AFR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The tax administration analyzes dispute outcomes of a material nature and initiates administrative and legislative changes as necessary. There was evidence of three cases where the dispute outcomes—two cases at the Supreme Court level and one administrative review—triggered changes in the VAT and the Income Tax Acts in recent periods (2014 and 2015). Changes to the law in these circumstances are usually executed through the annual budgetary process. There is however, no regular monitoring and analysis of dispute outcomes. |
| P8-26 | AFR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in:The tax administration has strong analytic capability in reviewing and forecasting revenue collections. The Research and Policy Unit within the RPD is responsible for compiling and analyzing revenue collection figures, and for assisting Ministry of Finance in preparing revenue forecasts. This unit consists of five members of staff, including economists and a statistician. Revenue forecasts are developed in conjunction with MoF through annual budget policy committees. |
| P8-28-1 | AFR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The tax administartion has a robust VAT refund system managed automatically within TaxOnline. Repayment VAT returns are automatically treated as applications for refunds. Returns are subjected to a set of risk parameters and if judged to be credible, are allocated to the Returns and Payments Unit for processing. On the 18th of every month, the Commissioner for Finance and the Commissioner General write to the Ministry of Finance and the Central Bank notifying them of the total level of refunds for the month. That amount is ring-fenced and deducted from the tax administration payments of revenue into central government accounts, and payment to taxpayers is made |
| P9-29-1 | AFR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The tax administration has an independent Internal Audit Unit (IAU) for which an annual Internal Audit Plan is developed; however, independent review of its processes and procedures is beyond five years. The IAU reports to the Audit Committee of the Governing Board, and to the Commissioner General for administrative matters. The Director of IAU develops an Annual Internal Audit Plan; which is comprised of controls assurance, location audits, operational performance audits, information technology systems audits, follow-ups, and financial audits. The Plan includes coverage for key operations, revenue accounting and financial management. The IAU is comprised of the Director, two assistants, and 18 auditors. Auditors are trained regularly in audit methodologies. The IAU demonstrated that it maintains an automated repository of internal policies, processes and procedures. The Institute of Internal Auditors conducted an “External Quality Assessment of the Internal Audit Activity” during November/December 2011and the tax administration provided evidence, including confirmation from the Chairman of the Governing Board, that it is active in its plans to commission an external assessment of the internal audit function during 2017. The IAU statistics are reported in the Annual Report, and are made public by posting to the website. |
| P3-8-2 | EUR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: There is a process in place (currently being reviewed) to ensure website information is up-to-date. Technical staff resources are assigned to keep publicly available information up to date, but it is not the responsibility of a single coordinating unit. The public relations division in the staff office is charged with ensuring the publication of new information on the tax administration website; this keeps the ‘News’ section current. The service department also has dedicated staff to review, analyze and update frequently asked questions. Taxpayers are informed of changes in the law and procedures through outgoing email via the taxpayer portal. A working group has been set up by the DG to review the currency of information on the website. |
| P3-9 | EUR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Telephone enquiry calls received by the call center are answered within acceptable time standards. As shown in Table 3 in Attachment III, 98.6 percent of telephone enquiry calls received are answered within 6 minutes’ waiting time. The Table 3 data does not, however, take account of the impact on taxpayers of line overload. The call center system can accommodate a maximum of 60 callers at a time, meaning that during peak enquiry periods some taxpayers may not be able to get through to the call center. In light of this capacity constraint and potential impact, the assessment score has been adjusted to ‘B.’ |
| P3-10 | EUR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: systematically reviewed and updated. Examples of initiatives include (1) simplified tax arrangements and concessions for micro businesses (i.e., entrepreneurs with annual income less than GEL 30,000); (2) simplified accounting, record-keeping, filing, and payment arrangements for small businesses (i.e., with annual income less than GEL 100,000); and (3) elimination of the obligation to file for nonentrepreneur individuals with relatively simple income tax affairs (e.g., employees whose salary income is taxed at source). Furthermore, the introduction of modern electronic and communication facilities—particularly the taxpayer portal—has contributed generally to lower taxpayer costs associated with filing and payment, and communicating with the tax administration. Other initiatives undertaken by the tax administration also seek to reduce the taxpayer compliance burden, such as regular monitoring of frequently asked questions and misunderstandings of the law to help target and refine public information products and services. The initiatives do not extend to pre-filling of tax declarations. Some activity is undertaken to review tax declarations and forms to ensure that only information that is needed and used is sought from taxpayers, but this is not done in a regular or systematic way. |
| P5-16 | EUR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Sound use is made of withholding and advance payment systems, but third party reporting is not optimized. There is withholding of PIT at source for employment income. Corporations and entrepreneurs pay income tax (CIT and PIT) through a quarterly advance payment system. Withholding and mandatory reporting applies to dividend income earned by Georgian residents, but not for interest paid by commercial banks. Of note, the law does not require mandatory automatic reporting of information by financial institutions, considered to be good practice in modern tax administration. |
| P5-17-1 | EUR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The on-time payment rate is high in respect of filed VAT declarations. As shown in Table 10 in Attachment III, 87 percent of payments (by number) and 91 percent (by value) were received on time. |
| P5-18-2 | EUR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Collectible tax arrears represent a small portion of the total stock of arrears. While it is not the practice of the tax administration to split the arrears inventory into collectible and uncollectible components, an estimate of collectible arrears was made by the tax administration at the TADAT team’s request. The estimate—based broadly on the TADAT definition of collectible arrears—is 555 million in local currency at end-2015 and therefore around 7 percent of total arrears (see Table 11 in Attachment III). |
| P6-21 | EUR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: There is a system in place by which binding public rulings are developed in consultation with tax intermediaries and over 400 such ‘case studies’ are detailed on the tax administration website. The Council for Development of Case Studies was set up in 2010 and meets regularly to develop ‘case studies’ or general public rulings. The Council includes representatives from the private sector, including accountancy firms, as well as the Ombudsman and representatives from the audit department and disputes resolution department. A formal process exists in law for the issue of binding private or advance rulings by the MoF. The law provides for a time limit of 60 days within which the MoF must either refuse or commit to issuing an advance ruling, and a further 30 days for the issue of a decision. Only 50 or 60 private rulings are issued each year. The tax administration also issues formal ‘opinions’ in response to taxpayer queries, but these are not binding. |
| P2-3-1 | AFR | B | REPEAT | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The tax administration gathers and analyzes information from a range of sources to build knowledge on compliance levels but does not undertake studies into topical compliance issues. Data is gathered from external sources including: customs, the land management and use authority, and the Rwanda Social Security Fund (RSSF. the tax administration analyzes economic tax performance by sector,10 and tax audit activity. Other sources include research in taxpayer compliance attitudes and a VAT gap study. However, the tax administration is yet to examine issues such as the tax risk posed by the informal sector, BEPS and high net-worth Individuals. |
| P2-6-1 | AFR | B | REPEAT | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in:The tax administartion process for managing operational risks is effective. A structured process is used to identify, assess, rank and mitigate operational risks annually and all corporate risks are documented in a risk register. The CRMC meets quarterly and receives updates on the treatment risks. CRC is supported by departmental risk committees for customs, support and domestic tax, and chaired by members of the senior team. The new business continuity management system (BCMS)12– and the 2016 plan it replaced, accord with good practice, including the use of business impact analysis, recovery time and point objectives, and in articulating risk appetite. Staff have been trained on risk management, and business continuity exercises are planned to be conducted at least every six months, however to date only one annual exercise has been conducted. |
| P2-6-2 | AFR | B | REPEAT | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in:The tax administration operations are supported by an effective business continuity plan that is tested and monitored. The tax administration senior management team monitors progress on implementing its BCMS, through the CRMC annually. The new BCMS, like the earlier 2016 plan are subject to testing and annual review by the tax administration and at least three yearly by the OAG. Results of a disaster recover exercise conducted in 2017 fed into the development the new plan. |
| P3-8-1 | AFR | B | REPEAT | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The tax administration provides information to various categories of taxpayers, in the local language, English and French at no cost, through a range of user-friendly and convenient channels, except disadvantage groups . The taxpayer service and education program, coordinated by the Taxpayer Service Department (TSD) in liaison with operating divisions and stations, delivers information on all core taxes, the main compliance obligations and refunds; and all categories of taxpayers |
| P3-10 | AFR | B | REPEAT | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The tax administration has implemented various measures to reduce taxpayer compliance costs, including: A simple presumptive tax regime with simplified record keeping arrangements for small taxpayers (turnover between RWF. 2million and 20 million) and a user-friendly and convenient payment system that automatically prepares matching returns from the payment information (M Declaration). Withholding arrangements where tax withheld at source is treated as a final tax. Quarterly filing arrangements for small taxpayers. Publication of guidance notes and ruling to clarify areas of common mistakes by taxpayers. Electronic filing and payment services for all taxes. Secure online self-service functionalities available outside normal working hours, including to access and amend registration details, request tax clearances, apply for de-registration and a tax calculator. Frequently Asked Questions (FAQs), and associated responses, are compiled from various engagements with taxpayers and intermediaries to guide taxpayers. |
| P3-11-2 | AFR | B | REPEAT | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Taxpayers are rarely involved in the design and testing of new processes and products prior to introduction. The tax administration has introduced various innovations and new systems in recent years e.g. eTax, electronic billing machine, electronic filing and payments. However, only on one recent occasion were tax intermediaries involved to provide input in the design of an income tax declaration for nonprofit organizations (the measure that will take effect in July 2019). |
| P6-19-1 | AFR | B | REPEAT | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in:The tax administration has an audit program that covers all core taxes and is taxpayer segment focused. Audit activity is weighted toward high-risk economic sectors, e.g., information/communication, construction, hotels, restaurants, and bars. Cases are selected and approved for audit in a centralized manner using a risk regime. Auditors use a range of methodologies, including direct and indirect methods like financial statement analysis, bank statement analysis, etc.The tax administration efforts to evaluate the impact of audits on levels of compliance have not been routine. |
| P6-21 | AFR | B | REPEAT | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in:The tax administration has a system of public and private binding rulings in place. General instructions are in the Tax Manual for taxpayers, in the Service Charter, and on the tax administration website. The tax administration does not have formal cooperative compliance arrangements. |
| P7-23-1 | AFR | B | REPEAT | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: A tiered review mechanism is in place and is used but the administrative review stage is multilayered. A graduated mechanism that consists of an administrative review process, and a court for judicial reviews is in place. When an audit is completed, and a formal notice is assessment is issued, the auditor is required to advise the taxpayer on the right to appeal and the steps to take. A taxpayer that is dissatisfied with an audit assessment can raise an appeal. If the taxpayer is not satisfied with the decision taken at the appeals level, they may request the CG for an amicable settlement. This second layer of administrative review, an alternative dispute resolution process, is meant to reduce the cost and time of litigation. Where a taxpayer is dissatisfied with the outcome of the administrative reviews, the case may proceed to next stage, the High Court . Taxpayers use the dispute resolution process—During the period 2017/18, a total of 1,029 administrative appeal cases (about 20 percent of audits finalized) were lodged with the CG, 140 taxpayers requested amicable settlement, while 232 cases were lodged with the courts. |
| P7-24 | AFR | B | REPEAT | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Service delivery standards exist for determining appeals—i.e. 30 days in the case of the initial review and 60 days in the case of an amicable settlement.The standards are routinely monitored but are not published. Data for 2017/18 indicates that over 90 percent of all dispute cases were determined within 60 days. See Attachment III Table 14. |
| P7-25 | AFR | B | REPEAT | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: There is evidence that the tax administration analyzes dispute outcomes of a material nature resulting in adjustment to policy. The tax administration carried out analysis of all court cases lost during the period FY 2016/17. This included a key VAT case on processed food (e.g., rice, a staple food in Rwanda) that resulted in a Ministerial order to define “processed food”. In addition, the tax administration analyzed the impact of dispute outcomes for all cases handled during the FYs 2015/16 to 2017/18. The results of the analysis were forwarded to respective departments for information or action. |
| P3-8-1 | WHD | B | FIRST | 2019 | English | It obtained a grade of B because a solid performance quite close to internationally accepted good practices was detected in: The TA provides information on the main obligations and rights with respect to major taxes adapted only to the needs of small taxpayers and tax intermediaries . The AT has clear information in the form of brochures and on the website about the Simplified Tax Regime (RTS) for small taxpayers. Additionally, after registration, they are invited to an introductory in-person course on their rights and obligations, which takes place periodically at the local tax administrations. For intermediaries, an alliance has been established with professional associations, so that on their web pages there is a section through which the user can access the tax information of greatest interest, in addition to receiving specialized training and having an updated repository with current legislation on the MH page itself. On the other hand, the facilities of the Service Platforms (PS) of local tax administrations are adapted and preferential attention is given to people with special needs according to current regulations. |
| P3-10 | WHD | B | FIRST | 2019 | English | It obtained a grade of B because solid performance close to internationally accepted good practices was detected in: The TA has initiatives to reduce the cost of taxpayer compliance, but it does not offer pre-filled returns nor is there a periodic review of the forms. The TA has made an effort in recent years and has launched several initiatives to reduce the cost of taxpayer compliance: (i) there is an RTS for small taxpayers to comply with their tax duties, simplifying their obligations and accounting. ; (ii) there is a database of frequently asked questions available on the Internet that is constantly updated; (iii) virtual portals allow taxpayers to carry out different procedures online (e.g. registration, description, modification of data, public consultation of the tax situation - default or delinquent status -, and presentation of tax returns). However, there are no pre-filled declarations nor is there a procedure for periodic review of forms to ensure that only the information that is necessary is being requested from the taxpayer. |
| P3-11-1 | WHD | B | FIRST | 2019 | English | The opinion of taxpayers is taken into account on an ad hoc basis in the improvement or design of administrative processes and products. Ad hoc focus groups have been used for the development of certain services (e.g. electronic invoicing), although regular communication channels have not been formalized with any segment of taxpayers or intermediaries that would allow regular consultation to identify deficiencies in administrative procedures and products |
| P6-19-1 | WHD | B | FIRST | 2019 | English | The audit program covers the main taxes, selects cases centrally based on the analyzed risks, is weighted towards large taxpayers and uses different types and methods of audits. There is no evidence that the impact of audits on compliance levels is routinely examined. The PICT for 2019 has adopted a risk-based methodology and includes all actions to strengthen the tax compliance of taxpayers, covering the main taxes. The selection of cases corresponds centrally to the Subdirectorate of Programming and Selection (Directorate of Supervision), to which the operational bodies can propose the approval of incorporations or withdrawals from the Plan. The selection of intensive control actions in relation to large taxpayers is weighed within the framework of the methodology adopted for risk management. A distinction is made between verification and investigation actions - referring to cases that require in-depth investigation - and verification actions - aimed at a specific concept that does not require further investigation. In addition, there is extensive or desktop control to verify compliance with tax obligations in a summary and massive manner. Tax regulations provide that the determination of the tax base is carried out through direct or indirect determination methods. There is no evidence that the impact of audits on taxpayer compliance levels is evaluated. |
| P7-23-2 | WHD | B | FIRST | 2019 | English | It obtained a grade of B because a solid performance close to internationally accepted good practices was detected in: The administrative review is conducted by officials from the audit area other than those who have acted during the procedure. In accordance with the Regulations on the organization and functions of the tax administration, in the areas of inspection and extensive control there are “resolving” officials who have not intervened in the audit procedure and whose function is to prepare the projects to resolve the revocation appeals. . |
| P7-25 | WHD | B | FIRST | 2019 | English | It obtained a grade of B because solid performance close to internationally accepted good practices was detected in: Resolutions with significant tax implications are analyzed, but there is no evidence that impact reports are regularly prepared. The analyzes are taken into consideration for the adjustment of administrative processes and actions. The unit in charge of preparing the proposed resolutions of the appeals has as its function the constant study of the doctrine and jurisprudence applicable to the case that must be resolved as well as the analysis of the resolutions with the greatest repercussion or implications. It also undertakes the analysis of the resolutions and criteria of the Tax Court for the filing, where appropriate, of the pertinent resources. These analyzes are taken into consideration for the formulation of proposals for process adjustments and administrative actions and are disseminated to the supervisory bodies and the resolution units themselves. |
| P9-30-1 | WHD | B | FIRST | 2019 | English | It obtained a grade of B because a solid performance quite close to internationally accepted good practices was detected in: The CGR has a high degree of supervision of the tax administration, however the TA's responses to the CGR reports are not published . The CGR has 12 permanent auditors in the MH and annually carries out audits of its operational and financial performance through its Financial Administration System Supervision Area. The tax administration acts in response to the CGR's findings. The CGR's findings are publicly disseminated on its website, however, the AT's responses to these findings are not disseminated, and are only available on the MH intranet. |
| P9-32-2 | WHD | B | FIRST | 2019 | English | It obtained a grade of B because solid performance close to internationally accepted good practices was detected in: Tax administration plans are not always made public in advance of the period they cover. The annual Institutional Operational Plans are made public in advance of the period they cover, although the Institutional Strategic Plan 2015–2018 was made public in the first half of 2015. |
| P1-1-1 | AFR | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The taxpayer registration database includes all relevant details on taxpayers. This includes: name, address, contact details, industry sector and obligations applicable. Associated entities, like partners and public officers, are captured in the database. Their roles and economic activity with related parties can be identified through their National Identification Number. The registration database is centralized and computerized and provides frontline staff with a whole-of-taxpayer view across core taxes. Documented routines for assigning access rights exist. Access is given based on what is needed for staff members to carry out their duties, and the system provides an audit trail of user access and changes to taxpayer registration data. Resident taxpayers have a nine-digit unique Tax Identification Number (TIN) with a built-in validation mechanism. The tax administration only records foreigners’ passport numbers for payroll purposes in instances where the withholding is final and there is no obligation for the foreigner to be registered as a taxpayer. The registration system allows for deactivation and deregistration of taxpayers and generates reports on taxpayer registration related management information on request. The system also interfaces with other subsystems for compliance management purposes (e.g. filing and payment processing). However, the system does not provide online access to businesses to register and, once registered, to update details held in the database (e.g. contact details). Nor does the system generate tax declarations using taxpayer registration details. |
| P1-2 | AFR | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in:Several initiatives are undertaken to identify unregistered taxpayers. The tax administration Action Plan 2019 and the Quarterly Cabinet Submission Report specifies various initiatives to detect unregistered taxpayers, including increasing the number of MOUs with other government agencies. The MOU with Registrar-General lists a range of information to be exchanged in realtime across all business types and provides for a real-time view of information on their systems for selected tax administration officers through CMS. The Financial Intelligence Unit in Seychelles, on a regular basis, and with reference to the Anti-Money Laundering Act of 2006, refers cases to the tax administration on transactions indicating unlawful transactions. The Intelligence Unit within the tax administration is responsible for risk management, including the taxpayers’ obligation to register. In 2018, the Intelligence Unit referred three cases to the Registry Unit. The SOP for the Registry Unit describes procedures for door-to-door visits (fieldwork) and inspections based on information received externally (e.g. newspapers, internet, advertisements, word-of-mouth etc.). Reports from 2017 and 2018 regarding fieldwork in Praslin and La Digue document the number of visits and the number of new businesses registered. The Performance Contract for some staff members (typically registry managers) will list the number of new visits expected to be undertaken for the coming period. This serves as a criterion for measuring performance and the contract is signed both by the staff member and the supervisor. |
| P4-12-4 | AFR | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: On-time filing rates are low for all core taxes. Electronic filing is not well established, and most returns are physically filed for all tax types and tax segments. It is not mandatory for taxpayers to file declarations electronically. From the data in Tables 4 to 10 of Attachment III, the on-time filing rate for CIT (or business tax) is 38 percent for all taxpayers, and 63 percent for large taxpayers (Table 4). The on-time filing rate for PIT is 43 percent for all taxpayers (Table 5). The on-time filing rate for VAT is 72 percent for all taxpayers (Table 6), and 79 percent for large taxpayers (Table 7). The on-time filing rate for domestic excise tax is 80 percent (Table 8) for all taxpayers, and 100 percent for large taxpayers (Tables 9). The on-time filing rate for PAYE is 32 percent for all taxpayers (Tables 10). On-time filing rates as described above are summarized below for ease of reference.Tax Type Filing Rate – All Taxpayers (in percent) Filing Rate – Large Taxpayers (in percent) CIT (Business Tax) 38 63 PIT 43 Not Applicable VAT 72 79 Excise – domestic 80 100 PAYE 32 Not Applicable |
| P5-17-1 | AFR | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The on-time payment for VAT is relatively high both by number and value at 87 percent (94 percent for large taxpayers) and 96 percent (98 percent for large taxpayers), respectively. A ‘B’ score for both dimensions represents sound performance, i.e. a healthy level of performance but one rung below international good practice. See Table 12 of Attachment III. |
| P5-17-2 | AFR | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The on-time payment for VAT is relatively high both by number and value at 87 percent (94 percent for large taxpayers) and 96 percent (98 percent for large taxpayers), respectively. A ‘B’ score for both dimensions represents sound performance, i.e. a healthy level of performance but one rung below international good practice. See Table 12 of Attachment III. |
| P5-18-1 | AFR | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Management of arrears for domestic taxes is weak when compared to international good practice. The stock comprises mostly of old debt. It was noted that the tax administration does not have a debt write-off policy. As shown in Table 13 of Attachment III, total accumulated arrears at the end of 2018 was SR 0.8 billion, representing 17 percent of the annual core taxes collected. Collectible tax arrears as a percentage of total core tax revenue is around 12 percent. Close to 68 percent of total arrears are older than 12 months. |
| P6-19-1 | AFR | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The audit program is comprehensive, covering all core taxes and taxpayer segments. The audit division is responsible for all audits undertaken by the tax administration and has an approved establishment of 49 (although the current vacancy rate sits at close to 50 percent). Audit cases are selected centrally by the division based on recommendations and referrals from the Intelligence Unit, using taxpayer segments and with importance given to large taxpayers. A range of audit types is employed from desk reviews through to more comprehensive audits and both direct and indirect audit methods are used. Beyond typical audit performance reporting e.g. completion rate, re-assessments issued, no evaluation has been undertaken of the impact of audit work on taxpayer compliance. |
| P6-21 | AFR | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: There is a rulings program in place that includes public and private binding rulings. The Revenue Administration Act provides the legal basis for the tax administration to issue rulings and further internal guidance has been developed. The Provision of Advice Unit is responsible for the rulings program. Private rulings are issued on request while public rulings are often issued to clarify points of law. Information about how to apply for a ruling is on the tax administration website. However, cooperative compliance arrangements are not offered to taxpayers. |
| P8-26 | AFR | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Dedicated staff within the ta administration routinely provide input into the government budgeting processes of revenue forecasting and tax revenue estimating. The Revenue Section within the Tax Division is responsible for regularly liaising with the Ministry of Finance. Monitoring of collections against budgeted forecasts are reported to government weekly and then in a consolidated monthly report. VAT refunds are treated as a ‘negative’ tax and are offset against total VAT collections before being paid into the government’s consolidated account. Accordingly, while the extent of refunds each month are monitored, they are not treated as a budgeted expenditure requiring Treasury provisioning. More on the VAT refund process may be found under POA P8- 28. The Ministry of Finance is responsible for monitoring and reporting on the cost to revenue of tax expenditures although inputs are made by the tax administration. The tax administration does not monitor and report on the stock of tax losses carried forward. It does, however, monitor credits/refunds carried forward by taxpayers that may be refunded (VAT refunds are not paid unless the taxpayer is still in a refund position in the third month after the claim) or offset against future tax liabilities. |
| P1-1-1 | EUR | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The tax administartion maintains centralized registers for both tax and SSC payers; each registered taxpayer has a unique tax identification number (TIN). The The Tax Administration is responsible for collecting tax and social contributions.For most businesses and entrepreneurs, the The Tax Administration databases are populated automatically (by immediate data exchange) from the “one-stop-shop” main business registry, called the Agency for Intermediary, IT and Financial Services (APIF), and from entrepreneur registries in the municipalities. A small percentage of registrants, such as public institutions and businesses operating in RS but having their seat elsewhere in BiH or abroad, are registered directly by the Tax Administration.5 Each taxpayer is allocated a unique, high integrity TIN. The registers are centralized and frontline The Tax Administration staff can get a whole-of-taxpayer view across the core taxes. There is an audit trail of user access and changes made to the registers. Information held in the registers is adequate for taxpayer interaction, but taxpayers cannot update their registration details online. The registers contain relevant taxpayer details (including contact information, dates of incorporation or birth, related parties and nature of business activity). The register interfaces with other sub-systems to identify filing and payment obligations for different tax types.Inactive taxpayers are also flagged. The IT system currently does not allow secure online access to businesses and individuals to register for core taxes or update their registration details. The identification of inactive taxpayers is carried out irregularly and there is a large backlog of unresolved deregistration applications. Criteria for classifying cases as inactive are set out in instructions but updates to the register to reflect those criteria are done on an ad hoc basis. Furthermore, over 17,000 applications for TIN deregistration (classified as cases under deregistration) had not been resolved at end-2018. Much of this deregistration backlog relates to a legal obligation on the Tax Administration to audit all such cases before cancelling the TIN. |
| P3-8-3 | EUR | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in:The The Tax Administration is proactive in taxpayer education and information is available through a variety of channels; however, the The Tax Administration website could be more user-friendly. The The Tax Administration conducts a range of taxpayer seminars and training programs (including in conjunction with other bodies), and there is a strong emphasis on educating students on taxation matters.9 Education of journalists is also undertaken and The Tax Administration management and personnel regularly appear on TV and radio shows to explain taxation issues. The website lists telephone numbers for obtaining information on designated topics and this channel is widely used by taxpayers. There is also a facility for email queries. Private rulings are available for a small fee from the MoF and are published (anonymized) on the MoF website. Self-service options have recently been enhanced by the introduction of online access to taxpayer account details, including through a mobile phone application. However, the The Tax Administration website, which is the most important medium for disseminating taxpayer information and minimizing the need for face-to-face or telephone contact, could be more user-friendly. It is heavily focused on tax type rather than the taxpayer and can be overly legalistic in places—a redesign of the site to improve the presentation of information is overdue.For this reason, it is considered that a ’B’ score is appropriate for Dimension P3-8-3. |
| P3-10 | EUR | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in:Simplified arrangements exist for small taxpayers, and there are final withholding or exemptions for many income sources. Businesses with a turnover of less than BAM 500,000 per annum are not required to have double entry bookkeeping. Micro-businesses (with a turnover of less than BAM 50,000 per annum) are not required to maintain records of business expenditure— PIT for such cases is calculated at 2 percent of gross income received. Employees with no other source of income do not have to file a PIT declaration and there is no income tax on interest or dividends. |
| P4-12-2 | EUR | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The overall on-time filing ratio for all PIT declarations (including small entrepreneurs required to file a monthly declaration) is reasonably good. Individual entrepreneurs who do not qualify for small entrepreneur status file annual PIT declarations. Small entrepreneurs are required to file monthly PIT declarations showing gross receipts for the previous month, unless (exceptionally) they are classified as annual filers. Both annual and monthly declarations—filed on time and expected to be filed—are included in the ratio calculation. As shown in Table 5, Attachment III, the on-time filing rate for the 2018 year was 85.4 percent (excluding inactive cases in calculating expected declarations). |
| P4-13 | EUR | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Automated processes are used to identify non-filers, but the legal requirement to issue reminders before initiating penalty proceedings is contributing to repeated late filing. The IT system identifies non-filers through an automated process. Each field office commences follow-up action usually by the 20th of the month following the month is which the declaration becomes overdue. The initial step is a reminder to the delinquent taxpayer—by telephone, e-mail or letter—giving notice that they may be subject to infraction (penalty) proceedings if the declaration is not filed within 8 days of the reminder date. Such a reminder is required by law before any late filing penalty proceedings can be sent to the courts—penalties are not applied without a court decision. It appears that a significant number of taxpayers regularly wait until they get the reminder before filing within the 8-day notice period—there are no negative consequences for the taxpayer who files late in such circumstances. For those cases sent to the courts for infraction proceedings, multiple failures to file a declaration are usually combined into one offence, which reduces the overall financial sanction for serial late and non-filers who do not respond to the reminders |
| P6-21 | EUR | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: A system of private rulings is in place. Rulings are prepared by the MoF on request by taxpayers and are binding on the The Tax Administration. Rulings in anonymous form are published on the MoF website. The Tax Administration has not entered into any cooperative compliance arrangements with taxpayers. Such arrangements between The Tax Administration and, for example, large taxpayers are not contemplated at this stage given that they can be resource intensive. |
| P9-30-1 | EUR | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: There is an annual audit of The Tax Administration’s financial statements by the government auditor (the Supreme Public Audit Service of the RS). The government auditor also performs audits of Tax Administration operations from time to time (e.g., an audit of aspects of the collection process was conducted in 2018). The audit findings are made public, but the Tax Administration’s response to findings and recommendations is not. The Tax Administration’s internal audit unit keeps track of government audit recommendations and the actions taken. |
| P1-1-1 | AFR | B | FIRST | 2019 | English | Rated B because good performance fairly close to internationally accepted good practices was detected in: The taxpayer register complies with international good practices except that the available data is not used to produce pre-filled returns. According to article 637 of the General Tax Code 2012 (CGI) (Law no. 2012-31), all natural and legal persons engaged in an economic activity are in principle required to register with the National Tax Agency. Statistics and Demography (ANSD) which generates a National Identification Number for Companies and Associations (NINEA) and makes it available to the tax administration, the General Directorate of Customs (DGD) and the National Agency for Promotion of investment and major works (APIX). The tax administration is automatically connected to the ANSD platform. At the tax administration level, it is the Information Systems Department (DSI) which uses NINEA to manage the taxpayer database through the Integrated Tax Management System ( SIGTAS) of the Senegalese administration. It is responsible for assigning additional codes to NINEA the Tax Identification Code (COFI). The system is automated and centralized. Each registered taxpayer has a unique identification number with high integrity. The taxpayer register contains all the information necessary for management and control. SIGTAS ensures the link between the registration module and the management modules of other tax functions such as the processing of declarations and payments. This connection provides tax agents with a holistic view of each taxpayer for all their tax functions. SIGTAS makes it possible to generate management information and statistics by type of tax and by economic sector. SIGTAS allows the deactivation and archiving of taxpayer files and therefore the separate management of active and inactive taxpayers. It ensures traceability system users and any changes to the data taxpayers. The system provides secure access for taxpayers to update update their data using the etax and My Personal Space platforms. |
| P3-8-1 | AFR | B | FIRST | 2019 | English | Rated B because good performance fairly close to internationally accepted good practices was detected in: The tax administration offers a range of relevant and useful information to taxpayers to facilitate the fulfillment of their tax obligations and the exercise of their rights , with the exception of information intended for disadvantaged groups. Information adapted to the needs of different categories of taxpayers and for basic taxes is available in the form of leaflets and brochures and accessible on the tax administration website. They mainly concern the declaration of existence, practical guides, income declarations and calculation simulators, the VAT declaration, corporate taxes and the terms of payment of taxes. A calendar of tax deadlines reminding taxpayers of their obligations and the due dates for all basic taxes is made available to them through online press sites. A verified taxpayer charter describing their rights and guarantees is provided at the start of each on-site audit. The tax administration carries out occasional press communications aimed at taxpayers intended to remind them of the main declaration deadlines and to facilitate declaration formalities. Workshops are held with large groups of taxpayers and tax intermediaries to discuss sectoral issues such as mining or the hotel sector. A partnership is also established with chartered accountants through the establishment of the one-stop shop for filing financial statements (GUDEF) and the requirement for a visa on financial statements affixed by a member of the order of chartered accountants. Several minutes of these meetings were shared with the team. |
| P5-15 | AFR | B | FIRST | 2019 | English | Rated B because good performance fairly close to internationally accepted good practices was detected in: Electronic payment methods are used for all basic taxes and their use represents more than half of the value of total payments made and more than 90 percent of the value of payments made to large taxpayers. The tax administration presents an online payment service offer currently used on a mandatory basis by large companies and medium-sized companies with a turnover of more than 500 million FCFA. The teleprocedures initiated in October 2017 at the DGE are widely used (98 percent). The payment procedure with banks is secure but requires waiting for the credit notice to take into account the payments in the ASTER (DGCPT) application. In 2018, a rate of 57 percent of IS payments, 64 percent of IRPP, 85 percent of VAT and 92 percent of excise duties were paid electronically. Additionally, 98 percent of payments made by large businesses were made electronically. [Attachment III, Table 11]. |
| P6-19-1 | AFR | B | FIRST | 2019 | English | Rated B because good performance fairly close to internationally accepted good practices was detected in: The tax control program is established centrally on an annual basis and covers all basic taxes as well as key segments of the tax population according to the importance of the risks identified. The audit program targets at least large taxpayers. Since 2018, the tax administration has been selecting files using two methods: (i) the traditional method of selection based on empirical knowledge of files by the managing services; and (ii) the automatic method using a risk-based selection algorithm. A programming committee decides annually on the files to be submitted to the tax audit. The program provides for the use of different types of controls adapted to the nature of the risks identified (general accounting verification, documentary control, etc.) A note on the guidance of tax control instructs the operational departments (DGE, DME, DSF) on the directions and objectives of the tax control program. However, the impact of audits on the level of taxpayer compliance is not assessed. |
| P6-21 | AFR | B | FIRST | 2019 | English | Rated B because a good performance quite close to internationally accepted good practices was detected in: The right of ruling provided for in the tax legislation allows the taxpayer individually to ensure the interpretation of the law by the tax administration, however it there is no prior agreement mechanism. In practice, the tax administration (the Department of Legislation and International Cooperation) was directly requested by some taxpayers to give its opinion on questions of interpretation of tax legislation with regard to their individual situation. The publication of response statements to taxpayers serves as tax doctrine. However, the tax administration has not yet concluded a cooperation agreement in favor of tax citizenship to facilitate tax declarations for a given group of taxpayers. |
| P6-22 | AFR | B | FIRST | 2019 | English | Rated B because good performance fairly close to internationally accepted good practices was detected in: the tax administration uses the results of studies on tax potential to measure the gap with achievements. These studies are developed by the Directorate of Economic Forecasts and Studies (DPEE) of the Ministry of Economy and Planning, to monitor the tax gap on IS and VAT. However, the study on tax potential is carried out on a three-year basis (2017 and 2019). These studies are published on the DPEE website. |
| P7-23-1 | AFR | B | FIRST | 2019 | English | Rated B because good performance fairly close to internationally accepted good practices was detected in: A progressive dispute resolution process is in place and functioning but it includes an optional additional appeal step in the administrative phase. Its implementation is ensured by the Department of Legislation and International Cooperation (DLCI). This department is responsible in particular for formulating, through the Tax Litigation Office, proposals to the Director General for the resolution of tax disputes. There is also at the level of the contentious administrative phase the possibility for the taxpayer to appeal to the Minister of Finance and Budget. The dispute resolution process is progressive with an administrative level and a jurisdictional level which may include an appeal phase if necessary. The organization of the dispute resolution process generally corresponds to international best practices. |
| P9-29-1 | AFR | B | FIRST | 2019 | English | Rated B because good performance fairly close to internationally accepted good practices was detected in: The internal audit function is well developed within the tax administration but it is placed under the authority of the Director General and not a independent audit committee. The Internal Control Department (DCI) assumes the internal audit function and prepares an annual audit plan for all functions of the tax administration, including financial control and the review of operational performance and management systems. information. The DCI reports are addressed to the Director General and the recommendations are followed up by the head of the DCI Monitoring Office. Training in internal audit methods is provided by the French Directorate General of Public Finances each year to designated auditors. The first independent review of operations and the internal audit system is being carried out by the Court of Auditors. There is a central archiving system for job descriptions and procedures. Information systems controls are in place in the IT department to detect incidents of data security breaches in the SIGTAS system. There is an audit trail of user access. The system generates an automatic alert if there is a violation. The IT control system is monitored through regular audits. The last IT system audit was carried out by Oracle Corporation in February 2019. |
| P9-32-2 | AFR | B | FIRST | 2019 | English | Rated B because good performance fairly close to internationally accepted good practices was detected in Future directions and strategic plans are published within three months of the start of the period they cover. Strategic and operational plans are drawn up by the Office of Strategy and Modernization and published on the tax administration website immediately after the start of the period covered. |
| P1-1-1 | AFR | B | FIRST | 2019 | English | Rated B because good performance fairly close to internationally accepted good practices was detected in: The taxpayer register is computerized and centralized but the available data is not used to produce pre-filled declarations. Decree No. 2017-215 of April 10, 2017 stipulates that the Unique Tax Identifier (IFU) of taxpayers is unique and personal. The IFU is issued by the Single Window for Business Formalization (GUFE) attached to the Investment and Export Promotion Agency (APIEX), and must be used by all financial administrations in the country in their transactions with taxpayers. . The Information Systems Department (DSI) of the tax administration manages the taxpayer database through the SIGTAS (Integrated Tax and Similar Management System) of the Beninese administration. The system is automated and centralized at the national level. SIGTAS ensures the link between the registration module and the management modules of other tax functions such as the processing of declarations and payments. This link allows tax agents to have a holistic view of each taxpayer for all their tax functions. SIGTAS also allows the deactivation and archiving of files in the taxpayer file — and therefore the separate management of active and inactive taxpayers. In addition, SIGTAS does not currently allow generate management information and statistics by type of tax and by sector of economic activity. However, there is an external application to produce statistical data from the SIGTAS database. It ensures traceability of system users and any modifications made to taxpayer data. Large and medium-sized businesses have access to their data online but cannot update it (postal or professional address for example). In addition, the registration computer module does not allow the production of pre-filled declarations. |
| P3-8-3 | AFR | B | FIRST | 2019 | English | Rated B because a good performance quite close to internationally accepted good practices was detected in: the tax administration gives taxpayers easy access to the tax information it has, but it does not currently provide awareness of good citizenship tax in schools. The operational departments have services dedicated to users which welcome them during opening hours and are responsible for assisting them in fulfilling their tax obligations and providing them with services. A user guide available on the website specifies for several documents (attestations, certificates, receipts, etc.) how long it takes for them to be issued by the tax administration structures. It was revised, and a draft guide to service standards establishing the tax administration's commitment to taxpayers was designed in March 2019, in collaboration with representatives of professional organizations. Press campaigns, seminars and awareness days are organized regularly, particularly for business creators or following the entry into force of the finance law. The information journal is published every quarter by the tax administration in paper and digital format, to share tax news and inform about new products and services. Information is available through a wide range of user-friendly means (telephone, website, Facebook page, Twitter account, brochures, circulars, spots, videos, tutorials, advertorials) at no cost to the taxpayer. |
| P4-12-1 | AFR | B | FIRST | 2019 | English | Rated B because good performance fairly close to internationally accepted good practices was detected in: The level of compliance with reporting obligations is satisfactory, except with regard to declarations of personal income tax and deductions from wages. The due deposit rates for the five basic taxes are as follows: - IS: 77.5 percent (97.5 percent for large companies); - IRPP: 58.8 percent; - VAT: 82.5 percent (97.2 percent for large companies); - Excise taxes: 95.7 percent (paid by large companies only); - Withholding taxes: 71.4 percent. Attachment III, tables 4 to 10 |
| P4-12-3 | AFR | B | FIRST | 2019 | English | Rated B because good performance fairly close to internationally accepted good practices was detected in: The level of compliance with reporting obligations is satisfactory, except with regard to declarations of personal income tax and deductions from wages. The due deposit rates for the five basic taxes are as follows: - IS: 77.5 percent (97.5 percent for large companies); - IRPP: 58.8 percent; - VAT: 82.5 percent (97.2 percent for large companies); - Excise taxes: 95.7 percent (paid by large companies only); - Withholding taxes: 71.4 percent. Attachment III, tables 4 to 10 |
| P4-12-4 | AFR | B | FIRST | 2019 | English | Rated B because good performance fairly close to internationally accepted good practices was detected in: The level of compliance with reporting obligations is satisfactory, except with regard to declarations of personal income tax and deductions from wages. The due deposit rates for the five basic taxes are as follows: - IS: 77.5 percent (97.5 percent for large companies); - IRPP: 58.8 percent; - VAT: 82.5 percent (97.2 percent for large companies); - Excise taxes: 95.7 percent (paid by large companies only); - Withholding taxes: 71.4 percent. Attachment III, tables 4 to 10 |
| P5-18-1 | AFR | B | FIRST | 2019 | English | Rated B because good performance fairly close to internationally accepted good practices was detected in: The total value of basic tax arrears is limited. It represented 28.5 percent in 2016, 17.7 percent in 2017 and 9.2 percent in 2018, respectively, of the basic taxes collected. So the three-year average is 18.5 percent. |
| P7-23-3 | AFR | B | FIRST | 2019 | English | Rated B because good performance fairly close to internationally accepted good practices was detected in: Information relating to recourse rights is published and brought explicitly to the attention of the taxpayer. The General Tax Code (CGI) and the Book of Tax Procedures (LPF) define the different avenues of appeal for the taxpayer in the event of a tax dispute. Different channels exist to bring this information to the attention of the taxpayer (tax administration website, mentions of the provisions of the CGI or the LPF in the various documents punctuating the control procedure). A Verified Taxpayer Charter and a Guide to Tax Litigation and Legal Appeals are available online. A copy of the Charter is given to the taxpayer by the auditors at the start of each on-site audit. Auditors are required, by written instruction, to explicitly inform taxpayers of their dispute rights and the corresponding dispute resolution procedures. Verification notices and adjustment notifications inform the taxpayer of the avenues of appeal. However, the written procedures of the Litigation Department do not require the agents of the said department to explicitly inform taxpayers of their rights and the procedures to follow if they are not satisfied with the department's decision. |
| P9-32-2 | AFR | B | FIRST | 2019 | English | Rated B because good performance fairly close to internationally accepted good practices was detected in: Future directions and strategic plans are published within three months of the start of the period they cover. The 2017–21 strategic orientation plan was released in February 2017, two months after the start of the period covered. |
| P2-5 | EUR | B | REPEAT | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The CMC formally approves and monitors the implementation of the compliance program. In addition, specific working groups are established to regularly monitor the progress of project-based compliance improvement initiatives. Over the past 12 months, working groups have been in place for the tourism sector, construction sector and labor informality projects. The working groups generally meet every two weeks. Evaluations of the effectiveness of risk mitigation strategies have been documented for sector specific projects (which represents over 50 percent of approved compliance risk mitigation activities). However, they are not routinely prepared for other compliance activities. |
| P2-7-1 | EUR | B | REPEAT | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The tax administration has a formal process in place to assess human capital risks. A strategic management group comprising of the DG, Deputy DGs, and key HQ directors meet at least three times a year to review the human capital risk register and decide appropriate mitigation strategies. This work is coordinated by senior leaders of the tax administration independent from the HR function. HR has 25 people from the HR unit who have been specifically trained in HR risk management. In addition, 30 managers across the tax administration received training to understand and identify HR risks. This training was organized in 2020 by the Albanian School of Public Administration. The tax administration uses the trained managers (who are independent of the HR function) to conduct a formal evaluation of the human capital risk status on an annual basis covering at least one risk in the key HR capital risk framework (as set out in Box 4 of the TADAT Field guide) and several additional risks in the capability and capacity risk categories (including ethics, engagement, training, and recruitment). This assessment is undertaken using an internationally recognized self-assessment questionnaire (with 111 questions). A detailed risk register is generated from this assessment. |
| P3-11-1 | EUR | B | REPEAT | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The tax administration regularly uses various methods to obtain feedback from taxpayers. Independent surveys have been conducted on a less regular basis. Feedback is gathered via basic questionnaires available in the tax administration website and suggestion boxes in the RTOs. Furthermore, representatives of the tax administration meet with business representatives (for example large taxpayers, the tourism sector, Chamber of Commerce, and Institute of Certified Accountants). The tax administration has carried out two surveys (nationally and regionally) about taxpayer satisfaction with the tax administration services during the Covid-19 pandemic. An independent business perception survey including services to taxpayers was last conducted by the Albanian Investment Council in 2019. This was based on a statistically valid sample of key taxpayer segments. Independent taxpayer satisfaction surveys are planned with the assistance of the Swedish Tax Agency. |
| P4-12-1 | EUR | B | REPEAT | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The reported filing rates across all core taxes are high. Most declarations are electronically generated by the system and delivered to the taxpayers’ e-service portal and pre-filled with known data. Strict adherence to statutory due dates is required. There are allowances only where the due date falls on a weekend or public holiday (to the next business day). No period of grace is provided. The awareness of declaration filing obligations is high. The tax administration website contains detailed information concerning declaration requirements. Individual advance warning of a filing obligation is not given, but there is a “tax calendar” outlining the due dates for all taxes on the tax administration website. The following are the on-time filing rates for core taxes [Tables 4-10 of Attachment III]: All CIT taxpayers 93.1 Large CIT taxpayers 97.4 All PIT taxpayers 93.6 All Domestic Excise taxpayers28 100 Large Domestic Excise taxpayers 100 All VAT taxpayers 95.7 Large VAT taxpayers 99.2 All PAYE taxpayers 98.4 |
| P6-19-1 | EUR | B | REPEAT | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The tax administration compiles an audit plan on a monthly basis. The monthly audit plan is compiled by the tax administration risk directorate using risk analysis data collated centrally and resource availability and other information from the audit directorate and RTOs. The monthly plan covers all core taxes, key taxpayer segments and is weighted towards high-risk sectors. 70 percent of planned cases are selected centrally using the compliance risk module with the remaining cases selected by the audit directorate (including requests received from other agencies) and RTOs. A range of comprehensive, single issue and desk audits are used as direct and indirect methodologies. Audits of taxpayers in the large taxpayer segment are undertaken by a dedicated LTO. The LTO is currently assessing risk levels for each taxpayer in this segment and classifying taxpayers into one of four risk categories—high, medium (close monitoring), medium, low. The tax administration does not routinely evaluate the impact of audits on levels of taxpayer compliance |
| P6-21 | EUR | B | REPEAT | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The tax administration has an established system of issuing binding public and private rulings in place. Public binding rulings are published on the tax administration website and generally aim to clarify policy positions related to new legislation (most recently providing guidance for taxpayers with the implementation of fiscalization). However, the topics covered by the current suite of published public rulings are limited. The tax administration has not entered into any cooperative compliance arrangements with taxpayers. Although there has been an increased level of engagement with taxpayers in the large taxpayer segment to improve legal certainty for those taxpayers, it has not yet evolved into adopting cooperative arrangements between the tax administration and taxpayers . |
| P8-26 | EUR | B | REPEAT | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: A dedicated accounting and statistics unit in the tax administration provides collection data and other input to revenue forecasting by the MOFE. Revenue forecasts are prepared by the Fiscal Policy Directorate of the MOFE—using a mix of macroeconomic predictions and time series models based on tax collection data provided the tax administration . Apart from collection data, the tax administration accounting and statistics directorate also prepares statistical reports covering a wide range of information from tax declarations (including breakdowns by region, economic sector, business size, number of employees , and reported salary ranges). This information, while mainly used for internal monitoring and planning of the tax administration activity, is available to the MOFE for forecasting purposes. There is scope for more proactive tax administration involvement in assisting revenue forecasts, e.g., by feeding into the MOFE additional analysis of taxpayer and sectoral behaviors and particularly data and trends from monitoring the largest taxpayers. Monthly reports of variances between budgeted and planned collections are published on the MOFE website. The MOFE is also informed of any significant trends in VAT refund claims although there is a high degree of volatility in this area. |
| P9-29-1 | EUR | B | REPEAT | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The tax administration has an organizationally independent Internal Audit Directorate (IAD) that reports to the DG but not to an audit committee.44 The IAD has two units with a total staff of eight, each with over 20 years’ experience in tax administration and 5 years’ experience in internal audit. All auditors are certified as public sector internal auditors. Each auditor has to undergo 40 hours of compulsory training each year provided by the Audit Alignment Department (AAD) of the government. The AAD conducts an independent review of all internal audit operations of the (IAD) once every five years The last review was conducted in 2020. |
| P9-29-2 | EUR | B | REPEAT | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The tax administration also has an Internal Investigation (anti-corruption) Directorate (IID), which reports directly to the DG. The Code of Ethics is communicated to all staff. This directorate has a head and eight inspectors who have judicial police powers in terms of investigation of cases. The Directorate is responsible for the detection and prevention of staff corruption and violations of laws and procedures relating to conflicts of interest and ethical behavior. The directorate cooperates with relevant enforcement agencies including the public prosecutor’s office, the police and the Anticorruption agency and the High Inspectorate of Asset Declaration & Conflict of Interest. IID maintains anonymized integrity statistics. While the annual report provides statistics on disciplinary measures generally, it does not explicitly identify integrity statistics.The Code of Ethics is communicated to all new recruits through special induction training. The Code is also available on the tax administration website. |
| P9-30-1 | EUR | B | REPEAT | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The State Supreme Audit Institution (SSAI) is a constitutional body that oversees the tax administration financial statements and its operational performance annually. There is an annual program of financial audit as well as performance audits of the tax administration functions.55 Along with its findings, the SSAI submits to the GDT a six-month program of implementation of its recommendations. The tax administration responds to the findings of the SSAI.56 While the findings of SSAI audits are published on the institution’s website, the responses of the tax administration are not published. 57 Although the responses of the tax administration are not published, the status of implementation of some of the recommendations is contained in next year’s report of the SSAI. |
| P1-1-1 | EUR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The content and functionality of the taxpayer register are generally sound; however, it does not provide online access to taxpayers to update their details on the register. Taxpayers may submit applications to register with the Tax Administration through several channels (tax offices, on-line portal, and one-stop shops). Businesses must first register with the Commercial Register (legal entities) or with the trade licensing authority (“small business register”). The Tax Administration uploads and maintains registration data in a central computerized database and keeps the data aligned with relevant data held in the above external registers. The content of the Tax Administration database is adequate for tax administration purposes. It includes all necessary registration details, which are linked to taxpayers through a single high integrity identification number. Taxpayers may submit requests for changes to their registration details on-line, but cannot make the changes on-line themselves. |
| P3-11-2 | EUR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Consultation with key taxpayer groups is primarily through an Advisory Board, but there is limited taxpayer input into the design or testing of new processes and products. The main consultation forum for key taxpayer groups and intermediaries is the Advisory Board of the Tax Administration President. Standing members of this Board include representatives of sixteen professional organizations (covering a broad spectrum of taxpayer segments, industry groups and tax specialists). Examples of prominent issues recently discussed by the Advisory Board were difficulties relating to the extension of mandatory electronic filing and the practical implementation of the new digital platform tax. Taxpayer involvement in the design or user testing of new processes or products (e.g., forms, web design, clarity of rulings) is limited. While there is an opportunity to comment on new form design, this is not actively promoted. |
| P4-12-1 | EUR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The on-time filing rates for core taxes are generally high; however, the rate for PAYE withholding cannot be determined. The latter is because employers have no filing obligation for tax periods in which no salaries are paid to employees. For all other tax types, the IT system automatically generates a list of non-filers to be used by tax offices for filing enforcement purposes. The relatively high on-time filing rate for VAT is partly due to the robust arrangements in place to follow-up VAT taxpayers who fail to file a declaration or pay the VAT due for two consecutive periods, including ex officio deregistration when taxpayers are identified to be inactive.Tax type/taxpayer segment Percent filed on-time • All CIT taxpayers 81.5 • Large CIT taxpayers 95.3 • All PIT taxpayers 76.5 • All VAT taxpayers 97.6 • Large VAT taxpayers 99.1 • All PAYE taxpayers No data |
| P4-12-2 | EUR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The on-time filing rates for core taxes are generally high; however, the rate for PAYE withholding cannot be determined. The latter is because employers have no filing obligation for tax periods in which no salaries are paid to employees. For all other tax types, the IT system automatically generates a list of non-filers to be used by tax offices for filing enforcement purposes. The relatively high on-time filing rate for VAT is partly due to the robust arrangements in place to follow-up VAT taxpayers who fail to file a declaration or pay the VAT due for two consecutive periods, including ex officio deregistration when taxpayers are identified to be inactive.Tax type/taxpayer segment Percent filed on-time • All CIT taxpayers 81.5 • Large CIT taxpayers 95.3 • All PIT taxpayers 76.5 • All VAT taxpayers 97.6 • Large VAT taxpayers 99.1 • All PAYE taxpayers No data |
| P5-17-2 | EUR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Compliance levels for the timely payment of VAT are healthy. VAT payments are made either monthly or quarterly, depending on turnover in the previous year. Taxpayers with a turnover of less than €100,000 in the previous year can pay and file quarterly otherwise the obligation is to file a VAT declaration and make payments monthly. Table 10 of Attachment III shows that 94.4 percent of the number of VAT payments due is received on time and 89.4 percent of the value of VAT payments due is paid on time. |
| P5-18-2 | EUR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Overall performance on tax arrears collection is relatively weak. Table 11 of Attachment III shows the following average results over the three-year period 2015-2017: • The average value of total core tax arrears as a percentage of core tax revenue collections is 27.1 percent. • The average proportion of collectible core tax arrears as a percentage of total core tax revenue collections is of 5.1 percent. • The average value of core tax arrears more than twelve months old— relative to the value of total tax arrears—is 77.7 percent. |
| P6-22 | EUR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The tax gaps for VAT and CIT are estimated using internationally accepted methodologies; but only the VAT gap has been used to design compliance initiatives. Tax gap estimates are conducted on a regular basis for both VAT and CIT using methodologies developed by the IMF and the EU. The results of the VAT gap estimates have influenced the design of compliance interventions to improve accuracy of reporting such as introduction of the VAT control statements, reverse-charging mechanism, and several proposals for changes to the VAT law. Analysis of the CIT gap estimates is at a much earlier stage and there is no documented evidence of compliance improvement initiatives emanating from this work. |
| P7-23-3 | EUR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Information on dispute rights and procedures is published, but there are no written instructions to auditors to inform taxpayers of their appeal rights. Information on dispute rights is publicly available on the Tax Administration’s website, both in links to administrative review procedures and to the law. Information on dispute rights and procedures are included in notices of assessment and in notifications of administrative review decisions. The audit finalization letter contains information on the right to respond to the findings of the audit before the issuance of the notice of assessment. There are, however, no written instructions which require auditors to explicitly inform taxpayers of dispute rights and procedures. |
| P8-26 | EUR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The tax administration routinely provides input to government tax revenue forecasting and estimating processes. A dedicated organizational unit within the Tax Administration is responsible for gathering and analyzing data on tax revenue collections and economic conditions to provide input to the Government’s monthly monitoring and budgetary process. The Tax Administration also monitors tax revenue collections against revenue forecasts and reports findings to the MoF each month. All significant variances from the forecasts are investigated and reported. Staff from the administration’s revenue analysis area meet monthly with the MoF and, as required, to provide input to the government budgetary processes. The outcomes from each meeting are documented. |
| P8-28-1 | EUR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in:The VAT refund system is sound, but full interest is not paid on cases selected for pre issue audit. An automated risk assessment that uses a range of criteria is undertaken to identify high-risk claims. In most cases high risk claims are subject to an audit before a claim is approved for payment. Budget funds are allocated to meet all legitimate refund claims when they occur. There have not been any instances in which VAT refunds approved for payment have been delayed due to insufficient funds being available. VAT credits are offset against the following period’s liability or other tax debts. Any taxpayer may self-select an accelerated refund process provided the taxpayer has been registered for at least twelve months, has no tax arrears, and has a good compliance history. The take-up rate for the accelerated refund option is low. Scored B because sound performance fairly close to internationally accepted good practice was detected in: Interest is paid on overdue refunds. However, where cases are selected for pre-issue audit, interest only accrues from ten days after the finalization of the audit, even where no adjustment has been made to the claim as a result of the audit. |
| P9-30-1 | EUR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in:Complaints from taxpayers about treatment they have received from the Tax Administration are not investigated by an ombudsman or any equivalent body. The “Public Defender of Rights” in the country has competence to investigate alleged breaches of fundamental rights and freedoms contrary to legal principles and the rule of law, by a public administration body. The Tax Administration staff interviewed were not aware of any investigation by the Public Defender of a taxpayer complaint relating to alleged wrongdoing or maladministration on the part of the Tax Administration. |
| P3-8-1 | AFR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Although there is a range of information available to taxpayers, it is not tailored to key taxpayer segments except for small taxpayers and intermediaries. There is a range of information on the main taxpayer obligations (registration, filing, payments and accurate reporting) and entitlements which is readily available for all core taxes. Information is tailored to the needs of intermediaries as well as small and micro taxpayers to the extent that the simplified return is in both French and Kirundi. Brochures and pamphlets are also available in the two languages. |
| P3-8-3 | AFR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in:Taxpayers and intermediaries obtain information at minimal cost through a broad range of channels except for self service facilities. Tax Administration carries out proactive taxpayer programs such as seminars for micro and small businesses and new businesses. During registration, each taxpayer is educated on their tax obligations and given a taxpayer charter. The information is available through a variety of user-friendly service delivery channels (e.g. website, brochures, telephone, rulings etc.), at no cost to the taxpayer. In addition, calendars and diaries indicating the filing and payment due dates are distributed to taxpayers. Tax Administration is in the process of designing an interactive website that will allow for self service facilities. |
| P3-11-1 | AFR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Tax Administration obtains feedback regularly from taxpayers and intermediaries, through various channels and internal surveys on the standard of services provided. This is evidenced in the quarterly performance reports that highlight the number of interventions and recommendations. The feedback is received through email, telephone, call center, suggestion boxes, workshops and one-on-one engagements with taxpayers. Taxpayer perception surveys, using statistically valid samples of the taxpayer population, are also conducted by the Tax Administration’s Research and Planning Division (RPD) and not by an independent third party. The last survey was concluded in July 2017. |
| P6-19-1 | AFR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The Tax Administration audit activities cover all core taxes, key taxpayer segments and use a range of audit types to audit centrally selected cases. Cases are centrally selected and the annual audit plan is developed by the Program and Monitoring Unit using risks identified internally. The auditors use a range of internal and customs data to support their work. Third party data is requested from banks and government agencies when required and Tax Administration is able obtain information from government agencies on request. Tax Administration audits are generally comprehensive in nature, covering multiple years and all relevant taxes. Specific audits are also conducted. Within each audit unit there is a compliance unit that routinely conducts desk verification when tax returns are submitted. However, as indicated in POA 2, Tax Administration does not evaluate the impact of audit activities on taxpayer compliance. |
| P6-21 | AFR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Public and private rulings are provided for by the law and are binding. The CG has the legislative power to issue private rulings and examples of both public and private rulings were sighted by the assessment team. Cooperative compliance arrangements are not fully in place. During the visit to the LTO, the assessment team was informed of a start being made in building a cooperative compliance culture such as a fast-track process for large taxpayers that are compliant for obtaining a tax clearance certificate, special relations with significant taxpayers and a yearly award for the best taxpayer in all taxpayer segments. There is however no formalized cooperative compliance program that is anchored in the compliance improvement plan (as discussed under POA 2) and meets the test of cooperative compliance approaches outlined in the TADAT framework. |
| P7-23-1 | AFR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: A tiered dispute resolution mechanism (multi layered at stage one) is in place and is fully used by the taxpayers. Within Tax Administration, if a taxpayer doesn’t agree with the audit findings, they can appeal to the Director of the respective audit division within DTD and the decision is reviewed. If the taxpayer is still dissatisfied they are required to pay 30 percent of the disputed amount and appeal to the Commissioner General who directs the case to a unit in the Legal Department. This unit prepares a case analysis and presents it to a committee comprising the Deputy Commissioner General, Commissioner DTD and Commissioner CSD for approval before CG’s signature. The administrative review procedures are documented in the consolidated Tax Administration procedures manual and those relating to dispute resolution;8 and these are applied. In 2017 Tax Administration handled 209 dispute cases. |
| P7-24 | AFR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Virtually all administrative reviews are completed within 60 calendar days. The statutory deadline for Tax Administration to conclude an administrative review is within 60 calendar days (which is 30 days plus a further 30 days extension that can be granted by the CG). In the most recent period (2017) 209 administrative reviews were received, of which 83 were handled within 30 calendar days (39.7 percent), 125 within 60 calendar days (59.8 percent) and only one case within 90 calendar days (see Table 12 of Attachment III). Tax Administration uses a software that provides alerts to monitor the time taken to finalize an administrative review. |
| P9-30-1 | AFR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Tax Administration’s annual operational and financial performance is reviewed by the Government Auditor General (GAG) but the outcomes are not made public. The annual operational and financial performance reports are prepared, audited by the Auditor General before being approved by the Tax Administration Board by end-March every year. The external review findings are responded to by Tax Administration. However, the review findings and responses from Tax Administration are not made public. |
| P5-16 | AFR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Advance payment arrangements and withholding at source mechanisms are in place, but withholding is not enforced for interest income. The Income and Value Added Tax Act mandates withholding at source for employment income, payments to contractors, and dividend and interest income. However, the assessment team was informed that the government suspended the enforcement of the provision to withhold on interest income. Advance payment arrangements, called installment payments, are in place on a quarterly basis for corporate and personal income taxpayers. |
| P1-1-2 | EUR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The registration processes to be followed by Tax Administration are detailed in a rulebook2, which is supported by instructions, guidelines and manuals. Staff are trained in its requirements. The rule book was most recently updated in 2016 and supplementary material is updated as needed. There are updates to training material to support processes altered by the introduction of the new IT system. The identity of registrants is verified. Entry to the register can be via the trust-chain process with the other BiH tax administrations described above, or by direct registration action within Tax Administration. In either case, proof of identity is required, either for natural persons by an on-line cross-check with the National Identity Register, or in the case of legal persons, by the production of certified copies of registration documentation issued by the companies register. Levels of shareholding in private companies are recorded in documents required for the registration process and these documents are uploaded to the registration module. A number of processes are in place to keep registration details accurate. Taxpayers are required by law to inform the Tax Administration of any changes to their registration details, public relations campaigns are conducted periodically, and cross-checking exercises are conducted regularly by the Risk Assessment and Management Section (RAMS) to assure this process. These cross-checks are made with the entity business registries and Financial Intelligence Agency (FIA) records to detect any unreported changes. Auditors are also required to verify the correctness of registration details whenever they are in contact with taxpayers and a field visit is made to any new, previously unregistered taxpayers’ premises to confirm their eligibility. |
| P2-3-1 | EUR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The Tax Administration has a range of external data with which to build knowledge of compliance levels. It obtains income tax declaration, cash register sales information and employer data from the other BiH tax administrations6, as well as information from the Central Bank of BiH (with respect to blocked bank accounts), FIA and the commercial business registries in the entities. The Law Enforcement Sector within Tax Administration is gathering intelligence from police agencies including INTERPOL, from international level information exchanges, and public and social media, as well as information provided anonymously on potential non-compliance. Tax Administration also has registration data from the other BiH tax administrations and from the BiH commercial business registries. This external data assists in ensuring accurate sectoral data for benchmarking purposes and calculation of comparative taxpayer compliance related information. |
| P2-3-2 | EUR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: A structured risk assessment process is in place. Registers of compliance risks for large and other taxpayers are being developed and maintained by RAMS. The risks are categorized according to the four main VAT compliance obligations – registration, filing, payment and accuracy of reporting. Compliance risks are assessed against a substantial set of risk-related rules, to score and rank tax risks and prioritize taxpayers for further examination. In addition, a risk map, showing likelihood and impact of VAT risks across all four main compliance obligations has been updated for 2018. |
| P4-12-3 | EUR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Overall on-time filing rates are high (92 percent for 2017) – see Table 4, Attachment III. Late filers are identified by the system and if a return is not filed by the 25th of the month, a default assessment process occurs automatically. This process is reported to be a very successful strategy, resulting in the high filing rates. For example, nationally, only 67 default assessment were generated for the month of January 2018. The on-time filing rate for large taxpayers is not significantly different from that for general taxpayers – see Table 5, Attachment III. Given the relatively small number of large taxpayers, the on-time filing rate of 95 percent indicates that a more specialized strategy could be developed to ensure that all “Large” taxpayers file on time. |
| P5-18-1 | EUR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Outcomes for each of the three measured dimensions are as follows (3-year average from Table 8, Attachment III): • Average value of total arrears as a percentage of total collections: 18 percent • Average value of collectible arrears as a percentage of total collections: 12 percent • Average value of aged arrears as a percentage of total arrears: 82 percent. A substantial proportion of the arrears inventory is more than 12 months old. Tax Administration has never initiated write off for uncollectible debts. Arrears more than 12 months old by end 2017 represented 82 percent of total arrears. A significant proportion of the arrears are owed by liquidated companies that have ceased to exist or are debts that have become statute barred. |
| P7-23-2 | EUR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: General information on dispute rights are not publicly available. . General information on appeal rights is not available on the Tax Administration website or in informational brochures. However, auditors are required to (verbally) inform taxpayers of their rights as part of the initiation of 40 the audit process, and the audit decision document is required by law to contain information on dispute rights. This is assured by a “decision template” which automatically includes this information in all written advice of decisions. |
| P8-26 | EUR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The Tax Administration plays a key role in the forecasting and estimation of indirect tax revenues. The Law on the Indirect Taxation System provides (Article 14) that the Tax Administration Governing Board is responsible for facilTax Administrationting the BiH Council of Ministers, the entities and the district (Br?ko) in preparation of fiscal budgets. For this purpose, a Macroeconomic Analysis Unit (MAU) was established and reports directly to the Tax Administration Governing Board. The MAU is according to the Law on Financing the Institutions of the BiH (Article 5a), required to prepare the draft indirect tax revenue forecast for the current and three following years. A midyear review of current and following years’ budgets is undertaken. The process is facilTax Administrationted by macroeconomic indicators received twice a year from the BiH Directorate for Economic Planning. |
| P8-28-1 | EUR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Risk based verifications are applied for VAT refund claims. An automated risk assessment of claims is performed on a monthly basis. A range of risk criteria is applied to identify high-risk claims. One third of the audit cases nominated by RAMS (25 percent of total) concern refund cases. The remaining refund audit case are selected by the regional centers and this process is facilitated by a RAMS risk rating of all refund claims and carried forward credits. Around 14 percent of the processed refund claims in 2017 were made subject to an audit and an audit correction issued in 18 percent of these cases. |
| P9-29-1 | EUR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Established under a formal charter that was approved in March 2014, internal audit has rapidly developed its capacity for effective oversight of the Tax Administration. Internal Audit is organizationally independent, reporting directly to the head of the Tax Administration. Additional governance for the internal audit function through an independent audit committee is a preferred reporting arrangement, in accordance with international good practice, but this is not in place. Internal audit has a small number of auditors but there is an active commitment to further professional development. The unit consist of three internal auditors and a manager which is regarded as a modest staffing level20. A fully resourced and comprehensive training plan is in place for 2018 covering all internal audit staff. The plan incorporates training in contemporary audit approaches, covering methodologies for financial management and performance auditing and their related activities under a targeted twinning project with the European Union, as well as seminars and workshops through the Association of Internal Auditors and the Centralized Harmonization Unit of the BiH MoFT. The training plan for 2017 was fully delivered. |
| P2-3-1 | AFR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: An effective process for gathering intelligence and identifying compliance risks is utilized. The Compliance Research and Intelligence Department (CRID) gathers and analyses external data and reports on compliance risks gathered across the core taxes and compliance. Data from a range of third parties including from the NCS, the Corporate Affairs Commission, financial institutions, newspapers, and Ministries, Departments and Agencies is gathered, analyzed and interpreted using an internally developed risk analysis tool. CRID uses information obtained from both external and internal sources to identify compliance risks and prepare reports on anomalies and trends. Their findings are reported on a quarterly basis to the Compliance Support Group and the Planning Reporting and Statistics Department. The Tax Administration conducts regular environmental scans to identify emerging risks and a monthly publication is produced. |
| P7-25 | AFR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Evidence exists that dispute outcomes of a material nature are analyzed by the Tax Administration. The Technical Committee of the Tax Administration (TECOM) meets on a regular basis to review outcomes of taxpayer appeals and issue directives on how outcomes will be implemented. Examples of Tax Administration taking action after court decisions were noted that affected large numbers of taxpayers and large amounts of revenue. The Legal Services Department is primarily responsible for implementing actions directed by TECOM. Actions range from new/revised procedures/circulars, additional taxpayer education materials or recommendations for legislative change. Legal Services noted that it reviews all court decisions and informs Tax Administration management of necessary actions to be taken based on the decisions. But regular reporting through decision impact statements is not evident. |
| P1-1-1 | EUR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The database of registered taxpayers is fairly well maintained, and the information contained in it is adequate for the purpose of effective interaction with taxpayers, but it does not provide for pre-filled returns. The national centralized database is fully computerized and contains all relevant details including identity of related parties and filing and payment obligation of taxpayers. The taxpayers have unique high integrity taxpayer identification number (TIN) which is ten-digits for individuals and eight-digits for legal entities. The registration database is part of the Tax Block information system that links registration to other subsystems for filing and payments, thus allowing a whole-of-taxpayer view for tax inspectors and permitting generation of a variety of management statistics, using filters. The system allows for easy identification of dormant and inactive taxpayers and deregistration and archiving of cases. Audit trail of user access exists for any changes made to the registration data. However, the system is not used for generating pre-filled returns. Through e-cabinet, a taxpayer portal, taxpayers have online access to their tax accounts but are not authorized to update their registration information online. |
| P2-3-1 | EUR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Initiatives for intelligence gathering and research into compliance risk are somewhat developed. The Ministry of Economy conducts environmental scans, but these are not routinely processed by the Tax Administration. The Tax Administration uses data from its internal departments, as well as external sources such as from the Ministry of Economy, Customs and other government agencies to identify compliance risks. These include results from audits as well as analysis of tax declarations and financial statements. The Tax Administration conducted transfer pricing and profit shifting studies, as well as studies into the tax planning practices of high-wealth and high income taxpayers. The Tax Administration receives assistance in this area from external advisors such as a US Treasury resident advisor and the EC. |
| P3-8-2 | EUR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The tax administration ensures that the information is current, and taxpayers are made aware of changes in law before the law or regulation takes effect. This is done by: (i) informing them about draft legislative and regulatory acts; (ii) conducting meetings, workshops and round tables to discuss the proposed changes; and (iii) undertaking media campaigns after the adoption of the legislation but before it comes into effect. The Taxpayer Service Department and the Communication Policy Unit that are responsible for ensuring that the information is current, and adequate staff is dedicated for this purpose. All departments of the Tax Administration are required by documented procedure (Tax Administration Order No. 18/2018) to inform the Taxpayer Service Department about changes made in their respective areas. These are then posted on the website and brochures are prepared whenever necessary. However, in many instances, information is posted only after the provisions take effect. |
| P3-10 | EUR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Many initiatives have been taken by the Tax Administration to reduce compliance costs of taxpayers. There is, however, no provision for pre-filled returns. A simplified scheme is in place for small individual taxpayers, under which they are taxed on a presumptive basis with minimal recording and filing requirement. However, salaried persons and others whose tax is withheld from passive incomes like interest and dividend, do not have to file return if they have no other sources of income. E-Cabinet, a taxpayer portal linked to the Tax Block, is available to taxpayers which provides them with secure online access to their tax accounts. Contact centers record and bunch together FAQs. There is also a register of individual consultation (Tax Administration Order 475/2017 and Art. 52 of Tax Code). These are submitted to the Ministry of Finance (MoF) where an expert council (consisting of taxpayers, NGOs and Tax Administration officials) analyzes them to help improve information services and products. Registry of questions and actions taken are on the Tax Administration website. Also, public consultative bodies such as the Public Council, and the Investment Council (established under Cabmin resolution No.996/2016 and Tax Administration orders No. 647 and 908) provide feedback to how forms and tax declarations can be improved. |
| P3-11-2 | EUR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Taxpayer groups and intermediaries are regularly consulted to obtain feedback on processes and products, but they are not currently actively involved in the design and testing of new processes and products. The Tax Administration consults the public council and the investment council regularly to identify deficiencies in administrative procedures and forms. Their involvement in the design and testing of new products is being piloted. The survey reports are also discussed in these forums. |
| P4-12-5 | EUR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Most of the taxpayers file on time. Data for VAT and PAYE were provided for the year 2017, but since declarations for CIT and PIT were not fully due at the time of the assessment, data for CIT and PIT were provided for the year 2016. As shown in Tables 4 to 8 of Attachment III, on time filing rates for all taxpayers are high, that is, above 90 percent of expected declarations1 were filed on time, across all core taxes, except for PAYE for which the rate was 84.1 percent. For large taxpayers, 94.9 percent filed CIT declarations on time for in 2016. It is expected that for 2017 (for which declarations are not fully due yet), this percentage will be higher. Further, 99.4 percent of large taxpayers filed VAT declarations on time in 2017. |
| P6-21 | EUR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The Tax Administration has in place a system of public and private binding rulings; but cooperative compliance arrangements are not well developed. Private rulings are issued by the Tax Administration, and public rulings by the MoF with input from the tax administration and representatives of taxpayers. The Tax Administration has limited capacity to enter into cooperative compliance arrangements with qualifying taxpayers. |
| P7-24 | EUR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The administrative review process of all (100 percent) appeals must be completed within 60 days from the appeal date. There are guidelines which require the tax appeal officers to complete administrative reviews within 60 days and these guidelines are strictly adhered to in administrative dispute resolution cases. About 17.6 percent of administrative reviews are decided within 30 days and the balance 82.4 percent within 60 days. The Tax Administration regularly monitors the dispute resolution process, using a case management system (“Complaints” module in the Tax Block information system), and weekly monitoring reports. |
| P8-26 | EUR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The Tax Administration provides input to government revenue forecasting and monitors collection levels, but does not monitor tax expenditures and losses carried forward that may be offset against future tax liabilities. The Tax Administration gathers data on tax revenue collections and economic conditions for input into the budgeting process of tax revenue forecasting. Revenue collections are monitored against budget revenue forecasts and reported to the government. The Tax Administration also forecasts VAT refund levels to ensure that sufficient funds are available to meet legitimate refund claims. However, it does not have processes in place to regularly monitor and report on the cost to revenue of tax expenditures or on the stock of tax losses carried forward which may be offset against future tax liabilities. |
| P8-28-2 | EUR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: A high number of VAT refund claims are paid, offset or declined in time. 92 percent of all VAT refund claims in number of cases, and 87 percent in value, are paid, offset or declined within 30 calendar days. (Table 13 of Attachment III) |
| P9-30-1 | EUR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: There is external oversight of the tax administration’s functional and financial operations, but their reports are partially published. The external audit of financial performance is conducted annually by the State Audit Service (SAS) while the annual audit of operational performance is conducted by the Accounting Chamber of Ukraine (ACU). The Tax Administration reviews the report and sends comments to the MoF and then to the aforesaid bodies. The Tax Administration complies on the recommendation and is required to report back to the external audit bodies. The findings of the ACU and the responses and compliance by the Tax Administration are published. However, there is no publication of the findings of the SAS. |
| P9-30-2 | EUR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: There is external oversight and an elaborate investigative process for suspected wrongdoing and maladministration but systemic problems identified during external oversight are not always reported to the government. There are two bodies, the Verkhovna Rada Commissioner for Human Rights (Ombudsman) and the Public Council, that receive complaints on actions of wrongdoing by tax officials. They investigate the complaints and file their report to the Tax Administration Commissioner. |
| P2-3-1 | EUR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The environmental scans undertaken for the three-year strategic plan were not analyzed specifically to determine compliance levels or emerging compliance risks. Strategic planning and risk analysis are at a relatively early stage of development in the tax administration. Risk identification is still narrowly focused at the individual taxpayer level. Tax Administration gathers information from a comprehensive range of external sources. Third-party data providers include banks and other financial institutions (including the Stock Exchange and Capital Markets Commission), Customs, EFKA, Ministry of Labor, Statistics Office (ELSTAT), Ministry of Transport, Ministry of Agriculture, Ministry of Tourism, and Land Registry. This external data supplements a wide range of internal data extracted from tax declarations and audit assessments. |
| P3-10 | EUR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Simplified record keeping and reporting arrangements for small taxpayers are applied and some information fields in tax declarations are prefilled. There is a list of Frequently Asked Questions (FAQs). It is updated regularly based on a written procedure particularly aimed at identifying taxpayer misunderstandings. Taxpayers have access to their registration and tax account details via a 24-hour secure online service. However, tax declaration forms are not routinely reviewed to eliminate unnecessary demands for taxpayer information. |
| P4-12-1 | EUR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The Tax Administration is taking steps to mitigate the shortcomings of the tax registry. Adequate actions are taken by the Directorate for Tax Compliance to filter out taxpayers who are shown as “active” on the register but are unlikely to have a filing obligation for particular taxes. This is achieved by applying a number of criteria and a comprehensive range of cross checks with information from internal and external sources to identify taxpayers who may have been active in any tax period. Number of expected returns are determined for each tax period on basis of these filters. The filing rates are high across all core taxes: • The CIT on-time filing rate for 2017 is 97 percent for all taxpayers and 96 percent for the large taxpayers. • The PIT on-time filing rate for 2017 is 99 percent. • The VAT on-time filing rate for 2017 is 98 percent for all taxpayers and 99 percent for the large taxpayers. • The PAYE on-time filing rate for the period November 2016-October 2017 is 94 percent for all taxpayers. |
| P5-17-2 | EUR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Compliance levels for timely VAT payments are relatively low. VAT payments are made on the basis of monthly or quarterly filed returns. Data provided by the Tax Administration in Table 10 Attachment III show that: • 72 percent of the number of VAT payments with a statutory due date in 2017 were paid on time; and • 82 percent of the value of VAT payments with a statutory due date in 2017 was paid on time. |
| P6-20 | EUR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The Tax Administration conducts large-scale automated cross-checking to verify information reported in tax declarations. Data is obtained from a wide range of third parties as outlined in P2-3-1 and extensively cross-checked with information reported in tax declarations. Large scale automated cross-matching is done using internal data from VAT and employer declarations and data from banks and the stock exchange and data from Customs, EFKA (social security) and the Land Registry. The Tax Administration is not receiving data from on-line vendors. Unsuccessful attempts have been made to receive data from major on-line booking portals. However, the Tax Administration has managed to obtain information about taxpayer-held bank accounts in Greece linked with certain booking websites. The data warehouse facility is still in the developmental stage and there is potential for more extensive automated cross-checking of internal and external data to support compliance risk management. |
| P7-25 | EUR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The DED monitors and analyzes all dispute outcomes. Analyses are discussed with the Directorate General of Tax Administration and with the Directorate for Legal Support. Several examples exist of analyses have been taken into account in the formulation of changes in the Tax Administration procedures and legal positions. However, this review and analysis exercise is not formalized and no written procedure is in place in this respect. |
| P8-28-1 | EUR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Risk based verifications are applied for VAT refund claims. An automated risk assessment of claims is performed bi-weekly. A range of risk criteria is applied to identify high-risk claims which are subject to an audit before the claim is approved for payment. Less than 45 percent of the claims are audited. This represents over 85 percent of the value of the claimed amount. Payment of refunds exceeding €300,000 require the separate approval of the Governor. |
| P9-32-2 | EUR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The tax administration prepares and makes public both a three-year strategic plan and annual operational plans. The Strategic Plan 2017-2020 was published in March 2017 and the 2017 Operational Plan was published in April 2017. Both plans are available on the Tax Administration’s website. |
| P3-10 | EUR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Initiatives to reduce taxpayer compliance costs have been implemented, but prefilled tax declarations are not yet operational. A simplified taxation regime is available for businesses with a limited number of employees or turnover, and a flat tax is used for individuals, eligible individual entrepreneurs, and eligible agriculture producers. Income tax is withheld at source for wages, interest, and dividends. Frequently asked questions and common misunderstandings of the law are detected and routinely analyzed to improve information products and services, such as increasing the staffing of the call center. Statistics are used to target outreach activities and optimize the Tax Administration website. Taxpayers have access to a secure online portal to file their declarations and access their tax accounts details. Tax declarations and other forms are reviewed regularly to ensure that only information that is needed and used is sought from the taxpayers. Prefilled tax declarations are not currently available to taxpayers, although this functionality will be introduced in 2018. |
| P4-12-1 | EUR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: While large taxpayers have a high on-time filing rate, smaller taxpayers are marginally less compliant. This indicator is scored using quantitative measurements from Attachment III, Tables 4 - 8. Data gathered shows that 83.5 percent of CIT declarations are filed on-time, 85.6 percent of PIT declarations (of sole proprietors and individuals) are filed on-time, 97.9 percent of VAT declarations are filed on-time, and 83.5 percent of PAYE declarations are filed on time. |
| P4-12-2 | EUR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: While large taxpayers have a high on-time filing rate, smaller taxpayers are marginally less compliant. This indicator is scored using quantitative measurements from Attachment III, Tables 4 - 8. Data gathered shows that 83.5 percent of CIT declarations are filed on-time, 85.6 percent of PIT declarations (of sole proprietors and individuals) are filed on-time, 97.9 percent of VAT declarations are filed on-time, and 83.5 percent of PAYE declarations are filed on time. |
| P4-12-5 | EUR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The Tax Administration uses a range of measures to encourage on-time filing of tax declarations. PIT filing for individual entrepreneurs and individual taxpayers is mandatory only for those with income other than wages. Quarterly CIT declarations include information on PAYE filing. The Tax Administration has access to the third-party information (see POA 1) and can establish the number of expected PIT and PAYE tax declarations. The later are cross-checked with social security contributions for each employee. |
| P5-17-1 | EUR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: VAT payments are received on time from large taxpayers, while some smaller taxpayers make late payments. As reported in Table 10 of Attachment III, 85.4 percent of payments are received on time, representing 99.1 percent of the total value of VAT due. Large taxpayers consistently comply with VAT filing requirements. The enforcement and penalty system applied by authorities is effective in ensuring on-time payment for almost all VAT revenues. Late VAT filings are limited to smaller taxpayers. Using the M1 scoring method, the weaker of these two dimensions is recorded as the overall score. |
| P6-20 | EUR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The Tax Administration uses centralized large-scale automated crosschecking procedures to verify the accuracy of reporting. In completing desk audits, the Tax Administration identifies discrepancies in taxpayers’ tax returns. Available data includes VAT returns, import-export transactions, social contribution data, taxpayer registration data, bank data, customs data, immovable property and population register. Automated crosschecking is not available for internet-based vendor data, vehicles database and stock exchange data. |
| P6-21 | EUR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The Tax Administration uses public and private binding rules, but does not use cooperative compliance agreements. The Tax Code requires authorities to provide written explanations of tax procedures, and written rulings on tax obligations. Rulings cover all core taxes and key taxpayer segments and are binding. Private rulings are provided in written paper or electronic letters. Electronic correspondence is sent through the secure online taxpayer portal. Public rulings can be easily accessed on the website of Tax Administration, although information provided is not classified by core taxes, key obligations and segments of taxpayers. Although the Tax Administration responds to requests for clarifications from taxpayers and taxpayer associations, it does not enter into formal cooperative compliance agreements. |
| P7-23-1 | EUR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: A graduated dispute resolution process is available and used by taxpayers, however, the administrative review is two-tiered.11 Taxpayers initially file appeals at the oblast level, and subsequently may appeal to the Tax Administration headquarters level. Taxpayers may also appeal for judicial review, which is independent and graduated. Economic courts at regional level (oblast) serve as the first avenue of appeal for a taxpayer dissatisfied with the outcome of the administrative review process. Filing a complaint with a higher-level tax body does not prevent taxpayers from filing a complaint with the court. A taxpayer may seek judicial protection irrespective of whether the decision of the tax body has been appealed through a pre-judicial procedure. The Tax Code provides the legal framework for the review process. |
| P7-23-3 | EUR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The Tax Code and the presidential edict establishing taxpayer dispute rights and the dispute resolution process are publicly available. Tax Administration posted general information on taxpayer dispute rights and the dispute resolution process on its website during the mission. The Tax Administration informs taxpayers about their rights in audit finalization letters, notices of assessment and notification s of administrative review outcomes. But there is no internal written instruction requiring auditors to inform taxpayers about their dispute rights and procedures. |
| P8-27 | EUR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The Tax Administration has an automated tax revenue accounting system that meets government IT and accounting standards, interfaces with the Treasury IT system and is subjected to internal audits. The tax revenue accounting system has all features that characterize a good revenue accounting system by international standards, with the exception of interest that currently cannot be separately identified in a taxpayer’s account. The Tax Administration plans to add this feature from 2018. The system posts tax payments to taxpayers’ accounts within less than 24 hours. In early 2017, the Tax Administration deployed an automated solution for internal audit to check the correctness of calculations by the tax revenue accounting system. The Tax Administration Department for Tax Accounting conducts regular internal audits to ensure that the accounting system and related IT subsystem align with the tax laws and government accounting standards. |
| P8-28-1 | EUR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: An adequate, risk-based VAT refund system provides timely offsets and refunds; however there is no provision for interest payments on delayed payments. Taxpayers are eligible to apply for an accelerated 15-day refund process if they meet various risk criteria, including timely payment and accurate reporting in declarations. All other declarations are subject to a pre-refund desk audit prior to payment. The Tax Administration operates a single taxpayer account and VAT refunds offset other tax liabilities within 30 days, accounting for the majority of refunds. In cases where VAT refunds exceed offsets, refund payments are made electronically.13 The Tax Administration is required to hold refunds for 30 days to offset other liabilities prior to issuance of a payment order which requires up to five business days to fulfill. VAT revenues are managed by the MoF on a net basis and revenues fund VAT refunds. There are no legal provisions allowing for payment of interest to taxpayers on delayed refunds. As shown in Table 13 of Attachment III, 97.7 percent of refunds by number of cases, and 95 percent of refunds by value are paid, offset, or declined within 30 calendar days. |
| P1-1-1 | AFR | B | FIRST | 2015 | English | Rated B because sound performance quite close to internationally accepted good practices was detected in: The structure of the taxpayer register is sound but the registration procedure does not guarantee the integrity of the file. All natural or legal persons engaged in an economic activity are in principle required to register with CEFORE. The information entered by CEFORE is transferred in real time to the Tax Administration's IFU application, which then assigns them a secure unique financial identification number (IFU) and issues a registration certificate. Other taxpayers subject to a periodic declaration obligation are registered directly by the Tax Administration. The taxpayer register contains all the information necessary for management and control with the exception of the identity of partners or related parties. |
| P3-8-1 | AFR | B | FIRST | 2015 | English | Rated B because sound performances quite close to internationally accepted good practices were detected in: The Tax Administration informs taxpayers for all taxes but the information disseminated is of a legislative nature and mainly concerns their obligations. A tax calendar reminding taxpayers of their obligations and due dates for all basic taxes is made available to them in the local services network. An audited taxpayer charter describing their rights and guarantees is provided at the start of each on-site audit. However, taxpayers have little information intended to facilitate the completion of their procedures, such as practical declaration procedures, or the exercise of their rights, such as the right to reimbursement of justified tax credits. Information adapted to the main categories of taxpayers is communicated to them during seminars or thematic days organized at the initiative of the Tax Administration or that of the private sector. Tax intermediaries and accountants are regularly informed. A major information campaign was organized to mark the entry into force of the standardized invoice. |
| P3-11-2 | AFR | B | FIRST | 2015 | English | Rated B because sound performances fairly close to internationally accepted good practices were detected in: The Tax Administration regularly consults taxpayers but they are not associated with developments in the Tax Administration. The main taxpayer groups and tax intermediaries are consulted regularly on improvements to be made to tax administration, notably during State/private sector meetings in which the Tax Administration participates and during socio-professional meetings organized periodically. at the initiative of central or regional administrations, the CCI or at the request of companies. But taxpayers or their representatives are not formally involved in the design or testing of new procedures, forms, or other products and services of the tax administration. |
| P3-8-2 | MCD | B | FIRST | 2015 | English | Rated B because sound performances fairly close to internationally accepted good practices were detected in: Procedures are in place to ensure the updating of targeted and general information. The different departments of the Ministry of Finance coordinate regularly to ensure the dissemination of information in advance. The tax administration and the various information supports are updated by the Tax Information and Assistance Department. General information campaigns are launched before the changes come into force but the taxpayers concerned are rarely informed individually. Targeted communication is organized occasionally (for example when the DGE’s competence threshold is raised). Communication by email is only for electronic declarations, and announcements in the press are not frequent. |
| P7-23-3 | MCD | B | FIRST | 2015 | English | Rated B because sound performances fairly close to internationally accepted good practices were detected in: Taxpayers are informed in writing of their avenues of appeal but auditors are not required to do so by their regulations. The CDPF describes them precisely and is published. The means of appeal are indicated on the procedural documents. According to the tax administration, auditors inform taxpayers orally about the possibilities for appeal but this requirement is not formalized in a written regulation. |
| P8-26 | MCD | B | FIRST | 2015 | English | Rated B because sound performance quite close to internationally accepted good practices was detected in: The tax administration actively contributes to the forecasting and estimation process. The DGRE carries out estimates and simulations based on data transmitted by the DGCPR and to a lesser extent by the Tax Administration, and analyzes by the DGAFF and the DGELF. The tax administration and the DGCPR have experts dedicated to this function. They regularly monitor and analyze gaps between revenues and forecasts, and collect data on economic conditions. The DGCPR can reimburse VAT credits without budgetary limitations. Monitoring of shortfalls resulting from tax expenditures is not carried out by the Tax Administration nor by the DGCPR for common law tax expenditures, and is the responsibility of the DGAFF for financial benefits. The tax administration does not monitor the amount of loss carryforwards. |
| P9-30-1 | MCD | B | FIRST | 2015 | English | Rated B because sound performances fairly close to internationally accepted good practices were detected in: The administration is subject to the control of the Court of Auditors and the General Controller of Finance. An annual audit is carried out by the Court of Auditors and is published on its website. Operational results are the responsibility of the General Financial Control, whose reports are not published. The ISO 9001 certification procedure also contributes to external control. The tax administration follows up on the conclusions of external audits, but this monitoring is not formalized or made public. |
| P9-32-2 | MCD | B | FIRST | 2015 | English | Rated B because sound performances fairly close to internationally accepted good practices were detected in: The orientations and action plans are clearly displayed, and within a reasonable time frame. This approach is also part of the GBO, through the publication of an annual Performance Improvement Plan. The 2018 PAP was published in January on the GBO website. As in terms of accountability, the tax administration shows less transparency: its CAP compliance improvement plan, which covers a period of three years, is not published. |
| P7-23-2 | WHD | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in: In-line with standard operating procedures (SOPs) there is an administrative review unit that is physically and organizationally separate from the audit department. The cases are processed by the objection unit for all core taxes in a unit located outside the tax audit department, with a separate reporting line to senior management. However, objections related to audits specifically are required in practice to be sent back for further review and clearance by the Deputy Commissioner Audit. This practice breaches the actual independence of the administrative dispute procedure and is due primarily to a perceived limitation of technical skills in the objections unit. The scoring was reduced to a ‘B’ due to this out-of-procedure intervention by the deputy of audit. |
| P9-29-1 | WHD | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in: An internal audit division provides assurance on the effectiveness and adequacy of internal controls. Internal Audit reports administratively to the Commissioner General and functionally to the Board via an Audit Committee. The internal audit function comprises 40 employees with a wide range of audit training at the different levels. An internal audit plan is reviewed by senior management and the Audit Committee. Quarterly audit reports are submitted to both senior management and the Audit Committee. Recommendations and feedback from senior management and the Audit Committee are incorporated in the annual audit plan. The internal audit plan covers operational processes, information systems and financial controls. Internal audit operations are reviewed in the yearly audit of the Audit Office of Guyana (AOG). The internal control policies are embedded in the financial acts and regulations, while there are standard operating procedures for all operations except for taxpayer audit. |
| P9-29-2 | WHD | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in: The Internal Affairs Unit (IAU) provides staff integrity assurance. It reports administratively to the CG and functionally to the Board via the Human Resource Committee. The Unit has ten staff, all trained in fraud, forensic reporting and data security. Staff access regular training in the field and all have at least a first degree in accounting or business administration. All allegations of staff misconduct are filtered through the CG and investigated by IAU. The IAU collaborates with the Guyana Police; there is no national anti- corruption agency. Currently, the IAU is reviewing the code of conduct in collaboration with the Human Resource division. IAU does not maintain or publish integrity statistics. |
| P4-12-3 | AFR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in: The rate of compliance with filing deadlines is low for most of the core taxes except for VAT (see Attachment III, Tables 4 - 810). Cameroon’s core tax laws and general tax administration law require that Cameroonian taxpayers discharge their tax obligations, including filing of declarations monthly for all core taxes, including for PIT and CIT.11 However, on average, the on-time filing rate is low and varies considerably from one core tax to the other. Thus, the rate of timely filing is 55 percent for CIT returns, and 57 percent for PIT returns, compared to 80 percent for VAT returns. Nonetheless, large companies pay more than 90 percent of their filing obligations on time (98 percent for VAT and 98 percent for CIT). Further, information on returns for PAYE withholding is unreliable, as active and inactive taxpayers cannot be identified from the database. While printed and declaration forms were reduced from 10 to less than 5, taxpayers are expected to file their returns every month rather than on a yearly basis. This does not align with the objectives that the DGT set in its modernization plan which are, among others, to simplify and facilitate procedures for filing declarations for taxes and levies. |
| P5-17-2 | AFR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in: The number of timely VAT payments needs improvement even though the value of the payments is close to good practices (see Attachment III, Table 10). The General Tax Code (GTC) provides legal obligations in terms of payment (frequency, due dates, methods) for each core tax and taxpayer segment. Core taxes are due annually, but are subject to a monthly deposit or withholding payment20. In numbers, the rate of on-time VAT payments does not exceed 75 percent but stagnates at only 57 percent. In value, however, the rate of VAT payments reached 89 per cent. |
| P6-21 | AFR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in: The DGT has a well-structured system of issuing clarifications, rulings, and public and private interpretations. The DGT issues legally binding advice covering all core taxes on a case-by-case basis, and at the request of users. The advice takes the form of tax rulings, responses to requests for clarification by taxpayers, and elements of administrative policies and principles on tax matters. However, the DGT does not enter into any tax agreements such as advance pricing agreements with eligible taxpayers, though it organizes meetings with different sector representatives to provide clarification on taxation issues. |
| P7-23-1 | AFR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in: A graduated administrative and judicial dispute resolution mechanism is in place and is used by taxpayers; however, the administrative review is in two steps. According to the GTC,26 the taxpayer who believes that they have been assessed wrongly can appeal first to the administration and if dissatisfied, to the tax tribunal (administrative judge or ordinary court). Further, a taxpayer who disagrees with the ruling issued in the administrative phase can appeal to the administrative tribunal having jurisdiction over the tax center to which they are affiliated; they can also obtain a suspension of recovery action. However, the administrative review within the Ministry of Finance (MINFI) occurs at two levels: (i) the first step is to the Legal Department attached either to the Regional Taxation Center (objections of FCFA 50 million or less), to the Director of the LTU (up to FCFA 100 million), or to the Director General (greater than FCFA 100 million); and (ii) the second step: is where the taxpayer is dissatisfied with the outcome of the first step and can petition the MINFI. There is no specialized arbitration available to taxpayers. Settlement of disputes is available in Cameroon’s tax legislation. |
| P7-25 | AFR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in: The legislation and litigation divisions analyze important litigation outcomes and make recommendations for adjustments in tax policies and procedures . During the preparation of the tax legislation, the administration considers tax issues resulting from the examination of tax disputes outcomes. Discussions on the matter are held during preparatory consultations for the annual drafting of finance laws. Only the taxpayers concerned are notified about the dispute outcomes to ensure the confidentiality required in this context. Draft legal proposals by the litigation division and the compendium of fiscal policies and principles were availed to the assessment team. |
| P8-26 | AFR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in: The DGT has a dedicated staff that contributes to tax revenue forecasting, estimating as well as monitoring of revenue collections against estimates. The data collected are at the macro level but contribute to the determination of the final forecast. VAT refund levels areplanned and monitored to ensure that the funds are available, which does not always occur, but that is beyond the competence of the DGT. The monitoring of the cost of tax expenditures is rudimentary, and there is no monitoring of accounting losses carried forward by the taxpayers. |
| P7-23-2 | AFR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in: The independence of the administrative review process varies by taxpayer segments. Objections lodged in the LTO are dealt with by a physically and organizationally discrete entity within the LTO. The final administrative decision of these cases lies with the CG. In the MTOs and STOs, special committees decide on objections against tax assessments. These committees consist of mainly heads of units (taxpayer service, audit and compliance) and sometimes include officers assigned to audit units. Objective procedural guidelines for the review process are documented and generally followed. |
| P9-29-2 | AFR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in: Tax Administration has an Internal Affairs Unit that reports directly to the CG. The Unit has 13 staff with the appropriate investigative powers, trained on a range of issues. Guidelines for due process in specific situations are used. A Tax Administration Code of Ethics and Conduct exists. Employees must confirm that they received the Code. Internal Affairs cooperates with a range of external enforcement agencies including, CHRAJ, Economic and Organised Crime Office, Bureau of National Investigations, and police. Efforts are underway to create a forum for information exchange and collaboration among these agencies. Integrity-related statistics are maintained, but are not publicly reported. |
| P9-30-1 | AFR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in: GAS reviews Tax Administration’s operational and financial reports, but financial statements audits for the years 2013-2015 are yet to be completed. GAS is mandated under Article 187 of the constitution to audit the accounts of Ghana’s Ministries, Departments and Agencies, including Tax Administration. GAS monitors Tax Administration internal audit reports and carries out an extensive proTax Administrationm of auditing the operational performance of the DTRD. Tax Administration responds to the auditor’s findings. GAS reports (including Tax Administration responses) are presented to Parliament. However, financial statement audits for the years 2013-2015 are still under review and yet to be completed. |
| P2-3-1 | AFR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in: The tax Administration has an effective process for gathering intelligence and identifying compliance risks. Data from a range of third parties is gathered and interpreted, including from: Customs, the Registrar of Companies, the National Transport Authority, Registrar-General, Office of the Accountant-General, financial institutions, and professional bodies. Data is also gathered and interpreted from internal sources, such as, from taxpayer returns, VAT annexes and compliance studies carried out by the tax Administration. However, environmental scans are not carried out by the tax Administration (but rather MoFED) as part of the strategic management process and, therefore, the analysis of these results cannot be undertaken. |
| P2-3-2 | AFR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in: A structured Compliance Risk Management (CRM) process has been developed and is effectively applied. The CRM was developed during 2013 but was not an integral part of the strategic management process in developing the 2014-16 corporate plan. It has, however, been used subsequently in the annual planning process. |
| P3-11-1 | AFR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in: Regular feedback is obtained from taxpayers and trends in taxpayer perceptions of tax Administration’s services are surveyed. The tax Administration uses various channels and mechanisms to solicit feedback from taxpayers to secure and improve products and processes. These include; (i) an extensive program of seminars and meetings with stakeholders; and (ii) monitoring of inquiries from taxpayer. |
| P4-12-2 | AFR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in: Close monitoring of filing compliance by the tax Administration has ensured relatively high overall rates. In addition, the tax Administration has recently (July 2017) introduced mandatory e-filing for all CIT, VAT and PAYE returns. PIT taxpayers are not yet obliged to file returns electronically but may file 15 days later than the due date if returns are electronically filed. |
| P4-12-3 | AFR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in: Return filing obligations and penalties for late submission are clearly set out in tax legislation. CIT and PIT returns are filed annually. VAT returns are filed monthly on the 20th of the following month where annual turnover exceeds Rs 10 million, otherwise quarterly on the 20th of the month following the end of the quarter. PAYE returns are filed monthly on the 20th of the following month. Penalties for late submission for CIT, PIT and VAT are set at Rs 2,000 per month or part thereof to a maximum of Rs 20,000. |
| P4-14 | AFR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in: Electronic filing was introduced by the tax Administration five years ago. As already mentioned, e- filing became mandatory for all CIT, VAT and PAYE returns with effect from July 2017. Rates reported for the most recent year (2016/17) in Table 9 are as follows: CIT (94 percent for all taxpayers, and 97 percent for large taxpayers), PIT (99 percent), VAT (99 percent for all taxpayers, and 100 percent for large taxpayers), and PAYE (100 percent for all taxpayers including for large taxpayers). |
| P5-18-1 | AFR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in: The stock of arrears indicator (above) shows that the tax Administration has sound tax debt management practice. As reflected in Table 11 of attachment III, total core tax arrears as a percentage of total core collections over a three-year period is 12.2 percent. When this is adjusted to reflect collectible arrears only, the percentage reduces to 6.3 percent. Both percentages meet or exceed international good practice. |
| P5-18-2 | AFR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in: The stock of arrears indicator (above) shows that the tax Administration has sound tax debt management practice. As reflected in Table 11 of attachment III, total core tax arrears as a percentage of total core collections over a three-year period is 12.2 percent. When this is adjusted to reflect collectible arrears only, the percentage reduces to 6.3 percent. Both percentages meet or exceed international good practice. |
| P5-18-3 | AFR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in: Arrears older than 12 months represent a 26 percent three-year average of total core tax arrears. This denotes sound performance relative to international good practice. See Table 11 of Attachment III. |
| P6-20 | AFR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in: The large scale and automated crosschecking of information for verifying information in tax declarations is comprehensive and effective. Declared information for PIT and CIT is crosschecked with multiple sources of information ranging from VAT declarations and Annexes, Tax Deducted at Source (TDS) returns, return of investment income, premiums from financial institutions and PAYE returns. Information is also crosschecked with, among others: the office of the Accountant-General for payments relating to procurement of goods, data on registration of companies from the Registrar of Companies, and data on acquisition of immovable property from the Registrar-General’s office. However, the tax Administration is yet to start crosschecking information with the Mauritius Stock Exchange in an automated manner and nor does it obtain automated information from internet-based vendors. Crosschecking with the Mauritius Stock Exchange is on a case-by-case basis. |
| P6-21 | AFR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in: The tax Administration has a well-functioning public and private rulings system. Rulings issued are binding on the tax Administration. The key aspects of private rulings and statements of practice are also published on the tax Administration website. However, the tax Administration has not yet fully implemented cooperative compliance arrangements with qualifying taxpayers. |
| P8-26 | AFR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in: The tax Administration has dedicated expert staff providing input to government tax revenue forecasting and estimating. Within the Research, Policy and Planning Department (RPP), well-qualified economists and a statistician are dedicated to routinely providing the necessary input. Input into the government revenue forecasting process begins in April each year as part of the annual budget cycle. The tax Administration’s contribution includes an analysis of historical revenue trends considering projected economic growth rates, inflation, and other relevant assumptions. Monthly contact with the MoFED on actual versus forecast tax revenues takes place to discuss performance and identify reasons for any significant variances. MoFED has access to revenue collection data daily, and compiles its own monthly revenue statistics. |
| P8-28-2 | AFR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in: The tax Administration offsets VAT credits against arrears for other core taxes. This is provided the arrears in question are not subject to a genuine dispute. Where tax arrears are in dispute, an indicator on the IT system highlights this fact, and an offset is not carried out. Interest at the rate of four percent per annum is payable by the tax Administration in respect of delayed refunds. This is provided for in Section 24, subsection 7A or B of the tax Administration VAT Act. For interest to be paid, the tax Administration must have taken longer than 45 days after receipt of the return to finalize the refund claim. It should be noted that where information has been sought from the taxpayer, the 45-day period is suspended until the documentation has been supplied. The tax Administration has adopted a “fast-track” VAT refund system for low-risk taxpayers. This system is typically for those taxpayers regularly exporting goods, e.g. textile manufacturers. Around 104 large taxpayers participate in the fast-track scheme that was introduced in 2006. Budgeted funds are available to meet all legitimate VAT refund claims. A total amount representing a list of approved VAT refunds is requested from Treasury daily. Just 89 percent of the number of VAT refund cases and 90 percent of the value of VAT refunds are paid within the 30-day TADAT standard (see Table 13 of Attachment III). The tax Administration provided revised data post-mission based upon a methodology agreed in-country which has now improved the scoring of P8-24-2 from a “C” to a “B” and the indicator from a “B” to a “B+”. |
| P9-32-2 | AFR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in: Strategic and operational plans are made public. These plans are made public within three months of the commencement of the period covered by the plans. |
| P7-25 | WHD | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in: The Tax Administration monitors and analyzes dispute outcomes of a material nature. Cases with significant revenue implications are analyzed and considered in the formulation of administrative changes and to make legislative recommendations to the Ministry of Finance. |
| P9-32-1 | WHD | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in: The tax Administration prepares a financial and operational report annually which is submitted to the Ministry of Finance. This forms part of a consolidated government-wide report tabled before Parliament by the Minister responsible for Finance to report performance in line with the provisions of the Constitution and the Exchequer Act. The reports are published within nine months of the end of financial year. |
| P9-30-1 | AFR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in: tax Administration prepares an annual operational and financial performance report that is submitted to the Controller and Auditor General (CAG). The annual operational and financial performance reports are prepared and approved by the Board of Directors. CAG only started auditing the tax Administration annual reports during the 2009/2010 financial year. During this period, the findings from CAG were responded to immediately by tax Administration although not made public. The public accounts committee of the Zanzibar House of Representatives scrutinizes these reports. |
| P3-8-1 | WHD | B | FIRST | 2015 | English | It obtained a grade of B because solid performance close to internationally accepted good practices was detected in: The SAT provides information on the main obligations and main taxes. The information is adapted to various taxpayer segments. There is no information in languages ??other than Spanish. There are some initiatives to improve care for the indigenous population, as seen in some agencies and care centers that have bilingual care personnel and also some information brochures in the main indigenous language, but the SAT portal provides the information only. in Spanish, and there are weaknesses in providing information aimed at taxpayer segments. |
| P3-9 | WHD | B | FIRST | 2015 | English | It obtained a grade of B because solid performance close to internationally accepted good practices was detected in: Taxpayers have access to information through a variety of friendly channels. The Tax administration web portal (http://portal.administración de Taxes.gob.gt/sitio/) includes all categories of taxpayer obligations, email queries, online chat (business hours), telephone number for taxpayer service and access to public information; In addition, there is additional information on the web portal for medium and small taxpayers and new entrepreneurs; The Tax administration makes use of social networks, provides quick assistance services in specialized agencies, telephone assistance service, mobile assistance services “Tax administration at your fingertips”, training and tax education programs in markets, virtual training , collaborations with the Ministry of Education, among others. As shown in table 3 of Annex III, 68 percent of telephone calls received are answered within six minutes, which indicates correct performance in terms of response time for requests of information to the tax administration. |
| P3-11-1 | WHD | B | FIRST | 2015 | English | It obtained a grade of B because a solid performance close to internationally accepted good practices was detected in: The Tax administration collects information from taxpayers through surveys in service offices, meetings and other means. The last survey conducted by an independent company took place in 2014.19 There is no evidence that it has been repeated. The Tax Administration occasionally conducts surveys to obtain taxpayer opinion on performance. In 2014, an independent third party carried out a survey to collect the opinion of taxpayers on their perception of services and measurement of the degree of administration of Taxisfaction, regarding 14 specific services provided in the tax agencies and offices of the Tax Administration and other dependencies. This survey has not been repeated since 2014. |
| P9-29-2 | WHD | B | FIRST | 2015 | English | It obtained a grade of B because solid performance close to internationally accepted good practices was detected in: The Internal Affairs Management leads activities to ensure the integrity of the organization. However, there is no evidence of dissemination of statistical data on its activity. This is the agency in charge of carrying out administrative investigations and reporting, when appropriate, the actions of officials and employees of the Tax Administration that are contrary to the law, with the purpose of preventing and combating acts of corruption, administrative misdemeanors and infractions and any another act that contravenes institutional interests. Reports its actions directly to the Board of Directors. According to the evidence gathered, the Internal Affairs Management has and exercises adequate investigative powers regarding ensuring the integrity of personnel, and has influence in the formation of integrity and ethics policies, such as the protocols of the administration of Taxes. The Internal Affairs Management reports to the Superintendent quarterly in its Work Report information and statistical data on integrity. However, there is no evidence that personnel integrity data is publicly disseminated. |
| P9-30-1 | WHD | B | FIRST | 2015 | English | It obtained a grade of B because a solid performance close to internationally accepted good practices was detected in: The Comptroller General of Accounts carries out audits of the financial statements of the Tax Administration annually and reports in summary form the sanctions, charges and complaints on their website. The Tax administration follows up on audit reports and Internal Audit regularly reports to the Board of Directors and the Superintendent on the actions of the Tax administration regarding the findings and recommendations in said reports. The Tax Administration Law requires that an external audit be carried out annually by an independent company to review the processes, financial execution and operational results of the Tax Administration. The financial evaluation and operational performance is contained in the private audit report of financial statements accessible on the Tax administration portal. The most recent published is from 2015. |
| P2-3-1 | EUR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in: The tax administration gathers data from a range of external and internal sources to build its understanding of compliance issues. Data from a range of external sources including customs, financial institutions, and the statistics agency are gathered to identify major compliance risks. Consultations with the business community have also been undertaken for this purpose. Data from internal sources (particularly feedback from, and analyses of, audit results) are also being used to improve the identification of compliance risks. An audit working group comprising LTO and risk management staff has been established to review major revenue risks arising in the large taxpayer segment. |
| P2-3-2 | EUR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in: The tax administration is giving priority to developing a structured risk management process. The 2016-2020 Development Strategy highlights the critical importance of building the emerging compliance risk management capabilities of the tax administration in coming years. The strengthening of risk management capabilities under its new organizational structure has been an important step. Thus far, the main focus has been on identifying compliance risks in 12 economic sectors, particularly unreported cash payments and unpaid taxes and fees in those sectors. Tax administration’s risk rules for determining and classifying compliance risks cover a range of risks related to non-registration, non-filing, non-payment, and under-reporting of tax liabilities. |
| P3-8-1 | EUR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in: Information about core tax obligations and entitlements is readily available. A wide range of information is available on the main taxpayer obligations (registration, filing, payment and reporting) and entitlements, in respect of all core taxes. The tax administration website, which is the primary information source, contains extensive guidance for taxpayers. This guidance includes a large database of questions and answers on tax practice13, organized according to the Fiscal Code but searchable contextually using the “Web Inspector” facility. The website also provides guidance on forms completion and has a prominent tax calendar as a reminder of upcoming filing and payment deadlines. |
| P3-8-2 | EUR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in: Dedicated staff are assigned to ensure that taxpayer information is kept current. A small headquarters team is responsible for updating the website and other public information and for media releases. Legislative changes and orders amending procedures are posted on the website shortly after they are published in the Official Gazette. The database of questions and answers on tax practice is also updated on a regular and timely basis. |
| P3-10 | EUR | B | FIRST | 2015 | English | Some actions to simplify record keeping and reporting arrangements have been implemented. For example, there are simplified record keeping and filing arrangements for small taxpayers. Small and medium enterprises that are not registered for VAT may opt for a special income tax regime of a small percent of turnover (subject to certain conditions), with many qualifying to lodge a single annual declaration that includes all liabilities. In addition, taxpayers with a single employment are generally not required to file PIT declarations. The tax administration prepares pre-filled declarations for individuals with income from multiple sources. For employers, tax administration is working to simplify the monthly PAYE filing requirement from three separate declarations (income tax, social contributions, and health insurance withholding) into a single return that includes all three categories, with expected implementation in 2018. |
| P5-18-1 | EUR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in: The stock of tax arrears is mostly uncollectible debt. Based on data provided by tax administration as shown in Table 11 in Attachment III, total accumulated core tax arrears at the end of 2016 amounted to 13.7 percent of annual tax collections, and averaged 14.6 percent for the last 3 years, of which only about a quarter tax administration has determined is collectible. The figures show that collectible debt has been reducing, averaging 4.97 percent for the last 3 years, just under the 5 percent ceiling for an A score. |
| P5-18-3 | EUR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in: Aged arrears represent a growing portion of the total stock of arrears. Based on data provided by tax administration, the inventory of core tax arrears more than 12 months old averaged 43.1 percent of total arrears for the last 3 years. The level of aged arrears has grown in real terms for the last 2 years, and increased to 49.1 percent of total arrears at the end of 2016. The reorganization earlier in 2017 provides better focus on debt management, but tax administration has acknowledged that more work is needed to reduce the level of arrears. |
| P7-25 | EUR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in: The tax administration monitors and reviews the outcomes of disputed cases and the analysis of material outcomes is taken into account in formulating policy change. At the first-stage appeal level, a monthly report of decisions is distributed to operational areas outlining dispute outcomes, to effect possible improvements in enforcement decisions. There is also a requirement that each court case outcome be reported to the tax administration Director. While the monitoring process is systematic, decision impact statements are not routinely prepared. Dispute outcomes of a material nature were analyzed and resulted in appropriate recommendations and actions effecting law change. |
| P8-26 | EUR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in: The tax administration provides input to the Ministry of Finance to forecast tax revenues. Early in the budget development process, tax administration gathers data for the MoF to support its annual revenue forecast based on macroeconomic data and using an established, documented methodology. The tax administration takes into account legislative changes and other significant variables in preparing its revenue estimates. As a subordinate agency, tax administration relies on MoF forecatax administration of VAT refund levels to ensure sufficient funds are available to meet claims and those forecatax administration have been reliable in recent years. |
| P9-29-2 | EUR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in: tax administration has an organizationally independent integrity assurance function, the Internal Security and Anticorruption Unit. This unit has an authorized staff complement of six, all based in headquarters.34 The unit reports directly to the head of tax administration. The integrity assurance function has appropriate powers, leads in the development of integrity policies and cooperates with relevant enforcement agencies. The mission, functions and authorities of the integrity assurance unit are set out in a regulation. Staff in the unit do not have special police-type investigative powers but they have complete access to all information in tax administration that may be relevant to an investigation, including IT systems, camera surveillance and personnel files. Where there is sufficient indication of a criminal offense,the anti-corruption agency or the police are involved to take the investigation to the next stage. The unit takes the lead in developing tax administration integrity policies including advice on the code of ethics, developing training programs for tax administration staff, and anti-corruption flyers aimed at taxpayers. The unit cooperates with all relevant enforcement agencies; its most regular and frequent contact is with the anti-corruption agency. tax administration maintains integrity-related statistics, but it has not been the practice to publicly report them.35 Integrity-related statistics and activity reports are maintained by tax administration and reported twice yearly to the MoF (which in turn reports to the anti-corruption agency). The anti-corruption agency publishes a combined activity report relating to all public institutions, but separate statistics for tax administration are not provided in that report. |
| P9-30-1 | EUR | B | FIRST | 2015 | English | The Court of Accounts (CoA) annually audits financial and operational performance of the tax administration, but the response to the CoA findings is not published. The CoA, which is the public external audit institution, annually audits the financial and operational performance of the tax administration. Summary reports of the audits and recommendations are published in the Official Gazette and on the CoA website. The tax administration responds to the CoA findings and recommendations within specified deadlines, but the responses are not publicly reported. |
| P1-1-2 | WHD | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in: Efforts are made to keep the database as accurate as possible through risk-nased and random reviews. Procedures on identification and segregation/removal of dormant and inactive taxpayers are published on tax administration´s intranet. There are post-registration audit programs in place to verify the procedures, and data held in database. Audit reports indicate a high level of accuracy for the information in the register. However, despite automated processes to crosscheck new information and taxpayer updates, information is not in place for all taxpayer segments. |
| P2-5 | WHD | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in: Governance arrangements are in place for approving compliance risk mitigation strategies and monitoring progress with implementation. A risk management committee meets regularly to monitor progress and evaluate the impact of risk mitigation activities, and their report is in turn reviewed by senior management. However, not all mitigation activities are evaluated and documented. |
| P5-17-2 | WHD | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in: Despite mandatory electronic filing and payment, the on-time payment rate is not as high with respect to filed VAT declarations. As shown in Table 10 in Attachment III, 71 percent of payments (by number) and 80 percent (by value) were received on time. |
| P6-20 | WHD | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in: Wide use is made of large-scale automated data gathering and crosschecking. Amounts reported in CIT and PIT declarations are routinely and systematically crosschecked with information from VAT declarations, banks, employers, as well as information from a wide range of other government agencies—e.g., customs, registrar of companies, public notary and the social security agency. More than 60 sources of third party information are regularly used to crosscheck information in declarations from taxpayers. The methodology and IT infrastructure from third party sources varies from automatic exchange, through software provided by the tax administration, to manual data gathering based on exchange of data via electronic media. There is no large-scale automated data gathering and crosschecking of PIT and CIT declarations with information from the stock exchange and internet-based vendors. |
| P6-21 | WHD | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in: A system for private binding rulings is in its early stages of development. Rulings provide the taxpayer with certainty on how a tax administration will apply the lax law. Public rulings are only available if requested by an organization representing the taxpayer. Cooperative compliance arrangements are in place with different approaches depending on the taxpayer segment and this was confirmed by the assessment team. Around 10 percent of CIT taxpayers in Peru are rated as “good taxpayers” and take advantage of benefits like extended due dates for payment. |
| P3-11-2 | AFR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in: The tax administration regularly organizes consultations meetings with key stakeholders but has not put in place a mechanism that allows active involvement of taxpayers in the design of new processes and products. Consultation meetings are held with the Chamber of Commerce, associations of private companies, civil society and tax advisers. The mission received evidence of the Chamber of Commerce observations collected in the case of the new fiscal law. |
| P5-18-2 | AFR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in: The value of collectible tax arrears represents a small portion of the total core tax revenue. On average, this share was equivalent to 5 percent of annual total core tax collected during the 3-year period 2014 - 2016. |
| P6-21 | AFR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in: A system of binding private and public rulings is in place. The tax administration proactively issues private or public rulings in response to a general or specific request by taxpayers. The assessment team received evidence on how certain specific provisions of the VAT and the VAT withholding are interpreted and applied by the tax administration. The tax administration does not use cooperative compliance agreements with taxpayers. |
| P2-3-2 | WHD | B | FIRST | 2019 | English | It obtained a grade of B because a solid performance close to internationally accepted good practices was detected in: There is a structured process for evaluating and prioritizing tax compliance risks, which does not yet fully serve multi-year strategic planning. It has been shown that the Tax Administration has strengthened its model to manage tax compliance risks to align it with good international practices, having received technical assistance in the past from the Internal Revenue Service (SII) of Chile, FAD and now from the IDB. .23 The model is designed and planned by the DRIT and is the basis for the preparation of the PGCT. The process to evaluate and prioritize tax compliance risks is structured and documented,24 covering the entire tax compliance risk management cycle recommended by international organizations. Taking advantage of the expert judgment of the Tax Administration, the process relies heavily on the quantitative analysis and analytical capacity of the DRIT. It covers basic tax obligations (for example, cadastre, billing, presentation, truthfulness and payment), the main taxes (for example, income, VAT, ICE), and identifies the main taxpayer segments and economic activities (for example, large assets , large taxpayers, economic groups). However, the Institutional Strategic Plan (PEI) still does not fully take into account the prioritization of the PGCT to direct institutional efforts towards achieving institutional objectives. |
| P2-6-1 | WHD | B | FIRST | 2019 | English | It obtained a grade of B because a solid performance quite close to internationally accepted good practices was detected in: The process used to identify, evaluate and prioritize operational risks is healthy. However, the Tax Administration does not carry out simulations on a semiannual basis. The Institutional Continuity and Crisis Management Plan (BCP)27 contains the fundamental elements of the operational risk policy of the Tax Administration, and is also complemented by continuity sub-plans of different areas (technological services, recovery of physical infrastructure, evacuation, etc.). The Tax Administration has prepared a risk register that has 7 operational “macro risks”.28 Each continuity sub-plan has: (i) analysis of impact on the business, (ii) identification of the Objective Recovery Time for all risks and (iii) at least for the most important risks, such as those of the continuity of technological and operational services, a “continuity matrix”,29 equivalent to the Objective Recovery Point. Additionally, the sub-plans and risk register have strategies and activities to address both. On the other hand, the management staff of the Tax Administration regularly knows and supports the risk tolerance levels established in the BCP.30 Finally, all the staff of the Tax Administration is trained annually (through an online course) to face operational risks; However, business continuity exercises common to all staff (for example, drills) are carried out annually. |
| P3-11-1 | WHD | B | FIRST | 2019 | English | It obtained a grade of B because solid performance close to internationally accepted good practices was detected in: The Tax Administration frequently collects taxpayer perceptions of the quality of services, but an independent third party does not conduct surveys based on statistically valid samples . Based on the current regulations of the Ministry of Labor on the evaluation of the quality of services, the Department of Quality Management and Institutional Change of the DNPyGE carries out, every six months, an evaluation of all taxpayer service channels.57 58 The evaluation measures expectations, perception of needs and level of satisfaction with services. The evaluation methodology59 used by the Tax Administration is approved by the Ministry of Labor.60 However, there is no evidence of surveys being conducted by an independent third party based on statistically valid samples. Only the existence of surveys carried out by a private market survey company between the years 2011 to 2014 was verified, which were interrupted for budgetary reasons. It should be noted that in 2022 the Presidency of the Republic sponsored an ad-hoc survey in several cities in the country on the quality of services provided by different public institutions, including the Tax Administration. |
| P4-12-5 | WHD | B | FIRST | 2019 | English | It received a grade of B because strong performance close to internationally accepted good practices was detected in: The timeliness quotient in filing main tax returns only meets minimum standards. The data in tables 4 to 10 of Annex III collect the punctuality ratios of the IRPJ (70 percent for all taxpayers, 91 percent for large taxpayers), IRPF (62 percent for all taxpayers), VAT63 (70 percent for all taxpayers, 94 percent for large taxpayers), domestic ICE64 (50 percent for all taxpayers, 99 percent for large taxpayers); and RFS (81 percent for all employers). It is worth mentioning that the Tax Administration predetermines the tax obligations of taxpayers following rules that are parameterized through the “Obligations Manager” system.65 During the evaluation carried out in the field visit, some weaknesses were verified in the rules for assigning the tax obligations (for example, the rules for the periodicity of VAT) that, among other factors, could be affecting the information on the number of expected declarations.66 |
| P5-17-2 | WHD | B | FIRST | 2019 | English | It obtained a grade of B because solid performance close to internationally accepted good practices was detected in: The timeliness of VAT payments only meets minimum standards. Using the results of Table 12 of Annex III, it can be seen that this result is affected by the quotient measured in the number of payments made within the legal deadlines, since the quotient measured in the value of payments due shows better performance, as shown. illustrated below: In 2022, the amount of VAT payments made within the legal deadlines represented 55 percent of the total amount of payments required for all taxpayers and 91 percent for large VAT taxpayers. In 2022, the value of VAT payments made within the legal deadlines represented 93 percent of the total value of payments required for all taxpayers and 98 percent for large VAT taxpayers. |
| P5-18-2 | WHD | B | FIRST | 2019 | English | It obtained a grade of B because solid performance close to internationally accepted good practices was detected in: The management of tax debts only performs within minimum standards. Although the stock of debts from main taxes, as a proportion of collection, decreased by 2022, in the last three years it represented, on average, 39 percent (2020: 42, 2021: 40, 2022: 36). On the other hand, tax debts more than 12 months old represented, on average, 84 percent of the total stock of tax debts in the last three years (2020: 82, 2021: 85, 2022: 85). It should be noted that these results reflect, among other factors, the restrictions of the current legal framework that, for example, prevents ex officio decreeing the statute of limitations or writing off bad debts (without financial support).76 This forces the Tax Administration to invest a part of the time available to manage a process called “Continuations” to avoid the prescription of debts knowing that they are irrecoverable. Finally, the value of the collectible debt of the main taxes, in proportion to their collection, stood on average at 10 percent in the last three years (2020: 11, 2021: 11, 2022: 10). |
| P6-19-1 | WHD | B | FIRST | 2019 | English | It obtained a grade of B because a solid performance quite close to internationally accepted good practices was detected in: The control plan is healthy, although it does not yet evaluate the impact of the audit function on tax compliance. Through the control plan, the DNCT defines the treatment activities for the five compliance areas. Said plan contains different types and scopes of control, and the taxpayer segments and priority sectors. Among the different types of control, persuasive actions stand out (appearances, documentary presentations, information requirements, accounting presentations, among others) and audits, classified as extensive, semi-intensive and intensive (which can be comprehensive or focused). The selection of cases is done centrally, falling into “detection bases” built based on previously identified risks and the programmed execution of specific information cross-checks. The DNCT receives a monthly monitoring report77 from the Audit Department that contains collection goals, performance, presentation gaps, coverage of the control plan, programming monitoring, among others. However, the aforementioned report does not contain an evaluation of the impact of the audit function on tax compliance. |
| P6-19-3 | WHD | B | FIRST | 2019 | English | It obtained a grade of B because solid performance quite close to internationally accepted good practices was detected in: Quality control of the audits is carried out, but no global reports that show the impact of supervision on the quality of the audits. The Tax Management Department of the DNCT is empowered to review the quality of the audits (in their procedure and materiality) through the available systems, videoconferences with the acting officials or through field visits to the operational areas. To this end, it designates two officials to supervise each Zonal Directorate and the DNGC on an annual basis. The supervision activity is described and documented in the Supervision Instructions for Scheduled Control Processes.80 The objective of supervision is to verify the adequate application of procedures, guidelines and directives issued for each control process, allowing to detect, prevent and correct operational and tax risks in the development of such processes. Supervision communications and their findings are reported through reports from the DNCT to the Zonal Directorate or the DNGC, as appropriate.81 However, global reports on the impact of supervision on the quality of the audits are not carried out on a regular basis. |
| P6-21 | WHD | B | FIRST | 2019 | English | It received a grade of B because strong performance close to internationally accepted good practices was detected in: The Tax Administration issues binding private and public tax consultations, but a comprehensive cooperative tax compliance program is not yet operational. The tax legislation does not expressly contemplate a regime of public tax consultations, but art. 7 of the Tax Code constitutes a sufficient legal basis to issue Interpretation Circulars. Likewise, the issuance of private binding tax consultations is foreseen (arts. 135 to 138 of the Tax Code). Both regimes are applied regularly and even private tax consultations are also published, albeit for blocks of full years. However, despite the existence of some element that helped build a relationship of trust between the Tax Administration and large taxpayers, for example, the existence of Advance Pricing Agreements (APAs),84 a complete tax compliance program is only is in the preparation phase,85 so there is no cooperative compliance agreement signed to date. |
| P8-26 | WHD | B | FIRST | 2019 | English | It obtained a grade of B because a solid performance quite close to internationally accepted good practices was detected in: The Tax Administration actively participates in the government's tax revenue forecasting process, but does not monitor or report the balances for losses or deferrable tax credits . The process of forecasting and estimating tax revenues for the preparation of the government budget is regulated in the Budget Law and the Regulations of the Organic Code of Planning and Public Finance (COPLAFIP).95 The cycle begins with the formal request from the MEF to the Administration of Taxes to prepare and send a set of information necessary for the preparation of the General State Budget.96 As inputs for the estimates, the macroeconomic assumptions established by the Central Bank of Ecuador97 and other government bodies are sent to the Tax Administration, which are used for the projections of the following four years (in gross and net values) in accordance with current regulations, using its own economic model to include the historical series by tax, which are purged of atypical or occasional numbers. The monitoring of the collection carried out, both in its variations and in the fulfillment of the goal, is carried out through a daily comparison with the forecasts98 and a monthly report is sent to the Presidency of the Republic. A table with the taxes paid is sent to the MEF. The statistics are published on the Tax Administration website. VAT refund estimates are also prepared in the same way as collection estimates. Estimates of tax expenditures are prepared and published annually,99 including projections for the following 4 years. However, there is no evidence of monitoring or the existence of reports on the balance of losses and tax credits that can be compensated by taxpayers in the future. |
| P9-32-2 | WHD | B | FIRST | 2019 | English | It obtained a grade of B because a solid performance quite close to internationally accepted good practices was detected in: Although the Tax Administration develops good planning practices, strategic and operational plans are not disclosed prior to the periods to which they refer . In Ecuador, the National Development Plan “Opportunity Creation Plan 2021 – 2025” is the maximum political guideline that guides the entire public administration of the country. In line with said National Development Plan and with the guidelines proposed by the National Planning Secretariat, the Tax Administration prepares its PEI with the guiding and strategic elements of its management, such as strategic objectives, expected results, framework for measuring the progress and guidelines for action. Following the PEI, the Tax Administration prepares the PAP detailing the objectives, strategies, indicators, risks, interventions and operational actions to ensure compliance with institutional strategic planning. Despite good strategic planning practices in the Tax Administration, plans are not published prior to the periods to which they refer. The PEI 2021-2025 was disclosed in the first month of its validity and an extract of the PAP 2022 was published two months after its entry into force. |
| P5-18-2 | AFR | B | FIRST | 2019 | English | Rated B because a sound performance fairly close to internationally accepted good practices was detected in: The tax collection system of the Tax administration is inefficient and is not yet aligned with international good practices. Backlog stocks at the end of the financial year are high. Thus, for example, basic tax arrears (IS, ITS, VAT, DA) represented at the end of the 2022 financial year, 68 percent of the total sums recovered by the tax administration in respect of these taxes. [Attachment III, Table 13]. They are mainly composed of tax debts more than 12 months old over the period from 2020 to 2021. For 2022 the ratio of old debts has significantly decreased, reflecting the unreliability of the data13. Furthermore, the ratio corresponding to the value of basic tax arrears recoverable at the end of 2022 as a percentage of the total amounts recovered for these taxes was 5.3 percent. |
| P6-19-1 | AFR | B | FIRST | 2019 | English | Rated B because sound performance fairly close to internationally accepted good practices was detected in: The external tax control program covers all basic taxes and all segments of the tax population14. The program includes various audit types and methodologies (including the indirect audit of the overall tax situation). It is established quarterly, centrally, by the National Programming Commission selecting proposals from operational services (DGE, CIME, CIPEP) as well as those from the Investigation and Cross-checking Service (SER) of the Tax Audit Department (DVF) .15 At this stage, the selection of files proposed for tax audit is based on an empirical risk analysis based on the experience of the management service agents who formulate the proposals and that of the members of the Commission who examine them. To date, however, the impact of controls on taxpayers' levels of tax morale has not yet been assessed. |
| P7-23-1 | AFR | B | FIRST | 2019 | English | Rated B because sound performance fairly close to internationally accepted good practices was detected in: The dispute resolution process at the tax administration level is progressive and multi-layered. At the first level, the LPF (Art. P-1034 et seq.), confers on the Minister of the Economy and Recovery, the Director General of Taxes, the Director of Large Enterprises and the Provincial Director of Taxes, the power to receive complaints. In addition, Decree No. 0122/PR/MECT of February 28, 2012 reorganizing the tax administration in its articles 43, 59, 63, 83, 84 and 87 specifies the respective responsibilities in terms of dispute management. At the second level, decisions rendered by the tax administration on contentious claims and which do not fully satisfy taxpayers may be brought before the Administrative Court when it concerns a dispute relating to taxes, duties and direct and indirect taxes. They are brought before the Court of First Judicial Instance for disputes relating to registration and stamp duties and similar taxes (LPF articles P-1077 to P-1085). Finally, at the third level, the parties can appeal or lodge an appeal against the decisions of the competent courts having ruled at first instance (LPF Art. P-1086). |
| P3-8-1 | AFR | B | REPEAT | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in: Information is available to the taxpayers from a wide range of sources. These include the website, brochures, guides, newsletters, newspapers, seminars, videos, audio jingles, and press releases. The information covers all core taxes and is tailored to the needs of one key taxpayer segment (small businesses) and tax intermediaries. |
| P3-8-2 | AFR | B | REPEAT | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in: The information availed to the taxpayers is kept current in terms of the law and administrative policy. There is a formal procedure to update information, and this is done within three months from the date of implementation. There is a dedicated technical team responsible for updating the information. Taxpayers are made aware of the changes in the law through general but not targeted notices in the media before the law or policy takes effect. |
| P3-10 | AFR | B | REPEAT | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in: There are simplified record keeping and reporting arrangements available for different taxpayers including the small taxpayers. Tax stamps are provided for smaller enterprises and Vehicle Income Tax (VIT) for commercial transporters. A flat VAT rate of 3 percent is applicable for small taxpayers who also use a simplified VAT form. There is a secure taxpayer portal. Common misunderstandings of the law and Frequently Asked Questions (FAQ) by the taxpayers are used to refine taxpayer information products and services. However, there is no evidence of an arrangement for pre-filling of returns by the tax administration for the taxpayers. |
| P3-11-1 | AFR | B | REPEAT | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in: The Tax Administration obtains feedback from the different taxpayer segments regarding its services through a range of avenues. These include focus group meetings with stakeholders, website, email, social media, and day to day interactions among others. A perception survey was carried out in 2017 by independent parties and 2022 by the Tax Administration and independent party respectively. |
| P3-11-2 | AFR | B | REPEAT | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in: Feedback is sought and obtained from the different taxpayer segments regarding the Tax Administration’s services through a range of channels. Taxpayers were consulted on the quality of the tax stamps, introduction of the e-levy, administrative guidelines for waivers under the penalty and Interest Waiver Act, 2021, review of practice notes on gaming, administrative guidelines on E-Invoicing and on transfer pricing. Feedback is also obtained from the intermediaries during the budget formulation process. However, there is no evidence that feedback is considered in the design of products and services. |
| P6-21 | AFR | B | REPEAT | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in: The Tax Administration issues binding public and private rulings. The RAA provides for issuance of rulings. However, cooperative compliance arrangements are not in the law and are not currently used. |
| P7-23-2 | AFR | B | REPEAT | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in: The administrative review mechanism is not entirely independent of the audit process. Objections lodged are handled by objection committees at TSC, area and head office levels. Members of the objection committees are independent of the auditors involved in the audit process. Objectionsprocedural guidelines for the review process are documented and generally followed. |
| P8-26 | AFR | B | REPEAT | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in: The Tax Administration provides input into government revenue forecasting on a regular basis. The Tax Administration uses different models that consider economic conditions, tax elasticities and policy changes to provide input to tax revenue forecasting and estimating. Qualified staff of the Tax Analysis and Revenue Forecasting Unit monitor tax revenue collections against budgeted revenue forecasts and report to the MoF weekly, monthly, quarterly, and annually assigning reasons for variances. VAT refund forecast is also done to ensure funds are available. The Tax Administration monitors and reports on tax expenditures annually to the MoF but does not report on the stock of tax losses and credits carried forward by taxpayers that may be used to offset against future tax liabilities. |
| P7-23-1 | AFR | B | FIRST | 2019 | English | Rated B because a sound performance fairly close to internationally accepted good practices was detected in: Litigation is sufficiently progressive and increasingly used by taxpayers. A right of prior complaint to the administration is provided for by the legal framework (articles 119 et seq. of the CGI). The Director General of Taxes must be notified within 2 years of the issuance of the taxes. When its decision does not satisfy the applicant, they have 2 months to refer the matter to the district court. At the end of this procedure, a third avenue of appeal is open to him before the court of appeal. In addition to this procedure, the general tax code provides for an arbitration system in the form of a Tax Appeal Commission (articles 1193 et ??seq.). This body is chaired by a magistrate appointed on the basis of his expertise in tax matters and includes representatives of taxpayers and the administration. Its procedural times are faster than those of common law litigation. The taxpayer retains the latitude to lodge a complaint with the tax administration if he does not approve of the solution adopted by the Commission (article 1118-II). However, the number of taxpayers who have contacted this commission is small and no evidence has been provided on the decisions it has rendered. |
| P1-1-1 | WHD | B | FIRST | 2019 | English | It obtained a grade of B because solid performance close to internationally accepted good practices was detected in: Although the database of registered taxpayers contains sufficient information to support tax operations, taxpayers cannot register online or update their information online. this way. The database of registered taxpayers contains centralized and automated information on the identity and main data of the taxpayer, including type of activity, economic sector, related identities (e.g. branches, partners and shareholders) and main reporting and payment obligations. Each taxpayer is assigned a unique identification number, called the National Tax Registry (RTN), composed of 23 fourteen digits, of which the last one is used as a verifier.7 The Single Taxpayer Registry (RUC) subsystem of the E-TAX system that manages the RTN has an interface with the rest of the sub-systems, in a transversal manner, such as presentation of declarations and payments, among others. Said subsystem provides a complete view of the taxpayer to the front-line staff of the Tax Administration through query options.8 In addition, there is a “business intelligence” tool that facilitates a more managerial view of identification data, status of their declaration and payment obligations, documents, account statements, billing and partner reporting, among others. Likewise, the RUC subsystem has the functionality to deregister the RTN (e.g. due to death, dissolution or liquidation), following authorization protocols, and facilitates the generation of audit trails by consulting or manipulating the RTN data. for monitoring by the IG. |
| P1-1-2 | WHD | B | FIRST | 2019 | English | It obtained a grade of B because a solid performance close to internationally accepted good practices was detected in: The Tax Administration has implemented a series of initiatives aimed at ensuring the accuracy of the information contained in the registered taxpayer database. However, even the use of information from external sources to carry out validations is on a smaller scale. Although the RTN purification procedure is recently created (RTN Purification Instructions, December 2019), the Tax Administration has been actively working on the purification of the database of registered taxpayers since 2017. Through the update plan of the RTN (January 2018), the purification criteria were defined (deceased, economic activities, incomplete or duplicate records, updating of the fiscal vector, addresses, among others), scope and responsibilities. The operational plans set purification goals for the operating units each year. Likewise, the Tax Administration marks in the RTN the taxpayers considered active, i.e. those who routinely carry out tax transactions. However, improving the accuracy of the database of registered taxpayers based on cross-referencing with information from external sources is limited to information from the National Registry of Persons.9 The evaluation team did not find evidence of the systematic use of other sources of information. third party information. On the other hand, the interpretation made by the Tax Administration of paragraph 4) of article 68 of the CT limits its initiatives to be able to deregister or eliminate from the RUC legal entities without operations.10 Thus, the efforts to control omissions (see A4-13) are less effective in practice. Regarding efforts to ensure the authenticity of the registered taxpayers, the IG routinely conducts actions to detect RTN falsifications and the evaluation team received evidence of various cases sent to the Public Ministry. Finally, although an audit has not yet been done internal or external on the level of confidence of the information contained in the database data from registered taxpayers, the evaluation team verified the existence of various managerial or statistical analyzes that pursue the same purposes, and even reports routine reports on the outcome of random RTN reviews. |
| P2-3-2 | WHD | B | FIRST | 2019 | English | It obtained a grade of B because solid performance close to internationally accepted good practices was detected in: A structured compliance risk assessment and prioritization process exists, although it is not yet fully used for multi-year strategic planning. The Tax Administration has been strengthening its capabilities to manage compliance risks since 2017. Within the framework of this strengthening, it has been able to implement a structured compliance risk assessment and prioritization process aligned with international standards.16 This process is supported with a quantitative taxpayer-level compliance risk profiling tool known as MGR-H.17 The MGR-H covers basic tax obligations, major taxes, key taxpayer segments and some important economic sectors (trade, industrial manufacturing, financial intermediation services, telecommunications and transportation). Currently, the risk assessment and prioritization process is used primarily in annual operational planning. The current Institutional Strategic Plan (2017-2022 cycle)18 does not fully reflect the evaluation and prioritization of compliance risks under the aforementioned structured process because the improvements in the Tax Administration's capabilities to manage compliance risks have been after its preparation. With the support of the IMF Regional Technical Assistance Center for Central America, Panama and the Dominican Republic (CAPTAC-DR), the Tax Administration has been working so that the process of evaluating and prioritizing compliance risks comprehensively feeds into institutional strategic planning. |
| P2-7-1 | WHD | B | FIRST | 2019 | English | It obtained a grade of B because a solid performance close to internationally accepted good practices was detected in: The capacity and structure needed to manage human capital risks shows a healthy performance. The DNTH is responsible for human talent management and has 24 people trained for the function, several of them trained in human resources risks. In accordance with the provisions of the Career Regime for Employees and Officials of the Tax Administration (RECAEFUAdministración de Taxes, Art. 38-42), there is a 180-degree Performance Evaluation System (SED) for all personnel, with two feedback per year and support on a computer platform. Civil society, through the Association for a More Just Society (ASJ)22, carried out independent monitoring and evaluation of the results of its institutional performance and progress in terms of integrity, transparency and accountability in human resources management, among others. The risk management policy approved by Agreement. Tax Administration-479-2018 covers human capital risks. In that sense, there is a formal process to identify, evaluate, prioritize and mitigate human capital risks, which is monitored by the CGR. The CGR delegated to a Human Talent Risk Subcommittee (made up only of members of the DNTH) the responsibility for managing human capital risks.23 As in the case of operational risks, the aforementioned Subcommittee has prepared a matrix that has all the human capital risks identified with their respective impact analysis. The evaluation team received copies of at least 6 minutes of meetings held over the past year by the Subcommittee to manage human capital risks. The CGR has provided guidance on measures to mitigate such risks. All heads and directors of the Tax Administration have been trained on the risks associated with human capital. |
| P3-8-1 | WHD | B | FIRST | 2019 | English | It obtained a grade of B because solid performance close to internationally accepted good practices was detected in: Information on the main tax obligations and the rights of the taxpayer is available, but is not yet adapted to the specific needs of disadvantaged groups . There is information on a multiplicity of tax topics, including general tax rights and obligations, on the website of the Tax Administration (www.Administración de Taxes.gob.hn) and, in the case of selective taxes, by chat (Administración de Taxes.gob.hn) of Taxes chat), by telephone (contact center, tel. 22165800) or by going to the compliance assistance desks. Accounting and Tax Support Centers (NAF) are also in operation,24 where certain students and university graduates in accounting and financial careers receive free tax training and guidance, so that they can provide free advice to low-income taxpayers or microentrepreneurs. However, information is not available, at least for the most relevant tax issues, in a form oriented towards the specific needs of disadvantaged groups, for example, the elderly, the blind (lack of information in Braille or on the web). adapted) or ethnic groups with minority languages ??such as Garifuna or Miskitos (the information is available exclusively in Spanish). |
| P4-12-1 | WHD | B | FIRST | 2019 | English | It obtained a grade of B because a solid performance quite close to internationally accepted good practices was detected in: The punctuality quotient in the presentation of declarations for personal income tax meets the minimum standards, is healthy for the ISV, the IRPJ and the RFS and It is at the level of good international practices for excise taxes. The data in tables 4 to 10 of Annex III collect the punctuality ratios of personal income tax (64.5 percent), IRPJ (81.7 percent for all taxpayers, 97.8 percent for large taxpayers), ISV (76.3 percent for all taxpayers, 96.0 percent for large taxpayers), RFS (86.1 percent) and excise taxes (96.4 percent for all taxpayers, 100 percent for large taxpayers). |
| P4-12-3 | WHD | B | FIRST | 2019 | English | It obtained a grade of B because a solid performance quite close to internationally accepted good practices was detected in: The punctuality quotient in the presentation of income tax returns meets the minimum standards, it is healthy for the ISV, the IRPJ and the RFS and is at the level of good international practices for excise taxes. The data in tables 4 to 10 of Annex III collect the punctuality ratios of personal income tax (64.5 percent), IRPJ (81.7 percent for all taxpayers, 97.8 percent for large taxpayers), ISV (76.3 percent for all taxpayers, 96.0 percent for large taxpayers), RFS (86.1 percent) and excise taxes (96.4 percent for all taxpayers, 100 percent for large taxpayers). |
| P4-12-5 | WHD | B | FIRST | 2019 | English | It obtained a grade of B because a solid performance quite close to internationally accepted good practices was detected in: The punctuality quotient in the presentation of income tax returns meets the minimum standards, it is healthy for the ISV, the IRPJ and the RFS and is at the level of good international practices for excise taxes. The data in tables 4 to 10 of Annex III collect the punctuality ratios of personal income tax (64.5 percent), IRPJ (81.7 percent for all taxpayers, 97.8 percent for large taxpayers), ISV (76.3 percent for all taxpayers, 96.0 percent for large taxpayers), RFS (86.1 percent) and excise taxes (96.4 percent for all taxpayers, 100 percent for large taxpayers). |
| P4-14 | WHD | B | FIRST | 2019 | English | It received a grade of B because strong performance close to internationally accepted good practices was detected in: While more than 85 percent of ISV, RFS and excise returns are filed electronically, this is not the case for IRPJ and IRPF. On the other hand, all large taxpayers file their main taxes electronically. According to the information in Table 11 of Annex III for the last available fiscal year, electronic declarations with respect to the total declarations presented represented 84 percent for the IRPJ, 80 percent for personal income tax, 87 percent for ISV, 94 percent for the RFS and 93 percent for selective taxes. In the case of large taxpayers, 100 percent file their returns electronically. These figures reflect the positive effects of the actions to promote compliance with tax obligations through electronic declarations that the Tax Administration has been carrying out in recent years, including updating the web portal and Virtual Office services, as well as various campaigns. diffusion. In the case of large and medium taxpayers, Agreement DEI-SG-043-2011 establishes the obligation to submit declarations electronically. |
| P5-17-1 | WHD | B | FIRST | 2019 | English | It received a grade of B because strong performance close to internationally accepted good practices was detected in: The timeliness of ISV payments shows healthy performance. Using the results of Table 12 of Annex III, it can be seen that the amount and value of ISV payments made within the legal deadlines shows a healthy performance but still does not reach the level of good international practices:28 • In 2019, the amount of ISV payments made within the legal deadlines represented 83.6 percent of the total amount of payments required for all taxpayers and 96.1 percent for large taxpayers. • In 2019, the value of ISV payments made within the legal deadlines represented 96.4 percent of the total value of payments required for all taxpayers and 97.8 percent for large taxpayers. |
| P5-17-2 | WHD | B | FIRST | 2019 | English | It received a grade of B because strong performance close to internationally accepted good practices was detected in: The timeliness of ISV payments shows healthy performance. Using the results of Table 12 of Annex III, it can be seen that the quantity and value of ISV payments made within the legal deadlines shows a healthy performance but still does not reach the level of good international practices:28 • In 2019, the amount of ISV payments made within the legal deadlines represented 83.6 percent of the total amount of payments required for all taxpayers and 96.1 percent for large taxpayers. • In 2019, the value of ISV payments made within the legal deadlines represented 96.4 percent of the total value of payments required for all taxpayers and 97.8 percent for large taxpayers. |
| P5-18-1 | WHD | B | FIRST | 2019 | English | It obtained a grade of B because solid performance was detected quite close to internationally accepted good practices in: The stock of principal tax debts is less than 20 percent of the principal tax collection and is mainly composed of debts of more than 12 months old. The collectible part of such stock is not more than 10 percent of the main tax collection. Although the stock of debts from the main taxes, in proportion to their collection, has increased in recent years, the three-year simple average of 15.7 percent (14.4 in 2017, 14.7 in 2018 and 17.9 in 2019) still represents a relatively healthy. On the other hand, the triannual of 74.6 percent (75.8 in 2017, 76.9 in 2018 and 70.9 in 2019), a level within the minimum standards. It should be noted that these results partly reflect the effects of the amnesty and regularization in force, mainly in 2017 and 2018, because to benefit from the regularization it was not necessary to have tax debts.30 Finally, the value of the debt collectable from the main taxes, As a proportion of its collection, it reached a simple three-year average of 6.8 percent (6.3 percent in 2017, 6.1 percent in 2018 and 8.0 percent in 2019), remaining at relatively healthy levels. It should be noted that, although the PGR has the legal representation of the State before the Civil Courts (article 228 of the Constitution), it delegates power to the coercive collection attorneys of the Tax Administration so that they are the ones to file the lawsuit and give processing the procedure in the Civil Court. Extrajudicial titles registered (judicial phase of collection) do not prescribe. To peTax Administration of this, To date, the Civil Courts maintain a total of 1,825 lawsuits (L. 1,798 million), of which only 1.6 percent have a first instance ruling.31 The statistical information used for this indicator is available in Table 13 of the Annex. III. |
| P5-18-2 | WHD | B | FIRST | 2019 | English | It obtained a grade of B because a solid performance was detected quite close to internationally accepted good practices in: triannual of 74.6 percent (75.8 in 2017, 76.9 in 2018 and 70.9 in 2019), a level within the minimum standards. It should be noted that these results partly reflect the effects of the amnesty and regularization in force, mainly in 2017 and 2018, because to benefit from the regularization it was not necessary to have tax debts.30 Finally, the value of the debt collectable from the main taxes, As a proportion of its collection, it reached a simple three-year average of 6.8 percent (6.3 percent in 2017, 6.1 percent in 2018 and 8.0 percent in 2019), remaining at relatively healthy levels. It should be noted that, although the PGR has the legal representation of the State before the Civil Courts (article 228 of the Constitution), it delegates power to the coercive collection attorneys of the Tax Administration so that they are the ones to file the lawsuit and process it. to the procedure in the Civil Court. Extrajudicial titles registered (judicial phase of collection) do not prescribe. According to this, the Civil Courts maintain to date a total of 1,825 lawsuits (L. 1,798 million), of which only 1.6 percent have a first instance ruling.31 The statistical information used for this indicator is available in Table 13 of Annex III. |
| P6-19-1 | WHD | B | FIRST | 2019 | English | It obtained a grade of B because a solid performance quite close to internationally accepted good practices was detected in: Although the audit and tax management plans cover the main taxes and taxpayer segments, it contemplates different review methods and selects cases centrally, The evaluation of the impact that audits have on compliance is still in the initial stages of tax administration. Through the aforementioned plans, the Audit Department (DA) and the Tax Management Department (DGT) establish the nature and scope of the audits (extensive and intensive controls) of the main taxes and taxpayer segments. Among the different types of actions, specific audits, comprehensive audits, difference controls and abbreviated verification actions stand out. Case selection is done centrally through the MGR-H, the Tax Administration's compliance risk assessment and prioritization tool. Although the Tax Administration monitors the main audit actions, the evaluation of the impact that audits have on taxpayer compliance is still in the initial state of Tax Administration roll. Some pilot evaluations of the treatments suggested by the MGR-H have been conducted with the support of the IMF and IDB, but it is not yet a routine activity or one that has led to adjusting the design of the current audit programs. |
| P6-19-3 | B | FIRST | 2019 | English | It obtained a grade of B because solid performance close to internationally accepted good practices was detected in: Although the quality control of extensive and intensive audits shows healthy performance, reports showing the impact of quality control are not periodically issued to improve the quality of audit programs. The DAT and the DGT are empowered to review the quality of the audits (in their procedure and materiality) through field visits to operational areas. The regional, departmental and large taxpayer directorates are subject to verification at least three times a year. These reviews use four different mechanisms to evaluate the quality of audit files following a checklist: formal, substantive and documentary file reviews. The objective of the evaluations is to monitor the quality of the end-to-end audit process to ensure, among others, the adequate conformation of the file and work papers, the standardized use of documentation at each stage of the process, the methodologies and procedures for the determination of adjustments, detected incidents and uploading documentation to the permanent file in the AUDITAX system corresponding to each phase of the process. The findings of such reviews are discussed with the auditors who carried out the audit case to identify areas for continuous improvement. Although this feedback is positive, reports showing the impact of quality control in improving the quality of audit programs are not periodically issued. | |
| P6-20 | WHD | B | FIRST | 2019 | English | It received a grade of B because solid performance close to internationally accepted good practices was detected in: A healthy system of mass information cross-checking is in place to verify the accuracy of claims. The Tax Administration has a data warehouse that stores all information from internal and external sources (which is updated weekly) and periodically carries out large-scale cross-checks with it under the rules established in the MGR-H for the risk indicators defined there. The model is built on the KNIME data mining platform. The evaluation team was able to verify the operation of the crossing rules. In that sense, it verified the use of the following information: • ISV determinative and informative statements, such as the Monthly Purchasing Informative Statement (DMC). • Informative statements from financial institutions for the concept of special contribution of financial transactions and withholding of ISV to the operations with credit and debit cards. It is worth noting that the Tax Administration can only access banking information through CNBS, and as long as it indicates the identifying data of the check or payment order in question, or the operations under investigation and the affected taxpayers (section 4 of article 72). In this sense, the informative declaration for the concept of special contribution of financial transactions allows the Tax Administration to have first-line information on transactions with demand deposits, savings deposits, loan operations, issuance of checks and other financial instruments. similar, payments or financial transfers, among others. • Declarations on withholdings applied to salaries presented by employers. • Information on suppliers of the State Financial Administration System (SIAFI) managed by SEFIN. 47 • Information on customs operations from the Automated Customs Revenue System (Tax AdministrationAH) managed by DARA. • Information from the Honduran Coffee Institute (IHCAFE). However, the evaluation team did not find evidence of the use of information from the commercial registry, the real estate registry, online platforms or other jurisdictions (see section on international exchange of information). |
| P7-25 | WHD | B | FIRST | 2019 | English | It obtained a grade of B because a solid performance was detected that was quite close to internationally accepted good practices in: Tax Administration carries out monitoring and analysis of the most relevant litigation and this is taken into account in the formulation of legislation and procedures administrative. Through the Internal Dispute Guide (GIN-RDM-RMI-GRR-001-V1), guidelines have been established very recently (December 2019) to ensure a response from the Tax Administration to the results of the partial or total replacement or hike resources. contrary to the criteria of the tax administration. There is also evidence that the Tax Administration systematically compiles judicial rulings on tax matters (Instruction DNJ-03-2020). Regarding the effective monitoring of these litigations, there is evidence that the Tax Administration tries to learn from the results of the particular litigations and has modified the procedure and requested the modification of legal regulations that could harm its work (for example regarding notifications ). But this task does not cover the analysis of all litigation (for example, it does not cover the analysis of all Resolutions issued by SEFIN to appeals – about 140 cases per year). |
| P8-26 | WHD | B | FIRST | 2019 | English | It obtained a grade of B because solid performance close to internationally accepted good practices was detected in: The Tax Administration actively contributes to the government's tax revenue estimation and projection process, but does not routinely monitor or report tax balances. deferrable tax losses or credits. The DPCG and DEFE have technical personnel dedicated to monitoring and estimating tax revenues. The Tax Administration routinely shares detailed information and projections of tax collection with SEFIN40 and other government entities, which serve as input for the estimation and monitoring of government revenues. This information is shared monthly with SEFIN and includes forecasts and estimates of tax revenues and deviations from programmed collection goals. The methodology for estimating future income is based on econometric models that take into account macroeconomic variables and historical collection data.41 In addition, the Tax Administration annually carries out sizing studies of tax expenditure that are published briefly in the Macro Fiscal Framework. Medium Term. Finally, given that the ISV returns are recorded as negative transactions in the ISV income item in the General Budget of Income and Expenditures of the Republic, the Tax Administration does not make an estimate of the returns expected for the corresponding fiscal year. 42 |
| P2-7-1 | APD | B | FIRST | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in: The Tax Administration has a process to identify and mitigate human capital risks. The Tax Administration has a Directorate for HR Development and Management Affairs and the HR function of the Tax Administration has been reviewed by the Inspector-General, a reviewer external to the HR function in 2019. However, there is no risk register for HR risks. There are at least two staff with HR risk management and training in the HR Development and Management Affairs directorate. There is online training in HR risks for all staff and all staff have annual performance agreements, registered in an automated system.17 There is also an annual talent evaluation process and an annual review of the HR risk issues by senior management. |
| P5-15 | APD | B | FIRST | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in: Electronic payment is available to all taxpayers and for all core taxes.37 The value of PIT payments made electronically is below 75 percent. The Tax Administration puts this down to the need to maintain the element of choice for taxpayers and they highlighted that providing choice was a key principle not to mandate electronic payment for individuals, particularly in the Indonesian context, where data coverage was not guaranteed for all taxpayers. [Table 11 in Attachment III]. |
| P5-17-1 | APD | B | FIRST | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in: The number of on-time VAT payments made by the statutory due date was 83.6 percent for all VAT payments and 97.9 percent for large VAT payers. This represents good performance but short of the 90 percent and 100 percent benchmarks. When measured on the value of payments 94.7 percent of the value of all VAT payments and 99.2 percent for large taxpayers represents stronger performance but short of the 100 percent requirement for large taxpayers. |
| P5-17-2 | APD | B | FIRST | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in: The number of on-time VAT payments made by the statutory due date was 83.6 percent for all VAT payments and 97.9 percent for large VAT payers. This represents good performance but short of the 90 percent and 100 percent benchmarks. When measured on the value of payments 94.7 percent of the value of all VAT payments and 99.2 percent for large taxpayers represents stronger performance but short of the 100 percent requirement for large taxpayers. |
| P6-19-3 | APD | B | FIRST | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in: Audits are subject to quality assurance checks by other experienced, and independent, auditors. The Tax Administration uses a formal peer review process where experienced auditors follow standardized processes to review audits for quality and conformance to processes.41 There are annual reports of the peer review process, however it was not clear that the peer review process is actively used to improve the quality of the audit program. The audit manual, for example has not been directly updated since 2012. |
| P6-20 | APD | B | FIRST | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in: The Tax Administration undertakes large-scale automated cross-checking of information of amounts reported in tax declarations but does not have an automated process to cross-check information of online vendors. The Tax Administration has access to a broad range of external data sources from financial institutions, the stock exchange, land and property registries, other government agencies such as the Customs administration and from a network of seventy-one double tax agreements. The information from these sources is used in automated data matching and cross-checking. The Tax Administration does not yet have regular access to information from online vendor platforms. |
| P8-28-1 | APD | B | FIRST | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in: The VAT refund system is fairly close to good international practice except that the fast tracking of refund is intially done manually. The entitlement to refund is automatic and taxpayers are not required to file a separate refund claim. The VAT declaration has a box where taxpayers check mark whether they want to be: (i) credited to next month’s declaration, (ii) refunded or (iii) credited to any other month. Refund claims can be adjusted against other taxes, future liabilities or against liabilities of other persons that the taxpayer may assign. The General Provisions of Taxation Law No. 7 of 2021 stipulates payment of interest on delayed refunds paid after 30 days. There is a system of fast-track refunds for eligible taxpayers for whom there is post-refund audit. There are several criteria for determination of low-risk refund claims which include perceived compliance history, regular exporters, and size of refund. Initially, the risk is assessed manually based on request from taxpayers to be included in the fast-track refund system. Once a taxpayer is included in the fast-track system, the refund is automatically fast-tracked and is valid until rescinded for some reason. Fast-track refunds are paid within 30 days. For high-risk taxpayers, the refund claim is subject to pre-issue verification. The dashboard for revenue plans has projection of refunds by each tax office. |
| P9-30-1 | APD | B | FIRST | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in: There is an annual external oversight of the Tax Administration’s financial statement and operational performance by the Supreme Audit Agency. Several reports are published.67 Based on a memorandum of the Minister of Finance, the Tax Administration regularly and systematically responds to the recommendations Supreme Audit Agency. These response memoranda are not published. |
| P9-32-1 | APD | B | FIRST | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in: The Tax Administration publishes annual reports on the full financial and operational performance. The 2021 annual report was published on the Tax Administration website. The 2022 annual audited financial report was published in July 2023.76 The annual performance report was also published in July 2023. |
| P1-1-2 | WHD | B | REPEAT | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in: Documented procedures are applied routinely to ensure the accuracy of the taxpayer database and identify and deregister inactive taxpayers. However, crosschecking of information against third party databases is done on a smaller scale. The RAiS system routinely tracks filing and payment compliance to identify stop filers for all core taxes. Taxpayers who are found through investigation to be, for example, deceased, unemployed or, if in business, closed, are removed from the taxpayer register or marked as inactive. Table 2 of Attachment III and actual demonstration of the RAiS database show that the registration subsystem is routinely updated for accuracy. Deregistration of GCT taxpayers is documented 5-stage process (sections 25A to 32A of the GCT Act). 22 Deregistration is initiated by the taxpayer or tax officials based on information from audit or other compliance actions and carried out by the Operations Division or the Management Strategy Division. Once approved, several work items are generated for the tax officials, including a pre-deregistration check, which, when completed, will allow deregistration in the system. 23 The accuracy of information for corporate taxpayers, such as the nature of business and business address, is authenticated by cross-checking information from the COJ and banks. This crosschecking is conducted on a case-by-case basis by the Forensic Data Mining Unit to identify duplicate or bogus registrations. Both the Tax Administration’s Annual Registration Report 2019-2024 and the external ISO-9001:2015 Audit Report25 show satisfaction with the registration database's level of accuracy. See Table 2 of Attachment III. |
| P1-2 | WHD | B | REPEAT | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in: Actions taken to identify businesses and individuals that fail to register are reflected in Annual Reports. 26, 27 However, there has been no program of inspection of business premises in recent years. 28 To identify potential non-registrants, Tax Administration has implemented a program of routine cross-verification of information against third-party data (for example, from customs, government procurement agencies, large private contracts, property registry, and motor vehicle registry), and from tax declarations and audits. Data from health insurance companies and pathology labs are also reviewed to determine the registration status of physicians and surgeons. In FY2020/21, 15,774 new taxpayers were registered under this program, and 3,621 were deregistered, giving a net registration increase of 12,153 new taxpayers. 29 The Annual Registration Report provides a detailed breakdown of new registrations by tax type, segment, and industry/economic activity type. |
| P3-10 | WHD | B | REPEAT | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in: Simplified procedures and reporting exist for small taxpayers, but there are no pre-filled tax declarations in place. Small businesses (self-employed) are permitted and encouraged to maintain simple books and records,85 and the Tax Administration extends simplified filing requirements through the completion of the S04 return.86,87 The Tax Administration offers small business-specific seminars, advisory services, and information sessions. 88 Taxpayers and their representatives have 24/7 access to the Tax Administration taxpayer portal, which provides account updating, e-filing and e-payment capabilities. Misunderstandings of the law policies and/or procedures identified through multiple sources are monitored to identify opportunities to improve Tax Administration products and services. 89,90 Other measures employed by the Tax Administration to reduce or minimize compliance costs include a variety of payment options including Direct Funds Transfer, publication of tax rulings that have broad applicability through the provision of practice notes,91,92 and the ability to share taxpayer information across government departments through a single form (SuperForm). The simplified procedures adopted by the Tax Administration do not include pre-filled returns. |
| P4-14 | WHD | B | REPEAT | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in: The Tax Administrationn taxpayers use electronic filing extensively. Electronic filing is mandatory and available for all core taxes. 101 Tax Administration reports that at least 80 percent of declarations are filed electronically for each of the core taxes, and 99 percent of large taxpayers file core tax declarations electronically (see Table 11 in Attachment III). The Tax Administration invests in a public education program, including traditional media, social media, town halls, seminars, and workshops. They also provide ‘How-To’ documents on their website, and personalized client service is available inperson, by telephone and email. The Tax Administration has plans to expand e-filing to include information from third parties to auto-populate returns. |
| P5-15 | WHD | B | REPEAT | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in: Electronic payment is available and used for all core taxes but the rate for PAYE and large taxpayers is below good international standards. E-payment is available through a variety of channels, including electronic transfers or Direct Funds Transfer from any bank or by using credit card, debit card or electronic check. 102,103,104 Electronic payments by value are highest for special consumption tax (domestic excise tax) at a rate at 99. 8 percent followed by CIT (92. 9 percent), GCT (92. 1 percent), IIT (89. 1 percent) and PAYE (58. 2 percent). For large taxpayers, the value of payments received through e-payments is 96. 7 percent for all core taxes. See Table 11 in Attachment III. |
| P5-17-1 | WHD | B | REPEAT | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in: On time payment rates for GCT are high both by number of payments and by value of GCT due. Statutory payments requirements and enforcement provisions are regulated in the respective Tax Acts.106 The number of GCT payments made by the statutory due date in percent of the total number of payments due is 77.3 percent (below good international practice standards) for all taxpayers and 93.7 percent for large taxpayers. The value of GCT payments made by the statutory due date in percent of the total value of GCT payments due is 98.3 percent for all taxpayers and 99 percent for large taxpayers. While timeliness of the value GCT payments for all taxpayer meets criteria for an A-score, the timeliness by large taxpayers falls into the range for a B-score. See Table 12 in Attachment III. |
| P6-21 | WHD | B | REPEAT | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in: The Tax Administration offers both public and private rulings for all core taxes. Section 12 of the Tax Administration The Tax Administration Act (2013)134 stipulates that Practice Notes135 issued by the Commissioner General is binding on the CG and officers of the Tax Administration. Section 13 of the same law allows taxpayers to seek a private ruling, which, once issued, binds the CG and officers of Tax Administration to the interpretation provided therein. The tax law in the does not offer cooperative compliance agreements. A cooperative compliance agreement is a voluntary arrangement between the tax administration and a taxpayer, particularly large taxpayers, aimed at improving the working relationship by reducing legal uncertainty, creating a level playing field, and reducing the costs to both Tax Administration and the taxpayer. |
| P3-10 | APD | B | FIRST | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in: Simplified compliance requirements exist although prefilled taxpayer declarations forms are in the pilot phase only for microenterprises.47 Individuals who generate intermittent income are exempt from keeping accounting records, file a simplified declaration form once a year and pay 10 percent of their gross income as tax. A registered business which earns intermittent income is exempt from maintaining full-fledged accounting records but must keep a set of invoices, plus statements of works/services delivered.48 Such businesses declare twice (instead of four times) a year. Where income tax on wage income is withheld and remitted to Tax Administration, no tax declaration is required from the employee. Taxpayers and their authorized agents can access taxpayer registration and account registrations via a secure online portal. Online filing and payment are available and used by most taxpayers . Taxpayer declaration forms are usually updated every time the Tax Code is amended both to update the form and also to ensure that only relevant information is sought. |
| P4-12-2 | APD | B | FIRST | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in: On-time filing rates remain close to good international practices for all core taxes except for large taxpayers filing CIT and VAT declarations.56 The Tax Code lays down the legal framework for filing arrangements for all types of taxpayers.57 All material designed to create awareness among taxpayers about filing obligations is publicly available. The data for 2022 shows that for all taxpayers, 76.4 percent of CIT declarations, 84.2 percent of PIT declarations, 91.9 percent of VAT declarations, 98.5 percent for domestic excise declarations and 84.4 percent of PAYE declarations by employers are filed on time. For large taxpayers, 81.1 percent of CIT declarations, 89.3 percent of VAT declarations and 97.9 percent of domestic excise declarations are filed on time. [See Attachment III, Tables 4 to 10]. |
| P4-12-4 | APD | B | FIRST | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in: On-time filing rates remain close to good international practices for all core taxes except for large taxpayers filing CIT and VAT declarations.56 The Tax Code lays down the legal framework for filing arrangements for all types of taxpayers.57 All material designed to create awareness among taxpayers about filing obligations is publicly available. The data for 2022 shows that for all taxpayers, 76.4 percent of CIT declarations, 84.2 percent of PIT declarations, 91.9 percent of VAT declarations, 98.5 percent for domestic excise declarations and 84.4 percent of PAYE declarations by employers are filed on time. For large taxpayers, 81.1 percent of CIT declarations, 89.3 percent of VAT declarations and 97.9 percent of domestic excise declarations are filed on time. [See Attachment III, Tables 4 to 10]. |
| P4-12-5 | APD | B | FIRST | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in: On-time filing rates remain close to good international practices for all core taxes except for large taxpayers filing CIT and VAT declarations.56 The Tax Code lays down the legal framework for filing arrangements for all types of taxpayers.57 All material designed to create awareness among taxpayers about filing obligations is publicly available. The data for 2022 shows that for all taxpayers, 76.4 percent of CIT declarations, 84.2 percent of PIT declarations, 91.9 percent of VAT declarations, 98.5 percent for domestic excise declarations and 84.4 percent of PAYE declarations by employers are filed on time. For large taxpayers, 81.1 percent of CIT declarations, 89.3 percent of VAT declarations and 97.9 percent of domestic excise declarations are filed on time. [See Attachment III, Tables 4 to 10]. |
| P5-17-1 | APD | B | FIRST | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in: Large taxpayer payment performance by due date is better than overall taxpayer performance. Due dates for payment are indicated in the Tax Code. For the most recent four quarters reports available (2021-22), 79.1 percent of the total number of VAT payments, and 89.5 percent by value was paid on time. While the payment performance of Large Taxpayers was 91.7 percent by number and 90.2 percent by value. [See Attachment III, Table 12]. |
| P6-19-1 | APD | B | FIRST | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in: The Tax Administration’s tax audit program is centralized and covers all core taxes and the key taxpayer segments; but it does not evaluate the impact of audit on compliance improvement. The scope of audit activities is laid down under Articles 69 to 72 of the Tax Code and the Department of Analysis, Statistics and Risk Management lays down risk parameters. A centralized list of cases to be audited (based on identified risks) is drawn up every six months. Audit activities include comprehensive, audits, thematic audits and desk audits for medium and large enterprises and horizontal monitoring. Oil and gas sector and large taxpayers are subject to specialized audit by designated offices with specially trained staff. Micro and small enterprises have not been the subjects of planned audit for the last three years following a moratorium on audit for this segment.63 In addition to risk-based planned audits, unplanned audits following information on violations are carried out for all taxpayer segments with authorization from the General Prosecutor’s office. |
| P6-21 | APD | B | FIRST | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in: The Tax Administration has a system of binding private and public rulings in place though cooperative compliance approaches with large taxpayers are currently not being implemented. Taxpayers can secure clarity on the interpretation of provisions of the Tax Code as well as certainty on their tax positions by applying for and securing binding rulings. Advance Pricing Agreements (APA) are in place for transfer pricing issues. Public rulings are placed on the website of Tax Administration for the benefit of taxpayers at large67. While cooperation compliance approaches with large taxpayers are mentioned in the Tax Code68 and were experimented in 2008, these approaches are still underdeveloped. |
| P8-26 | APD | B | FIRST | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in: The Tax Administration provides input to the MoF in its revenue forecasting and estimation functions but does not monitor the stock of tax losses carried forward by taxpayers. There is a dedicated Analysis and Statistics Unit (the Unit) which is responsible for forecasting and estimation of revenues.81 The Unit has four basic functions that include (i) analysis and statistics maintenance, (ii) risk management,(iii) evaluating business processes, and (iv) strategic development. The unit collects data on (1) a mix of macroeconomic indicators (including exchange rate fluctuations, oil prices, and export duties), and (2) revenue collection and carries out the analysis on a daily, monthly, quarterly, and annual basis.82 Apart from monitoring revenue collection against budgeted forecasts, the unit prepares statistical reports covering a wide range of information including breakdowns by region and economic sector.83 Different reports of variances between budgeted and planned collections are prepared and are reported to the MoF on a daily basis, and more detailed reports on likely causes of variance are reported on a quarterly basis. The VAT administration unit is responsible for forecasting VAT refund levels to ensure that sufficient funds are available to meet all legitimate refund claims when they occur. The MoF is informed biannually of trends in VAT refund claims. The department of control is responsible for the preparation of an annual report on tax expenditures. However, Tax Administration does not monitor and report on the stock of tax losses and credits/refunds carried forward by taxpayers that may be offset against future tax liabilities. |
| P9-29-2 | APD | B | FIRST | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in: Staff integrity assurance functions are performed by the ICU which has adequate investigative powers. Integrity statistics are maintained but not made public. Staff are governed by a code of ethics which applies to all civil servants.88 New employees are required to read the code of ethics and the information security policy and acknowledge that they have read and will abide by the expectations described in these documents. This record is placed in their personnel dossier. Refresher courses on integrity expectations are scheduled and the code and policy are publicly displayed in the Tax Administration’s regional and local offices. The Tax Administration’s ICU undertakes monitoring of alleged staff misconduct and corruption cases and analyzes corruption risks. It reports to the Chairman and follows up on disciplinary proceedings. ICU officers receive no specialist training.89 The unit cooperates with relevant enforcement agencies, including the anti-corruption authority and the police where appropriate. It maintains integrity related statistics, while preserving confidentiality, but these are not made public.90 In its comments, Tax Administration explained that while integrity information is not published, it is maintained by the Committee on Legal Statistics and Special Accounts of the Prosecutor General’s Office and is periodically published by them for all state bodies. This, however, does not fulfill the criterion of it being publicly reported by the tax administration. Hence no change in score. |
| P9-30-1 | APD | B | FIRST | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practice was detected in: Annual external oversight of the Tax Administration’s operational and financial performance is conducted by the Supreme Audit Chamber (SAC) but the response of the Tax Administration is not published. In addition, the State Accounts Audit Committee of the MoF is responsible for financial audits and may initiate these for the Tax Administration without the guarantee of annual review.91 It can audit more than one year at a time. As evidence, the Tax Administration provided a copy of a state audit report92 covering the period from January 1 to December 31, 2017, and for certain issues, the periods from 2010 to 2016 and the first quarter of 2018. The MoF’s Department of Internal Audit conducts audits on the operations of the Tax Administration’s regional offices. The ICU of the Tax Administration, in addition to its role in internal affairs, liaises with the MoF audit bodies and provides audit reports to the Chairman.93 This unit also has a presence in each region. The unit also coordinates with and responds to the SAC, where needed. In its comments on the PAR, the Tax Administration has reiterated that SAC does, in fact, conduct annual financial and operations oversight of Tax Administration. The assessment team requested Tax Administration for additional evidence to confirm this. Reports for 2017, 2019, 2020, 2021 and 2022 were submitted as evidence.94 Moreover, letters as evidence of communication containing SAC findings and Tax Administration’s responses and were submitted as additional evidence.95 The translated version of these reports does show that the external oversight includes a variety of financial and operational issues. Although the ICU of the Tax Administration coordinates the responses to the SAC, the SAC’s reports do not routinely incorporate Tax Administration’s responses. Accordingly, the score for this dimension has been changed from a ‘D’ score to a ‘B’ score. |
| P1-2 | MCD | B | FIRST | 2015 | English | Scored B because sound performance fairly closely to internationally accepted good practice was detected in:Various activities are undertaken to address compliance risks involving unregistered businesses. The Strategic Plan for 2017 to 2019 provides for follow-up of unregistered businesses as a priority focus and a range of internal and external data sources9 is being used to identify taxpayers in the hidden economy. Industry sector syndicates have from time to time provided information about unregistered businesses in their sector. The result of such activities feeds into the audit planning process. Regional offices conduct sector-based projects to detect unregistered businesses in their local area, subject to available staff resources.10 A new national program for detection of unregistered taxpayers has been authorized in the 2018 Budget Law11 but is yet to be implemented. |
| P2-3-1 | MCD | B | FIRST | 2015 | English | Scored B because sound performance fairly closely to internationally accepted good practice was detected in:Several research papers and studies have been undertaken across both the VAT and Revenue Directorates. These documents, prepared by the central compliance units, demonstrate that the Tax Administration undertakes good research into areas of risk. Each of the papers detailed the recommended actions to be undertaken to address identified compliance issues.Information from a range of external sources is gathered and analyzed. Although the bank secrecy regime prevents data from financial institutions being available for compliance analysis, the tax administration analyses data from other sources such as Customs, industry. The papers reviewed in the assessment were: (i) Legislative issues associated with mobile phone revenue leakage; (ii) Measures to counter fraudulent VAT registrations by foreign nationals; (iii) Profit shifting between related parties in the food industry; (iv) Analysis of dental practitioner income information; (v) Oil and gas industry risk mitigation approaches; (vi) Study on trade in the granite, cement, and marble industry; (vii) Compliance risks in the scrap metal industry; (viii) Identification of risks associated with China trade; and (ix) Analysis of revenue and refunds in the used car industry. groups, and other government agencies including the commercial registry. Such analysis is then used in topical research and specific studies. |
| P3-8-2 | MCD | B | FIRST | 2015 | English | Scored B because sound performance fairly closely to internationally accepted good practice was detected in:Public information is current in terms of the law and administrative policy. Taxpayers are made aware of changes through general (untargeted) communication (newspapers and television) before changes take effect. Internal directives provide for dedicated staff to ensure information will be updated on the webpage as well as within internal and external printed material. Text messages and emails announcing changes are sent to all taxpayers that are registered for e-services. Changes are also publicized directly via external tax professionals and on the The Tax Administration Facebook page |
| P3-10 | MCD | B | FIRST | 2015 | English | Scored B because sound performance fairly closely to internationally accepted good practice was detected in:A range of initiatives to reduce taxpayer compliance costs is in place, however prefilling of tax declarations is not available. Simplified record keeping and less frequent filing and payment arrangements exist for natural persons. Small taxpayers who are natural persons may file a simplified one-page tax declaration and for some high-risk industries (e.g. street 25 vendors), turnover and tax liability are estimated by the tax administration. Common misunderstandings detected through verification activities and questions and feedback from taxpayers are analyzed to enhance call center services.A secure taxpayer portal is available with 24-hour access. This facility allows taxpayers or their authorized agents to view the status of refunds/payments, filing and payment obligation and transaction history. The portal also enables taxpayers to file declarations and pay taxes, and amend their personal details when they file. Tax declarations for VAT were revised in 2012. Tax declarations are currently being revised to better accommodate the e-filing and e-payment initiatives. |
| P4-12-1 | MCD | B | FIRST | 2015 | English | Scored B because sound performance fairly closely to internationally accepted good practice was detected in:On time filing performance is sound.16 Filing of annual declarations for PIT (94.6 percent) and PAYE (92 percent) comfortably meet international good practice. Filing performance for the CIT (89.2 percent for all taxpayers and 99.4 percent for large taxpayers) was also strong and only marginally short of an A score. The same applies for filing of VAT returns where the overall filing rate of 97.0 percent significantly exceeds the international good practice standard, while large taxpayer VAT filing (98.7 percent) falls fractionally short.A range of taxpayer-friendly measures is applied to encourage timely filing. The tax administration’s website and dedicated mobile application contain a tax calendar of forthcoming events, including filing dates. General reminders of impending filing dates are publicized in mass media and on the administration’s social media presence. Reminders of approaching filing dates are also sent by email or SMS to taxpayers for whom such contact details are held.Periods of grace that effectively extend the filing date are allowed where appropriate and are publicized widely. A general period of grace is allowed to the next working day where a filing date falls on a weekend or public holiday. Where, as in 2018, filing dates fall over the Easter holiday period, filing dates are appropriately extended (in 2018, by 6 days). Tax procedure legislation permits the extension of the filing period by up to one month in exceptional circumstances (such as serious illness), on application by the taxpayer. Such applications are approved by the Tax Administration on a case-by-case basis.Penalties are applied where taxpayers file after the due date. The penalty rate is considered appropriate and in more serious cases of non-filing, prosecution through the courts and suspension of customs services is available. |
| P4-12-3 | MCD | B | FIRST | 2015 | English | Scored B because sound performance fairly closely to internationally accepted good practice was detected in:On time filing performance is sound.16 Filing of annual declarations for PIT (94.6 percent) and PAYE (92 percent) comfortably meet international good practice. Filing performance for the CIT (89.2 percent for all taxpayers and 99.4 percent for large taxpayers) was also strong and only marginally short of an A score. The same applies for filing of VAT returns where the overall filing rate of 97.0 percent significantly exceeds the international good practice standard, while large taxpayer VAT filing (98.7 percent) falls fractionally short.A range of taxpayer-friendly measures is applied to encourage timely filing. The tax administration’s website and dedicated mobile application contain a tax calendar of forthcoming events, including filing dates. General reminders of impending filing dates are publicized in mass media and on the administration’s social media presence. Reminders of approaching filing dates are also sent by email or SMS to taxpayers for whom such contact details are held.Periods of grace that effectively extend the filing date are allowed where appropriate and are publicized widely. A general period of grace is allowed to the next working day where a filing date falls on a weekend or public holiday. Where, as in 2018, filing dates fall over the Easter holiday period, filing dates are appropriately extended (in 2018, by 6 days). Tax procedure legislation permits the extension of the filing period by up to one month in exceptional circumstances (such as serious illness), on application by the taxpayer. Such applications are approved by the Tax Administration on a case-by-case basis.Penalties are applied where taxpayers file after the due date. The penalty rate is considered appropriate and in more serious cases of non-filing, prosecution through the courts and suspension of customs services is available. |
| P6-19-1 | MCD | B | FIRST | 2015 | English | Scored B because sound performance fairly closely to internationally accepted good practice was detected in:Both the VAT and Revenue Directorates have an annual audit plan. Each plan is formulated prior to the commencement of the fiscal year and is based upon the available audit resources and each directorate’s capacity to undertake the different categories of audit casework. All taxpayer segments are covered in the plans and there is a separate plan prepared for large taxpayers. All core taxes are included in the 2018 audit plans but legislative changes that have taken effect post the field visit, require income tax audits of some businesses to cease. Evaluation of audit results to determine the programs’ impact on taxpayer compliance is limited. There is monitoring against planned audit activities on both monthly and quarterly bases (for VAT) and quarterly (for income tax). Annual reports are produced on audit results which centers on additional taxes raised and penalties imposed.Audit case selection is undertaken centrally. A “Compliance Risk Grid” is utilized to select all audit casework. This grid, originally designed and implemented in 2008, calculates a risk score based on the occurrence of certain criteria.25 The criteria are weighted and all declarations for the core taxes are subjected to the grid examination. The higher the score - the greater priority assigned for audit activity.A range of audit types is applied. Field audits consist of both issue-orientated and comprehensive audits. Desk audits are also performed but these are mainly used when dealing with smaller taxpayers. Audit casework is undertaken by controllers who receive initial training at the Institute of Finance. This is followed by a period of case mentoring by senior controllers. A comprehensive audit manual governs procedures controllers need to follow in undertaking casework. These procedures include advice on the application of both direct and indirect audit methodologies and on internal controls of audit work. Refund audits for VAT are also undertaken. Some joint audits (income tax and VAT) are conducted. |
| P8-26 | MCD | B | FIRST | 2015 | English | Scored B because sound performance fairly closely to internationally accepted good practice was detected in:Input is provided on tax revenue forecasting as part of the annual governmental budgeting process. The responsibility is shared between dedicated staff from Revenue and VAT Directorates and coordinated within the Tax Administration. Internal historical revenue data34, the impact of announced changes in the legal framework and external macroeconomic indicators serve as input to the analysis. The tax administration does not play a specific role in monitoring and reporting upon the cost to revenue of tax expenditures; this responsibility lies elsewhere within the General Directorate of Finance. Impacts on future collections of the stock of tax losses are not taken into account within the tax administration inputs into the budget revenue forecast.Collections are monitored and reported monthly against budget. Any exceptions are identified and reported upon. VAT refund forecasts are reviewed regularly to ensure sufficient funds are available to meet legitimate claims. |
| P2-3-1 | EUR | B | FIRST | 2015 | English | Scored B because sound performance fairly closely to internationally accepted good practice was detected in: The Tax Administration deploys a structured and comprehensive risk management approach aimed at assessing and quantifying a broad range of compliance risks. The Risk Management Division (RMD) uses a wide range of data sets (from partner agencies like the KBRD and KC) against which taxpayer profiles are developed. These are augmented by a comprehensive analysis against a series of risk rules that enables the RMD to assign risk scores to both individual taxpayers, and to industry sectors. |
| P3-10 | EUR | B | FIRST | 2015 | English | Scored B because sound performance fairly closely to internationally accepted good practice was detected in:Simplified record keeping and reporting arrangements exist for small businesses, but only very limited use is made of prefilled tax declarations. Small businesses and entrepreneurs with an annual turnover under €50,000 can opt for simplified taxation and record keeping for PIT and CIT. Tax returns are prefilled only in a limited way with name, address and TIN. Frequently asked questions and common misunderstandings are periodically identified and analyzed to improve information products and services. Frequent questions from regional taxpayer service specialists and Call Center specialists are (periodically) collected by the Taxpayer Service and Education Department and organized in a structured way on the website. Taxpayers and their intermediaries have 24-hour secure online access to registration and account details through the taxpayer portal. The portal may be interrupted for a brief period overnight while transaction data is being updated. The design and the content of tax declarations and other taxpayer forms are reviewed only on an ad hoc basis. There is no structured approach to review tax declarations and other forms and only if complaints are received or the question comes up during a meeting with trade representative’s changes to the declarations or forms are considered. |
| P3-11-2 | EUR | B | FIRST | 2015 | English | Scored B because sound performance fairly closely to internationally accepted good practice was detected in:Taxpayers groups and intermediaries are invited to meetings with The Tax Administration to be informed about new procedures and legislative changes. Discussions with sThe Tax Administrationeholders are carried out to inform them of new procedures, changes in the legislation, and major reforms. However, there is no regular and structured system for engagement with key taxpayer groups and intermediaries specifically for the purposes of identifying deficiencies in administrative processes and products. |
| P4-14 | EUR | B | FIRST | 2015 | English | Scored B because sound performance fairly closely to internationally accepted good practice was detected in:The Tax Administration has made notable efforts to encourage its taxpayers to file their returns electronically. The results of these efforts are reflected in the 2015–17 data provided in Table 9 in Attachment III which show major increases in CIT, VAT, and PAYE withholding electronic filing rates over that period. Legislative changes to mandate electronic filing for VAT and PAYE withholding have also facilitated increased rates of e-filing. Large taxpayers are required to use e-filing for all of their tax obligations with one exception: it continues to be possible for large taxpayers to file their CIT returns on paper. For that reason, the combined e-filing rate for large taxpayers across all core taxes is 98 percent. |
| P6-19-1 | EUR | B | FIRST | 2015 | English | Scored B because sound performance fairly closely to internationally accepted good practice was detected in:The audit program comprehensively covers all tax types and sectors. From 2018, the audit program has been adjusted and now incorporates a range of different audit types, with a clear distinction between audits and other compliance visits.Auditors have access to a risk system that provides insights into the relative risk a taxpayer poses. RMD selects about 70 percent of audit cases centrally and provides not only a risk score for that taxpayer, but also data on financial ratios and the taxpayer’s declaration history. Audit activities are actively monitored against the operational plan, and assessed with reference to the additional revenues raised through audits. However, the effectiveness and impact of audits on levels of taxpayer compliance are not routinely assessed. Revenue collection is used as a proxy measure to assess the effectiveness of audit activities, but no other explicit outcomes measures are associated with audits. The Tax Administration noted that analytical work is currently underway to assess the extent to which taxpayers revert to earlier behavior after an audit |
| P6-21 | EUR | B | FIRST | 2015 | English | Scored B because sound performance fairly closely to internationally accepted good practice was detected in:A system of public and private binding rulings operates under sections 9 and 10 of the Law on Tax Administration and Procedures. Public rulings are published on the The Tax Administration website (although not common, with only three rulings having been given in 2017, and none reported for 2018 to date.) The Tax Administration does not enter into cooperative compliance arrangements with taxpayers. Although the The Tax Administration Large Taxpayer Division is highly facilitative in terms of its relationship with large taxpayers, it has not adopted any formal measures like cooperative compliance arrangements to secure accurate reporting, and does not actively track the extent of accurate reporting by large taxpayers |
| P7-24 | EUR | B | FIRST | 2015 | English | Scored B because sound performance fairly closely to internationally accepted good practice was detected in:The Tax Administration’s Appeals Directorate completes its administrative reviews of 99 percent of cases within the 60-day statutory deadline. Article 77 (4) of the law on tax administration and procedures requires that the Appeals Directorate deliver its decision in writing on a taxpayer’s appeal not later than 60 days after the date of the appeal. Table 12 in Attachment III indicates that, during the 12-month period April 2017 to March 2018, 34 percent of the Appeals Directorate’s reviews were completed within 30 days and a further 65 percent of reviews were completed within 60 days, giving a combined 99 percent rate of completion of administrative reviews within the 60-day statutory deadline. |
| P8-26 | EUR | B | FIRST | 2015 | English | Scored B because sound performance fairly closely to internationally accepted good practice was detected in:The Tax Administration monitors tax revenue performance against a detailed revenue collections plan. Detailed monthly plans present revenue collection trends at a tax type and office level, and are assessed both against previous years’ performance and against the revenue target.The Tax Administration also actively tracks taxpayer accounts and payment trends. This includes monitoring taxpayers who carry forward losses, in order to ensure that refund forecasts adequately cater for potential payments that may become due in future periods.The revenue forecasting and revenue performance processes allow The Tax Administration to engage with the MOF on the setting and adjustment of revenue targets. The Tax Administration actively engages with the Macro-Economics Department in the MOF on ongoing revenue collections, and on the development of revenue estimates and forecasts. No evidence on process for moitoring and reporting on the cost to revenue of tax expenditures was presented. |
| P9-32-2 | EUR | B | FIRST | 2015 | English | Scored B because sound performance fairly closely to internationally accepted good practice was detected in:Strategic and operational plans developed by the The Tax Administration are made public. The The Tax Administration has developed a Strategic Plan 2015-2020, an annual work plan, and an annual risk treatment plan. All plans are available on the The Tax Administration website but the Annual Work Plan for 2018 and the Annual Risk Treatment Plan for 2018 were not posted to the website until end-March 2018 |
| P3-8-2 | WHD | B | FIRST | 2015 | English | A B score was obtained because a good performance quite close to internationally accepted good practices was detected in: The information available in the Tax Administration is updated and procedures are applied to update information products in accordance with changes in regulations. The Taxpayer Services and Tax Culture Management has personnel exclusively dedicated to updating information and has a documented procedure for systematically updating information. The regulatory modifications are communicated to taxpayers in a general way (press releases, radio, television, internet portal and social networks). The legislative modifications are disseminated on the Tax Administration's internet portal on the day of their publication. No evidence has been received of specific communications to taxpayer sectors regarding relevant regulatory modifications. |
| P3-9 | WHD | B | FIRST | 2015 | English | A B score was obtained because good performance close to internationally accepted good practices was detected in: 61.5 percent of telephone calls are answered immediately. As table 3 of Annex III shows, 61.5 percent of telephone calls are answered in less than 5 seconds. The Tax Administration's call center has 16 agents answering telephone queries and online chat, and there is monthly monitoring of the main management parameters of telephone service. In addition, waiting times at PACs are monitored through their queue management software. |
| P3-10 | WHD | B | FIRST | 2015 | English | A B score was obtained because good performance quite close to internationally accepted good practices was detected in:The Tax Administration has launched several initiatives to reduce the taxpayer's compliance cost, but does not offer pre-filled returns for major taxes. There are special simplified regimes for certain sectors of taxpayers (e.g. artisans, retailers, individuals who provide transport services, agricultural and livestock activities). The Tax Administration has an internal repository of the most frequent queries updated from the input of the agents who answer the queries and which is used to provide a more homogeneous service. Additionally, the most frequent queries on certain topics have been published on its internet portal (e.g. virtual billing system, payment facilities). The Virtual Office allows taxpayers to carry out different procedures online: initiate the registration and modification of registry data and deactivate NIT, send sworn declarations and financial statements, consult debts and tax obligations, obtain tax statements and certifications, etc. Additionally, its internet portal includes different aids for taxpayers to comply with their obligations (e.g. taxpayer calendar, software, tax calculator, tax blackboard). Tax Administration However, taxpayers are not yet provided with pre-filled returns for any of their major taxes. |
| P3-11-1 | WHD | B | FIRST | 2015 | English | A B score was obtained because good performance was detected that was quite close to internationally accepted good practices in: The Tax Administration carries out various actions to monitor the quality of services, although the Tax Administration requires regular intervention by an independent third party. The Tax Administration has been certified in 2017 according to the ISO 9001: 2015 quality standard. The taxpayer's opinion is obtained in different ways: (i) daily through the forms deposited in the claims and suggestions mailboxes existing in its network. CAP; (ii) in the events in which you participate; (iii) an annual survey based on statistical methods; (iv) annual study based on focus groups conducted by an independent third party. A survey on the quality of services to be carried out by a private company is planned for 2018. Tax Administration However, no evidence has been received from previous surveys on a valid sample of taxpayers by an independent third party. |
| P5-17-1 | WHD | B | FIRST | 2015 | English | A B score was obtained because a good performance quite close to internationally accepted good practices was detected in: The punctuality rate in VAT payments reaches 82 percent of payments (in value) and 81.4 percent (in value). in number). See Table 10 in Annex III |
| P5-17-2 | WHD | B | FIRST | 2015 | English | A B score was obtained because a good performance quite close to internationally accepted good practices was detected in: The punctuality rate in VAT payments reaches 82 percent of payments (in value) and 81.4 percent (in value). in number). See Table 10 in Annex III |
| P8-27 | WHD | B | FIRST | 2015 | English | A B score was obtained because good performance close to internationally accepted good practices was detected in: The Tax Administration uses the MEFP's automated accounting system that receives tax payment information within one business day. Tax Administration However, there is no evidence of external audits of the accounting system that ensure its alignment with tax legislation. The Tax Administration has the Copernicus system, which is a computer module that develops tax collection service processes. The system accounts for the tax revenues made at Banco Unión - which provides the cash service, Tax Administration, although it may authorize other financial entities - and processes the corresponding information so that the transfer orders can be generated every business day. They are sent before 12 noon the following day to the Central Bank of Bolivia, which is responsible for distributing the funds among the beneficiary entities, after the corresponding reconciliations. The MEFP has access, through web services, to the information registered in the Copernicus system, and it is up to the Accounting Office to carry out the corresponding reconciliations within the framework of the MEFP accounting systems (SIGMA and SIGEF). All payments are posted to the accounting system within one business day. Evidence from internal audits is provided about the reliability of the accounting of the corresponding records, Tax Administration that contains evidence about external audits of adjustment to tax legislation |
| P9-29-2 | WHD | B | FIRST | 2015 | English | A B score was obtained because good performance close to internationally accepted good practices was detected in: Institutional mechanisms to ensure staff integrity are adequate, but descriptive statistics related to integrity are not publicly disseminated. The Tax Administration has a Transparency and Fight Against Corruption Unit (UTLCC) equipped with 5 public servants, independent in organizational terms and subordinated directly to the Executive Presidency. The head of the UTLCC is appointed by the Minister of Economy and Public Finance. Current legislation30 entrusts it with the following functions: (i) promote and implement transparency, prevention and fight against corruption plans and propose to the Executive Presidency regulations and manuals on issues of integrity and ethics policies; (ii) gather information, ex officio or at the request of a party (complaint) about possible acts of corruption, in accordance with its internal regulations that grant it appropriate powers (e.g. request information from any area of ??the Tax Administration, hire specialists, require reports from private entities); (iii) prepare a report within 45 days; (iv) report to the Public Ministry and send a copy to the Executive Presidency, when the existence of elements that allow identifying and establishing possible criminal liability is noted; and (v) follow up and monitor the processes that arise from the complaints made. Reception of complaints about possible acts of corruption is carried out through several channels: form on its internet portal, complaint mailboxes in the PACs and a specific toll-free telephone line. In 2017, 22 complaints were received for alleged acts of corruption. In 2017 and 2018, two complaints were filed with the Public Ministry. Tax Administration However, the published statistics (annual report and intranet) do not provide sufficiently descriptive information about the integrity of the institution (e.g. number of complaints for possible corruption received, number of complaints to the Public Ministry) |
| P9-32-2 | WHD | B | FIRST | 2015 | English | A B score was obtained because good performance close to internationally accepted good practices was detected in: Annual operational plans are made public during the first week of January of each year. The approval of the annual operational plans is linked to the approval of the General State Budgets, which takes place in December of each year. |
| P2-3-1 | AFR | B | FIRST | 2015 | English | Scored B because sound performance fairly closely to internationally accepted good practice was detected in:Compliance risk management is not fully embedded in the organizational structure and processes. There is an early-stage development of risk analysis, intelligence gathering and research to identify compliance risks. Data from a range of third parties including the FIU, border police, local municipalities, Ministries and Agencies and Exchange of Information (EOI) agreements are gathered and analyzed to build knowledge on hidden economic activities of registered and unregistered taxpayers; however, no environmental scans have been undertaken thus far. The Anti-fraud unit uses information from both external and internal sources to identify tax risks and prepare reports on anomalies and trends which are reported monthly. The impact of intelligence-gathering and risk analysis measures are directed mainly to the audit division for additional assessments. |
| P3-8-3 | AFR | B | FIRST | 2015 | English | Scored B because sound performance fairly closely to internationally accepted good practice was detected in:Information is available through a wide range of sources at minimal or no cost. The Tax Administration provides information to taxpayers through press releases, television and radio talk shows, its website, brochures, WhatsApp, SMS messages, through other social networks, tax seminars as well as walk-in-enquiries. In addition, the tax administration provides rulings to taxpayers and information is available at no cost. The Tax Administration portal provides additional information only to registered taxpayers and e-filing is available only for companies during and outside business hours. The Tax Administration has a range of taxpayer education programs directed to the different taxpayer segments and new businesses. A program with the Ministry of Education to include tax education at the primary level is also being considered by the Tax Administration |
| P6-21 | AFR | B | FIRST | 2015 | English | Scored B because sound performance fairly closely to internationally accepted good practice was detected in:Public and private rulings are embedded in the tax legislation. Taxpayers may request clarification on controversial issues or interpretations of tax legislation through a system of consultations. The conclusive opinions of these consultations are announced on the radio on a weekly program for the public, during engagements with key taxpayers and through written notice. Examples of both private and public rulings were sighted. Cooperative compliance arrangements have not been fully implemented. A dedicated large taxpayers office has been established which acts as a single point of contact for large taxpayers. The unit is fully staffed and trained. However, there is no formalized cooperative compliance program embedded in any of the compliance improvement plans. |
| P7-23-2 | AFR | B | FIRST | 2015 | English | Scored B because sound performance fairly closely to internationally accepted good practice was detected in:Objections review procedures are documented and applied, but the administrative review process is not independent of the audit process. The audit team is not organizationally or physical segregated from the reviewer team. Both the audit and dispute divisions report to the regional director who provides the final decision |
| P9-29-2 | AFR | B | FIRST | 2015 | English | Scored B because sound performance fairly closely to internationally accepted good practice was detected in:The Internal Affairs Unit - Departamento de Promoção de Integridade is organizationally independent and well-established. It has adequate investigative powers and appropriate authority to investigate actions of misconduct by officials of the tax administration. The DPI provides leadership in the formulation of integrity policies and the ethics code was recently launched by internal audit. The unit also cooperates with police, law enforcement units,and other relevant agencies in conducting investigations. Although the internal affairs unit maintains adequate statistics, they are not published. |
| P7-23-1 | AFR | B | FIRST | 2015 | English | Scored B because sound performance fairly closely to internationally accepted good practice was detected in:A multi-layered, tiered dispute resolution review mechanism is in place and is used. There is a graduated mechanism of administrative and judicial reviews, consisting of a fully documented review process within the tax administration, a fiscal court for VAT, and for income tax a high court or special income tax court. If the taxpayer is still dissatisfied, an appeal can be made to the Supreme Court for all core taxes. However, the administrative review stage is multi-layered involving reviews by the audit function, and Technical Services, which is a physically and organizationally independent review body within the Tax Administration. |
| P7-23-2 | AFR | B | FIRST | 2015 | English | Scored B because sound performance fairly closely to internationally accepted good practice was detected in:The administrative review process has independence despite audit involvement. Although there is an initial review and recommendation by the original auditor and management within the audit function, the organizationally independent Technical Services teams at the regional and Head Office levels undertake subsequent objective reviews and make recommendations to the Commissioner DT. Several cases were provided wherein recommendations by the auditor were not supported by the Commissioner DT. |
| P7-23-3 | AFR | B | FIRST | 2015 | English | Scored B because sound performance fairly closely to internationally accepted good practice was detected in:Information on the dispute resolution process is publicly available, but taxpayers are not explicitly made aware of it by auditors as part of the audit procedures. The tax administration provides information on the rights of taxpayers to dispute tax assessments and the avenues open to them: (i) on the assessment letter and Notice of Assessment; (ii) on the Notice of Decision following the outcome of an objection undertaken by the Tax Administration: and (iii) on the Tax Administration website. However, there are no written instructions or requirements for auditors to routinely and explicitly inform taxpayers of their dispute rights and the associated dispute procedures as part of the audit procedures |
| P7-25 | AFR | B | FIRST | 2015 | English | Scored B because sound performance fairly closely to internationally accepted good practice was detected in:The Legal and Technical Services functions within the Tax Administration analyze tax dispute outcomes of a material nature, and when necessary proposes and initiates administrative, policy and legislative changes. There is no evidence of regular monitoring and analysis of dispute outcomes. Evidence was provided to show routine recording of progress on tax dispute cases, together with reviews of cases with significant revenue implications. Emanating from these reviews, administrative procedures are amended, and legislative changes and new corporate governance measures are proposed by the Tax Administration for consideration by MOFED. |
| P9-32-1 | AFR | B | FIRST | 2015 | English | Scored B because sound performance fairly closely to internationally accepted good practice was detected in: The Tax Administration prepares an annual report of its financial and operational performance and submits it to MOFED. MOFED then forwards copies of the report to the Clerk of Parliament for onward distribution to Members of Parliament and the Senate. The annual report is made public within nine months of the end of the fiscal year. The Public Entities Corporate Governance Act No.4 of 2018 allows The Tax Administration to publish the financial statements on the website with leave (approval) of the Minister. |
| P1-1-1 | APD | B | FIRST | 2019 | English | Scored B because sound performance fairly closely to internationally accepted good practice was detected in:The Tax Administration’s portal www. The Tax Administration.gov.np provides a system for centralized, computerized registration for all tax types and all registrations are done electronically. The registration form captures comprehensive information and before granting registration, biometric details are also obtained. Each registered person is assigned a unique high integrity registration number and the details of a subsequent registration under a different tax type are captured in the database and indicated in the registration certificate issued to the taxpayer. The taxpayer's association with other registered businesses (associated parties and related entities) is declared by the taxpayer at the time of registration and held in the database. The Tax Administration portal for registration combines the filing and payment functions and provides a full view of the taxpayer’s compliance status across all tax types. The portal allows for deactivation/deregistration of a taxpayer and restoration of archival information as required. The system generates registration-related management information and provides an audit trail of user access. Tax declarations can be generated by The Tax Administration using registration details (for summary/administrative assessments). Businesses and individuals can apply for registration for core taxes using secure online access, which needs to be approved by The Tax Administration. However, once granted registration, taxpayers cannot on their own update the details held in the database. |
| P3-8-2 | APD | B | FIRST | 2019 | English | Scored B because sound performance fairly closely to internationally accepted good practice was detected in:The Tax Administration has dedicated technical staff to ensure that the information available to taxpayers is relevant and current. The Policy Analysis Section and the Tax Reforms Section of The Tax Administration are responsible for analyzing existing laws, resolving ambiguities and making timely updates. The “Operational Guidelines” Manual gives specific details of the steps to be followed while making such changes. The information on the website is current and chronologically uploaded in the “Notices” tab. While there is no evidence of targeted communication, nevertheless, taxpayers are made aware of the changes in law or administrative policy before the provisions come into effect through general Press Releases. |
| P3-11-1 | APD | B | FIRST | 2019 | English | Scored B because sound performance fairly closely to internationally accepted good practice was detected in:Feedback has been obtained regularly from taxpayers and intermediaries, though tax satisfaction surveys are less frequent. The The Tax Administration regularly obtains feedback from stakeholders and has acted on this, for instance, by making changes to the accounting software or making amendments to the Finance Acts based on this feedback. However, the The Tax Administration conducts surveys on a less regular basis with the last two surveys, called the “Rapid Assessment of Taxpayers’ Satisfaction in Nepal”, being conducted four years apart in 2017 and 2021. These th The Tax Administration-party surveys are based on a statistically valid sample and cover all key taxpayer segments. A similar taxpayer satisfaction survey is again expected to be carried out in 2023 |
| P3-11-2 | APD | B | FIRST | 2019 | English | Scored B because sound performance fairly closely to internationally accepted good practice was detected in:The Tax Administration takes into account taxpayer inputs in the design of administrative processes and products through a consultative process. The The Tax Administration regularly consults with stakeholders such as the Federation of Nepalese Chamber of Commerce (FNCCI), Confederation of Nepalese Industries (CNI), the Education Consultancy Association (ECAM) and a host of other parties in the form of pre-Budget meetings. The Tax Administration involves stakeholders in the design of new forms and other products, though this is done infrequently. Some instances of consultations with key taxpayers and intermediaries include consultation on making changes to Annex 5 of the Income Tax Act. |
| P5-18-3 | APD | B | FIRST | 2019 | English | Scored B because sound performance fairly closely to internationally accepted good practice was detected in:The existing stock of tax arrears is high and collectible arrears are significant. The threeyear average of core tax arrears at the end of the fiscal year 2021-22 (2078/79) as a percentage of total core tax collections is about 36 percent, well above the international good practice requiring core tax arrears stock to be less than 10 percent of the total core tax collections. Moreover, this ratio has been increasing in the last three years. The three-year average of collectible core tax arrears at the end of the fiscal year 2021-22 (2078/79) as a percentage of total core tax collections is 11.22 percent, well above the international good practice of 5 percent of the total core tax collections. The three-year average of debt more than twelve months old at the end of the fiscal year 2021-22 (2078/79) as a percentage of all core tax arrears is 25.65 percent which is close to, but falls slightly short of, the international good practice of below 25 percent. On the positive side, this ratio has decreased over the last three years. See Table 13 of Attachment III. |
| P6-21 | APD | B | FIRST | 2019 | English | Scored B because sound performance fairly closely to internationally accepted good practice was detected in:The Tax Administration has an active program to issue public and private rulings along with public guidance on how to obtain them. While an LTO is also in place to manage the large taxpayer population, it has not established formal cooperative compliance agreements with any qualifying taxpayers. |
| P7-23-3 | APD | B | FIRST | 2019 | English | Scored B because sound performance fairly closely to internationally accepted good practice was detected in:Information on taxpayer dispute rights, the process and procedures is publicly available, and taxpayers are made aware of this in written notices. However, there are no written instructions to auditors to explicitly inform taxpayers about their appeal rights. Legislation laying down the rules and procedures for dispute resolution is available on The Tax Administration’s website. FAQs also provide clear instructions on how to make an application for administrative review. Information on appeal rights and associated dispute resolution procedures are specifically included in final notices of assessment and notices of administrative review outcomes. |
| P9-30-1 | APD | B | FIRST | 2019 | English | Scored B because sound performance fairly closely to internationally accepted good practice was detected in:The Office of Auditor General (OAG) conducts independent external oversight of The Tax Administration’s financial and operational performance. The OAG looks at financial statements and covers a wide range of tax operations and management including progress in implementing the multiyear strategic plan. The Tax Administration regularly responds to the OAG report, but the responses are not published. |
| P3-8-2 | APD | B | REPEAT | 2019 | English | Rated B because sound performance fairly close to internationally accepted good practice was detected in the following areas: The information published on the website of the Tax Administration is generally up to date with regard to legislation and administrative policy. A dedicated SRPP unit is responsible for updating all information. In the case of legislative amendments, a procedure is in place for prior notification to taxpayers through a general communication allowing them to be informed of any changes before the law comes into force. Targeted communications are not used. |
| P3-11-2 | APD | B | REPEAT | 2019 | English | Rated B because sound performance fairly close to internationally accepted good practices was detected in the following areas: The Tax Administration regularly organizes consultation meetings with key stakeholders, including taxpayers and tax intermediaries, to identify deficiencies in processes and procedures. Consultation meetings are organized with the Chamber of Commerce, private business associations, civil society and tax advisors. User test groups were created for the implementation of the E-SISIC portal and the certified invoice. However, the Tax Administration has not put in place a lasting mechanism allowing active participation of taxpayers in the design of new processes and products. |
| P6-19-3 | APD | B | REPEAT | 2019 | English | Rated B because sound performances quite close to internationally accepted good practices were detected in the following areas: The Tax Administration has a Verification Quality Unit (CQV) which monitors the quality of the verification, ensures compliance with procedures documented controls and findings. This unit is placed under the authority of the Director General of Taxes. The unit has a “Revisor’s Guide” which provides for twenty-three checks allowing the reviser to assess whether the file is sufficiently documented. There is no mechanism to ensure that the recommendations made by the CQV are taken into account by the auditing services. |
| P7-23-2 | APD | B | REPEAT | 2019 | English | Rated B because sound performance fairly close to internationally accepted good practices was detected in the following areas: The administrative review is independent of the audit process. The Litigation Department is responsible for the national processing of all administrative reviews (complaints) which are addressed to the Director General, under whose authority the decision will be taken. The Litigation Department is independent of the services responsible for tax control (DRI, DME and DGE) both organizationally and geographically. A widely distributed litigation guide mentions the procedures in force and ensures the uniformity of the administrative review. |
| P3-10 | AFR | B | REPEAT | 2019 | English | Scored B because sound performance fairly closely to internationally accepted good practice was detected in:Initiatives to reduce taxpayers’ compliance costs have been implemented. Taxpayers and their authorized agents can access account details, register, file, and pay online through a secure system with 24-hour access. Additionally, simplified record keeping29 is afforded to small taxpayers who qualify for tax on turnover (TOT) and are below the VAT threshold (turnover of less than 25 million Naira). Mobile applications are available to small traders and individuals to file and pay taxes. Frequently asked questions30 and common misunderstandings of the law are detected with verification activities and are routinely analyzed to improve information products and services. There is pre-filled information in tax declarations31 for VAT and CIT. All tax returns and forms have been reviewed to be introduced into TaxPro MAX system. Nonetheless, no evidence of tax declarations and other forms being regularly updated to ensure that only information that is needed and used is sought from taxpayers. The Tax Administration requires that VAT taxpayers below the threshold for filing VAT returns file ‘nil’ returns monthly.Self-service stations were created for taxpayers in all The Tax Administration tax offices for ease of tax filing and payment, for taxpayers who need support or lack IT equipment. The self-service allows a taxpayer to use The Tax Administration facilities to perform electronic transactions at no cost to the taxpayer. The self-service stations provide taxpayers with the opportunity to file tax returns, pay taxes, apply for and validate Tax Clearance Certificates, generate receipts and credit notes and other e services.32 There is no evidence that initiatives are taken to ensure that only information that is needed and used is sought from taxpayers. The Tax Administration requires taxpayers below the VAT threshold to file ‘nil’ tax returns monthly. |
| P3-11-1 | AFR | B | REPEAT | 2019 | English | Scored B because sound performance fairly closely to internationally accepted good practice was detected in: The Tax Administration regularly monitors taxpayer perceptions of service and seeks taxpayer feedback on information products and services. This includes web page content and layout, forms design and operationalization of the TAXPro MAX. Taxpayers and professional associations provide feedback through emails, telephone, website, service centers, as well as through a variety of regular stakeholder meetings and public forums such as tax education forums, tax summits, and tax roundtables. The Tax Administration conducts customer satisfaction surveys on an ad-hoc basis.33 The surveys are based on a statistically valid sample of key taxpayer segments and stakeholders and are conducted by an independent third party. The most recent survey was conducted from October 2021 to February 2022.34 During these meetings and public forums, key taxpayer groups and tax intermediaries discuss issues and challenges in the law and procedures. Nonetheless, no evidence of active engagement from taxpayers and intermediaries in the design and testing of new processes and products. |
| P3-11-2 | AFR | B | REPEAT | 2019 | English | Scored B because sound performance fairly closely to internationally accepted good practice was detected in: The Tax Administration regularly monitors taxpayer perceptions of service and seeks taxpayer feedback on information products and services. This includes web page content and layout, forms design and operationalization of the TAXPro MAX. Taxpayers and professional associations provide feedback through emails, telephone, website, service centers, as well as through a variety of regular stakeholder meetings and public forums such as tax education forums, tax summits, and tax roundtables. The Tax Administration conducts customer satisfaction surveys on an ad-hoc basis.The surveys are based on a statistically valid sample of key taxpayer segments and stakeholders and are conducted by an independent third party. The most recent survey was conducted from October 2021 to February 2022.During these meetings and public forums, key taxpayer groups and tax intermediaries discuss issues and challenges in the law and procedures. Nonetheless, no evidence of active engagement from taxpayers and intermediaries in the design and testing of new processes and products. |
| P5-18-1 | AFR | B | REPEAT | 2019 | English | Scored B because sound performance fairly closely to internationally accepted good practice was detected in:Tax arrears as a percentage of total revenue collected has reduced from 32 to 11 percent in the last three years. The percentage has been affected by both the increased revenue collected and the reduction of the arrears at the end of the year. The collectible tax arrears have reduced from 17 to 3 percent in the last three years, demonstrating a very high amount of non-collective portions of arrears. This may be the reason of the very high level of more than twelve months old arrears. Nonetheless, the arrears more than 12 months’ old is a higher number (87 percent), indicating challenges in recovering tax arrears |
| P6-20 | AFR | B | REPEAT | 2019 | English | Scored B because sound performance fairly closely to internationally accepted good practice was detected in: The Tax Administration performs automated crosschecking of information using a comprehensive set of internal and external sources. The Intelligence Strategic Data Mining & Analysis Department (ISDMA) uses a set of electronic tools to gather and match the data from different sources. The Tax Administration does not gather and carry out massive, automated crosschecking of data from the Social Security Institution or online vendors. The Tax Administration also does not perform large-scale data matching from employers. The assessment team used professional judgment to conclude that this is not a relevant data source to the Tax Administration to be considered in the scoring criteria. Regarding other jurisdictions, the country is also gathering information on the Companies in the Country and Citizens in other jurisdictions using the OECD Automatic Exchange of Information (AEOI) Software, but the automated data-matching is to be implemented. |
| P6-21 | AFR | B | REPEAT | 2019 | English | Scored B because sound performance fairly closely to internationally accepted good practice was detected in: The Tax Administration offers both public and private rulings for all core taxes. Sections 8, 25, and 67 of the Tax Administration Establishment Act contain the powers of The Tax Administration related to administering taxes, and the Operations Manual establishes specific procedures to be followed by the Tax Policy and Advisory Department when preparing rulings. There is no provision for cooperative compliance agreements for Nigerian taxpayers as indicated in the TADAT framework. In the field guide, a cooperative compliance agreement is a voluntary arrangement between the tax administration and a taxpayer, particularly large taxpayers, aimed at improving the working relationship by reducing legal uncertainty, creating a level playing field, and reducing the costs to both the tax administration and the taxpayer. |
| P7-25 | AFR | B | REPEAT | 2019 | English | Scored B because sound performance fairly closely to internationally accepted good practice was detected in: The Tax Administration analyzes dispute outcomes of a material nature and proposes changes in legislation74, policies, and administrative procedures accordingly. Examples of The Tax Administration taking actions to respond to the outcomes are the proposals sent to the Ministry of Finances for consideration by the Fiscal Policy Reform Committee.75 The Legal Services Department is primarily responsible for monitoring and proposing the changes. Actions range from new/revised procedures/circulars, additional taxpayer education materials, or recommendations for legislative change. Nonetheless, regular reporting of all dispute outcomes and decision impact statements are not evident. |
| P8-26 | AFR | B | REPEAT | 2019 | English | Scored B because sound performance fairly closely to internationally accepted good practice was detected in: The Tax Administration provides input on tax revenue forecasting to the Federal Government’s Office of Budget. Revenue forecasts are routinely prepared, and actual revenue collections are monitored to provide inputs to different government budget processes. Forecasts of VAT refunds (and other taxes) are prepared and shared with the Federal Ministry of Finance for inclusion in the Federation Government Appropriation Act. Tax expenditures are routinely monitored and tax expenditure reports are prepared annually. However, The Tax Administration does not monitor the impact of tax losses carried forward. |
| P3-8-2 | EUR | B | FIRST | 2019 | English | Scored B because sound performance fairly closely to internationally accepted good practice was detected in:Information is kept current by specific staff, responsible for updating the website and social media, and for issuing press releases. Dedicated staff in the Sector for Taxpayer Services and Taxes coordinates service delivery, including reviewing and updating materials from other departments. There is an instruction to all departments to the Tax Administration vide regular updates to this team, who update the website and issue press releases. Internal The Tax Administrationcedure The Tax Administrationvides for ad hoc updates of information on the website and in publications in the case of a law change. It also prescribes an annual information review, even if there were no major law changes. information may be published also when a law has been adopted but not entered into force yet. There is no specifically targeted communication yet to those to whom a change in the law concerns (although The Tax Administration is planning to develop this in the future). |
| P3-11-1 | EUR | B | FIRST | 2019 | English | Scored B because sound performance fairly closely to internationally accepted good practice was detected in:Regular taxpayer service surveys are conducted by the Tax Administration yearly with both systematic and free-form feedback. The questionnaire is published on the Tax Administration’s website, but invitations to fill it out are targeted. Target groups are randomly selected from different regions and by types of taxpayers, except for large axpayers who are all approached every year. The survey is aimed at ensuring service levels and taxpayer perceptions. Although the target groups are selected and the results are analyzed not in a strictly statistically valid fashion, the use of random lists of taxpayers to be contacted greatly reduces possible bias. The survey is, however, conducted by the Tax Administration itself and not by an independent agent. The surveys are of a general nature but cover a range of services and various taxpayer groups. The Tax Administration surveys of taxpayers are conducted at a general level, but they cover a range of services and explore taxpayers’ satisfaction allowing also for freeform feedback to tax administration. The surveys have so far targeted different types of taxpayers, from natural persons to large businesses. The findings of the surveys are systematically analyzed and submitted for consideration by Tax Administration management as well as distributed to all staff. |
| P4-12-1 | EUR | B | FIRST | 2019 | English | Scored B because sound performance fairly closely to internationally accepted good practice was detected in:CIT: On-time filing rates for both large taxpayers separately and all CIT taxpayers are respectively 97.3 percent and 97.5 percent (Table 4, Attachment III); |
| P4-12-3 | EUR | B | FIRST | 2019 | English | Scored B because sound performance fairly closely to internationally accepted good practice was detected in:VAT: Large and all VAT taxpayers’ on-time filing rates are 99.0 percent and 96.6 percent respectively (Tables 7 and 6, Attachment III); |
| P4-12-5 | EUR | B | FIRST | 2019 | English | Scored B because sound performance fairly closely to internationally accepted good practice was detected in:PAYE: For monthly PAYE withholding filing by employers, the average on-time filing rate is 88.2 percent (Table 10, Attachment III |
| P5-18-1 | EUR | B | FIRST | 2019 | English | Scored B because sound performance fairly closely to internationally accepted good practice was detected in:Collection performance of tax arrears has imTax Administrationved but is still weak due to the extent of old arrears. The ratio of total arrears to annual revenue collection has imTax Administrationved during the last years from 16.7 percent in 2017 to 12.3 percent in 2019. However, the existing stock comprises mostly old debt. Although write-off Tax Administrationcedures, both temporary and permanent, to address uncollectable old stock of arrears are regulated in the Law on Tax Tax Administrationcedure, there are several impediments to effective debt management. These include, among others, uncertainty about the taxpayer's economic status in the taxpayer register and lack of well-functioning automated Tax Administrationcesses for debt write-off. See Table 13 in Attachment III for more details on arrears management. Arrears ratios are summarized below for ease of reference. Three years’ average in percent Ratio of total value of tax arrears to annual core tax revenue collections 14.4 Ratio of collectable value of tax arrears to annual core tax revenue collections 10.5 Ratio of value of tax arrears >12 months to total value of tax arrears 76.4 |
| P7-25 | EUR | B | FIRST | 2019 | English | Scored B because sound performance fairly closely to internationally accepted good practice was detected in:All dispute outcomes are analyzed by the Tax Administration’s legal department even though impact statements are not routinely prepared. There are examples showing that the dispute outcome has changed the Tax Administrationcedures and material interpretation of the tax regulations in the Tax Administration Tax Administrationcesses. The Tax Administration legal department analyzes and refers relevant cases to respective sectors to be taken into account. Statistics exist about the number, outcome and types of cases as well as their distribution across the regions. All Administrative Court decisions are published on the MoF’s website |
| P8-26 | EUR | B | FIRST | 2019 | English | Scored B because sound performance fairly closely to internationally accepted good practice was detected in:The Tax Administration collects and Tax Administration provides regular data on tax obligations and revenue collection and participates in Tax Administration producing estimates in case of legislative changes. While the primary duty of revenue forecast and estimation rests with the MoF, much of the necessary data comes from the Tax Administration. Data on revenues is collected, analyzed, and published monthly. The Tax Administration also provides monthly dynamics of upcoming refunds to Tax Administration, provide information for liquidity planning. A revenue plan is prepared by the Tax Administration on a rolling basis for up to three years ahead. This revenue plan is compiled on a net basis meaning that taxpayers’ possible carryforward rights and deductions, which are revenue authorities’ future liabilities to taxpayers, have been deducted from the revenue Tax Administration objections. There is however no information on forecasting or estimating tax expenditures as costs to budget revenue |
| P1-1-1 | APD | B | FIRST | 2019 | English | Scored B because sound performance fairly closely to internationally accepted good practice was detected in:The information held in the registration database is adequate, but it is not used to generate pre-filled tax declarations. Individuals and companies entitled for taxpayers’ registration follow a robust registration process at Tax Administration. Eligible individuals register for PIT, and qualified companies register for the CIT regime. In addition, individuals and companies liable for Sales Tax (VAT) register voluntarily. In the case of federal excise, customs, and other taxes, all businesses are linked to the National Tax Number (NTN). The taxpayer registration process can be completed online and through in-person visits to a regional office where a customer service personnel assists the taxpayer during the registration process. Tax Administration has specific registration forms under section 184 of the Income Tax Ordinance 2001 and under section 14 of the Sales Tax Act, 1990. New registrants are required to fill in the basic information such as full name, commercial/personal address, telephone number, email, date of birth, and main taxpayer activity. In the case of companies, the registry system is linked to the Security and Exchange Commission (SEC) database which provides information on related entities (shareholders and associated subsidiaries). The registration database is centralized and computerized, and each taxpayer has a unique taxpayer identification.At the end of the registration process, the Tax Administration generates a National Taxpayer Number (NTN), a 13-digit high integrity number. In the case of individuals, the NTN is linked to the Computerized National Identity Card (CNIC) database to verify the full name, address, and date of birth. In the case of companies, IRIS is linked to the SEC database. The registration database interfaces with the filing and payment subsystems and allows secure access to taxpayers. The taxpayer registration database is managed by Pakistan Revenue Automation Limited11 (PRAL) through an ORACLE application. The interface with the Integrated Tax Management System (ITMS) subsystems allows the frontline tax officers, depending on their digital credentials, to have access to a full view of taxpayer information. The system allows for deregistration and segregation of active and inactive taxpayers. PRAL regularly generates monthly and annual management statistics that are required by the senior Tax Administration management. Only authorized officials can enter the database using a password which is security-enhanced by a two-step verification code that keeps an audit trail of user access. The automated registration process enables a secure environment for taxpayers to register and update their details. The system sends a verification code to taxpayer’s telephone to validate the phone number, full name. and address. The validity of the user’s email address is ensured by sending a confirmation password via e-mail |
| P1-2 | AFR | B | FIRST | 2019 | English | Scored B because sound performance fairly closely to internationally accepted good practice was detected in:There are fairly good initiatives to detect unregistered businesses and individuals and these are reflected in Tax Administration’s Annual Report. The Tax Administration’s Broadening the Tax (BTB) Initiative has implemented cross-verification information with third-party data as well as internal information from, for example, returns, audits financial statements to identify potential taxpayers subject to registration. Data sources include property registration information, vehicle registry for luxury cars, utility bills, boat ownership, and information on bank withdrawals. These transactions are captured in a Data Bank for sending notices to those hiding in the shadows. The BTB initiative conducts some impromptu visits to shopping districts to detect unregistered businesses. Tax Administration efforts to enhance the tax base are reflected in the Annual Report of FY2014 where the new taxpayers registered under the income tax were 1.2 million and under the sales tax regime 37,963. These efforts are a result of World Bank/FCDO supported reforms implemented especially through the exchange of information and ICT-based business intelligence |
| P6-21 | APD | B | FIRST | 2019 | English | Scored B because sound performance fairly closely to internationally accepted good practice was detected in:The Income Tax Ordinance contains provisions for advance rulings system so that Tax Administration can provide answers regarding the tax treatment of specific transactions. On the Tax Administration website, there are the procedures for applicants to follow. Advance rulings are not bifurcated into private and public. Advance rulings, once issued, are binding on Tax Administration. There are limited and informal cooperative compliance approaches which involve a dialog with the various bar/legal and accounting bodies. There was no evaluation of the impact of the advance rulings system on compliance. |
| P9-29-1 | APD | B | FIRST | 2019 | English | Scored B because sound performance fairly closely to internationally accepted good practice was detected in:The Tax Administration has a well-functioning and organizationally independent Directorate General of Internal Audit (DGIA) reporting directly to the Chairman Tax Administration. The annual internal audit plan is quite elaborate and provides a wide coverage of examination of performance of key operational, financial and accounting areas. An Annual Inspection Report provides details of internal audit findings and recommendations and action taken by the Tax Administration formations. There is an Internal Audit Manual that provides a repository of internal control and internal audit policies, procedures and guidance for internal audit staff. Officers posted in the DGIA are provided training in audit methodologies by the Directorate of Training approximately twice a year.There is regular monitoring of internal audit investigation by the Member Operations. The Auditor General of Pakistan (AGP), an external Constitutional body, conducts independent review of the DGIA regularly. The Tax Administration Information Security Policy lays down a wide range of IT systems controls in order to detect incidences of security breach and safeguards the security and integrity of Tax Administration databases. Access to databases is strictly controlled through passwords plus a two-step validation code, and an audit trail of user access is maintained. Internal audit of the IT system at PRAL is overseen by the Tax Administration Member in charge of IT |
| P3-10 | WHD | B | FIRST | 2019 | English | A B score was obtained because good performance was detected that was quite close to internationally accepted good practices in: The Tax Administration has implemented a large part of the initiatives to reduce taxpayer compliance costs but does not offer a proposal for the declarations. Small taxpayers have the possibility of keeping simple accounting and simplified reporting and presentation obligations13. Periodically, the DFDCT receives information on the main common misinterpretations of the law detected through the CAT and updates the frequently asked questions on the Tax Administration website, which already has 335 frequently asked questions. The Tax Administration website has a taxpayer portal through the Marangatú system, available 7x24, which gives taxpayers and their authorized third parties the possibility of consulting details of their registration, their tax current account, in addition to making registrations (first phase of registration), submit declarations, their rectifications, and pay their taxes. However, there are no pre-filled declarations and the review of the forms is ad-hoc when there are regulatory modifications. |
| P3-11-1 | WHD | B | FIRST | 2019 | English | A B score was obtained because good performance was detected that was quite close to internationally accepted good practices in: The Tax Administration collects taxpayers' opinions on the quality of the services provided, but not through an independent third party. The Tax Administration collects observations from taxpayers through different means: online about their training and by email about the quality of certain processes14. An in-person survey is conducted annually, based on a statistically valid sample of taxpayers, to monitor trends in taxpayer opinion regarding their services15. However, this survey is not conducted by an independent third party. |
| P5-15 | WHD | B | FIRST | 2019 | English | A B score was obtained because good performance close to internationally accepted good practices was detected in: 99.97% of tax payments are made by electronic means in large taxpayers. As can be seen in Table 11 of Annex III, the amount of electronic payments reaches 99.99% for taxpayers in general, and in terms of values ??it reaches 99.69% by the year 2022. The Tax Administration has implemented an electronic collection system through bank transfers that is the main payment channel, which has been implemented in 201722 and allowed this method to become widespread. Other payment mechanisms are also available such as: with credit cards23, payments at counters, virtual wallets, and payment in cash or check, the latter are used in a minimum of cases by large taxpayers who do not allow the described percentages to be brought to 100 %. |
| P6-19-3 | WHD | B | FIRST | 2019 | English | A B score was obtained because good performance was detected that was quite close to internationally accepted good practices in: Quality control of the audits is carried out, and global reports are issued on the control actions on the quality of the audits. The Technical Review Department of the General Directorate of Tax Supervision exercises quality control of the audit action and evaluates the draft final act through the available systems, visualization of the actions and rules on the quality requirements, detected infractions and proposed sanctions37. The review activity is described and documented in the document “Quality control and legality instructions”38. The objective of the reviews is to ensure the legality and quality in the execution of tax controls carried out by the Tax Administration. A summary report of internal audits has been evidenced on opportunities to improve the quality of audits |
| P6-21 | WHD | B | FIRST | 2019 | English | A B score was obtained because good performance close to internationally accepted good practices was detected in: The Tax Administration responds and publishes binding and non-binding tax queries, but there is no cooperative tax compliance program. The Department of Preparation and Interpretation of Tax Regulations has the power to resolve binding or non-binding queries raised by taxpayers. This area has 90 days to respond and publish the queries on the Tax Administration website. The flow of annual consultations is 120 cases. There is no cooperative tax compliance program with large taxpayers, and there is no evidence reports on the impact on compliance of published consultations. |
| P7-23-1 | WHD | B | FIRST | 2019 | English | A B score was obtained because good performance was detected that was quite close to internationally accepted good practices in: There is a tiered dispute resolution mechanism that considers administrative headquarters, external court, and superior court instances; However, the external court does not constitute a specialized and exclusive court for tax issues. Currently in Paraguay, for a taxpayer who is audited and does not agree with the Complaint Act, the Summary process begins without action on the part of the taxpayer, to later have the option of initiating a Reconsideration. Then, the taxpayer can initiate the next phase of litigation by making a presentation to the Court of Accounts, which has a chamber that has jurisdiction over retirements, administrative law, and tax issues. The Court of Accounts does not have exclusivity or specialization for tax issues. Finally, the taxpayer can submit his claim to the Criminal Chamber of the Supreme Court, as the final instance of decision. Evidence was found that this mechanism is widely used by taxpayers. |
| P8-26 | WHD | B | FIRST | 2019 | English | A B score was obtained because good performance was detected that was quite close to internationally accepted good practices in: The Tax Administration meets the capacity for monitoring and analyzing income that a modern tax administration requires; however, it does not track or report the balance of deferred income tax losses. The Tax Administration provides basic data and analytical information to the MH, including revenue forecasting, estimation processes, and quarterly estimate reviews. It also provides regular monitoring and information to the Deputy Minister of Tax Administration and the MH on monthly tax revenue collections with respect to budget projections and offers analysis of deviations. Additionally, an annual report on tax expenses is prepared. Currently, the work plan has been resumed for review by the RA-GAP of FAD. The latest VAT evasion study available is from 2016. There is a history of ISR gap studies from 2014 to 2018 on the aforementioned tax prior to the IRE reform. However, it does not track or report the balance of deferred income tax losses. |
| P9-30-1 | WHD | B | FIRST | 2019 | English | A B score was obtained because good performance close to internationally accepted good practices was detected in: Although the Tax Administration's responses to the findings and recommendations are not published, there is an annual review of the Tax Administration by external bodies. An annual audit of the financial statements of the Ministry of Finance (including the Tax Administration) is carried out by the CGR and published. Additionally, audits of the operational performance of the Tax Administration are carried out by the Internal Audit of the MH. The Tax Administration responds to the findings and recommendations of the external review, although these responses are not published. |
| P9-32-2 | WHD | B | FIRST | 2019 | English | A B score was obtained because good performance was detected that was quite close to internationally accepted good practices in: The Tax Administration publishes its plans in the 3 months following the period they cover. The annual operating plan for 2023 has been published within three months of the beginning of the period they cover |
| P3-10 | EUR | B | FIRST | 2019 | English | Scored B because sound performance fairly closely to internationally accepted good practice was detected in:Simplified record keeping and reporting arrangements are available for small businesses. The Tax Administration website has a lump sum calculator for those small taxpayers included in the simplified regime. There is also a procedure to analyze frequently asked questions and to improve the information on the website. The taxpayer portal provides a 24-hour view for registration data and tax account details. However, currently the Tax administration does not prefill tax returns as a general rule but has limited provisions for employees engaged in seasonal work. Also, there was no evidence presented to show that the tax returns and other forms are regularly reviewed to ensure that unnecessary information is not requested from the taxpayers |
| P3-11-1 | EUR | B | FIRST | 2019 | English | Scored B because sound performance fairly closely to internationally accepted good practice was detected in:A survey based on a Tax Administrationtistically valid sample is conducted yearly by an independent party, covering the small and medium business segment. The LTO on its part conducts its own surveys that are based on a Tax Administrationtistically valid sample BUT the surveys are not conducted by an independent third party which is mandatory for an “A” score. The Tax Administration regularly obtains and analyses feedback from taxpayers through call center (emails, telephone calls) and desk surveys at field offices’ service points. |
| P3-11-2 | EUR | B | FIRST | 2019 | English | Scored B because sound performance fairly closely to internationally accepted good practice was detected in:The Tax Administration consults with key taxpayer groups and their representatives, but the taxpayers are not actively involved in designing or testing new processes or products before implementing or publishing them. Consultations are more reactive and are held, for example, when a published application is not working as intended. Meetings with chambers of commerce and other Tax Administrationkeholders to get feedback and identify the deficiencies in processes are held frequently. In response to the “B” score, the Tax Administration provided evidence of engagement of taxpayers in a situation where the taxpayers requested the Tax Administration to amend document and procedures relating to the Law on Fiscalization. These examples were assessed to be reactive in nature, to correct a process that is already developed. To score an “A” requires active involvement of taxpayers and intermediaries in the design and/or testing of new processes and products |
| P4-12-1 | EUR | B | FIRST | 2019 | English | Scored B because sound performance fairly closely to internationally accepted good practice was detected in:Filing rates are high across all core taxes. Filing rates range from 80.9 percent for the CIT to 100 percent for the excise tax |
| P5-17-1 | EUR | B | FIRST | 2019 | English | Scored B because sound performance fairly closely to internationally accepted good practice was detected in:Data provided by the Tax Administration shows a healthy level of VAT payment compliance. VAT payments are made either monthly or quarterly, according to the filing period determined for taxpayers based on turnover in the previous year - Attachment III, Table 12. The Tax Administration monitors the trend of VAT movement based on submitted VAT returns and reports to the MoF the number of returns and the value of VAT by category (net liability, requested refunds, credit and nil). |
| P5-17-2 | EUR | B | FIRST | 2019 | English | Scored B because sound performance fairly closely to internationally accepted good practice was detected in:Data provided by the Tax Administration shows a healthy level of VAT payment compliance. VAT payments are made either monthly or quarterly, according to the filing period determined for taxpayers based on turnover in the previous year - Attachment III, Table 12. The Tax Administration monitors the trend of VAT movement based on submitted VAT returns and reports to the MoF the number of returns and the value of VAT by category (net liability, requested refunds, credit and nil). |
| P5-18-1 | EUR | B | FIRST | 2019 | English | Scored B because sound performance fairly closely to internationally accepted good practice was detected in:Management of tax arrears has improved since the assessment made in 2016 but dealing with aged tax arrears remains a weakness. While the ratio of total debt to revenue collected and the percentage of collectible debt is relatively low, the value of core tax arrears over 12 months old remains very high. The Tax Administration has reasonable powers to enforce collection, however, a heavily distributed workforce, the lack of a fully automated IT system, rapidly rising interest costs, and restrictive write-off powers are the main contributors to poor performance. |
| P6-19-1 | EUR | B | FIRST | 2019 | English | Scored B because sound performance fairly closely to internationally accepted good practice was detected in:The Tax Administration prepares an Annual Audit Plan that gives direction to the CS with respect to the annual program. All core taxes are covered in the audit plan as well as project work. The central risk selection covers audit types, taxpayer segments (small, medium, large), entity type and tax type. Audit types include desk audits, single audits, VAT refund audits and comprehensive audits. The plan also provides risk criteria overviews. Specific industries are mentioned as requiring attention and the risks explained. Risks identified in the Compliance Plan are mentioned in the annual plan. These include the gray economy, transfer pricing, and digital platforms from which residents receive foreign income. |
| P6-20 | EUR | B | FIRST | 2019 | English | Scored B because sound performance fairly closely to internationally accepted good practice was detected in:Large-scale automated cross-checking to verify information does not include data from stock exchanges or real eTax Administrationte property registers. Information in VAT declarations is matched against income tax declarations. Financial Tax administration data is matched against income tax declarations. Data matching also occurs with information supplied by Customs, employer -held information and financial Tax Administrationtements and other information from the BRA, and information from the ministry of interior. Data matching is also done with information from the National Bank and commercial banks with respect to cash withdrawals and payments from foreign entities. There is no data received from stock exchanges or real eTax Administrationte registers. According to the TATP, better technology and more data will improve large-scale data matching |
| P6-21 | EUR | B | FIRST | 2019 | English | Scored B because sound performance fairly closely to internationally accepted good practice was detected in:A system of public and private binding rulings under the responsibility of the MoF is in place. The process for applying for a ruling can be found on the MoF’s website. These rulings are binding on the Tax Administration and are published on the website of the MoF.The LTO has a Large Taxpayer Forum where technical issues can be discussed in general and the LTO periodically releases a newsletter where technical issues, court cases and questions from the large taxpayer community are reported. No cooperative compliance arrangement programs have been adopted. Cooperative arrangements between the Tax Administration and a taxpayer, such as Advance Pricing Agreements and Pre-Filing Reviews of tax declarations, aim to improve the working relationship by reducing legal uncertainty, creating a level playing field and reducing costs for both parties. However, there are no such arrangements in the Tax Administration and no indication that such programs are planned to be introduced. |
| P8-26 | EUR | B | FIRST | 2019 | English | Scored B because sound performance fairly closely to internationally accepted good practice was detected in:The Tax Administration has dedicated Tax Administrationff to gather revenue collection data to which the MoF has access. The Tax Administration reports costs to revenue of tax expenditures to the Tax Administrationte Aid Control Commission, but the stock of tax losses is not monitored. The Tax Administration also provides data to the MoF but is not authorized to participate in revenue forecasting. Actual revenue collections are monitored monthly against the budget projections and reported. Forecasted VAT refund levels are reported semi-monthly into an early notification system which gives the MoF the necessary information to ensure that sufficient funds are available. |
| P9-29-1 | EUR | B | FIRST | 2019 | English | Scored B because sound performance fairly closely to internationally accepted good practice was detected in:The Tax Administration has an independent Internal Audit Department (IAD) that reports directly to the DG and not to an audit committee. The Internal Audit Charter specifies the functions and duties of the IAD. The Internal Audit Rule Book, while not making it obligatory, has provision for the creation of an audit committee, but none exists so far. The SAI reviewed the functions of the IAD in 2018. The MoF Harmonization Unit also reviewed the IAD in 2019. IAD prepares central audit plans each year comprising internal monitoring of all key operational performance and financial results. IT system security and control audit is conducted by a consulting firm under a World Bank Tax Administration Modernization Project (TAMP).There are audit trails and system generated reports for effective surveillance. There is regular training of auditors in the IAD and a central repository of internal control policies. Regular internal audit reports at the central level and for audits of regional offices are prepared. |
| P2-6-1 | AFR | B | REPEAT | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Tax Administration’s process for management of institutional risks is effective. An ERM methodology using ISO 31000 is used to identify, assess, rank and mitigate institutional risks annually. All corporate risks are documented in a risk register. The ERM unit reports on both institutional and compliance risk mitigation activities to the MEC monthly. The ICT Disaster recovery plan is updated to include emerging threats and is effectively applied through disaster recovery simulations (failover tests) and drills. However, the disaster recovery plan is only reviewed every two years. |
| P3-10 | AFR | B | REPEAT | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Various measures have been put in place to reduce taxpayer compliance costs, including: • Client relationship managers to facilitate compliance of large and medium taxpayers. • Implementation of a simplified presumptive tax regime for small and micro enterprises, including a simplified payment option that also serves as a tax return. • A portal for taxpayers to access their tax account details on-line. • Publication of public notices in the newspapers, and tax rulings on the Tax Administration website. • Extensive use of withholding arrangements where tax withheld at source is treated as a final tax. • Printing of a book of records with practical guidelines on keeping business records. • Frequently Asked Questions (FAQs) as well as responses to questionnaires obtained through discussions with taxpayer focus groups are maintained and analyzed to identify areas in which services can be improved. However, the Tax Administration has not yet implemented prefilled tax returns. |
| P4-12-3 | AFR | B | REPEAT | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: On-time filing rates are low and have seen minimal change since 2015, the exception being VAT where the rate has improved. CIT and PIT rates are low at 33.1 percent and 14.5 percent, respectively. PAYE is higher at 60.3 percent, but the rate continues to fall short of a ‘B’ rating which would indicate healthy performance. The VAT rate has now reached 83.5 percent. Client Relationship Managers monitor filing at the LTO where CIT is 86.4 percent and VAT is 96.9 percent. |
| P5-18-2 | AFR | B | REPEAT | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The stock of tax arrears is very high and comprises mainly of old debt. Tax arrears data in Attachment III, Table 11 indicates ratios of 23.4 percent for P5-15-1, 6.1 percent for P5-15-2 and 78.2 percent for P5-15-3 in the most recent year (2017/18). Although the Tax Administration has a debt management unit, debt recovery procedures, debt write-off procedures and a debt write-off committee, it has not managed to reduce the amount of tax arrears older than 12 months effectively. The value of core tax arrears has more than doubled from 23.6 percent in 2015/16 to 78.2 percent in the 2017/18. |
| P6-21 | AFR | B | REPEAT | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The Tax Administration has a system of public and private rulings for all core taxes in place. The Tax Procedures Code Act gives the taxpayer an opportunity to request a private ruling, which is binding on the Tax Administration provided that the taxpayer has made a full and true disclosure of the facts. Public rulings (Practices Notes) are issued when deemed necessary. The LTO has adopted account management procedures and is considering implementation of cooperative compliance programs. |
| P7-23-1 | AFR | B | REPEAT | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: A tiered review mechanism is in place and is used. A graduated mechanism that consists of a multilayered administrative review process, an independent external specialist tax tribunal and a higher court for judicial reviews is in place. The first stage of objection lies with the Objections and Appeals Unit (OAU) for cases arising from taxpayers managed at headquarters and surrounding areas. Cases for other upcountry field offices are managed by different Objections Committees in the Eastern, MidWestern, Northern and Western regions. However, taxpayers may opt for a second review of the objections decision issued rather than going to second stage. Such cases can only be reviewed if authorized by the Assistant Commissioner – Compliance Management. The Tax Administration encourages reopening of cases as it is seen that it reduces the cost and time of litigation. Where a taxpayer is dissatisfied with the outcomes of the administrative review, the case may proceed to the second stage, the Tax Appeals Tribunal (TAT), and the third stage – the High Court. Taxpayers use this formal dispute process. |
| P9-32-1 | AFR | B | REPEAT | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: There has been an improvement in publicizing activities, results and plans of the Tax Administration. The annual report outlining the financial and operational performance is prepared and submitted to the Minister of Finance, Planning and Economic Development who causes it to be laid before parliament. However, the last report was made public within 9 months of the end of the fiscal year. A four-year strategic plan and operational plans are prepared by the Tax Administration. While the strategic plans are made public in advance of the plan period, only elements of the operational plans are made public |
| P6-19-1 | WHD | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: A comprehensive audit plan is in place. The Audit and Investigations Unit is organized by taxpayer segment and tax type with approved staff are in place. The Unit is guided by a comprehensive audit plan which describes the role of the audit function, the activities planned for the period and the resources available. The annual audit plan covers core taxes and key taxpayer segments and set out planned activity to detect and deter inaccurate reporting. Taxpayers to be audited are selected centrally, based on assessed risk (weighted towards high risk segments such as large taxpayers and hotels), and audit history. Because audits will vary in scope and methodology, the plan describes a range of different types of audits to be conducted. In addition to the audit plan, different Audit Circulars, describing audit procedures, support the audit function. These circulars also serve as training material for new audit staff. The Tax Administration does not evaluate the impact of audits on taxpayer’s compliance. |
| P1-1-2 | EUR | B | REPEAT | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Documented procedures to improve the accuracy of the information in the registration database are in place, but use of large-scale cross checking is still limited. New tax legislation came into force on February 15, 2020 and requires taxpayers to update their registration details. The revision also included the introduction of penalties for failure to provide the necessary information to Tax Admnistrator. An app has been developed to ease the registration process for taxpayers. Tax Admnistrator has documented procedures and applies them routinely to: (i) identify—based on a set of 29 criteria —and separate inactive taxpayers: (ii) identify and remove false, invalid and duplicate records (e.g. duplicated TINs); (iii) flag dormant registrations; (iv) ensure applications are authentic and meet the legal requirements; (v) verify the accuracy of information by large-scale cross checking information against Government databases, including the National Agency of Public Registry (NAPR), and the Ministry of Environment Protection and Agriculture (MEPA); and (vi) allocate cases to operational units for registry cleaning purposes. Crosschecking of information against some government databases takes place on a regular basis but is not yet established as a standard procedure for all available data sources. |
| P2-3-2 | EUR | B | REPEAT | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The methodology used to identify, assess and rank compliance risks aligns with international good practice. While the 2019 to 2020 Compliance Improvement Plan (CIP) was not developed as part of its multi-year strategic planning process, the Tax Admnistrator is working to embed Compliance Risk Management (CRM) planning into this process going forward. The structured risk assessment process—developed in 2018—allows Tax Admnistrator to assess and prioritize compliance risks for all core taxes, the four main compliance obligations, and to focus on the activities of the large taxpayer and highwealth individuals segments. |
| P3-10 | EUR | B | REPEAT | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Tax Admnistrator has a range of initiatives to reduce taxpayer compliance costs. Small and micro business taxpayers have simplified recording and reporting arrangements. The secure taxpayer portal has a 24/7 availability and accommodates online filing and e-payment for all core taxes. Tax declaration forms are periodically reviewed and Frequently Asked Questions help taxpayers understand their obligations. A system of public and private rulings is in place which, with further guidance issued by Tax Admnistrator, aims to provide certainty to taxpayers on how specific situations will be treated. Tax Admnistrator does not prefill tax declaration forms |
| P4-12-3 | EUR | B | REPEAT | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: As shown in the Tables 4 to 10 in Attachment III, the rates achieved by Tax Admnistrator are: (i) Distributed Profits Corporation Tax (DPCT)24 68.2 percent; (ii) PIT25 67.2 percent; (iii) VAT 91.0 percent; (iv) domestic Excise Tax 69.9 percent; and (v) PAYE 58.7 percent. |
| P5-15 | EUR | B | REPEAT | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Electronic payment of taxes is mandated by law. Electronic payments can be made by taxpayers through a wide variety of channels including electronic funds transfer, payboxes, internet banking, and taxpayer portal. Taxpayers can also make payments in-person at a bank, where the funds are then transmitted electronically to Tax Admnistrator. The definition of an e-payment for TADAT purposes was revised in the 2019 Field Guide. To be electronic, a payment must now be made from one bank account to another via electronic means without the direct intervention of bank staff or the tax administration. As a result, payments made in-person that are then transferred electronically by the bank to Tax Admnistrator are no longer regarded electronic for TADAT purposes. |
| P5-16 | EUR | B | REPEAT | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The Tax Admnistrator makes use of withholding and advance payments. Final withholding at source is in place for all employment income, and for dividend income earned by residents. The law does not require withholding on interest from commercial banks, nor mandatory reporting of information by financial institutions. Since 2017, CIT is paid by two groups: (i) circa 7,600 taxpayers that are regarded as traditional CIT payers; and (ii) circa 60,000 taxpayers that pay DPCT. The latter group file and pay monthly on money distributed outside the corporation to shareholders and directors. The former group file annually and make advance payments four times a year. |
| P5-17-1 | EUR | B | REPEAT | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The total number of payments made by the statutory due date is high. 95.5 percent of the total volume of VAT payments, and 96.1 percent by value is paid on time |
| P5-18-2 | EUR | B | REPEAT | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The stock of tax arrears is high and comprises mostly old debt. While Tax Admnistrator has written-off significant amounts of old uncollectible debt during the last year, its stock of tax arrears at the end of 2019 still accounted for more than 38 percent of tax revenue collected in that year. While the 8 percent rate for collectible debt as a percent of total tax collected is low by international standards, the trend of this ratio is upwards. |
| P6-19-1 | EUR | B | REPEAT | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Tax Admnistrator audit activities cover taxpayers’ segments and use a range of audit types and methodologies. The audit department has a staff of 336, spread over nine standard audit divisions, and divisions for Large Taxpayers, quality control, refund, transfer pricing, and monitoring. Each audit division has groups of auditors specializing on specific industries. The current version of the annual audit plan was approved on July 30, 2020 and is based on the available audit capacity and historical information on the number of audits per type. The plan is centralized and covers the number of audits per audit type, taxpayer segments (large, medium or small), region of the taxpayer, and month. |
| P7-25 | EUR | B | REPEAT | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Several measures have been implemented to monitor and evaluate outcomes of disputes. The Disputes Department monitors, on a regular basis, cases of a more substantive nature that would require consideration of any legal changes by the Legal Department, or the MD for procedural changes. Reporting to these departments, and additional reporting to the DG via the MD, has been ad hoc, and also dependent on the actual case load. This procedure is followed for both administrative appeals and Court rulings. Recently, in August 2020, an internal Council, chaired by the DG has been established to consider outcomes of Court decisions, addressing both the option of appeal, and possible legal and procedural changes that need to be considered for issues of a more systemic nature. This Council has so far considered 150 cases. Decision impact statements are not routinely prepared. At the time of the assessment, no changes based on the Council’s considerations had been proposed or implemented. |
| P8-26 | EUR | B | REPEAT | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The Tax Admnistrator has a well-developed revenue monitoring and analysis capability; however, losses carried-forward, and tax expenditures are not fully monitored and reported. The AD in Tax Admnistrator is closely and regularly liaising with the Macroeconomic Analysis and Fiscal Policy Planning Department of the MoF. The AD provides input into the government budgeting processes of revenue forecasting and tax revenue estimating at least twice a year and on demand—when tax laws change—using a variety of methodologies. The AD daily gathers data on tax collection and monitors it against budgeted revenue forecasts and reports it to the DG and MoF daily and fortnightly. Twice a year, the AD forecasts VAT refund levels broken down monthly. Tax Code provides for the carryforward of losses under the old CIT regime and the regular PIT regime for a five-year period. Tax Admnistrator keeps track of the stock of losses carried forward that may be offset against future tax liabilities for traditional CIT. Some monitoring has been done on the cost to revenue of tax expenditures, but not on a comprehensive and regular basis. |
| P8-28-1 | EUR | B | REPEAT | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The new VAT refund system is broadly in line with international good practice, but currently, refunds are not yet paid automatically and no interest is paid on delayed refunds. Tax Admnistrator has implemented an automated risk-based verification process that screens excess credit VAT returns. Preferential treatment is given to low-risk taxpayers. Data provided by the Tax Admnistrator in respect of the time taken to process VAT refunds show that 98.7 percent (by number of cases) and 89.1 percent (by value) are processed (i.e. approved or declined) in a timely manner—within 30 calendar days. Once refund claims are approved, the amount is credited to the taxpayer account (the ‘Green Card’) that is accessible by the beneficiary through the taxpayer portal. Currently, this amount is not automatically paid, but only when the taxpayer requests by clicking a payment button in the taxpayer portal. Upon request, the amount is credited in the taxpayer’s bank account within one day. Tax Admnistrator plans to start automatic refunding without request from November 2020. Budget funds are allocated by the MoF to meet legitimate refund claims when they occur. Tax Code allows the offsetting of excess VAT and other credits against tax arrears, but does not include a payment of interest on delayed refunds |
| P9-29-2 | EUR | B | REPEAT | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Staff integrity assurance mechanisms have been enhanced. The Professional Ethics and Staff Monitoring Department (SMD), which reports directly to the DG, is authorized to conduct official inspections in cases of possible misconduct by employees, including possible conflicts of interest and ethical breaches. Since 2016, an information security unit has been established in SMD and an information security policy implemented. In 2019 all staff were trained and tested online in information security, privacy and physical security. The grounds for in-service inspections, the management of cases, and the rights and responsibilities of the parties have also been updated. SMD has an operational plan that outlines its approach to detect and combat possible fraud or wrongdoing by staff. If there is an indication of a criminal offence by an employee, the case is immediately referred to the relevant investigative body. |
| P9-30-1 | EUR | B | REPEAT | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Independent external oversight is in place, with IAD of the MoF undertaking annual operational performance audits. The State Audit Office (SAO) conducts an annual audit of the Tax Admnistrator’s financial statements. Their reports are published on the SAO website. Recommendations to Tax Admnistrator as a result of its audits are considered and responded to by Tax Admnistrator, periodically updating on progress in implementing ensures to address audit findings. Audit findings and recommendations and Tax Admnistrator responses are not publicly reported by Tax Admnistrator, but are published on the website of the SAO. IAD of the MoF includes operational performance audits of GRC in its annual audit program |
| P9-31 | EUR | B | REPEAT | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Tax Admnistrator monitors general public confidence in the tax administration via independent and internal surveys. The findings of the USAID G4G in the business survey 41 are based on a representative sample of 1,472 respondents, including 770 private individual entrepreneurs and 702 businesses. The Survey results show that 94 percent of businesses consider Tax Admnistrator as a trustworthy institution. The report is made public via the website of Tax Admnistrator on January 4, 2020. The previous independent survey 42 came to the same conclusion. The surveys from Tax Admnistrator of taxpayers involved in tax disputes (2020) and on remote revenue services (2018) are not primarily undertaken to monitor public confidence but confirms the findings of the G4G survey. The aforementioned surveys did not indicate a need for reviewing Tax Admnistrator’s integrity framework. |
| P1-1-1 | AFR | B | FIRST | 2019 | English | Score B because a solid performance was detected that is very close to internationally accepted good practices in: The Tax Administration collects and maintains information necessary to identify taxpayers, however the registration and modification of registration data must be done in person. The taxpayer register – whose base is national, centralized and computerized – contains detailed information such as: name, affiliation, date of birth, address, tax area, nature of income and identity document for natural persons; and name, name, articles of incorporation, share capital, corporate structure and subsidiaries, classification of activities, tax framework, tax area and address for legal entities. The tax framework of the legal entity and the identification of the nature of the income Taxpayers can register directly at the Tax Administration, at the Casa do Cidadão or at an institution that has an agreement with the latter to do so. The registration system is interconnected with the National Identification Registry system and automatically validates the identification data of natural persons, if Identity Card 13 (ID) is used. If the taxpayer uses their passport to register, there is no validation with another body's database. For legal entities, there is a simplified registration process, with the Casa do Cidadão, which is known as “company on the day”. This process is only available for companies that do not require authorization to operate, and is based on immediate generation of a standardized social pact, based on the definition of the economic activities to be carried out by the company, which are linked to the economic activity code. In the complete process, the taxpayer first obtains the NIF from the Tax Administration, registers the company with the Registry Office, and informs the Tax Administration of the start of activities. |
| P3-8-1 | AFR | B | FIRST | 2019 | English | Score B because a solid performance was detected very close to internationally accepted good practices in: The Tax Administration provides a wealth of information on all taxpayers' obligations and rights in relation to all main taxes through various means. This information is adapted to the needs of REMPE taxpayers, but not other industrial segments and disadvantaged groups. The Tax Administration and Casa do Cidadão websites allow information to be consulted on topics of interest, such as taxpayer registration, delivery and completion of declarations, current account, registration statement, tax situation, recent changes. There is also a frequently asked questions and answers section. The Tax Administration website is being remodeled, with the introduction of new services and integration with the citizen services portal (www.portondinosilhas.gov.cv). |
| P3-10 | AFR | B | FIRST | 2019 | English | Score B because a solid performance was detected very close to internationally accepted good practices in: For small and micro taxpayers, the option for the simplified REMPE regime is available, which reduces compliance costs. This regime provides taxpayers, among other advantages, with a special unified taxation at a rate of 4% on revenue, paid quarterly. The declaration to be submitted by REMPE taxpayers (model 107) must be presented quarterly and requires a limited amount of information. Such taxpayers are also exempt from maintaining organized accounting. Individual taxpayers, who only receive income from salaried work and pensions, are exempt from submitting the IRPS declaration. However, previously completed declarations are not available for any category of taxpayer. Frequently asked questions and common misconceptions are inputs for improving products and services. The areas of Tax Administration work with a view to the continuous improvement of products and services. For example, upon detecting significant divergences in filling out the declarations of taxpayers covered by the REMPE, the Tax Offices and Central Services promoted events to clarify the tax obligations to which they were subject. Taxpayers and authorized intermediaries have secure access (via password), through the Tax Administration website, to a series of uninterrupted services, which include access to registration and current account data |
| P3-11-1 | AFR | B | FIRST | 2019 | English | Score B because solid performance was detected very close to internationally accepted good practices in: The Tax Administration obtains feedback from taxpayers through various means, such as telephone, web page and meetings. Channels are available to obtain routine and structured feedback from taxpayers, such as Facebook, space for expressions on the Tax Administration and Citizen House websites, telephone, complaints book and suggestions and complaints box – the last two of which are less frequently used . Events are also promoted, in which suggestions and criticisms from contributors are received. Seminars, socializations and meetings are organized with specific segments of taxpayers (such as women entrepreneurs, passenger transport operators and REMPE taxpayers) and intermediaries. For example, the Tax Administration regularly promotes an event, called “Cafe com...”, in which taxpayer representatives are received by the National Director to discuss tax topics, the institution's operations and the relationship with taxpayers. Two surveys based on statistically valid samples were also carried out by an independent entity, the first in 2014 and the second in 2018. The Tax Administration Reform Plan provides for annual taxpayer perception surveys. The Tax Administration routinely consults groups of taxpayers and accountants to identify deficiencies and opportunities for improvements in its processes and products. Contributors and intermediaries are involved in the process of defining models or carrying out tests of new processes or products. Examples of such practice are: holding a webinar to obtain input from taxpayers regarding the new electronic declaration to be implemented, the Annual Accounting and Tax Information Declaration; the creation of a commission with representatives of intermediaries, the Professional Order of Auditors and Certified Accountants aiming at the implementation of electronic invoicing; hearing taxpayers from the beginning of the FATCA implementation process; consultation with taxpayers in the development of codes (such as the Tax Execution Code and the Tax Procedure Code). |
| P6-19-1 | AFR | B | FIRST | 2019 | English | Score B because a solid performance was detected very close to internationally accepted good practices in: PAIT is a comprehensive audit plan, covering the main taxes, drawn up from a selection based on a risk matrix structured by taxpayer segments and Division Supervisor. Using information from internal and external sources, SITA applies a weighted system of accounting and tax indices to select taxpayers with organized accounting for inspection. PAIT also provides for inspection actions on REMPE taxpayers, using information from third parties, such as commissions paid by merchants and service providers for the use of machines to receive payments via debit cards. In this case, SITA collects and cross-references data from external and internal sources, points out discrepancies and forwards them to the Finance Departments. PAIT also includes specific, short-term actions to verify other tax obligations, such as taxpayer registration, regularity in issuing invoices and issuing tax documents for the circulation of goods. Scheduled inspection actions generally cover all taxes and focus on one year, using direct and indirect methods to determine the taxes owed. However, there is no specific analysis for high-risk sectors, nor a study of the impact of audits on the level of tax compliance. |
| P6-21 | AFR | B | FIRST | 2019 | English | Score B because solid performance was detected very close to internationally accepted good practices in: Tax administration offers a system of binding public and private decisions to clarify and guide taxpayers. The CGT, in its articles 98 to 100, establishes that the Tax Administration must provide guidance to taxpayers on the interpretation of tax rules, through consultations and binding information. Binding information is aimed at the specific situation of a given taxpayer, while consultation is more general in nature. Usually, the Tax Administration takes advantage of the responses to consultations to issue circulars, which are widely publicized. On the other hand, the Cape Verdean legal system does not provide for the adoption of a cooperative compliance agreement as a strategy to reduce the risk of presenting inaccurate declarations. |
| P7-23-1 | AFR | B | FIRST | 2019 | English | Score B because solid performance was detected very close to internationally accepted good practices in: Cape Verde's legal system provides for a tiered administrative and judicial review mechanism available to taxpayers, being regularly used. The administrative review has two stages, the first stage being carried out by the same authority that carried out the liquidation. This decision is subject to administrative hierarchical appeal. At any time, the taxpayer can opt for a legal challenge before the Tax Court, whose decision is subject to review by the Court of Appeal, with appeals also being admissible before the Supreme Court of Justice and the Constitutional Court. The administrative and judicial review mechanism is regularly used by taxpayers, which does not suspend the enforceability of the debt, unless a guarantee is presented or waived by the judging authority. |
| P7-23-3 | AFR | B | FIRST | 2019 | English | Score B because solid performance was detected very close to internationally accepted good practices in: Information about the process for resolving disputes is available on the internet and taxpayers are formally informed of this right through notifications. The rules relating to taxpayers' review rights and applicable procedures are publicly available on the Tax Administration's website and are expressly reproduced in tax notifications. The Taxpayer Letter expressly mentions the right to a prior hearing. There is no written guidance for inspectors to inform taxpayers of these rights, and the practice is to carry out such communication only upon delivery of the notification, which expressly states the right to administrative review. |
| P7-25 | AFR | B | FIRST | 2019 | English | Score B because a solid performance was detected that is very close to internationally accepted good practices in: The tax administration has monitored and analyzed disputes and litigation, but without considering their impact and economic repercussions. Monitoring the results of administrative and judicial disputes and their use as input to propose legal and procedural changes is carried out regularly. There is no evidence of routine analysis of the impact of the results of decisions that deserve analysis (for example: assessment of the amounts involved, repercussion on revenue collection and the behavior of other taxpayers), and the criteria that guide the selection of cases have not been identified. The main decisions are published on the intranet, which favors the identification of errors, flaws and weaknesses in procedures, allowing their improvement. |
| P5-17-2 | AFR | B | FIRST | 2019 | English | Rated B because sound performance fairly close to internationally accepted good practice was detected in:A significant percentage of VAT is however paid on time. Around 85 percent of the total value of VAT payments due are paid on time. Even if the information from UTPPEs on payments made on time was not available, the score of dimension D5-14-2 is not affected because in 2017, payments from UTPPEs represented 1.3 % of total revenue and this percentage is even lower with regard to VAT revenue. |
| P6-21 | AFR | B | FIRST | 2019 | English | Rated B because sound performances quite close to internationally accepted good practices were detected in: The tax administration develops private and public decisions in response to a general or specific request from taxpayers. The assessors took note of private or public decisions (tax rulings) taken by the tax administration, for example, in public cases on how certain specific provisions of the IRPP concerning elements of remuneration are interpreted and applied by the tax administration. We can find several examples of private decisions, such as notices of exemption from the tax on electronic communications traffic and VAT; or on the taxable nature of the end-of-year bonus allocated to workers. Regarding the establishment of cooperation agreements with certain taxpayers to encourage tax compliance, the evaluation mission was informed of the existence of such agreements. However, they are signed between the State of Congo and taxpayers, and are not managed by the tax administration. |
| P5-16 | MCD | B | FIRST | 2019 | English | Rated B because sound performance fairly close to internationally accepted good practices was detected in:There are withholding tax and advance payment regimes for taxes. The tax owed by public and private sector (ITS) employees (which represents 20 percent of the total tax collection) is withheld at source by the employer during each payment according to the provisions of the art 287 of the tax code. Likewise, the code provides similar provisions in its articles 294 and 301 respectively for IBP and property tax. However, there is no withholding tax for dividends and interest. |
| P8-26 | MCD | B | FIRST | 2019 | English | Rated B because sound performance quite close to internationally accepted good practices was detected in: The tax administration has dedicated staff to contribute to the forecasting of tax revenues, and the monitoring of collections against estimates. The data collected is at the macro level based on the framework of the IMF and the Department of the Economy, and contributes to the determination of the final forecasts. B VAT refund levels are planned and monitored to ensure funds are available. An annual budget of 250 million Djiboutian francs is planned for the reimbursement of VAT credits. The tax administration benefited from technical assistance from the IMF for carrying out the study on tax expenditures in 2018. However, there is no report on the monitoring of tax losses reported by taxpayers. |
| P3-8-3 | MCD | B | FIRST | 2019 | English | Rated B because sound performance fairly close to internationally accepted good practice was detected in: Extensive information is available on taxpayers' rights and obligations for all basic taxes regarding registration, declaration and payment. The declarations and forms, accompanied by detailed instructions for serving and submitting them to the tax administration, are available on the website of the Tax Administration. Public information on legislation and administrative policy is up to date. Taxpayers are made aware of changes to legislation and administrative policies before they come into force. Information is communicated via many means (media, social networks, website, seminars, meetings, messaging, etc.). A dedicated team is responsible for this work and there is an internal procedure to ensure that information is updated and provided to the public quickly. These good practices justify the A grade assigned to the second dimension. |
| P3-10 | MCD | B | FIRST | 2019 | English | Rated B because sound performance fairly close to internationally accepted best practices was detected in:A series of initiatives are in place to reduce the costs of tax compliance. There is simplified accounting and simplified procedures for small businesses and self-employed entrepreneurs. For employees who do not have other income, the income tax due is withheld at source by the employer, and they are not required to file a tax return. The tax administration offers those subject to global income tax to renew the items declared for the previous year if no change has occurred. No evidence of the use of this possibility was presented during the evaluation. This possibility offered to this category of taxpayers does not in itself constitute proof of the existence of a system for pre-filling tax returns. Frequently asked questions by taxpayers and misinterpretations detected through verification activities are analyzed to improve the information provided to taxpayers. |
| P3-11-1 | MCD | B | FIRST | 2019 | English | Rated B because sound performance fairly close to internationally accepted good practices was detected in: Taxpayers regularly provide their opinion on the level of service provision. The tax administration uses different channels and mechanisms to receive feedback from taxpayers. Among these channels: frequent meetings with stakeholders actively involved in partnership with the tax administration; messaging, letters and call center; taxpayer perception surveys; and targeted requests made via the Internet. Collection surveys carried out by tax administration services are less frequent and the last one was not carried out by an independent third party. The first survey was carried out in 2013 by an external third party and it was followed by a second survey carried out in 2017 by the tax administration. Both surveys are based on statistically valid sampling and the latter was conducted online. The grade B assigned to the first dimension is explained by the fact that these surveys are not carried out every three years. |
| P4-12-5 | MCD | B | FIRST | 2019 | English | Rated B because sound performance quite close to internationally accepted good practices was detected in:The rate of filing declarations on time is low, particularly for the IRPP.The percentage of declarations filed on time is:• IS : 68 percent for all taxpayers and 80 percent for large companies, which is an insufficient percentage for the latter for the grade of C. • IRPP: 51 percent. • VAT: 64 percent for all taxpayers and 91 percent for large taxpayers, which corresponds to a grade of C. However, these figures could not be validated due to significant and unexplained discrepancies between the tables communicated successively upon the arrival of the mission and on 5 November, for the months of September to December 2017. • Employer withholding tax: 83 percent. |
| P8-26 | MCD | B | FIRST | 2019 | English | Rated B because sound performances quite close to internationally accepted good practices were detected in: The Division of Studies, Statistics and Fiscal Forecasts collects and analyzes useful information to evaluate the tax revenue forecasts of the Tax administration. This concerns in particular economic data, the analysis of tax provisions and new administrative measures. It regularly analyzes the gaps between forecasts and achievements. This analysis is also examined during the steering committees of the tax administration. Finally, revenue forecasts are regularly updated to take into account the implementation of legislative changes, administrative measures and the occurrence of exceptional events during the year. The assessment of the tax expenditure is carried out annually. It is annexed to the finance law. Finally, the stock of VAT credits to be reimbursed is evaluated as part of the revenue forecasts. On the other hand, the evaluation of losses reported by taxpayers is not taken into consideration for the determination of corrective measures to compensate them, this which explains the B grade assigned to this performance indicator. |
| P1-1 | WHD | B | FIRST | 2015 | English | It obtained a grade of B because a solid performance quite close to internationally accepted good practices was detected in: The database of registered taxpayers is centralized, contains fairly complete information and is managed by a computerized system, but tax identification is multiple. The Integrated Tax Information System (SIIT) – the information system of the Tax Administration – is implemented at the national level. The Single Taxpayer Registry (RUC) module of the SIIT manages a centralized database of registered taxpayers, which interacts with other modules such as declarations, and even with the Integrated System of the Public Treasury (SITEP) for collection and collection. Each registered taxpayer has a 14-digit Tax Identification Number (NIT). However, natural or legal persons subject to VAT also have a VAT Taxpayer Registration Number (NRC), as established by Art. 88 of the VAT law. The NRC and the NIT are linked. The registered taxpayer database stores essential taxpayer information.2 However, taxpayers do not self-declare their tax obligations upon registration. These are registered ex officio by the RUC module through business rules previously defined in the SIIT. The RUC module allows removing taxpayers registered with an NRC, after evaluation by the Department of Expansion of the Tax Base. Historical taxpayer information can be retrieved at any time. Through the Online Services Portal, taxpayers can initiate requests for registration or modification of data, but they must complete their requests in person by approaching the service centers. The Portal does not allow taxpayers to consult their registered information. According to the user roles defined by the SIIT, the RUC module offers officials access to all the information registered for taxpayers. Some higher-ranking roles also have the possibility of generating management reports. The module also tracks the queries made to the registry by different users and the modifications made by them. |
| P2-3-1 | WHD | B | FIRST | 2015 | English | It obtained a grade of B because a solid performance close to internationally accepted good practices was detected in: The Tax Administration collects and analyzes internal and external information to build knowledge about tax compliance risks, but does not carry out environmental assessments5 as part of its multi-year strategic planning process. The DGT does not collect or analyze information to build knowledge about tax compliance risks. It is fair to point out that the strategic planning process of the Tax Administration and the DGT is not independent, but is part of that carried out by the MH following the guidelines established for the entire Executive Body (see A9-28). In the PEI 2015-2019 of the MH there is no environmental assessment aimed at identifying potential tax compliance risks. The process of collecting and analyzing data from internal and external sources carried out by the Tax Administration includes data from the informative and determinative declarations submitted by taxpayers, and data from the General Directorate of Customs (DGA), the RNPN, the Salvadoran Social Security Institute (ISSS) and the National Records Center (CNR). Knowledge is also built through carrying out specific studies on the main tax compliance risks. Using information from the National Accounts and following a “top-down” approach, in recent years an estimate of the global VAT compliance gap has been made.6 However, no studies are carried out on the determinants of tax compliance. based on the analysis of the values, attitudes and behaviors of taxpayers. |
| P4-12-2 | WHD | B | FIRST | 2015 | English | It obtained a grade of B because a solid performance quite close to internationally accepted good practices was detected in: The punctuality quotient in the presentation of declarations is weak for the CIT, but healthy for the VAT, the Personal Income Tax and the RIF by employers. The data in tables 4 to 8 of Annex III collect the punctuality ratios of the IRPJ (66.09 percent for all taxpayers, 98.13 percent for large taxpayers), the IRPF (78.79 percent), the VAT (82.32 percent for all taxpayers, 97.12 percent for large taxpayers) and of the RIF by employers (82.45 percent). The Tax Administration carries out proactive activities by reminding taxpayers of the approaching expiration of the legal deadline to file returns and executes processes for timely follow-up in relation to non-filers through the Tax Management Division, or the use of blocks in the RUC module for those who fail to do so. Performance would be even better if the accuracy of the registered taxpayer database increased (see A1-1). |
| P4-12-3 | WHD | B | FIRST | 2015 | English | It obtained a grade of B because a solid performance quite close to internationally accepted good practices was detected in: The punctuality quotient in the presentation of declarations is weak for the CIT, but healthy for the VAT, the Personal Income Tax and the RIF by employers. The data in tables 4 to 8 of Annex III collect the punctuality ratios of the IRPJ (66.09 percent for all taxpayers, 98.13 percent for large taxpayers), the IRPF (78.79 percent), the VAT (82.32 percent for all taxpayers, 97.12 percent for large taxpayers) and of the RIF by employers (82.45 percent). The Tax Administration carries out proactive activities by reminding taxpayers of the approaching expiration of the legal deadline to file returns and executes processes for timely follow-up in relation to non-filers through the Tax Management Division, or the use of blocks in the RUC module for those who fail to do so. Performance would be even better if the accuracy of the registered taxpayer database increased (see A1-1). |
| P4-12-5 | WHD | B | FIRST | 2015 | English | It obtained a grade of B because a solid performance quite close to internationally accepted good practices was detected in: The punctuality quotient in the presentation of declarations is weak for the CIT, but healthy for the VAT, the Personal Income Tax and the RIF by employers. The data in tables 4 to 8 of Annex III collect the punctuality ratios of the IRPJ (66.09 percent for all taxpayers, 98.13 percent for large taxpayers), the IRPF (78.79 percent), the VAT (82.32 percent for all taxpayers, 97.12 percent for large taxpayers) and of the RIF by employers (82.45 percent). The Tax Administration carries out proactive activities by reminding taxpayers of the approaching expiration of the legal deadline to file returns and executes processes for timely follow-up in relation to non-filers through the Tax Management Division, or the use of blocks in the RUC module for those who fail to do so. Performance would be even better if the accuracy of the registered taxpayer database increased (see A1-1). |
| P5-18-1 | WHD | B | FIRST | 2015 | English | It obtained a B rating because a solid performance close to internationally accepted good practices was detected in:The stock of debts for main taxes is low and is mainly composed of debt less than 12 months old. The collectible part of said stock represents a small proportion with respect to the collection of main taxes. Although the stock of debts from the main taxes in proportion to their collection has increased in recent years, the three-year simple average of 16.95 percent (13.82 in 2015, 16.35 in 2016 and 20.68 in 2017) still represents a healthy level according to the good international practices. Of this stock, debt more than 12 months old reached a simple three-year average of 22.67 percent (20.8 in 2015, 17.12 in 2016 and 30.1 in 2017), a level consistent with best international practices. Finally, the value of the collectible debt13 of the main taxes in proportion to their collection reached a simple three-year average of 5.65 percent (4.7 percent in 2015, 4.95 percent in 2016 and 7.31 percent in 2017), remaining at healthy levels according to good international practices. The statistical information used for this indicator is available in table 11 of Annex III. It is worth noting that in El Salvador some provisions prevent the creation or existence of late payments, such as the fact that the VAT law does not allow the presentation of the declaration without payment or partial payment (A5-14). Likewise, Art. 74 of the Income Tax Law provides the taxpayer with ample possibilities to pay in installments, with pending installments not considered tax debts. |
| P5-18-2 | WHD | B | FIRST | 2015 | English | It obtained a B rating because a solid performance close to internationally accepted good practices was detected in:The stock of debts for main taxes is low and is mainly composed of debt less than 12 months old. The collectible part of said stock represents a small proportion with respect to the collection of main taxes. Although the stock of debts from the main taxes in proportion to their collection has increased in recent years, the three-year simple average of 16.95 percent (13.82 in 2015, 16.35 in 2016 and 20.68 in 2017) still represents a healthy level according to the good international practices. Of this stock, debt more than 12 months old reached a simple three-year average of 22.67 percent (20.8 in 2015, 17.12 in 2016 and 30.1 in 2017), a level consistent with best international practices. Finally, the value of the collectible debt13 of the main taxes in proportion to their collection reached a simple three-year average of 5.65 percent (4.7 percent in 2015, 4.95 percent in 2016 and 7.31 percent in 2017), remaining at healthy levels according to good international practices. The statistical information used for this indicator is available in table 11 of Annex III. It is worth noting that in El Salvador some provisions prevent the creation or existence of late payments, such as the fact that the VAT law does not allow the presentation of the declaration without payment or partial payment (A5-14). Similarly, Art. 74 of the Income Tax Law provides the taxpayer with ample possibilities to pay in installments, not considering pending installments as tax debts. |
| P6-19-1 | WHD | B | FIRST | 2015 | English | It obtained a grade of B because a solid performance close to internationally accepted good practices was detected in: The Tax Administration's audit covers the main taxes and key segments of taxpayers, follows a centralized selection of cases and uses a reasonable variety of interventions, but is not complemented by a routine evaluation of their impact on taxpayers' tax behavior. The audit program contained in the PAF is broad and includes the execution of massive and decisive actions (called “substantive audits”) for the main taxes and covers large taxpayers and other high-risk segments. The cases are selected centrally through the computer tool Case Selection Management System (CSMS).14 The audits are carried out using direct and indirect methodologies. The evaluation of the result of the PAF is mainly oriented to verify compliance with the planned goals (coverage, collection and detection of evasion), and to determine the degree of assertiveness of the selection of cases, which is not the same as evaluating the impact of the supervision of the tax behavior of taxpayers. |
| P6-21 | WHD | B | FIRST | 2015 | English | It received a grade of B because strong performance close to internationally accepted good practice was detected in: A binding consultation system is in place, but cooperative compliance schemes have not yet been introduced.15 The Tax Administration administers a system of binding consultations as provided in Arts. 26 and 27 of the Tax Code16 and Art. 4 of the RACT that can be requested by any taxpayer (private consultations) or produced by the tax administration ex officio (in the form of instructions, circulars, guides, manuals or resolutions). |
| P6-22 | WHD | B | FIRST | 2015 | English | It obtained a grade of B because a solid performance close to internationally accepted good practices was detected in: The degree of inaccuracy in VAT declarations is monitored, but not other taxes. As noted in A2-3, using information from the National Accounts and following a “top-down” approach, an estimate of the global VAT compliance gap has been made in recent years.17 The reports are published in the Medium and Long Term Fiscal Framework of the MH. The results were subjected to credibility tests by technical assistance provided by the IMF's Regional Technical Assistance and Training Center for Central America, Panama and the Dominican Republic (CAPTAC-DR) in 2012. The UET also develops other analyzes focused on the accuracy of the VAT declarations of importers that are then used for the design of inspection programs. No evidence was found of other approaches to monitoring the degree of inaccuracy of the information declared by taxpayers such as advanced analysis of large volumes of data or attitude surveys. |
| P7-23-3 | WHD | B | FIRST | 2015 | English | It obtained a grade of B because a solid performance quite close to internationally accepted good practices was detected in: There is information on the web about the right to complain and the important documents of the inspection procedure contain information about the right to object, the deadline to do it, and before whom. But there is no written instruction that requires auditors to inform taxpayers about their right to appeal the determinative acts. General information on the rights of objection and appeal can be considered to be available on the Internet, for example, by accessing the Citizen's Charter of Rights, which states in the section “Right to demand compliance with your rights” that “The citizen has the right to (…) make claims (…)”. As well as through in-person and telephone attention, which was verified by the evaluation team during the field visit and by telephone call to the number (503) 2244-3444. In addition, information on the right to object and dispute resolution procedures is included in the audit reports, the hearing and opening of evidence order, and the final resolution that ends the first stage of administrative review. But there is no written instruction in the Tax Code, the RACT, or the Manual for the Planning and Execution of the Audit that requires auditors to explicitly inform taxpayers about their right to object and the resolution procedures. related. |
| P8-26 | WHD | B | FIRST | 2015 | English | It obtained a grade of B because a solid performance was detected that was quite close to internationally accepted good practices in: The tax administration provides inputs for the projection and monitoring of tax revenues, refunds and tax expenses, but does not monitor or analyze the impact carryover of capital losses. The tax administration makes projections of tax revenues for the General Budget Directorate, within the framework of a committee created for this purpose within the MH, which are subsequently incorporated into the General State Budget (PGE). The UET has technical personnel who compile the necessary information and make projections based on a reasonable estimation model. Routinely monitors executed revenues in order to alert about possible deviations from projections and prepares the corresponding reports. Proposals for resource requirements to address VAT and ISR refunds are included in the PGE, in coordination with the tax administration. The Tax Administration routinely and systematically prepares tax expenditure reports that are included in the MH's Medium and Long Term Fiscal Framework. The impact of the carryover of capital losses provided for in the Income Tax Law on collection is not monitored or analyzed. |
| P8-28-1 | WHD | B | FIRST | 2015 | English | It obtained a grade of B because solid performance was detected quite close to internationally accepted good practices in:The VAT refunds procedure is adequate, but does not provide preferential treatment to low-risk taxpayers. VAT refunds are evaluated and attended to following risk criteria. Initially, the tax administration carries out an automatic verification process, based on cross-checking information from the SIIT Returns module. This process is then complemented by a more in-depth analysis by the Petitions Department. Based on this second analysis, some taxpayers are subjected to an additional documentary evaluation or even sent for inspection. The rest of the taxpayers are waiting for the issuance of the corresponding Refund Resolution. No preferential treatment is provided in the issuance of this resolution to low-risk taxpayers. On the other hand, as indicated in A8-22, the proposals for resource requirements to meet VAT refunds are included in the PGE. It is appropriate to point out that, with the introduction of the VAT accreditation regime, the State has seen its need to disburse public resources to attend to refunds diminished, since the taxpayer with a Refund Resolution issued can exercise their right through direct compensation. The taxpayer can also offset excess VAT against tax debts. The Tax Code does not contemplate the payment of interest for refunds made late. |
| P9-29-1 | WHD | B | FIRST | 2015 | English | It obtained a grade of B because solid performance close to internationally accepted good practices was detected in: The level of assurance provided by the Internal Audit Unit (IAU) is healthy, but this unit does not report to an Audit Committee.20 As seen in Annex IV, the UAI reports to the heads of the MH and has jurisdiction over all its units, including the Tax Administration and the DGT. The CCR regulates the internal audit procedure of the Salvadoran public sector through the CCR Law. Within the framework of this regulation, the UAI prepares an annual plan that includes audits of the operational performance and the information technology systems of the tax administration. In the latter case, the audits include the review of user roles and revocation of permissions, information backup, data integrity, among others. The UAI's interventions follow the procedures provided for in the Government Sector Internal Audit Manual; and the Specific Technical Standards for Internal Control and the Internal Control Policy Manual (MAPO), both of the MH. The UAI also has a central repository of policies, processes and procedures on the MH Intranet. UAI staff receive periodic training in internal audit methodologies. The UAI is subject to an independent review of operations and internal audit systems by the CCR. |
| P9-29-2 | WHD | B | FIRST | 2015 | English | It obtained a grade of B because solid performance close to internationally accepted good practices was detected in:Mechanisms exist to ensure the integrity of staff, but statistics regarding investigations and their results are not publicly disseminated. The Transparency and Anti-Corruption Unit (UTAC) reports to the heads of the MH. It was created in 2014 through Agreement No. 2134 within the framework of the Inter-American Convention against Corruption, the Government Ethics Law and the Civil Service Law, the latter regulating the actions of public servants. It is a unit that is organizationally independent of the tax administration and has jurisdiction over all units of the MH. The UTAC has investigative powers and exercises them within the framework of due process, and can cooperate with other oversight bodies. It also formulates integrity and ethics policies summarized in the MH Integrity Code. Their findings are communicated to the directors of the Tax Administration and DGT for the application of the corresponding administrative sanctions or criminal complaints before the FGR. Although the UTAC maintains statistical control of the cases investigated and their results, this information is not publicly disseminated. |
| P9-30-1 | WHD | B | FIRST | 2015 | English | It obtained a grade of B because a solid performance was detected that was quite close to internationally accepted good practices in: The CCR audits the operational and financial management of the tax administration, but the responses or actions taken by it as a consequence of the findings of the audits They are not publicly disseminated. The CCR annually audits the operations of the Tax Administration and the DGT on different topics, following the programming of activities provided in its Annual Audit Plan. The financial audit is not carried out on the Tax Administration or the DGT directly because they are not spending executing bodies but rather on the General Directorate of Administration of the MH. Although the evaluation team received evidence of the responses or actions taken by the Tax Administration or the DGT as a result of the findings of the audits of The CCR did not receive evidence that they were publicly disseminated. |
| P1-1-2 | EUR | B | FIRST | 2019 | English | It obtained a grade of B because solid performance close to internationally accepted good practices was detected in: Documented procedures exist and are routinely applied to ensure the adequacy of recorded information. Procedures for updating registry data are applied systematically and on an ongoing basis. The information comes from various sources. For example, information is received periodically from the Civil Registries to know the death of natural persons. Information from the Commercial Registry is available to update entity data. Periodic census rectification campaigns are carried out to clarify obligations or verify the presentation of the declarations. Aware of the importance of the accuracy of the census, annual actions are planned, which are monitored monthly by the Management Committee and the Management Committee. Territorial through specific objective indicators. Specifically, in the case of entities subject to Corporate Tax, there is a permanent purification of the Entity Index. As a consequence of this purge, when the lack of presentation of declarations is verified (or in the other cases provided by law: inactivity, non-payments), the NIF of the entity can be revoked (from 2017 to 2019, 289,126 have been revoked). Which means the consequent loss of validity for identification purposes of the NIF, with the closure of public registries and the blocking of bank accounts. Possible duplications in the NIFs are systematically purged. In the case of a duplication coming from the Ministry of the Interior (natural persons), the resolution is carried out first by it. Subsequently, periodic comparison processes are carried out from the Tax Administration census with that of the Ministry of the Interior to update the information. And there are also periodic purges to undo duplications. In the case of entities, the assignment of the NIF is carried out by the Tax Administration itself, verifying the veracity of the data communicated by the interested parties. If it is determined that the data is not true, the Tax Administration may deny the assignment of the NIF. Confidence in the accuracy of the census is evidenced by the fact that the entire economic and financial system pivots on the NIF for the identification of natural and legal persons. Which is not only used by the Tax Agency, but also by the rest of the Public Administrations and economic operators. It is advisable to complement this activity with the preparation of audit reports more frequently. |
| P3-8-3 | EUR | B | FIRST | 2019 | English | It obtained a grade of B because a solid performance close to internationally accepted good practices was detected in: The tax administration offers information free of charge through a variety of public service channels. Internet services include 24-hour self-service facilities. These self-service facilities (24/7/365) are found in the electronic headquarters of the Tax Administration: filing of returns; tax payment; data query; processing of certificates. The channels used for information and assistance are varied, including from in-person attention and individual letters to telephone assistance or through the web portal. On the other hand, the Tax Administration has Civic-Tax Education programs, with the primary objective of transmitting values ??and attitudes favorable to fiscal responsibility and contrary to fraudulent behavior. Likewise, it has regular contacts for training and exchange of opinions with tax professionals (Forums, annual informative declaration campaigns). |
| P5-17-1 | EUR | B | FIRST | 2019 | English | It obtained a grade of B because a solid performance quite close to internationally accepted good practices was detected in:During 2018, the value and amount of VAT payments made within the deadline in relation to the value and amount of VAT payments due , represented 95 percent and 88.6 percent respectively. The data is seen in table 10 of Annex III. |
| P5-18-2 | EUR | B | FIRST | 2019 | English | It obtained a rating of B because a solid performance quite close to internationally accepted good practices was detected in: The volume of tax arrears presents a trend of clear improvement in the last three years both in its total value and in the value of collectible debt regarding the collection of main taxes. The tax debt older than 12 months presents values ??that denote adequate performance in line with good international practices. Table 11 of Annex III shows the values ??of the flows and balances of tax arrears from 2016 to 2018. whose average is: • The total value of the tax arrears of basic taxes with respect to the total collection thereof is 32.4 percent. • The value of the arrears required in basic taxes with respect to the total collection of the same is 9.4 percent. • The value of basic tax arrears more than 12 months old is 22.7 percent. |
| P6-19-1 | EUR | B | FIRST | 2019 | English | It obtained a grade of B because a solid performance quite close to internationally accepted good practices was detected in: The audit programs, with a wide variety of types, cover all taxes and key segments of taxpayers that, with centralized criteria and methodologies, They are subject to selection according to evaluated risks. Their results are evaluated in quantitative and impact terms. The Partial Tax Control Plans contemplate for all taxes the development of audit actions aimed at verifying the accuracy and integrity of the declarations presented, and at the investigation of elements of the tax obligation. not declared. The planned audit actions cover different segments of taxpayers, and their scope and material content prioritizes the most relevant risk areas, differentiating between extensive or selective audits and general and partial audits. The selection of audit actions is carried out in compliance with the lines and guidelines indicated annually in the planning instruments, and in accordance with a standardized methodology, criteria and selection tools developed at the central level. All this without prejudice to the initiatives that, respecting the instructions issued at the central level, the territorial bodies of the Tax Administration may have autonomously. The audit actions planned to selectively address tax fraud are subject to aggregate evaluation. and on an annual basis by the Internal Audit Service through specific programs that analyze not only the direct collection effects but also the impact on the subsequent tax behavior of the taxpayer. Individualized tax audit actions are also the subject of evaluation both in quantitative and effectiveness terms, as well as on the effects induced on the behavior of the taxpayer or others in their personal, corporate or economic environment. However, these evaluations are internal in nature, and are carried out without the intervention of external regulatory bodies. investigation. All audit actions are supported both in their planning, execution, monitoring and supervision by computer applications that allow the exploitation of the existing information, both own and third parties, in tax databases. Specifically, and through the HERMES tool, the system analyzes the differences between the taxpayer's behavior when declaring and the way in which it should have been done according to the data held by the Administration, allowing the development and exploitation of risk profiles when results deviate from expected standards. |
| P7-23-2 | EUR | B | FIRST | 2019 | English | It obtained a grade of B because solid performance quite close to internationally accepted good practices was detected in:The review is carried out by specifically designated officials other than the auditors and located in the audit department (Technical Office). Objective review procedures are documented and applied. There is no objections unit, physically and institutionally independent of the audit division. The procedure is regulated in Royal Decree 520/2005, which approves the general regulation for the development of Law 58/2003, of December 17, General Tax, on administrative review and constitutes an objective procedure for the resolution of appeals to tax acts. |
| P9-29-2 | EUR | B | FIRST | 2019 | English | It obtained a grade of B because a solid performance close to internationally accepted good practices was detected in: The information security policy is consolidated with strong controls in IT systems to safeguard the confidentiality and integrity of the information and its use , has audit trails of accesses and modifications made. The SAI has responsibility for investigation and prevention in matters of conduct and actively intervenes in the continuous improvement of the ethical infrastructure. There is an annual internal audit plan, approved by the Presidency, the lines of which are made known to the Management Committee and includes internal controls, operational performance audits, information technology systems audits and financial audits. A broad scope and scrutiny of all key operations is foreseen. Internal Audit procedures are regulated in detail by regulations with the rank of Royal Decree and Ministerial Order. There is a central repository of internal control policies, processes and procedures. There is no external independent review of internal audit operations and systems. Staff receive continuous general and specific training. There is a consolidated information security policy with IT system controls to detect incidents that put the confidentiality and integrity of the Tax Administration's information at risk. In particular, there are audit trails of all user access and modifications made to taxpayer information, along with effective monitoring by internal audit, including through the use of reports generated by the system and other audit tools. The Internal Audit unit is competent in matters related to the prevention and detection of irregular conduct, the coordination, in the manner determined by the General Directorate of the Agency, of the actions related to them and, where appropriate, its investigation, as well as the analysis and evaluation of the Agency's security and internal control systems. It is empowered by legal regulation to use to the fullest extent the techniques it considers most appropriate, with full access to information. There are mechanisms to ensure the integrity of the personnel, but statistics related to the investigations and their results are not publicly disseminated, nor are the Statistics of disciplinary files and their results. There are Tax Administration personnel permanently stationed in the Anti-Corruption Prosecutor's Office. |
| P3-9 | WHD | B | FIRST | 2019 | English | It obtained a grade of B because a solid performance close to internationally accepted good practices was detected in: In the Tax Administration, 63.8 percent of telephone calls are answered within 6 min. The information is found in table 3 of annex III (waiting time for telephone consultations). |
| P1-1-1 | APD | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The Tax Administration has a centralized, computerized registration database under its Revenue Administration Management Information System (RAMIS). The Tax Administration’s registration database contains comprehensive information about the taxpayer including the nature of business activity, identity of related entities, economic/industry sector, segmentation, and filing/payment obligations. Each taxpayer has a unique nine-digit taxpayer identification number (TIN) which is common across all tax types and has a self validating check digit. The TIN is linked to the National Identification Certificate (NIC) number for individuals and a Company Registration Number (CRN) for business entities. The portal combines the filing and payment functions and provides a full view of taxpayer’s compliance status across all tax types. The system has functionality for deactivation/deregistration/reactivation of a taxpayer, restoration of archival information as required, generation of registration-related management information and provides an audit trail of users. Evidence was not provided to demonstrate that taxpayers update their registration details. Tax declarations can be generated using registration details, though further processing of CIT declarations is manual owing to non-incorporation of the Income Tax amendments in RAMIS. Businesses and individuals can apply for registration using secure online access. |
| P5-18-3 | APD | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The stock of tax arrears is high and collectible arrears are significant. The three-year average of core tax arrears at the end of the financial year 2021-22 as a percentage of total core tax collections is 54.62 percent, well above the TADAT standard requiring core tax arrears stock to be less than 10 percent of the total core tax collections. The three-year average of collectible core tax arrears at the end of the fiscal year 2021-22 as a percentage of total core tax collections is 25.33 percent, well above the TADAT standard of 5 percent of the total core tax collections. The three-year average of debt more than twelve months old at the end of the fiscal year 2021-22 as a percentage of all core tax arrears is 25.4 percent which falls slightly short of the TADAT standard of less than 25 percent for an ‘A’ score. See Table 13 of Attachment III. |
| P6-21 | APD | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The Tax Administration offers both public and private rulings on income tax matters, but no cooperative compliance arrangements are in place. Public rulings are binding on the Tax Administration until the Commissioner General withdraws the ruling. Private rulings are binding on the Tax Administration only as it relates to the taxpayer who requested the ruling. The Tax Administration website outlines the procedures to be followed for requesting a private ruling. The website provides a link to the existing public rulings. The Tax Administration piloted a Key Client Manager (KCM) program in 2017, which is a strong example of a cooperative compliance arrangement; however, the program has since been discontinued. |
| P7-23-1 | APD | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: A graduated mechanism of administrative and judicial review is available and used; however, the administrative review mechanism for VAT is double layered. The dispute review mechanism consists of an administrative review of the CGIR at the first stage, followed by a Tax Appeals Commission and then the Court of Appeal. Administrative review for VAT is in two stages, the first being done by an official other than the assessing official, before the review goes to the CGIR. The Tax Appeals Commission is an independent tax tribunal comprising of not more than nine members. Three of the members are appointed from amongst retired Judges of the Supreme Court or the Court of Appeal, and six other members are assigned by the Finance Minister. Where the taxpayer is dissatisfied with the decision of the Commission, they have the right to make an application requiring the Commission to state a case on a question of law for the opinion of the Court of Appeal. Taxpayers use the formal dispute process (around 1,900 disputes are filed per year) as shown in Table 14 of Attachment III. |
| P9-32-1 | APD | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The Tax Administration publishes its annual report on a timely basis. The Annual report on the financial and operational performance of the Tax Administration is prepared on calendar year basis and for 2023 was submitted to the parliament in June of 2022 and uploaded to its website in August of 2022. Tax AdMinistration does not prepare an operational plan or a strategic plan. |
| P6-19-2 | WHD | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Audit guides are in place to ensure audits are systematized around uniform practices. The department maintains audit guides in the form of circulars. These cover tax audit standard operating procedures and techniques, which include: (i) preparing an audit case, (ii) examining taxpayers’ records, (iii) advising taxpayers as to the nature and scope of the audit, (iv) advising taxpayers on audit findings, (v) using templates for working papers, (vi) adhering to procedures to settle audit cases. The circulars were last updated in December 2020. A compliance risk strategy and an audit guide on the tourism and accommodation sector are in place. |
| P7-23-3 | WHD | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Taxpayers are made aware of their right to dispute an assessment or determination from the Tax Administration. Information on the objections process and the right to object or appeal is available on the Tax Administration website, cited in assessment notices and communicated by auditors in their exit interviews with taxpayers. However, no evidence was provided to indicate that there are documented procedures in place that explicitly require tax auditors to inform taxpayers of their right to appeal. |
| P1-1-1 | WHD | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The tax register is a centralized, computerized data base, and contains all relevant information, but does not use taxpayer registration details to generate tax declarations nor to provide online access to update details. Each registered taxpayer has a single high integrity nine-digit National Registry of Taxpayers (RNC) number; the data base includes filing and payment processing data; provides front line Tax Administration staff with a whole-of-taxpayer view;allows for deactivation or deregistration of taxpayers; and generates statistics of registered taxpayers by sector and changes to the taxpayer registration data. The process of business registration begins with the Chamber of Commerce and a trade license; The Tax Administration then issues the tax number – the RNC number. An individual gets an ID number at birth. This becomes the RNC number for tax purposes when any economic activity enters the system. Both business and individuals can register and request the RNC number on the Tax Administration website. |
| P3-10 | WHD | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Important steps have been taken to reduce taxpayer compliance costs: (1) simplified accounting, record-keeping, filing, and payment arrangements for individual entrepreneurs, very small companies and farmers; (2) fiscal invoice printers to easily monitor sales; and (3) elimination of the obligation to file declarations for non-business individuals (e.g., employees whose salary income is taxed at source or pensioners). The introduction of modern electronic and communication facilities—particularly the taxpayer portal—has contributed to lower taxpayer costs associated with filing and payment, and communicating with The Tax Administration. Regular monitoring of frequently asked questions and misunderstandings of the law help target and refine public information products and services. However, these initiatives do not extend to pre-filling of tax declarations for taxpayer segments where final withholding is not in place. |
| P3-11-1 | WHD | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: A variety of taxpayer feedback channels are used including public media, complaints and suggestion boxes, focus groups, feedback after seminars and post-audit surveys.Perception surveys are conducted about the services provided in both the physical and the virtual office. An independent taxpayer perception survey was conducted annually for the period 2006 to 2011 and feedback was used in the subsequent strategic plan. The next independent survey has not yet been organized. |
| P4-14 | WHD | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Three of the four cores taxes are filed electronically more than 85 percent (CIT – 86percent, VAT – 88 percent, PAYE – 99 percent) and PIT at 78 percent -hence a score of B(Table 9 of Attachment III refers). All large taxpayers are required to file electronically their filing rates are 99.2 percent, 99.7 percent and 99.7 percent respectively for Years 2013 - 2015. |
| P5-18-1 | WHD | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in:The value of tax arrears averages 17.8 percent for the past three years, as shown in Table 11 in Attachment III. The percentage has been increasing since 2013. |
| P7-23-3 | WHD | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Information on the dispute resolution process is published and taxpayers are explicitly made aware of it at the end of assessments. Information about taxpayer´s rights and dispute resolution procedures is publicly available on the website. Information on dispute rights and associated dispute procedures is specifically included in audit finalization letters and notices of assessment, using standard templates. There is a supervision procedure in the Audit Department to ensure that information on taxpayers’ rights and dispute resolution procedures is included; however, auditors are not required (through written instructions) to specifically inform taxpayers about these rights and procedures. |
| P8-26 | WHD | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The Tax Administration Economic Studies Unit fulfills the required revenue monitoring and analysis capability of a modern tax administration. It provides data and basic analytical input to the MoF, including revenue forecasting and estimation, and quarterly reviews of the estimations. Additionally, it regularly monitors and reports to the Tax Administration Director General and MoF on monthly revenue collections against budget projections and provides explanations of deviations. This unit also produces an annual report on tax expenditures. The Tax Administration forecasts VAT refunds to ensure that sufficient funds are available to service claims. |
| P8-27 | WHD | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The automated tax revenue accounting system provides essential functionality and interfaces with the MoF but is not externally audited. The system interfaces with the MoF accounting system and is consolidated at the Tax Administration. The latter maintains a single account for each taxpayer payment and posts payments within one business day. The Tax Administration conducts daily reconciliations of all bank deposits and makes reports to the MoF. The Tax Administration has internal but no external oversight of the revenue accounting system at the micro level (taxpayer payment bank deposit-tax current account). The Government Auditor (CC) audits the Tax Administration accounts annually at a macro level. |
| P9-32-2 | WHD | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: A multi-year Strategic Plan and an Annual Operational Plan are made public. The Tax Administration publish its Strategic Plan six months before is takes effect. The Plan sets out the mission, vision, and objectives of the administration over a four-year period. The Annual Operational Plan is also published every mid-January on the Tax Administration’s website, and includes the expected key operational achievements for the year. |
| P3-8-1 | MCD | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Information is made available to the public in respect of all core taxes, main areas of taxpayer obligations and all taxpayer segments through website and other delivery channels.Information is mainly disseminated through various meetings and seminars conducted by the Tax Administration. The website information lacks simplified explanations on laws and regulations. However, the Tax Administration publishes a weekly journal which provides information in simplified language on a wide range of tax-related topics regularly. There are 55,000 taxpayers who subscribe to this weekly at a nominal yearly subscription of 65 somoni (about USD 7). Information is tailored to the needs of all segments of taxpayers, tax intermediaries and disadvantaged groups, such as farmers and unskilled patent holders. |
| P3-10 | MCD | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The Tax Administration has established a simplified system of reporting and record keeping for small taxpayers. The frequency for filing VAT declarations for small taxpayers is three months instead of the standard one month. The ITMIS generates prefilled tax declarations for taxpayers which is placed in their “Personal Cabinet” where taxpayers and intermediaries can have secure access to their individual taxpayer accounts. Tax withholding is done in all cases of salary income, income from interest and dividend. Individuals having income only from these sources are not required to file tax declaration. In taxpayer seminars and meetings conducted by the Tax Administration, frequently asked questions (FAQ) and misunderstanding in tax laws are discussed and resolved. The Tax Administration replies to all such questions. Call centers also submit weekly and monthly issue-wise statistics of questions to the Taxpayer Service Department which then analyzes FAQs to improve services. However, there is no evidence of regular review of tax declarations. |
| P4-12-4 | MCD | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Taxpayers file their declarations in a timely manner. The ITMIS does a real time tracking of all declarations that are filed and follows up immediately with a notice to taxpayers when there is a delay. As a result, 91.5 percent of all CIT taxpayers, and 100 percent of large taxpayers submit their declarations on time. 93.3 percent of PIT declarations are filed on time. 95.9 percent of all VAT taxpayers and all large taxpayers file their declarations timely. 96.6. percent of all excise taxpayers and 96.7 percent of large excise taxpayers file their declarations in a timely manner. 95.8 percent of all PAYE declarations are filed on time. Tables 4 to 10 in Attachment III. |
| P5-18-3 | MCD | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The level of tax arrears of the Tax Administration is relatively low. There is a dedicated department - Tax Arrears and Collection Enforcement Department - to deal with tax collection, debts and arrears. Chapter 12 of the Tax Code lays down the measures for ensuring enforced collection of arrears.Through public seminars, business meetings and TV channels, instructions are issued to taxpayers from time to time and taxpayers are made aware of payment requirements and due dates of payments. The three-year average of core tax arrears as a percentage of total core tax revenues collected is 8.2 percent. The three-year average of collectible core tax arrears as a percentage of total core tax revenues collected is 3.1 percent. The three-year average of old core tax arrears as a percentage of total core tax arrears is 31.8 percent. See Table 13 in Attachment III. |
| P6-19-1 | MCD | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The audit program is comprehensive and centralized; however, audit impact evaluations are ad hoc. The audit program of the Tax Administration is developed on twice per year basis. The audit program covers all type of inspections (documental audit, cameral control, raid control) and targeted at all core taxes, key taxpayer segments and economic sectors. The audit program is developed centrally by using a range of predefined automated risk assessment criteria that are applied by the IT system. Article 23 of the Tax Code defines the procedures of an audit. The procedural steps of an audit are documented by the auditors within the ICT system across all tax offices. An audit manual is available to the auditors. Article 24 of the Tax Code defines the application of indirect audit methods and, in addition, the separate regulation on the application of indirect auditing techniques is available for the auditors. The Tax Audit Department (TAD) at the Tax Administration is in charge of audit policy-making across the tax administration and evaluates, ad hoc, the tax audit impact on compliance by the targeted segments |
| P6-20 | MCD | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: A wide range of automated crosschecking is conducted regularly to improve the accuracy of tax reporting. The Tax Administration has launched the new tax administration information system which has built in a wide range of automated large-scale data crosschecking procedures. The procedures are centralized, applied regularly and allow crosschecking the data across all taxpayers and related segments. The large-scale crosschecking focuses on, but is not limited to the following internal and external data: (i) VAT declarations against invoicing and corporate income tax data; (ii) banks/financial institutions data against the turnover in tax returns; (iii) employers data of social contributions against withholding income tax reporting; (iv) customs transactions against VAT returns data; (v) immovable property register against real estate tax reporting and payment; (vi) the Public Procurement Agency data against the turnover reported in tax returns; and (vii) Social Security Agency data against withholding income tax reporting. Online (internet-based) vendors payment data against the reported turnover in tax returns is obtained from the National Bank on a regular basis. However, data from stock exchanges and shareholder registries of listed companies is not crosschecked. |
| P9-29-1 | MCD | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The internal assurance mechanism ensures that all internal controls and Tax Administration procedures are complied with by tax officials. The Tax Administration has an Internal Audit Department (IAD) that reports directly to the Chairman and not to an audit committee. The IAD is staffed with a director and 10 internal auditors. Two semi-annual plans are prepared under the order of the Chairman of the Tax Administration laying down the headquarter functions and local offices that will be audited during that period. The IAD conducts a wide range of operational and financial audits to ensure that tax officials are compliant with the Tax Code and all Tax Administration manuals, procedures, directions and orders. IAD provides effective surveillance of IT system controls to ensure confidentiality of the database and audit trail of user access with system-generated reporting of any unauthorized use. There is regular training of internal auditors in audit methodologies and to keep them updated with circulars, notifications and orders of the Tax Administration. In addition, each internal auditor is provided a laptop which contains a repository/database of all internal control policies, processes and procedures as laid out in the Tax Administration orders and notifications. External review of the IAD is conducted by the Chamber of Accounts every two years. |
| P9-30-1 | MCD | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: External oversight of the Tax Administration’s operational and financial performance is provided by the Chamber of Accounts and the Agency for Financial Control. The Chamber of Accounts focusses on external audit of the Tax Administration’s main functions and operations while the Agency for Financial Control ensures that all financial rules and controls are followed. Both the agencies publish their annual plans on their respective websites.The findings of both these agencies are responded to by the Tax Administration. However, these are confidential and not publicly reported. The reports were viewed by the assessment team confidentially. |
| P9-30-2 | MCD | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The investigation process for suspected wrongdoing and corruption is fairly sound. The Ombudsman, as an institution, is set up as an independent body and it routinely investigates complaints from taxpayers on treatment received from governmental agencies, including the tax administration. On an ad-hoc basis, matters identified by the Ombudsman and recommended actions to fix them, are reported to the Tax Administration and government. Under the provisions of article 7 of the Law on Anticorruption Assessment of Legal Acts (No. 925 dated of December 28, 2012), the Tax Administration has to send all drafts of the legal acts to the Anticorruption agency for review. The legal act on internal investigations set the provisions and criteria under which the Tax Administration has to report on cases to Anti-corruption agency. There is regular and systematic monitoring and reporting to senior management of actions taken in response to recommendations of the tax ombudsman and anti corruption agency via the action plan of the measures set by the Chairman of the Tax Administration. |
| P1-2 | AFR | B | FIRST | 2019 | English | Rated B because sound performance quite close to internationally accepted good practices was detected in: Initiatives aimed at detecting new taxpayers and broadening the tax base will need to be strengthened. Although the Operational Plan of the Tax Commissioner's Office does not explicitly mention a Program for controlling business and commercial premises, the Investigations and Cross-checking Division of the Tax Control Department (DCF) has collected and processed the information. from internal sources (tax declarations of large companies) and external sources (customs, public markets, Treasury, etc.). It thus (i) proceeded to exercise the right of investigation provided for in article 310 of the Book of Tax Procedures (LPF) and resorted to the right of communication provided for in article 258 of the same Book (ii) carried out searches for inactive taxpayers from the Department of Large Enterprises (DGE) and the Department of the Gulf Tax Center (DCIG); (iii) and conducts investigations to identify companies operating clandestinely. The investigation reports have in total confirmed the cessation of activity of twenty-seven (27) companies and located sixteen (16) companies, nine (09) of which have sent temporary closure letters to the DGE; seven (07) others were absorbed or changed management. The reports also reveal that certain companies, so-called “companies in the bag” have never had a headquarters, especially in the construction sector. |
| P3-8-3 | AFR | B | FIRST | 2019 | English | Rated B because sound performance quite close to internationally accepted good practices was detected in: Taxpayers easily obtain information and advice (reception, emails, calls). This is reflected in particular by awareness programs and the possibility of online access to the tax administration website which provides practical and clear information on the tax obligations of different categories of taxpayers. Likewise, taxpayers have free access to certain paper documents (practical brochures, leaflets), at the headquarters of the tax administration or from decentralized services. There is also a free toll-free number (8201) and a Frequently Asked Questions (FAQ) on the tax administration website which allows taxpayers' concerns to be answered. However, self-services are not systematically available outside of office hours. |
| P6-19-1 | AFR | B | FIRST | 2019 | English | Rated B because sound performances quite close to internationally accepted good practices were detected in: The Tax Control Department guides, manages and evaluates the implementation of the tax control policy. It operates through its two (2) divisions which are the Tax Investigations, Analysis-Risk and Programming Division and the Monitoring-Evaluation and Tax Counter-Expertise Division. It intervenes in part in accordance with the activities programmed in the Annual Operational Plan and produces an annual activity report on the achievements of the tax audit. |
| P7-23-1 | AFR | B | FIRST | 2019 | English | Rated B because sound performance fairly close to internationally accepted good practices was detected in: An independent and progressive dispute resolution process exists. Taxpayers have a single first appeal to the Tax Legislation and Litigation Department (DLFC). A second step consists of taxpayers dissatisfied with the administration's response having recourse to the common law courts, which are not specialized in tax law. An appeal procedure is opened at the end of this first judicial phase. |
| P8-26 | AFR | B | FIRST | 2019 | English | Rated B because sound performance quite close to internationally accepted good practices was detected in: The tax administration has dedicated staff to contribute to the forecasting of tax revenues, and the monitoring of collections compared to estimates . The Department of Strategic Studies and Planning (DEPS) is responsible for developing forecasts and monitoring tax revenue within the tax administration. She regularly participates in meetings of the Medium-Term Budget Framework Committee led by the Budget and Finance Department. The data collected is at the macro level but contributes to determining the final forecast. The VAT refund levels are provided for by a budgetary entry which, from the point of view of the tax administration, should ensure the payment of legitimate VAT refunds. However, the regularity of the provision of funds does not fall under the jurisdiction of the tax administration but of the Public Treasury. Furthermore, the evaluation and monitoring of the cost of tax expenditures is not carried out annually and there is no appropriate monitoring of tax losses reported by taxpayers. |
| P8-28-2 | AFR | B | FIRST | 2019 | English | Rated B because sound performance quite close to internationally accepted good practices was detected in: Nevertheless, according to data provided by the Tax Administration, legitimate VAT refunds are made within the 30-day deadlines allowed by the TADAT. Instruction N 174 on the processing of requests for reimbursement of VAT credits requires tax administration agents to issue tax refund certificates within 8 hours of receipt. The tax refund certificate can be used by the taxpayer to pay their taxes. The payment time for VAT refunds within 30 days is satisfactory (89 percent in number of cases and 99 percent in value) [Attachment III, Table 15]. |
| P9-29-1 | AFR | B | FIRST | 2019 | English | Rated B because sound performances fairly close to internationally accepted good practices were detected in: The Internal Audit Department provides a good level of assurance to the tax administration, but is not completely independent of from an organizational point of view. The Internal Audit and Quality Assurance Department reports to the Commissioner General of the Tax Administration (article 34 of Decree 2016-017 bis on the creation, attribution and organization of the Tax Administration) . The performance of the Director of Internal Audit is evaluated annually by the Management Committee, which includes the Commissioner General, the Commissioner of Customs and Excise, the Commissioner of Taxes and the Commissioner of General Services. Therefore, even though the Internal Audit Department reports quarterly on its activity to the Chairman of the Board of Directors (and to the Internal Audit Committee since April 1, 2019), this department is not independent of an organizational point of view. The work of the Department is subject to an annual audit program. The activity reports regularly produced by this department indicate that training actions are carried out for the benefit of auditors. Cases of internal fraud were revealed by examining the entries/modifications made by certain users of the information system. Nevertheless, the report highlights a need for capacity building in auditing in a computerized environment and the need to use international comparisons in order to maintain the level of audit procedures at the highest level. Finally, no external review of internal audit operations and systems has yet been carried out since the creation of the Tax Administration in 2014. |
| P9-29-2 | AFR | B | FIRST | 2019 | English | Rated B because sound performances fairly close to internationally accepted good practices were detected in: The personnel integrity assurance mechanisms generally correspond to international good practices: The tax administration has developed a charter of ethics which is formally communicated to each agent taking office. Staff awareness actions are carried out internally. The Anti-Corruption Directorate, attached to the General Commission, has the power to investigate cases of corruption within the tax administration and exercises this power in conjunction with the judicial authorities and other government institutions responsible for the fight against corruption. The statistics relating to corruption kept by this Directorate would be the subject of publications, however the mission was unable to have proof of this publication. |
| P1-1-2 | APD | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Senior Tax Administration management regularly monitors the accuracy of the taxpayer register. Recent approval was given for a two-month project targeting incorrect registrations, outdated taxpayer information and mismatches in RMS data. |
| P3-8-1 | APD | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Information is available to taxpayers to explain their main obligations and entitlements for each core tax. Information on registration, filing, payment and correct reporting is provided through various means including social media presence, television and radio, monthly newsletters, a range of pamphlets, and regular consultation activities. A recently established call-center is providing limited further support. An annual “Tax Week” event occurs in October, which includes a series of lead-up activities designed to support and encourage taxpayer participation. Taxpayer segment-specific information is available to small businesses, professionals, some service providers and employers. Large businesses also have access to tailored information through the LTO and client relationship management visits. |
| P3-11-1 | APD | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Taxpayer feedback is largely gathered through face-to-face consultation and other in-person activities undertaken with stakeholders. An initial taxpayer perception survey was undertaken by the Tax Administration in 2018 and finalized in 2019. The survey targeted a stratified and randomized statistically significant population. A further taxpayer perceptions survey is planned for this fiscal year and is under development in conjunction with PFTAC. An additional survey to review taxpayer perceptions of the e Tax product was also undertaken in 2020. Results from these surveys are not published within the annual report of the organization or made available via the internet. A customer satisfaction questionnaire which assesses customer service is routinely provided on an ad-hoc basis to taxpayers who attend in-office. |
| P4-12-3 | APD | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: On-time filing rates are low for core taxes except for CT and Domestic Excise Tax. As shown in Tables 4 to 10 in Attachment III, on-time filing rates achieved by the Tax Administration are: (i) CIT 57.8 percent; (ii) PIT 32.4 percent; (iii) CT 87.4 percent; (vi) Domestic Excise Tax 85.4 percent; and (v) PAYE 58.2 percent. |
| P4-12-4 | APD | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: On-time filing rates are low for core taxes except for CT and Domestic Excise Tax. As shown in Tables 4 to 10 in Attachment III, on-time filing rates achieved by the Tax Administration are: (i) CIT 57.8 percent; (ii) PIT 32.4 percent; (iii) CT 87.4 percent; (vi) Domestic Excise Tax 85.4 percent; and (v) PAYE 58.2 percent. |
| P5-17-1 | APD | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The number of CT payments made on time has been impacted by the COVID-19 pandemic and other economic factors affecting businesses. An unknown (but believed by the Tax Administration to be significant) number of taxpayers have been forced to seek payment instalment arrangements. As shown in Table 12 of Attachment III, on on-time CT payment for FY2020 for all taxpayers is 91 percent. Large business taxpayers demonstrate a slightly better result with the segment making 92 percent of CT payments on time. |
| P6-19-1 | APD | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The tax audit program covers all core taxes and taxpayer segments. The audit program document sets the “to take” times for each audit type and allocates expected audit numbers to individual auditors according to their level of experience and working day availability. All this takes into accountexpected non-productive or personal development activities. Audit cases range across taxpayers of all types and sizes including a significant proportion of LTO cases. Domestic excise inspections and audits are carried out by Customs as part of their warehouse inspection regime. |
| P6-19-2 | APD | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Audits are selected on the basis of risk. The central risk management section conducts the risk assessment and produces taxpayer compliance profiles, with recommendations as to the appropriate audit type which are approved by higher management. This process is well documented with detailed workflow and accountability charts for different audit types. SOPs lay down the frequency of warehouse inspections by Customs officials to inspect domestic excise records and processes,according to the level of assessed risk. All new warehouses are visited within one month of licensing as part of taxpayer education, and to conduct an initial risk assessment. |
| P6-21 | APD | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: A system of public and private binding rulings is operative and has statutory authority. Both types of rulings were evidenced with recent examples of public rulings provided in relation to PAYE and CT. Demand for private rulings seems limited. While the Heilala taxpayer arrangements are a clear example of excellent taxpayer service to recognize and incentivize voluntary compliance, formalized co-operative compliance arrangements including agreements for a transparent relationship and sharing of tax risks as they occur are not apparent. |
| P9-29-2 | APD | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: All new staff to the Tax Administration receive training in the code of ethics and must complete a test to verify their understanding. Staff are required to sign an acknowledgment of their employment which contains a reference to the code including the requirement for secrecy.Within the Tax Administration, the CSD undertakes investigations on staff where there is an alleged breach of the code of ethics with a report going directly to the CEO. Staff in the HR Unit are trained to undertake such investigations but do not have any special powers to do so. Statistics are kept on the number and type of cases, but the incidence of such matters is rare with only two cases investigated in the 2019/2020 financial year. More serious cases can be referred to the PSC and ultimately the Police and/or Attorney General. No cases have been referred to the Police or Attorney General in the last three years. |
| P1-1 | APD | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The information held in the registration database is comprehensive. The registration of taxpayers is done electronically and is governed under the Tax Code, presidential and Cabinet of Minister resolutions. The Tax Administration’s Registration and Accounting of Taxpayer Division is responsible for the registration of taxpayers. The registration database (database) is centralized, computerized, and contains all relevant information including the taxpayer’s full name, address, contact details, date of birth or date of incorporation, nature of business activity, identity of associated entities, and economic sector. The database is integrated with the Ministry of Justice, the Statistics Agency, and the Central Bank. It also interfaces with other subsystems for tax filing and payment processing.Each registered business taxpayer has a nine-digit Taxpayer Identification Number (TIN) for all taxes and individual taxpayers are assigned a 14-digit Personal Identification Number (PIN). Both the TIN and PIN include a check digit.The database allows frontline staff to have a full view of a taxpayer’s details through different software windows and generates management information by entity type, location, and tax type.The database provides secure online access to taxpayers to register businesses through online applications; however, it does not allow them to update information through the taxpayer portal. Changes to taxpayers’ information are updated and become effective only after the Tax administration’s verification. The database enables the identification and tracking of inactive or dormant taxpayers, which allows for the deregistration of taxpayers who have stopped economic activities. The database archives the information for inactive, dormant, and de-registered taxpayers in a way it can be restored if needed. There is an audit trail of user access to the system. |
| P3-8-1 | APD | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Information on main tax obligations, rights and entitlements is available for all core taxes and is tailored to the needs of key taxpayer segments, groups, and intermediaries but not for disadvantaged groups. The public relations department (PR) is responsible for providing information to taxpayers aimed at enhancing taxpayer voluntary compliance. Information is available for all core taxes and tax obligations. The charter of taxpayer rights is contained in the Tax Code. Taxpayer advisory information is mainly disseminated through social media, via Telegram, Instagram, Facebook, and Twitter. In support of the diverse needs of taxpayers and to promote education, information is tailored for key taxpayer segments (e.g., large, small), groups (e.g., employers), and intermediaries but not for disadvantaged groups. |
| P4-12-1 | APD | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The reported filing rates across all core taxes are high. Strict adherence to statutory due dates is required. There are allowances only where the due date falls on a weekend or public holiday (to the next business day).20 There is a high level of awareness of declaration filing obligations. The Tax Administration website contains detailed information setting out declaration filing requirements, including due dates for all core taxes, in a “tax calendar” format. Individual advance warnings of a filing obligation are also provided through SMS alerts. All VAT declarations are electronically generated by the system and delivered to taxpayers’ portal and pre-filled with known data The on-time filing rates for core taxes are as follows: CIT (98.8 percent), CIT?large taxpayers (99.7 percent, PIT (98.5 percent), VAT (99.1 percent), VAT? large taxpayers (99.5 percent), Domestic excise (99.6 percent), Domestic excise? largetaxpayers (100 percent) and PAYE (withholding (98 percent) [Attachment III, Tables 4-10]. |
| P4-12-3 | APD | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The reported filing rates across all core taxes are high. Strict adherence to statutory due dates is required. There are allowances only where the due date falls on a weekend or public holiday (to the next business day). There is a high level of awareness of declaration filing obligations. The Tax Administration website contains detailed information setting out declaration filing requirements, including due dates for all core taxes, in a “tax calendar” format. Individual advance warnings of a filing obligation are also provided through SMS alerts. All VAT declarations are electronically generated by the system and delivered to taxpayers’ portal and pre-filled with known data The on-time filing rates for core taxes are as follows: CIT (98.8 percent), CIT?large taxpayers (99.7 percent, PIT (98.5 percent), VAT (99.1 percent), VAT? large taxpayers (99.5 percent), Domestic excise (99.6 percent), Domestic excise? large taxpayers (100 percent) and PAYE (withholding (98 percent) [Attachment III, Tables 4-10]. |
| P6-19-1 | APD | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: A risk-based audit program covers all core taxes and taxpayer segments, including large taxpayers and is heavily weighted towards high value / risk cases and sectors; a range of audit types and methods are deployed; however, the audits impact on taxpayer compliance is not routinely evaluated. The centrally operated automated CRM system assesses reporting risks for all core taxes and all taxpayer declarations and ranks them according to the level of risk and the tax at stake. “Auto-cameral” (automated review) functionality within the system identifies discrepancies between taxpayers’ declarations and e-invoices and other first- and third-party data held in the Tax Administration’s database. The system automatically, and with no human intervention, notifies the taxpayer of the discrepancies and invites self-correction or explanation of them. The CRM system automatically produces selections for either cameral (desk) audit, field audits or on-site inspections based on these rankings (highest first) and allocates them to field offices for action. All audit selections are made centrally via this system.The depth and scope of an audit can involve either single or multiple issues (desk or field audit) or comprehensive covering multiple taxes and/or years (field audit). Field inspections focus on regulatory infractions that may give rise to the imposition of penalties. Direct audit methodologies predominate, but business-related indirect methodologies are used - for example, comparative pricingand profitability as against local competitors, and using data on electricity consumption to impute sales in certain business sectors. Legislative restrictions were said to prevent the use of comparisons with taxpayers’ lifestyle and changes in net wealth with declared income. The Tax Administration does not have the authority to conduct criminal investigations and such cases are referred to law enforcement via a memorandum agreed with the General Prosecutors Office that has a dedicated economic crimes department. There is no structured evaluation of the impact of audit and inspection activity on taxpayers’ ongoing voluntary compliance. |
| P7-23-1 | APD | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Single layer administrative review and, on appeal, judicial review is available and used, however, an independent specialist tax tribunal, review board or committee, or court does not exist. The dispute review mechanism consists of an administrative review headed by a Deputy Chairman. If thetaxpayer disputes the administrative review’s conclusions, the normal court process is followed.Taxpayers use the administrative review process (around 1,800 disputes are filed per year) and the court process (around 2,000 disputes were submitted by taxpayers during 2022). |
| P7-23-3 | APD | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Information on the dispute process is published, and taxpayers are explicitly made aware of it through written notices. The Tax Code sets out the rules and procedures for dispute resolution and is available on the Tax Administration’s website. Information on appeal rights and associated dispute resolution procedures are specifically included in audit finalization letters, notices of assessment, and notices of administrative review ouTax Administrationomes. In practice, taxpayers are generally informed of their dispute rights as stipulated by Cabinet Order No. 1. However, there is no written instructions that require tax auditors to explicitly inform taxpayers of their dispute rights and the associated dispute procedures. |
| P7-24 | APD | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: More than 90 percent of administrative review cases are completed within 60 days. The Tax Code prescribes that administrative reviews be completed within one month and 15 working days (i.e., 51 calendar days). During the period June 2022 to May 2023, the Tax administration finalized 81 percent of cases within 30 days and 94.4 percent in 60 days.[Attachment III, Table 14]. |
| P7-25 | APD | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Dispute outcomes of a material nature are analyzed, and this analysis is taken into account in the formulation or adjustment of policy or legislation. For administrative reviews, regular monitoring is conducted through the case management system. Disputes involving significant revenue implications where the same provision arises regularly are analyzed and the results shared with tax auditors through seminars to improve performance. For court cases, the Legal Department conducts analysis on an annual basis. The Tax Administration submitted recommendation to the MOEF for amendment of the Tax Code based on decisions made by the economic courts in 2022, and the recommendation led to the amendment of the Tax Code in 2023. |
| P8-28-1 | APD | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: VAT refunds are processed through the Tax Administration’s automated CRM system; however, there is no provision in the Tax Code to pay interest on delayed refunds. VAT refund procedures are described in the Tax Code and Resolution of Cabinet of Ministers. A recent reform has simplified the refund claim process, providing taxpayers with the option to claim credit refund on their VAT declarations. However, net credit VAT declarations do not automatically trigger an entitlement to refund. The taxpayer needs to check a credit refund request box on the VAT declaration and indicate the amount of credit refund claimed. Accelerated refund procedures are in place for exporters and other low-risk taxpayers, including large taxpayers, foreign diplomatic representations and taxpayers who have submitted a valid bank guarantee.Post refund cameral audits are undertaken to validate these low-risk refunds. All claims not qualified for the fast-track procedure are subjected to auto cameral checks. VAT credits are offset against other tax liabilities when refunds are claimed and approved. The Tax Administration advised that there have been instances where actual payments have been delayed due to insufficient funds, but the MOEF was able to limit the delays to one to two days. This is an indication of the availability of sufficient funds to meet legitimate claims and a justification of a B score for this dimension. There is no provision in the Tax Code to pay interest to taxpayers on delayed refunds. |
| P8-28-2 | APD | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Eighty-four percent of VAT refund claims by number and 84.6 percent by value are processed within 30 calendar days. The refund process is a two-step process where (1) taxpayers are required to check a refund request box in their declarations and indicate the amount being claimed; and (2) the Tax Administration risk-assesses the credit and approves the VAT refund which is transferred to the MOEF for the refund payments. There is a legal deadline of 60 working days to process the VAT refund claims.[Attachment III, Table 15]. |
| P3-11-1 | AFR | B | REPEAT | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The Tax Administration regularly obtains feedback from taxpayers. Surveys are conducted every two years and are based on samples of small, medium, and large taxpayer segments, with the last one conducted by the Tax Administration itself in 2021. Additionally, the taxpayer charter, available on the website, encourages taxpayers to provide feedback for better services. Taxpayers may also provide feedback through the website (Designated email address of the Tax Administration ), informal e-mail-based surveys, meetings, and manual questionnaires at the end of their visits to the offices. |
| P6-19-2 | AFR | B | REPEAT | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The audit procedures are harmonized across both DTD and ITED. The Tax Administration has two up-to-date integrated procedure manuals—one covering direct taxes and the other for indirect taxes. The manuals define the main duties and responsibilities of an auditor to undertake regular audits and the role of the audit manager. They set out the standard practices covering all stages of the audit process from case selection, pre-audit planning through to completion of the audit—thus meeting TADAT requirements. In addition, the manuals include techniques to audit several tax types. Also, there is an audit techniques manual for transfer pricing for use by the International Taxation Unit within the DTD, which mirrors most of the DTD integrated audit manual procedures. Special audit manuals exist for two sectors, namely, construction and wholesale and retail trade. These manuals list some risks identified in these sectors. |
| P7-23-1 | AFR | B | REPEAT | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: A tiered review mechanism with an “optional” multi-layered first stage process is in place.Taxpayers are required to submit objections in writing to the audit unit of the respective Division. A taxpayer who is not satisfied with the decision of the Division may lodge an objection to the Tax Appeals Office (TAO) located in the Tax Administration’s Legal Department or directly with the Tax Appeals Tribunal (TAT). If the taxpayer is still dissatisfied with TAO’s decision, they can appeal to the TAT. The final review body is the Supreme Court. |
| P7-25 | AFR | B | REPEAT | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The Tax Administration responds to dispute outcomes of a material nature and adjusts legislation as necessary. The Legal Department monitors and analyses dispute outcomes of a material nature through internal memorandums and documents submissions for tax and non-tax revenue amendments. There was evidence of: (i) an amendment in 2020 of the Property Transfer Tax Act to align it with the new Companies Act and the guidance given by the Attorney General; and (ii) a 2020 case at the Supreme Court level that triggered changes to Section 108(5) of the Customs and Excise Act in 2022. Moreover, outcomes of disputes are made public. However, no evidence was provided to confirm that the Tax Administration prepares decision impact statements. |
| P1-2 | MCD | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: A number of initiatives are undertaken to identify unregistered individuals and businesses. These include cross checking information obtained from other sources, such as the RETA, Customs Authority (ECA), and General Authority for Investments (GAFI). In addition field visits, referred to as awareness visits, to trading precincts to physically identify unregistered taxpayers are undertaken on a regular basis. These activities are set out in the Commissioner’s Annual Plans for both general taxes and GST. |
| P3-8-1 | MCD | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Information is provided by the ETA to taxpayers covering their obligations and entitlements for each core tax. The information is tailored to the needs of most key taxpayer segments, with the specific information requirements of large taxpayers being dealt with by the LTC through both dedicated physical facilities and tailored publications. Printed material explaining taxpayer obligations and entitlements is available at local branches and on both the General and Sales Tax Departments’ websites. ETA officers conduct significant numbers of taxpayer awareness visits and these are scheduled when the taxpayer is first registered and then a follow up visit occurs several months later. |
| P3-8-2 | MCD | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Dedicated resources are assigned to the task of ensuring that information is current in terms of the law and administrative policy. Considerable efforts are made across the ETA to ensure that information available to taxpayers is updated and that new developments in laws, policy, or procedures are reflected on the websites in a timely manner. |
| P3-8-3 | MCD | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Taxpayers can obtain information on all core tax obligations and entitlements easily and at minimal cost. The service delivery channel strategy is included in the Commissioner’s annual Plan with a clear expectation that the largest degree of effort in this area needs to come from the District Offices. A variety of service delivery channels are used. These include: printed material, in the form of publications and brochures; web page messages; social media; service counters at local GTO and STO branches; a call center; and use of television and radio to draw attention to announcements and press releases. |
| P3-11-2 | MCD | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Taxpayer input is taken into account in the design of taxpayer service programs and products. The Central Department for Assisting Taxpayers has this responsibility and has more recently developed sector specific guides for farming and transportation.Content of these publications was based on meetings with representative groups from these industries and feedback obtained more generally. |
| P4-12-1 | MCD | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: On-time filing rates for GST and CIT are high, but low for both employers PAYE annual declarations and PIT returns. As shown in tables 2, 3 and 4 in Attachment III, GST and CIT rates are 93 and 77.6 percent respectively. In contrast, the PIT returns ontime filing rate was 39.6 percent and the PAYE annual return 38.9 percent. |
| P5-17-2 | MCD | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The value of GST payments made by the due date is high at 90 percent, however the number of payments received is very low at 16.9 percent. This result indicates that there is a clear emphasis on timely payment by large taxpayers. The fact that the number of payments received is low may, in part, be a result of the complexity smaller taxpayers face in determining whether tax collected on certain goods needs to be remitted within 30 or 60 days (refer to comment made at P4-10-3). Figures are provided in Table 5 of Attachment III |
| P7-25 | MCD | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Dispute outcomes are monitored and taken into account in the formulation of policy, legislation, and administrative procedures. The ETA’s Central Department for Litigation routinely monitors and analyzes dispute outcomes for all tax types. A review is then undertaken to determine what, if any, action needs to be taken as a result of the outcome. This may include for example: review of the relevant legislation; examination of the conduct of the audit case; or a review of the auditor’s actions which may result in future training initiatives. |
| P9-29-2 | MCD | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The staff integrity assurance mechanism within the ETA is well structured and reports directly to the Commissioner. Matters raised in this area are firstly investigated by the Citizens Service Department who then determine if the case warrants referral to the Legal Affairs Department for further investigation which may result in financial sanction or criminal prosecution. |
| P9-30-2 | MCD | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Investigations of suspected wrongdoing or maladministration are undertaken by the Administrative Control Authority. This Authority investigates the matter and has the powers to refer the case to other external agencies such as the Illicit Gains Authority or the Public Funds Prosecution Authority where the matter, if substantiated, may result in a prosecution case against the officer involved. |
| P1-1-1 | AFR | B | FIRST | 2019 | English | Scored B because reasonable performance was detected and close to internationally accepted good practices in: The taxpayer register is computerized and centralized but the available data is not used to produce pre-filled declarations. Decree No. 2017-215 of April 10, 2017 stipulates that the Unique Tax Identifier (IFU) of taxpayers is unique and personal. The IFU is issued by the Single Window for Business Formalization (GUFE) attached to the Investment and Export Promotion Agency (APIEX), and must be used by all financial administrations in the country in their transactions with taxpayers. . The Information Systems Department (DSI) of the DGI manages the taxpayer database through the SIGTAS (Integrated Tax and Similar Management System) of the Beninese administration. The system is automated and centralized at the national level. |
| P3-8-3 | AFR | B | FIRST | 2019 | English | Scored B because reasonable performance was detected and close to internationally accepted good practices in: Taxpayers are made aware of changes to the law and administrative policy through targeted and general communication before the texts come into force. Updating the information and awareness materials and the website is entrusted to the Taxpayer Services Unit (CSC), set up in May 2018 and reported to the Director General. Its mission is to develop and implement the DGI strategy in terms of communication, service to taxpayers and promotion of tax citizenship. It organizes information and awareness sessions for taxpayers on their tax obligations, the services offered to them as well as the reforms implemented by the DGI. The manual of procedures for disseminating content on the website specifies the responsibilities of the actors (administrative units for the content and CSC for dissemination) so that the DGI can provide taxpayers with fair, complete and up-to-date information on all aspects of tax. |
| P4-12-1 | AFR | B | FIRST | 2019 | English | Scored B because, the level of compliance with reporting obligations is satisfactory, except with regard to declarations of IRPP and deductions from wages. The due deposit rates for the five basic taxes are as follows: - IS: 77.5 percent (97.5 percent for large companies); - IRPP: 58.8 percent; - VAT: 82.5 percent (97.2 percent for large companies); - Excise taxes: 95.7 percent (paid by large companies only); - Withholding taxes: 71.4 percent. Attachment III, tables 4 to 10 |
| P5-18-1 | AFR | B | FIRST | 2019 | English | Scored B because reasonable performance was detected and close to internationally accepted good practice in: The total value of basic tax arrears is limited. It represented 28.5 percent in 2016, 17.7 percent in 2017 and 9.2 percent in 2018, respectively, of the basic taxes collected. So the three-year average is 18.5 percent. |
| P7-23-3 | AFR | B | FIRST | 2019 | English | Scored B because reasonable performance was detected and close to internationally accepted good practice in: Information relating to recourse rights is published and brought explicitly to the attention of the taxpayer. The General Tax Code (CGI) and the Book of Tax Procedures (LPF) define the different avenues of appeal for the taxpayer in the event of a tax dispute. Different channels exist to bring this information to the attention of the taxpayer (DGI website, mentions of the provisions of the CGI or the LPF in the various documents punctuating the control procedure). A Verified Taxpayer Charter and a Guide to Tax Litigation and Legal Appeals are available online. A copy of the Charter is given to the taxpayer by the auditors at the start of each on-site audit. Auditors are required, by written instruction, to explicitly inform taxpayers of their dispute rights and the corresponding dispute resolution procedures. Verification notices and adjustment notifications inform the taxpayer of the avenues of appeal. However, the written procedures of the Litigation Department do not require the agents of the said department to explicitly inform taxpayers of their rights and the procedures to follow if they are not satisfied with the department's decision. |
| P9-32-2 | AFR | B | FIRST | 2019 | English | Scored B because reasonable performance was detected and close to internationally accepted good practice in: Future directions and strategic plans are published within three months of the start of the period they cover. The 2017–21 strategic orientation plan was released in February 2017, two months after the start of the period covered. |
| P1-1-1 | EUR | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: TAK’s registration database is robust and contains all relevant details for effective management of the tax system. This includes information about ownership type, associated entities, related parties, and intermediaries, nature of business, taxpayer segment, and filing obligations. The database is centralized and computerized using the Standard Integrated Government Tax Administration System (SIGTAS). The Taxpayer Registration Division within the Department of Taxpayer Registration and Services is responsible for maintaining the registration database. All business registrations are undertaken by the Business Registration Agency (KBRA) and communicated in real time online to TAK.4 Non-Governmental Organizations (NGOs) and other non-business entities are registered by the Ministry of Public Administration and the details are communicated to TAK which issues a unique high integrity Taxpayer Identification Number (TIN) validated through a check digit. For salaried employees, their national identification number issued by the Civil Registry becomes their TIN. |
| P2-3-1 | EUR | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: TAK undertakes significant information gathering and analysis from both internal and external sources to assess compliance levels and identify emerging risks. This work is undertaken by the Risk Management Division (RMD) in the Department of Planning and Risk Management. It uses data from tax declarations, tax audits, a random audit program and internal research on taxpayer compliance behavior and compliance levels from key (high risk) compliance projects. It also uses data from external sources including KBRA and Customs. However, data from financial institutions is not available for analysis and there are no significant studies into taxpayer compliance behavior. Scans of relevant media articles and compliance insights from other tax administrations are also used. TAK uses both the PESTLE and SWOT assessment tools to assist with the risk analysis of the information it obtains. There is limited data available through the exchange of information protocols with other countries |
| P2-5 | EUR | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Formal arrangements are in place to monitor the progress of the implementation of the risk mitigation strategies set out in the compliance plan. Reports are prepared on a monthly basis by the RMD and submitted and reviewed by the CMC. The reports are also circulated to the RTOs. In addition, progress reports are prepared by the managers of the project-based compliance improvement initiatives. |
| P3-8-2 | EUR | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Technical staff are assigned to keep public information up to date. Taxpayer service staff have primary responsibility for updating the website and preparing information material whenever there is a law or procedure change. An annual communications plan is also prepared, which includes initiatives –across different media channels—for disseminating the most up-to-date information to support and encourage compliance. The Media Communication Division ensures that new information is published quickly through the “news” section of the website, Facebook, and media briefings, where appropriate. |
| P3-10 | EUR | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Simplified record-keeping and reporting arrangements are available for small businesses. TAK does not pre-fill tax declarations. Small businesses are required only to keep a record of sales and to report to TAK quarterly – and pay a flat rate on turnover, via a very simple electronic declaration.Frequently asked questions (and TAK responses) are published and analyzed to improve information products and services. Call center queries have also provided input into a user-friendly Q&A Handbook published on the website.The EDI portal provides taxpayers and their authorized intermediaries 24-hour access to registration and account details. Tax declaration processes and forms are reviewed – a recent cost-saving TAK initiative was the streamlining of financial information reporting to both TAK and the Council of Financial reporting. An expanded facility for providing online certificates (replacing many paper “rubber stamp” requirements), has also reduced compliance costs. |
| P3-11-2 | EUR | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: TAK discusses process/product weaknesses with taxpayer groups and accountants, but there is little taxpayer involvement in the design or testing of new processes. As part of TAK’s regular meetings with the main taxpayer groups and accountant representatives, deficiencies in tax administration processes and products are raised by those bodies and discussed. However, taxpayers or their intermediaries are not usually involved at the design or testing of new processes or products prior to roll-out. |
| P4-12-2 | EUR | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The on-time filings rates are: • For CIT: 66.5 percent for 2021 • For PIT: 81.5 percent for 2021 • For VAT: 73.8 percent for September 2021 – August 2022 • For PAYE: 78.4 percent for September 2021 – August 2022 |
| P4-12-5 | EUR | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The on-time filings rates are: • For CIT: 66.5 percent for 2021 • For PIT: 81.5 percent for 2021 • For VAT: 73.8 percent for September 2021 – August 2022 • For PAYE: 78.4 percent for September 2021 – August 2022 |
| P6-19-1 | EUR | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: TAK produces a comprehensive audit program each year. The program is developed by TAK’s Department for Planning and Risk Management using the outputs from the risk analysis processes, resource availability, information from the RTOs and the Department of Tax Investigations and Intelligence and other agencies. The program covers all core taxes, key taxpayer segments (including the large and medium segments) and is weighted towards high-risk sectors including the construction sector. 90 percent of planned cases (70 percent for the LTD) are selected centrally using compliance risk modules. However, in practice TAK has struggled to achieve this target due to requests for field visits from other agencies and taxpayer generated activities that are received by the RTOs. A range of comprehensive, single issue and desk audits are set out in the program. Audits of taxpayers in the large taxpayer segment are undertaken by a dedicated LTD. Although TAK does not routinely evaluate the impact of audits on taxpayer compliance, GIZ recently analyzed the impact of a small number of audits recording positive results. |
| P6-21 | EUR | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: TAK has a well-established system of issuing binding public and private rulings in place. Public binding rulings are published on TAK’s website providing additional clarification related to new legislation (e.g., reverse charge provisions for the construction industry). However, the topics covered by the current suite of published public rulings are limited. |
| P7-24 | EUR | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Over 98 percent of administrative reviews are finalized within the statutory 60-day deadline; close to 40 percent of cases are finalized within 30 days. The Law on Tax administration and Procedures 35 requires that the decision of the AD must be delivered to the taxpayer as soon as practicable but no later than 60 days after the date of the appeal. [Table 14 in Attachment III]. |
| P8-26 | EUR | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Dedicated staff in TAK gather and monitor collection and refund data for MFLT forecasting. |
| P9-32-2 | EUR | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: TAK’s strategic and operational plans are made public. TAK’s strategic plan 2022-26 was published in December 2021. The annual operational workplan for 2022 was published in January 2022. |
| P1-1-1 | APD | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The design of the registration database is sound. The national registration database is able to record full identifying information for each taxpayer, their contact details and tax obligations. Additional fields are also available to record associated entities, passport and birth registration numbers and the nature of any business activities. The registration forms require taxpayers to provide comprehensive information accompanied by proof-of-identity documents. Once validated a unique nine digit Tax Identification Number (TIN) with an embedded self-validating mechanism is issued. Macro compliance reports can be generated from the Integrated Tax System (FITS) but only on a request basis, and whilst authorized frontline staff have immediate access to taxpayer data in the system there is no single-viewof-customer screen. |
| P1-2 | APD | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Numerous activities to detect unregistered taxpayers take place. Government policy requires almost all individuals and business entities to have a TIN. The TIN also operates as a national identity number and numerous initiatives are conducted to encourage registration (e.g. inspection visits, door-to-door inspections, outreach at universities and large employer premises, village visits, alignment with identification policies of other agencies (including banks, Land Transport Authority and the National Provident Fund (via the Joint Electronic Data Interchange (JEDI) card) and stalls at public events)). These registration initiatives are prevalent but are not aligned to a national compliance improvement program, and there is no automated and systematic use of third party sources or other research to validate the extent of noncompliance with registration obligations. |
| P3-8-2 | APD | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: A wide range of information on taxes, tax forms, practice statements and frequently asked questions (FAQ) is available on the Tax Administrator website. The information is easily accessible and available website hit-rate statistics for the period January 2013– February 2015 showing increasing usage of the facility. For example, total sessions recorded on the website in 2013 were 187,602; and 213,241 in 2014. Access over the period averages 70 percent of the total hit rates (134,768 in 2013; 148,924 in 2014). Tax Administrator also regularly conducts outreach sessions to advise taxpayers on their rights and obligations and the executive management team is actively involved in many of these sessions. A nationwide campaign to explain new PAYE processes and procedures was started in 2013. Numerous press releases have been issued by the Chief Executive Officer (CEO) and surveys conducted internally by Tax Administrator to assess taxpayer satisfaction with the service. |
| P3-9 | APD | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Tax Administrator has in place a customer service standards charter (CSSC) and uses the balanced score card (BSC) methodology to measure achievement of its critical success factors. The CSSC was approved by the Tax Administrator CEO on March 18, 2014 and is designed to guide Tax Administrator officers on their interaction with all stakeholders when delivering services. However, the CSSC is not yet widely available across Tax Administrator and not yet published for taxpayers’ information and use. Standard operating procedures also exist for the Customer Service Center staff (effective January 1, 2013) and they specify how staff should interactwith taxpayers in areas such as requests for information, refund enquiries, explanation foradjustments and registration. The BSC measures managers’ enforcement of the delivery of these standards. |
| P3-11-1 | APD | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: A variety of methods to elicit feedback from taxpayers is currently in use. These include suggestion boxes, post-seminar and road show evaluations, and feedback through the Tax Administrator's website. |
| P3-11-2 | APD | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Additionally, an independent but unpublished customer satisfaction survey was undertaken by the National University of in 2013. The overall Customer Service Index (CSI) for the year 2013 was assessed at 59 percent. CSI dissatisfaction drivers included (i) timeliness of Tax Administrator service delivery; (ii) reliability of information given by Tax Administrator staff; (iii) ease of obtaining information from Tax Administrator by phone; (iv) the extent to which Tax Administrator uses e-mail services to interact with taxpayers; (v) use of Tax Administrator’s website service to provide enhanced services to taxpayers such as electronic filing of forms and an e-suggestion box; and (vi) responsiveness of Tax Administrator staff to complaints and enquiries by customers. |
| P5-17-1 | APD | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: A large percentage of VAT is paid on time. Around 88 percent of the value of total VAT payments due is paid on time, and some 95 percent of the number of VAT payments are received on time (2014 figures)—see Table 5 in Appendix 3. |
| P7-23-1 | APD | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: There are two objection review mechanisms in place within Tax Administrator, with the choice of mechanism used determined by the source of the disputed assessment. Objections to original assessments are reviewed by the Amendments Correspondence Control unit (ACCU) which is independent from the original assessment function whereas objections to audit assessments are managed within the audit unit by an auditor separate from the auditor who raised the assessment |
| P9-29-1 | APD | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The SOPs are reviewed by Internal Audit and the Legal division before being approved for implementation. An instrument of delegation exists for financial and discretionary decisions and internal controls are built into FITS covering access rights and an audit trail of accounting transactions. |
| P9-29-2 | AFR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Staff advised that the controls built into FITS are not fully documented. Financial decisions, including procurement and asset management are governed by the Tax Administrator Finance and Accounting Directions (April 2002). Disaster recovery and data backup plans are in place and employee conduct is governed by the Conduct and Discipline Regulations 2002. Internal control documentation is reviewed five yearly unless required earlier. |
| P9-30-1 | APD | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Financial and operational performance is reported on annually but it is not clear how the operational reporting links to progress against corporate plan. Tax Administrator is required to prepare half yearly and annual reports which, upon completion, are required to be tabled in Parliament (FIRCAA ss. 43 and 44). Hard copies of these reports are published for distribution to key stakeholders and soft copies are available on the Tax Administrator website. A copy of the 2013 half year report is available on the website and the 2013 annual report is awaitingboard approval. The annual reports contain text and data in relation to six critical success factors outlined in the unpublished balanced scorecard but they do not report on progress against the key result areas in the published 2011–16 corporate plan. It is therefore difficult to identify Tax Administrator’s performance against its publicly stated corporate direction. |
| P9-31 | APD | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The 2013 customer service survey rates customer satisfaction at 59 percent— equal to a moderate level of satisfaction. A survey was also conducted in 2014 following the PAYE final policy and operational changes and customer suggestion boxes are placed in all offices. |
| P2-3-1 | EUR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: TAK follows a structured approach to risk assessment using a risk management methodology developed inside the agency following OECD principles. Each year in accordance with its Compliance Strategy, TAK prepares a Risk Response Plan to identify, assess, and prioritize compliance risk for all core taxes across the main taxpayer obligations (registration, filing, payment, and accuracy of reporting) and covering all key taxpayer segments. Risks are identified through analysis and research undertaken by the Risk Management Division (RMD), intelligence gathering, and consultation with managers and staff in nine regional offices and Large Taxpayers Department. |
| P3-8-3 | EUR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: TAK has customer service delivery standards in place. However, neither the standards nor performance against the standards is published for the taxpayers’ information and use. Service delivery standards in relation to meeting taxpayer and intermediary request for information and advice are covered in operational procedures and administrative instructions. Performance is routinely monitored but only for internal use |
| P4-12-2 | EUR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The on-time filing rates for PIT and PAYE withholding are satisfactory. For PIT and PAYE withholding 75 and 78 percent of the expected returns were filed on time respectively in 2014 |
| P4-12-5 | EUR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: . The on-time filing rates for PIT and PAYE withholding are satisfactory. For PIT and PAYE withholding 75 and 78 percent of the expected returns were filed on time respectively in 2014. |
| P5-17-2 | EUR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: While only 48 percent of VAT payments were made by the due date (20th day of the following month), 79 percent of the value of total VAT payments due were made on time. See Table 5 in Appendix III. |
| P9-31 | EUR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The level of public confidence in TAK is moderately good. The UN Development Program (UNDP) sponsored Public Pulse Survey, 9 which measures the level of satisfaction in public institutions, shows that only about 28 percent of persons interviewed thought that corruption was prevalent in TAK. Of the 14 public institutions examined, TAK figured in the top third in terms of public perception |
| P1-1-2 | AFR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: There is a systematic and regular procedure in place for updating and correcting the taxpayer registry. The DGI has a standing committee for updating the taxpayer registry, which issues regular reports listing the exact number of active taxpayers under each tax category, and systematically prescribing the actions to be taken by operational units to ensure that the taxpayer registry is up-to-date. Moreover, internal memorandums and other instructions exist for standardizing procedures for delisting inactive taxpayers or for identifying erroneous taxpayer account numbers. Generally, documented procedures are available for (1) identifying and removing all inactive taxpayers from the registry; (2) ensuring that applications for registration are authentic and that the applicants meet the legal criteria for registration; (3) verifying the accuracy of the information contained in the taxpayer registry (through the use of third-party sources and sharing of information among agencies); and (4) encouraging taxpayers to inform the administration promptly of any change in the information contained in the taxpayer registry. |
| P1-2 | AFR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Various actions are taken to identify unregistered businesses and individuals. The DGI's forward-looking strategy document, Réflexions prospectives DGI, 2011–2015, contains several measures for broadening the tax base as an essential means of improving the government's financial resources. These include, in particular, finalization of the mass registration operation that has been under way since 2005, the program for linking taxpayers to their respective plots of land and land cadaster. The various annual programs for promoting voluntary compliance and other management documents call for systematic resort to third-party sources of information (e.g. using the records of lawyers registered in the Bar Association) or programming random or targeted inspections of business and trading premises (e.g., using the results of the general census) to expand the tax base. The annual activities reports describe the results obtained over the past 12 months with respect to the identification of new taxpayers (18,100 in 2014). However, there is no research performed to measure the impact of registration non-compliance at the national level, in terms of numbers and financial cost. |
| P3-8-2 | AFR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The documentation and information made available to users is constantly updated, and in real time in the case of the items available at the website of the DGI. The DGI website is widely used for publicizing information and for conducting certain tax procedures. All printed materials are available for downloading at the site, as is the schedule of tax obligations. The General Taxation Code can be consulted online. As well, the site makes it possible to track applications for VAT refunds by the enterprises concerned. Lastly, users have access to all information concerning the tax administration (organization, contacts, missions etc.) as well as to press articles concerning the DGI, statistics on revenues collected and publications of the DGI. However, taxpayers are not provided with direct notice of changes to legislation or to procedures that may affect them. This communication is conducted primarily through tax intermediaries (tax advisors and accounting firms). Although the DGI maintained that legislative amendments were published in the Official Gazette and communiqués issued by the DG, from the TADAT’s perspective, an A score requires direct communication to taxpayers. Hence the B score originally given is justified. |
| P4-12-5 | AFR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The DGI provided written tables from its database on the rate of compliance for VAT and PAYE (see Attachment V). The noncompliance rates recorded as of March 31, 2015 stood at 15.8 percent for the VAT (for the year 2014, the noncompliance rate was 22 percent) and 16.7 percent for the payroll tax, which is withheld at source by companies from their employees. |
| P5-18-1 | AFR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Arrears management is satisfactory. An analysis of the data provided shows that total arrears represent 13.2 percent, 10.4 percent and 7.2 percent of the amount of tax revenues collected by the DGI in 2012, 2013 and 2014 respectively. With respect to collectible arrears, this proportion is 4.2 percent, 3.1 percent and 1.7 percent for the same periods. |
| P7-23-1 | AFR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Taxpayers who disagree with a decision of the tax administration have a broad range of recourse channels available to them. At the administrative level, a mixed commission comprising an equal number of members from the DGI and from the private sector was created in 2014 to provide an opinion on questions of fact. If the taxpayer is not satisfied with the decision of the Objections Unit, they may take the matter first before the administrative tribunal, then to the Court of Appeals, and finally to the Supreme Court. |
| P9-30-1 | AFR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The DGI prepares an annual operational and financial report covering the essential performance outcomes. The complete activities report of the DGI is transmitted internally to the Ministry of Finance, but it is neither published nor presented to parliament. |
| P9-30-2 | AFR | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The DGI also prepares detailed strategic plans which contains the operational plans on an annual basis. The team received copies of the strategic plans for the years 2011 to 2015 (Attachment V). |
| P2-4 | WHD | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The 2015/16 NCP was published on the TA external website on June 30, 2015 and disseminated widely via the media. It sets out the national focus areas for 2015/16 (four areas have been identified; i.e., registration, filing, payment, and correct reporting). It also presents critical enablers of performance improvements, as well as planned performance monitoring and reporting frameworks which will facilitate the line-of-sight from the highlevel corporate plans to the action plans used in the LTO, RSCs and Tax Offices. Subsequent to release of the NCP, a newly formatted Programmes Unit Plan has been prepared which outlines what the operational units are expected to do during FY2015/16 and how they are to report progress against new key performance indicators (KPIs). The LTO, RSCs and tax offices have also been asked to populate the new planning and reporting template. While the entire process has been delayed (the NCP is already six months into implementation), the new reporting arrangements will formally commence in November 2015 |
| P3-8-2 | WHD | B | FIRST | 2015 | English | Scored B because Information is generally current in terms of the law and administrative policy. A TA wide Procedure for roll-out of new revenue measures was recently instituted to guide all activities associated with new taxes, revenue measures, forms and policies. In addition, the tax administration holds regular meetings with the Institute of Chartered Accountants and other professional bodies, and the LTO sends bulletins and other direct communications to its taxpayers on impending changes in laws and procedures. However, outreach on forthcoming changes is occasionally held up by circumstances outside the administrations control. For example, plans to initiate public education for the September 2015 rollout of the Withholding Tax on Specified Services were delayed by MOF consultations with stakeholders, prompting public complaints about the lack of lead time. |
| P3-8-3 | WHD | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Service delivery standards exist and are documented in a Citizen’s Charter. The Charter is available in print and on-line (the Tax Administration's website) and outlines the tax administration’s powers, taxpayers’ rights and obligations, TA’s standards of service delivery and its complaints procedure. Performance against these standards is routinely monitored, and a recent time and motion study indicated that 84 percent of TA transactions were being done within the established standard. However, results are not publicly reported. TA management indicated that it has plans to publish its annual performance report starting with the 2015/16 fiscal year. |
| P3-11-1 | WHD | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: TA solicits feedback from taxpayers employing a range of tools but results of its surveys are not published. These include post-seminar evaluations, feedback though TA’s on-line client portal, and a variety of survey instruments. The CCC conducts quarterly satisfaction surveys of a limited number of taxpayers based on random sampling of customer care agents’ call lists. Last year, TA’s Taxpayer Service and Education Programme conducted a more in-depth survey of a larger taxpayer sample, finding a 75 percent |
| P9-30-1 | WHD | B | FIRST | 2015 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: As part of its governance and transparency reforms, the TA produces an annual review of domestic tax performance. The structure of the report is aligned with the requirements of the Government for all public agencies. It is concise and reports on two strategic objectives: (i) improve voluntary compliance; and (ii) modernization of the organization. It measures results against outputs and targets/indicators. Strategic objective 1 has four outputs and eight related high level targets/indicators while the second one has seven outputs. This report is presented to the MOFP but is not published or disseminated widely.Extracts from the report may, however, be released by the Ministry in its official pronouncements from time to time but no evidence was provided. Implementation of the new reporting framework that is aligned to the NCP, as discussed in POA 2, is expected to make the reporting even more precise. |
| P7-23-1 | AFR | B | REPEAT | 2019 | English | Scored B because reasonable performance was detected and close to internationally accepted good practice in: A progressive administrative and judicial review system is in place and used. In accordance with the General Tax Code, the first level of appeal against the actions of the DGI - control, assessment, penalties, fines, etc. - is at the administrative level, where in the operational structures a Division or Office of Litigation examines complaints filed by taxpayers. If the taxpayer is not satisfied with the administrative decision, he can bring the matter before the Court of Appeal with, if necessary, the possibility of an appeal to the Supreme Court. There is no specialized tax jurisdiction or arbitration body available to taxpayers. |
| P8-26 | AFR | B | REPEAT | 2019 | English | Scored B because reasonable performance was detected and close to good practices accepted at the international level in: The DGI contributes effectively to tax revenue forecasts, however deficits and tax credits reported by taxpayers are not subject to review. special follow-up. The DGI has experts dedicated to the process of forecasting state tax revenue. These are housed within the Department of Studies, Statistics and Communication (DESCOM). They regularly collect data on the collection of tax revenues and general economic conditions to feed their model for forecasting and estimating tax revenues, including the amounts necessary to allocate to VAT refunds. DESCOM also participates in several interministerial working groups on the macroeconomic framework and the preparation of finance laws. Its teams regularly monitor the collection of tax revenues, analyze deviations from forecasts and send monthly preliminary activity reports to the Minister of Finance for this purpose. An estimate of tax expenditures is also made on an annual basis and included in the finance law. However, evidence was not provided of the effective monitoring and calculation of the budgetary impact on tax revenues, the use of tax credits and carry-forward deficits. |
| P3-8-2 | EUR | B | REPEAT | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Procedures are in place to ensure that information is kept current, and taxpayers are informed on regulatory changes mostly via general communication. To keep information current each Directorate is responsible for reviewing and updating content relating to their specific mandate. This is reflected in procedures and frequently asked questions (FAQs), which are used both to support call center staff and to provide information to taxpayers via the website. Communication on changes in the law and procedures takes place via press releases and news alerts and are regularly communicated before the change takes effect. |
| P4-12-1 | EUR | B | REPEAT | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: In the absence of register data, filing obligations for CIT and PIT in Tables 4, 5 and 10 are based on certain assumptions, some of which can give approximate numbers. Detailed calculations are made to bring out the number of expected declarations for CIT and PIT. |
| P4-12-3 | EUR | B | REPEAT | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Measuring the timely filing ratio is closely connected to the quality of the taxpayer register. The scoring in this POA is largely based on the data provided by the IAPR. However, the assessment team has formed the view that, except for VAT, the ratios resulting from the mathematical calculation should be considered approximate. As the register only includes filing obligations for VAT, this is the only tax type for which the number of expected declarations can be extracted accurately. |
| P4-12-4 | EUR | B | REPEAT | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: In the absence of register data, filing obligations for CIT and PIT in Tables 4, 5 and 10 are based on certain assumptions, some of which can give approximate numbers. Detailed calculations are made to bring out the number of expected declarations for CIT and PIT. The IAPR had more limited scope for calculating the number of employers obliged to file PAYE withholding declarations and based the numbers in Table 10 on the number who filed for the previous month. For this reason the assessment team formed a view that a D score is warranted for this dimension. |
| P5-15 | EUR | B | REPEAT | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Almost 100 percent of the value of payment is made electronically across all core taxes (Table 11, Attachment III). Only small sums can be paid in cash , above these set limits payment must be made through banks or by cheque (also within certain limits). However, these payments still make up a disproportionate part of the total number of payments. An example of this can be found in domestic excise tax, where 13 percent of the payments not made electronically account for only 0.3 percent of the total value paid |
| P5-17-1 | EUR | B | REPEAT | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Based on the data provided, 22 percent by number of VAT payments due were late, representing 12 percent by value (Table 12, Attachment III). The follow-up that has to be taken, from reminders to possible recovery action, will consequently have to deal with a sizeable number of smaller debts. Unpaid VAT amounts due by first-time debtors are identified once a month by the Tax Compliance Directorate for follow-up action. This successful approach, part of the operational plans, reduces the need for later enforcement measures. |
| P5-17-2 | EUR | B | REPEAT | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The follow-up that has to be taken, from reminders to possible recovery action, will consequently have to deal with a sizeable number of smaller debts. Unpaid VAT amounts due by first-time debtors are identified once a month by the Tax Compliance Directorate for follow-up action. This successful approach, part of the operational plans, reduces the need for later enforcement measures. |
| P7-25 | EUR | B | REPEAT | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The DED routinely analyzes dispute outcomes, as well as decisions of the administrative Courts, and notifies material decisions to the Legal Department of IAPR. Detailed analysis was made available for the first half of 2020 and the first quarter of 2021. No similar analysis has been made yet for 2022, and there is no evidence of impact statements, but evidence has been made available of instructions issued in 2022 and 2023 to reflect dispute outcomes of a material nature, including decisions of the Administrative Court. |
| P8-28-1 | EUR | B | REPEAT | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Risk based verifications are applied for VAT refund claims, but the time for refunds to be paid or offset does not meet international good practice. Twice a month a central assessment of refund applications takes place, based on risk analysis criteria which were not disclosed. Sufficient budget funds are available to honor the approved refund requests, still only 60 percent of the refunds requests representing 23 percent of the total value, are paid or declined within 30 days. |
| P9-32-2 | EUR | B | REPEAT | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The IAPR prepares and makes public both a multi-year strategic plan and annual operational plans. Both plans are available on the IAPR’s website. They are, however, not made public in advance of the period covered by the plans. The Strategic Plan 2020-2024 was posted in March 2021 on the IAPR’s website. The operational plans for 2022 and 2023 were respectively posted in March 2022 and March 2023. |
| P4-12-5 | EUR | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: PAYE withholding on-time filing rate is (81.9). The on-time filing rates for excise are 100 percent for both all and large taxpayers. (See Tables 4 to 8 in Attachment III.) |
| P4-13 | EUR | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: A robust system is in place to manage non-filers. Immediately after the due dates, a list of non-filers is automatically generated by the various filing tools for each core tax. Documented procedures are in place and include sending a reminder letter to all non-filers, within fourteen days of the due date for CIT and within seven days for VAT. For PAYE, while there are monthly payments made, the follow-up of non-filers takes place annually after the receipt of the annual summary declarations, following the same procedure. Reminder letters are centrally printed and sent to taxpayers requesting them to file their return within fourteen days and warning them of a fine and tax increase if they fail to do so. If a return is not received within fourteen days, further follow-up action occurs in a series of steps, including automatically generated penalty notices, estimated tax assessments, and tax additions. Penalties and surcharges follow scales that take into account the taxpayer's compliance history. The GA Taxes has dedicated staff for the enforcement of tax returns, both centrally and in each tax administration (individuals, SMEs, LE). In addition, prior to the PIT due date, the FPS Finance proactively contacts PIT taxpayers who used its assistance in the previous year to offer assistance again. SITRAN is routinely updated based on the results of non-filer enforcement (e.g., adding a new address for tax correspondence purposes, starting the process of deregistration for VAT number). |
| P5-18-1 | EUR | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: While most taxes considered collectable at year end are collected, most of the arrears of core taxes are over 12 months. GACR has cohesive policies and provides professional and methodological guidelines for tax payments and arrears collection. GACR provides good information services to taxpayers and offers several options for to manage payment difficulties by telephone or electronic means. Debt collection actively monitors and takes appropriate measures for implementing these policies at every stage. The three-year averages of tax arrears ratios are as follows: ? Total core tax arrears / total core tax collections: 18.8 percent, ? Collectible core tax arrears / total core tax collections: 2.8 percent, ? Core tax arrears of more than 12 months / total tax arrears: 90.9 percent. |
| P7-23-2 | EUR | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in:There is no legal requirement to offer an administrative review for VAT, but GA Taxes offers this opportunity for VAT taxpayers. There is a single stage of review in each case. If the taxpayer is not satisfied with the outcome of this review, they can appeal to the court of first instance (the Tribunal), which operates a specialist tax chamber. If the taxpayer is not satisfied with the decision of the Tribunal, they can appeal to higher Courts under the legal procedures in . |
| P7-23-3 | EUR | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: There was no evidence that auditors or objections staff are under written instruction to advise taxpayers of their review and dispute rights. During evidence gathering interviews, FPS Finance assured the assessment team that auditors would advise taxpayers of their objection rights during an audit. Representatives of the accounting profession also indicated that auditors would usually advise taxpayers of their objection rights, they did not consider that this was universal. |
| P7-25 | EUR | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: There is regular monitoring and analysis of the dispute cases decided by the Court system, but not all administrative review cases are analyzed. There was no evidence offered that administrative reviews are regularly analyzed for the information that the analysis might offer about consistency of decisions by FPS Finance staff, any weaknesses in the overall administration of the system or for other operational insights. However, all dispute cases decided by the Court system are analyzed to determine whether the administration will appeal the decision, whether there would need to be revision of administrative advice, or a recommendation for an amendment to the law. The assessment team considered that the matters brought before the Court system would be material in nature to FPS Finance. |
| P9-30-2 | EUR | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Staff integrity assurance mechanisms are sound, but integrity related statistics are not published. There is a well-documented code of ethics and professional conduct for staff, trainees, and contractors of FPS Finance. Updates are regularly communicated through intranet messaging at IT application access points with an obligation to confirm major updates. There are records of receipt of these communications. Internal affairs units, termed Services of Internal Inspection, are located within each of the GA Taxes, GACR, the Special Tax Inspectorate and the GACE. These units report directly to their respective head of General Administration. Appropriate investigative powers are available and each of the Services works with the federal police and Ombudsman. Integrity related statistics are prepared each quarter and are included in an annual activity report for each of the Internal Inspection Services. These statistics are not publicly reported. |
| P9-32-2 | EUR | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The annual report of the FPS Finance for 2022 describes the financial and operational performance of the tax administration. The report is tabled before June 30 each year. The strategic and operational plans for tax administration are made public on a timely basis. The current strategic plan is for the years 2022 to 2024. It is available on the website of FPS Finance. The plan is not published in advance of the period covered by the document but is published in the first quarter, in the year of effect. An operational plan describing annual initiatives and key performance indicators is published each year. The operational plan for 2023 is also available on the website of the FPS Finance. The operational plan for 2023 was published on February 16, 2023. In addition, an overview of reform projects to be implemented each year in pursuit of business strategies and associated transformation objectives is published on the FPS website. ? |
| P1-1-1 | AFR | B | REPEAT | 2019 | English | Scored B because reasonable performance was detected and close to internationally accepted good practice in:The registration system is relevant but companies cannot change their data online. The Single Tax Identifier (IFU) is issued to individual businesses and companies at the Single Window for Business Formalization (GUFE) attached to the Investment and Export Promotion Agency (APIEx) by agents of the DGI. The IFU application for businesses is made exclusively online on the monentreprise.bj website. Natural persons can obtain an IFU online from the DGI (ifu.impots.bj) which automatically retrieves their identification information from the National Agency for the Identification of Persons (ANIP) through their Personal Identification Number (NPI). The registration system is automated and centralized at the national level. The register contains all the identification data necessary for the correct establishment of the tax. SIGIBé offers managers a global view of each taxpayer's file for all their tax functions. It allows the deactivation and archiving of files in the taxpayer file and the generation of management information and statistics by type of tax and by sector of economic activity. It ensures traceability of system users and modifications made to taxpayer data. All documents (declarations, receipts, certificates, etc.) from SIGIBé are pre-identified. However, if individuals can update their data online, companies must request it from APIEx. |
| P2-7-1 | AFR | B | REPEAT | 2019 | English | Scored B because reasonable performance was detected and close to internationally accepted good practices in: Risks relating to human capital are taken into account but staff performance is not evaluated. A structured process to effectively manage and assess risks to human resources (HR) has been put in place as part of the development of the general risk map. HR risks are identified, assessed and prioritized. The associated action plan, which notably provides for actions on the quality of HR management and the motivation of agents, is monitored within the framework of the Risk Management Committee, which meets quarterly. Managers and agents of the Resource Management Department (DGR) were trained, as well as managers as part of QMS (Quality Management System) training. Various studies or external diagnostics, carried out in recent years, have focused in particular on HR management: diagnosis on training and HR management, findings and recommendations on HR security in the IT sphere (compliance audit of the IT policy). security of state information systems), comparative study of HR management of tax administrations in several African countries, including Benin. A rating system exists for all agents, but it is limited to an annual report card and is not based on evaluation interviews and the setting of performance objectives. This development is, however, provided for in the action plan piloted by the CQGR. |
| P4-12-1 | AFR | B | REPEAT | 2019 | English | Scored B because reasonable performance was detected and close to internationally accepted good practices in: The level of compliance with reporting obligations is satisfactory. The rates of on-time declarations over the period from October 2022 to September 2023 are respectively: IS (85.21% for all taxable persons and 95.85% for large taxpayers), IBA (76.38% ), VAT (76.88% for all taxable persons and 95.97% for large taxpayers), domestic excise duties (96.43% for domestic excise duties relating to products and services which contribute , in value, at 70% of the total amount of domestic excise duties and for large taxpayers) and ITS (80.47% for all employers). See Attachment III, Tables 4 to 10. |
| P5-15 | AFR | B | REPEAT | 2019 | English | Scored B because reasonable performance was detected and close to internationally accepted good practices in: Electronic payment is effective for basic taxes. In 2022, 90.58% of IS, 94.70% of IBA, 71.58% of VAT, 90.35% of ITS, 100% of domestic excise duties and 95% of basic tax payments of large companies were paid electronically. The main payment method offered to taxpayers is telepayment, open to large companies through a space called E-SERVICES since 2018 and gradually extended to CIME taxpayers in July 2022. Taxpayers can also make payments by bank transfer. Payment by check and cash has been prohibited since June 2023 at the DGE and in the CIMEs. With the gradual deployment of teleprocedures at the Cotonou CIPE from January 2024, small taxpayers will benefit from electronic payment methods. See Attachment III, Table 11. |
| P5-18-1 | AFR | B | REPEAT | 2019 | English | Scored B because reasonable performance was detected and close to internationally accepted good practices in: The amount of basic tax arrears as a percentage of revenue collected is satisfactory and has been decreasing over the last three years. It represented 14.9% in 2020, 11.7% in 2021 and 11.2% in 2022, respectively, of the basic taxes collected. The three-year average is 12.6%. |
| P5-18-2 | AFR | B | REPEAT | 2019 | English | Scored B because reasonable performance was detected and close to internationally accepted good practices in: The level of recoverable basic tax arrears as a percentage of revenue collected is satisfactory with an average of 6.5% over three years. It represented, respectively, 10.9% in 2020, 3.6% in 2021 and 5.3% in 2022. |
| P6-19-1 | AFR | B | REPEAT | 2019 | English | Scored B because reasonable performance was detected and close to internationally accepted good practices in: The control program developed every six months based on fraud risks covers all taxes and all taxpayers but its impact on taxpayer behavior does not is not evaluated. The verification program is developed based on an annual orientation note which analyzes the economic situation and identifies the main risks (including reductions in revenue revealed by the work of the research services, the importance of credits and deficits, risk sectors, taxpayer behavior, etc.). This note also defines the objectives and main axes of tax control activities. Several types of checks are used, including documentary checks, one-off on-site checks (a tax over a few months, for example for VAT) or general (all taxes over the non-prescribed period) and checks of standardized invoicing. In addition, the DGI carries out investigation work in collaboration with the General Directorate of Customs. However, the DGI does not assess the impact of controls on taxpayer behavior. |
| P6-21 | AFR | B | REPEAT | 2019 | English | Scored B because reasonable performances have been detected and close to good practices accepted at the international level in: The tax doctrine and anonymized rulings are published but there are no prior individualized agreements with taxpayers to improve tax compliance. The DGI publishes the tax doctrine which emanates from contentious decisions and which is binding on both the tax administration and taxpayers. The right of ruling which specifies the interpretation of the tax law by the administration makes it possible to secure taxpayers' operations and limit disputes. The rulings are published on the DGI website. In addition, the creation of approved management centers allows rather disadvantaged taxpayers to benefit from the assistance of tax intermediaries to present more compliant declarations. However, the legislation does not provide for agreements or a system allowing advance decisions (such as rulings) or the categorization of certain taxpayers (corporate citizens, for example). |
| P7-23-3 | AFR | B | REPEAT | 2019 | English | Scored B because reasonable performances were detected and close to good practices accepted at the international level in: Information relating to rights of appeal is published and brought explicitly to the attention of the taxpayer, but the personnel in charge of control and litigation are not not explicitly required to mention them. The CGI and the law establishing the code of procedure, civil, commercial, social, administrative and accounts define the different avenues of appeal for the taxpayer in the event of a tax dispute. There are also different channels for informing taxpayers (DGI website, mentions of the provisions of the CGI in the various documents of the control procedure). A verified taxpayer charter and a guide to tax disputes and informal appeals are available online. Verification notices, adjustment notifications and contentious rejection decisions inform the taxpayer of the avenues of appeal. However, auditors and dispute handling staff are not explicitly required by their procedural manual to inform taxpayers of their appeal rights and corresponding dispute resolution procedures. |
| P8-26 | AFR | B | REPEAT | 2019 | English | Scored B because reasonable performance was detected and close to good practices accepted at the international level in: The tax revenue forecasting system at the DGI is effective. The UPF of the DPSE is responsible for developing forecasts and monitoring tax revenue within the DGI. She regularly participates in meetings on budget forecasts led by the General Directorate of the Economy (DGE). The data collected is subject to arbitration and contributes to determining the final forecasts to be included in the finance bill. The UPF evaluates and annually monitors the cost of tax expenditures in relation to the Reference Tax System (SFR). It makes forecasts on VAT credit reimbursements and uses the “PRESIREF” forecasting model on carry-forward deficits. However, it does not take into account the impact of tax credits to be carried forward. |
| P8-28-1 | AFR | B | REPEAT | 2019 | English | Scored B because reasonable performance was detected and close to internationally accepted good practice in: The VAT credit refund system complies with good practice but no interest is paid for late refunds. The |46 VAT credit reimbursement procedure for the benefit of taxpayers is provided for (CGI 2023, arts. 252 to 257). The reimbursement of VAT credits is reserved for producers, exporters (taxable persons who generate more than half of their annual turnover from exports), investors who acquire investment goods giving right to deduction and taxable persons who permanently cease their activity. It is carried out according to the degree of tax citizenship of the taxpayer based in particular on compliance with reporting and payment obligations. Low risk companies automatically benefit from reimbursement, those with medium risk after credit validation checks and those with high risk only after a general accounting verification procedure. A third-party Treasury account is funded by a levy on VAT revenues both at the customs border and internally to reimburse VAT credits. The credits are chargeable against tax arrears, with the exception of withholding taxes. However, no interest is paid in the event of late reimbursement to the taxpayer. |
| P9-32-1 | AFR | B | REPEAT | 2019 | English | Scored B because reasonable performances were detected and close to good practices accepted at the international level in: A DGI activity report is made public each year; the 2022 report was published in July 2023. Since 2017, the tax administration has produced an annual report which traces the activity, financial and operational results and highlights of the past year. It highlights the missions carried out and the reforms undertaken. It is made public. The 2022 report was published in July 2023. |
| P3-11-2 | AFR | B | FIRST | 2019 | English | Rated B because sound performance quite close to internationally accepted good practices was detected in: The tax administration collects reactions from taxpayers and carries out opinion surveys among taxpayers on an ad hoc basis. To receive impressions from taxpayers, operational centers have an idea box, a grievance box and a satisfaction survey form. At the national level, taxpayers can contact the tax administration via the website (frequently asked questions), email, telephone and social networks. Complaints received are followed up during staff meetings. To date, two satisfaction surveys have been carried out. On the one hand, the Ministry in charge of Finance conducted a general satisfaction survey of users of the ministry's services with a specific section on the DGE. On the other hand, an independent firm (Conecteo) carried out a satisfaction survey in 2021 specifically targeting users of the tax administration. |
| P5-16 | AFR | B | FIRST | 2019 | English | Rated B because sound performances quite close to internationally accepted good practices were detected in: As part of its strategy of dematerialization of its services and to improve its quality of service to taxpayers, the tax administration has implemented a portal for online tax declaration and online payment (eHetra). A user guide for membership and connection is made available to taxpayers. The eHetra “Telepayment” functionality allows the execution of tax payment orders online and the consultation of the history of orders placed. The data collected (Table 11) indicates electronic payments representing on average 62.6% of the value of the total of the main taxes collected (IR, IRSA, VAT, and excise duties) for all registered taxpayers. Electronic payments made by large taxpayers as a percentage of the total value of payments received for these four taxes amount to 99.8%. |
| P6-19-2 | AFR | B | FIRST | 2019 | English | Rated B because sound performances quite close to internationally accepted good practices were detected in: The annual control plan, developed by the DRCF covers all taxes and uses several types of tax control adapted to the risks specific to each type of taxpayer. The DRCF ensures the dissemination of the program to operational services and the monitoring of its execution via the Tax Audit Quality Monitoring (SQVF) application. However, the impact of controls on taxpayer behavior is not regularly realised. |
| P6-19-3 | AFR | B | FIRST | 2019 | English | Rated B because sound performance quite close to internationally accepted good practices was detected in: A tax audit guide is made available to auditors to ensure the standardization of procedures and their compliance. The tax audit guide covers the selection of files to be audited, the choice of the nature of the audit, the methodology to apply, the nature of the audit and its scope, the period covered by the audit, the examination of tax files, the use of standardized procedural documents, the consequences of the audit to be brought to the attention of the audited company and respect for the rights of taxpayers. The verified taxpayer is informed of his rights and obligations in all procedural documents (audit notices, notifications). In addition, the audited taxpayer's charter is given to them with the audit notice. Auditors have a guide on controlling the insurance sector. |
| P8-27 | AFR | B | FIRST | 2019 | English | Rated B because sound performances quite close to internationally accepted good practices were detected in: Within the tax administration, the Statistics and Forecasting Department collaborates closely with the Tax Policy Unit of the Ministry of Finance on the work budgetary framework preparatory to the preparation of the finance law. It carries out weekly monitoring of domestic revenue achievements. The tax administration also projects the budgetary allocations necessary for VAT refunds and contributes annually to the tax expenditure calculation exercise, the results of which are annexed to the finance law. On the other hand, the tax administration does not monitor and calculate the budgetary impact on tax revenue of the use of deficit carryforwards. |
| P8-28-2 | AFR | B | FIRST | 2019 | English | Rated B because sound performance quite close to internationally accepted good practices was detected in: VAT credit refund requests are processed in a differentiated manner depending on the risks. Covered by article 06-01-24 of the CGI, the VAT credit reimbursement mechanisms are the responsibility of the Research and Tax Control Department and are managed centrally by the Credit Reimbursement Service. of VAT. In accordance with instruction 2012-MFB/SG/The tax administration, the processing of reimbursement requests is differentiated depending on the tax behavior of the company and the risk presented by the requests. As a result, requests are filtered into three categories (green, yellow, red) and are subject to an appropriate examination depending on their classification. |
| P2-4 | APD | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: A structured risk assessment framework and related processes are in place to enable the assessment, quantification, and ranking of compliance risks. The risk framework is overseen and driven by the Compliance Risk Management Committee (CRMC) which is chaired by the CG and includes other senior managers as members. Risk assessment policies and processes include identifying, analyzing and ranking risks in the core tax types and the four main tax obligations. An environmental scan and an annual compliance assessment were completed in 2021. Current processes directly link into the annual business planning process for core taxes and the four main tax obligations. |
| P3-8-2 | APD | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Tax administration provides information to taxpayers on a wide range of topics and tailors it to the needs of different taxpayer segments, industries, and intermediaries. The Tax administration website contains a wide range of information covering all taxpayer obligations. Guidelines on registration, filing, reporting, payment, and entitlements (e.g., claim for input tax credits and the right to dispute) exist. Whilst Tax administration tailors information to taxpayer segments and intermediaries, there is no specific attention to disadvantaged groups. |
| P3-11-1 | APD | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Tax administration has a range of initiatives to reduce taxpayer compliance costs. Using Tax administrationconnect, taxpayers and tax agents can access their accounts online. The secure taxpayer portal has 24/7 availability and accommodates online filing and e-payment for all core taxes. Small and micro business taxpayers are not required to file income tax returns and can file quarterly GST returns. Cash basis accounting is available to small businesses under MVR10 million. Further, rental income taxpayers with low or no income to report are not required to file financial statements with their tax returns. Templates for tax invoices and simplified records are available. However, Tax administration prefills tax declaration forms with taxpayer account information and PAYE data but no other financial information. |
| P4-13 | APD | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: On-time filing rates are generally low relative to TADAT standards. For all taxpayers, the data from Tables 4–10 of Attachment III show that only 36 percent of CIT declarations are filed on time. Ontime filing rates for PIT declarations (63 percent), GST declarations (62 percent), and PAYE declarations (87 percent) are better but still indicate nearly one-quarter of all taxpayers required to file are not filing declarations on time. For large taxpayers, only 63 percent of CIT declarations and 92 percent of GST declarations are filed on time, which falls well short of the TADAT 100 percent on-time filing standard. |
| P5-15 | APD | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Electronic filing is extensively used, with PAYE rates at 100 percent and other core taxes close to the TADAT standards. For large taxpayers, electronic filing for all core taxes is 99.8 percent, close to, but not yet meeting, the TADAT standard of 100 percent. For other taxpayers, electronic filing rates are CIT (78 percent), PIT (79.9 percent), and GST (90.7 percent) respectively. [See Table 11 of Attachment III]. Only PAYE is mandated for electronic filing. |
| P5-16 | APD | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Electronic payment is available and used for all core taxes, with uptake increasing steadily over the years. Payments may be made online through Tax administration’s Card and the Bank's debit or credit cards or through the country's Real Time Gross Settlement (MRTGS). 10,11 Effective from October 1, 2020, all tax and other fee payments exceeding MVR100,000 and USD 5,000 were facilitated through Tax administrationconnect and tax administration's card, via debit/credit cards, and MRTGS.12 The value of electronic payments as a percentage of total payments for all core taxes is above 75 percent but the rate for large taxpayers is below the TADAT standard. The highest use of electronic payments is for PAYE (99.5 percent), followed by CIT (88.2 percent), GST (84.1 percent), and PIT (75.4 percent). For large taxpayers, the value of payments made electronically is 99.2 percent for all core taxes, close to, but not yet meeting, the international standard of 100 percent. See Table 11 of Attachment III. |
| P5-17-1 | APD | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The government uses withholding and advance payments. Withholding at source is in place for all employment income and for income including interest (other than the interest paid or payable to a bank or non-banking institution approved by Tax administration) and dividends earned by non-resident taxpayers. Residents are not taxed on dividend and interest income if interest income is less than MVR 5,000 in an accounting period. There is no withholding on taxable interest received by residents. Submission of tax returns and withholding tax payments are required to be made by the fifteenth day of the following month. An advance payment regime, known as interim payments, is in place for PIT and CIT. The law requires every person subject to tax to pay taxes in advance: first interim payment (by July 31) and second interim payment (by January 31 of the following year) before the final balancing tax payment is made. To encourage electronic interaction, taxpayers with an annual turnover of MVR30 million are required to make their interim payments via Tax administrationconnect or MRTGS effective from August 17, 2020. |
| P5-18-3 | AFR | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The existing tax arrears stock is high and comprises mostly of old debt. The three-year average of core tax arrears at fiscal year-end as a percentage of core tax revenue collections is 40.2 percent—well above international good practice requiring arrears stock below 10 percent of total core tax collections. The average proportion of collectible core tax arrears as a percentage of total core tax revenue collection is 9.2 percent which is close to the good practice standard of below five percent of total core tax revenue collections. While the ratio for arrears more than 12 months of old debt has trended downwards over the past few years, the three-year average value of core tax arrears more than twelve months old is 64.8 percent of all core tax arrears. The good practice standard for the rolling three year average of aged arrears aims for such arrears to be below 25 percent. See Table 13 of Attachment III. This ratio is high compared to good practice. |
| P6-19-2 | APD | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Tax administration’s audit program covers all core taxes and focuses mainly on large taxpayers as the key segment responsible for most tax payable. Audit cases are selected centrally based on risk and use both direct and indirect verification methods. On a case-by-case basis, future compliance is monitored with the potential for a follow-up audit. There is no global evaluation of the impact of audit on future taxpayer compliance. |
| P7-24 | APD | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Information on the disputes process is published on The goverment website, and taxpayers are alerted to their rights of review in some key materials. Tax administration M808, the Objection and Appeal Guide, available on the Tax administration website and current as of January 2022, explains the objection process in some detail.The Tax Audit Framework (M841), also published on the Tax administration website, provides information on a taxpayer’s right to object to an assessment once the Notice of Tax Assessment (NOTA) is issued. The NOTA has a more specific reference to dispute rights and procedures, and the Final Response Letter advising the outcome of an objection alludes to the taxpayers’ rights to appeal in fine print at the bottom of the letter.Aside from these references to dispute rights, there are no written instructions explicitly requiring auditors and administrative review staff to inform taxpayers of their rights. In the case of auditors, explicit written instructions requiring auditors to advise taxpayers of their objection rights and the associated procedures at key points during the audit would normally be found in the audit manual. And for administrative review staff, a similar written instruction explicitly requiring taxpayers to be advised of their appeal rights and the requisite procedures would normally be found in the administrative review procedure guide or its equivalent. |
| P3-8-2 | MCD | B | FIRST | 2019 | English | Rated B because sound performance quite close to internationally accepted good practices was detected in: The tax administration offers a wide range of useful information to taxpayers to facilitate the fulfillment of their tax obligations but it is not always suitable to the needs of all categories of taxpayers and sectors of activity. The tax administration provides information on tax legislation in French and Arabic, the calendar of obligations as well as declaration forms on its website which also gives access to the teleservices platform (teledeclaration, monitoring of appeals , obtaining a receipt, etc.). She designed a bilingual brochure and a kakemono on obligations and teleservices. It has Facebook and Twitter accounts which remind you of the monthly tax deadlines and the new online payment service for the sticker on which communication has also been carried out on advertising panels in Nouakchott. The tax administration communicates on radio and television. Each year a letter is sent by management to large and medium-sized companies to remind them of their deadlines. The managing services communicate to newly registered companies their obligations but in a general manner. The website has not yet provided specific spaces for the different categories of taxpayers and sectors of activity. |
| P5-17-2 | MCD | B | FIRST | 2019 | English | Rated B because sound performance fairly close to internationally accepted best practices was detected in: The number and amount of on-time VAT payments could be communicated from the JIBAYA application. The percentage of on-time VAT payments for all taxpayers is very high in number (95.8%) but lower in value (73.4%). This percentage is quite high in number (91.8%) and close to international standards in value (95.5%) concerning large payers. The figures communicated by the tax administration integrate data from the DGE, the DMEN, the Regional Tax Directorate North Zone (DRIZN) and the DEP. Bringing together large taxpayers into a single entity would make it easier to monitor the performance of large VAT payers in terms of monitoring obligations and recovery. |
| P6-22 | MCD | B | FIRST | 2019 | English | Rated B because sound performances quite close to internationally accepted good practices were detected in: The initiatives taken aim to encourage taxpayers to meet their reporting obligations without going so far as to constitute preventive measures to encourage improvement of accuracy declarations. The publication of the doctrine is carried out online, international conventions and certain circulars complete the range of sources of information. A project has been opened regarding the publication of ruling decisions issued for taxpayers who have requested them (a first meeting was held in January 2022). The tax administration communicates with taxpayers through various channels (brochures and leaflets, advertising panels, radio or television releases, periodic information journals, etc.). This communication essentially aims to inform taxpayers of legislative or organizational changes and to remind them of their obligations. Apart from this communication approach, there is no preventive measure aimed at encouraging taxpayers to improve the accuracy of their declarations. |
| P7-23-2 | MCD | B | FIRST | 2019 | English | Rated B because sound performances fairly close to internationally accepted good practices were detected in: A sufficiently progressive administrative and judicial recourse system is made available to taxpayers and is used by them. A right of contentious appeal or complaint when the impositions have become final is planned. The procedure is initiated by a single examination carried out by a structure independent of that at the origin of the imposition, however after a request for an opinion from the service at the origin of it. In matters of tax control, a joint commission provided for in articles L.162 to L. 167 of the Book of Tax Procedures is established. This joint committee is only competent to rule on disputes arising either from a recall of rights greater than or equal to 30% of the turnover for the financial year in the event of a one-off accounting audit, or from a recall of rights greater than or equal to 30% of the turnover of the financial years audited as part of a general accounting audit. |
| P3-11-1 | APD | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Important steps have been taken to reduce taxpayer compliance costs, but declarations and forms are not regularly reviewed. Taxpayers can access the electronic portal in the TAIS system to follow up on their tax liabilities for all core taxes. The system provides third-party information from several institutions and prepopulated tax declarations for individuals. A simplified electronic system (including pre-populated tax declarations for herders) has been established based on information from other government agencies and third-party providers. The Tax administration routinely analyzes frequently asked questions and common misunderstandings detected through service and verification activities. Frequently asked questions are regularly classified by the call center and sent to the Taxpayer Service Department (TSD) for follow up. TSD will, based on their analyses of the questions, provide guidance and integrate the answers in the training program. The same procedure is used by the Tax Audit and Methodology Department (TAMD). Questions or misunderstandings arising from audits are systemized into taxpayer segments and become the basis for quarterly guidance notes posted on the website and included in the training program for auditors. Auditors can update the Audit Case Management System on what information taxpayers in a certain segment should get based on recently conducted audits. However, tax declarations and forms are only reviewed in connection with changes in the legislation. There are no procedures or routines to regularly review declarations and forms to: ensure simplification and new design based on the current services and products; to assess whether there are any fields that have become superfluous; to bolster forms with additional information that could be useful in terms of assessing the risk posed by taxpayers; or, for instance, to develop returns using smart form completion technologies with built-in validation checks. |
| P4-12-5 | APD | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: On time filing rates are low for all core taxes except excise tax. The on time filing rate for CIT is 68.1 percent; 64.0 percent for PIT; 79.3 percent for VAT; 85.0 percent for excise duties; and 62.7 percent for PAYE. The low on-time filing comes mainly from small and micro-businesses, particularly from physical persons. These taxpayers often lack the knowledge and discipline of preparing and filing tax returns on time. Usually, taxpayers submit tax returns on the last day, which creates a heavy load on the electronic filing system. The Tax administration applies an extension of the filing deadline whenever required, if the legal conditions are met. |
| P6-19-2 | APD | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The Tax administration determines the number of audits to be completed each year based on the capacity and number of auditors available from the previous year. Risks are assessed at three levels: the taxpayer level; the case level; and the category level. Logistic regression analysis is used to help identify risks. The Tax administration undertakes a variety of types of audits including comprehensive audits, industry specific, high-risk files, refund audits, limited scope, and criminal cases. The audit plan is not weighted toward a sector and audits are not selected centrally. The Tax administration does not routinely evaluate the impact of audits on the level of compliance. |
| P6-19-4 | APD | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The quality assurance process within the Tax administration is conducted by the Tax Audit Methodology Division (TAMD). TAMD is responsible for monitoring all of the Tax administration. Quality assurance reports are given to this Division and they in turn assign workload to tax offices to fix procedures. In 2021, TAMD reported results to the Commissioner and to the Board. They are required to report annually. A report prepared by the TAMD found low audit performance by those local tax offices which have not been inspected and instructed in the four preceding years. |
| P6-21 | APD | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The Tax administration stated there is a module in TAIS that automatically performs cross-checking. It starts when the tax return is filed. Cross-checking with financial institution currently includes taxpayer’s account information and information about the beneficial owner; details of payments made to financial institutions; whenever a savings or other account is opened or changed; and other taxpayer account transaction information. The Tax administration provided a listing of 31 agencies they receive information from which includes police, stock exchange, Customs and the Central Securities Depository. The listing does not include private sector employers. The Tax administration has a sophisticated risk assessment model and robust risk scoring formula. The models indicate the Tax administration validates more than 600 fields from the TAIS. The Tax administration does not conduct large scale crosschecking with data from other jurisdictions. There are 26 Exchange of Information Agreements with other jurisdictions. These exchanges are relatively limited, with only one request sent by the Tax administration (to France) and five requests having been received from foreign jurisdictions. Data from other jurisdictions are not yet automatically crosschecked in large-scale. P6-21: Initiatives Undertaken to Encourage Accurate Reporting This indicator assesses the nature and scope of cooperative compliance and other proactive initiatives undertaken to encourage accurate reporting. Assessed scores are shown in Table 22 followed by an explanation of the reasons underlying the assessment. |
| P8-27 | APD | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The Tax administration provides input to the government’s tax revenue forecasting activities but does not monitor the cost to revenue from tax expenditures or the stock of tax losses. Within the Tax administration, this activity takes place in the tax collection unit. While the unit’s key duties involve collections and refunds, some of the unit’s staff are especially tasked to deliver input on tax revenue forecasting. The Tax administration provides information to the MOF of the revenue outturn on a quarterly or semi-annual basis. The Tax administration also tracks revenue by tax type on a monthly basis, which is used for comparing the outturn to monthly forecasts. Information is provided to MOF for all tax types.The VAT Refund Fund, which is established under the Budget Law, requires provisions for three types of refunds. The MOF approves an amount for the Fund totalling 30 percent of all VAT collected in the previous year. The Tax administration advised that if the amount of refund requests exceeds the amount set aside then the payment of the refunds would be delayed until the following fiscal period. It is of note that they also indicated this has never occurred. The Tax administration does not monitor and report on the stock of tax losses and credits/refunds carried forward by taxpayers that may be offset against future tax liabilities. Nor do they monitor and report on the cost to revenue of tax expenditures annually. |
| P9-30-1 | APD | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Staff integrity assurance mechanisms are carried out under the auspices of the Ethics Council (EC) which reports directly to the Commissioner. The EC comprises seven members elected from different parts of the administration and has the appropriate investigative power to exercise these powers with due process. It cooperates with anti-corruption authorities and maintains integrity-related statistics, but the integrity statistics are not publicly reported. |
| P9-32-2 | APD | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: The Tax administration shares the broader government commitment to transparency. This includes having dedicated sections on their website where reports are published detailing budgeting and finance, anti-corruption activities, human resource transparency, operational transparency, procurement activities, and complaints. In addition, the government has adopted “glass accounts” which requires transparency in government accounting. Details of all transactions over MNT 5million are disclosed. The annual performance report is prepared and submitted to the MOF, and the financial statements audited by the MNAO. The Tax administration has an explicit process for publishing documents on its website. For example, the Ethical Council publishes an update twice a year, organizational goals and objectives are updated at least once a year, the organizational business plan is updated at least once a year, strategic objectives are updated every time they are changed, and tax office information is updated in real time |
| P9-30-2 | APD | B | FIRST | 2019 | English | Scored B because sound performance fairly close to internationally accepted good practice was detected in: Timelines for publishing the reports is only marginally below good international practice. For 2021, the Tax administration published its Performance Plan 2021, Strategic Plan 2021-2024, other documented strategies and plans, a detailed Glass Account report, and its Audit Report. The 2020 report was published in July of 2021 (seven months after the end of the fiscal year, instead of the recommended six months). The plan for 2022 was approved and published in February 2022, instead of being published in advance. |
| P3-8-3 | MCD | B | FIRST | 2019 | English | Rated B because sound performance fairly close to internationally accepted good practices was detected in: The tax administration provides information and advice to taxpayers free of charge through numerous service delivery channels. The main channels are: the tax administration website; a portal for secure electronic access to taxpayer data and a self-service system; guides, brochures and frequently asked questions; a call center; a dedicated unit that responds to requests received by email; the media; social networks (You Tube, Facebook, Twitter); letters and administrative decisions; and seminars and meetings for different segments of taxpayers. Tax information is also provided by the Agency for Small and Medium Enterprises. |
| P3-10 | MCD | B | FIRST | 2019 | English | Rated B because sound performance fairly close to internationally accepted good practices was detected in:A series of initiatives are in place to reduce the costs of tax compliance. There is simplified accounting and simplified procedures for small businesses and self-employed people. For employees who do not have other income, the income tax due is withheld at source by the employer, and they are not required to file a tax return. The tax administration offers those subject to global income tax to renew the items declared for the previous year if no change has occurred. No evidence of the use of this possibility was presented during the evaluation. This possibility offered to this category of taxpayers does not in itself constitute proof of the existence of a system for pre-filling tax returns. Frequently asked questions by taxpayers and misinterpretations detected through verification activities are analyzed to improve the information provided to taxpayers. |
| P3-11-1 | MCD | B | FIRST | 2019 | English | Rated B because sound performance fairly close to internationally accepted good practices was detected in: Taxpayers regularly provide their opinion on the level of service provision. The tax administration uses different channels and mechanisms to receive feedback from taxpayers. Among these channels: frequent meetings with stakeholders actively involved in partnership with the tax administration; messaging, letters and call center; taxpayer perception surveys; and targeted requests made via the Internet. Collection surveys carried out by tax administration services are less frequent and the last one was not carried out by an independent third party. The first survey was carried out in 2013 by an external third party and it was followed by a second survey carried out in 2017 by the tax administration. Both surveys are based on statistically valid sampling and the latter was conducted online. The grade B assigned to the first dimension is explained by the fact that these surveys are not carried out every three years. |
| P4-12-5 | MCD | B | FIRST | 2019 | English | Rated B because a sound performance quite close to internationally accepted good practices was detected in: The rate of declaration filing on time is low, particularly for the IRPP. The percentage of declarations filed on time comes out to: • IS: 68 percent for all taxpayers and 80 percent for large companies, which is an insufficient percentage for the latter for the grade of C. • IRPP: 51 percent. • VAT: 64 percent for all taxpayers and 91 percent for large taxpayers, which corresponds to a grade of C. However, these figures could not be validated due to significant and unexplained discrepancies between the tables communicated successively upon the arrival of the mission and on November 5 , for the months of September to December 2017. • Employer withholding tax: 83 percent. |
| P6-19-1 | MCD | B | FIRST | 2019 | English | Rated B because sound performance fairly close to internationally accepted good practices was detected in: The tax control program is centralized and based on risk analysis; he covers all taxes, and auditors use a wide range of audit types and methods. An annual general guidance note (NOG) from the Director General and an information note on tax control policy from the Director of Tax Control define the objectives and main areas of tax control activities. The annual control program is drawn up by the tax control department on the basis of the results extracted from the risk analysis system (SAR), and approved by the general director. The tax administration implements various types of tax control, in particular: general verification of accounting (VG), spot checks (CP) and overall review of the tax situation (EESF). At the national level, the 2018 programming favored spot checks (54 percent, compared to 24 percent and 22 percent respectively for the VG and the EESF). Technical notes distributed on the tax administration intranet describe the procedures for programming files and carrying out different types of tax audit. Monographs are produced to guide the work of auditors. Auditors use different control methods, including indirect methods of reconstitution of turnover. Tax control covers all categories of taxpayers, but its coverage rate is low and its impact on tax compliance is not measured. Out of a total number of 341,149 active legal entity taxpayers and 652,457 active individual taxpayers in 2017, respectively 3,408 (i.e. 0.9 percent) and 569 (i.e. 0.08 percent) were subject to an audit on the spot. These on-site interventions have concerned 373 out of 7,571 large companies and 3,604 out of 986,000 taxpayers in other categories. Although low, the coverage rate of large companies (5 percent) is higher than that of other categories of taxpayers (0.36 percent). In 2017, the staff assigned to control was 486 agents compared to 304 in 2016. The tax administration measures the impact of control on tax revenue, but it does not evaluate the changes in the behavior of taxpayers attributable to tax control actions. |
| P8-26 | MCD | B | FIRST | 2019 | English | Rated B because a sound performance quite close to internationally accepted good practices was detected in: The Division of Studies, Statistics and Fiscal Forecasts collects and analyzes useful information to evaluate the tax revenue forecasts of the tax administration. This concerns in particular economic data, the analysis of tax provisions and new administrative measures. It regularly analyzes the gaps between forecasts and achievements. This analysis is also examined during the tax administration's steering committees. Finally, revenue forecasts are regularly updated to take into account the implementation of legislative changes, administrative measures and the occurrence of exceptional events during the year. The assessment of the tax expenditure is carried out annually. It is annexed to the finance law. Finally, the stock of VAT credits to be reimbursed is evaluated as part of the revenue forecasts. On the other hand, the evaluation of losses reported by taxpayers is not taken into consideration for the determination of corrective measures to compensate them, this which explains the B grade assigned to this performance indicator. |
| P2-3-1 | AFR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: The Tax Administration has adopted a structured methodology to identify, assess, and prioritize compliance risks. The methodology is documented and communicated throughout the organization. It involves a series of steps to address compliance risks (and institutional risks—see P2-4) in a structured way as part of the administration’s 3-year corporate strategic planning process. In this way, the aim is to make the Tax Administration a risk aware organization that addresses compliance risks in a context of the agency’s broader business objectives. Features of the Tax Administration’s risk management framework include:• Risk identification—identified risks are captured in a formal ‘risk register’ which describes each risk and the nature of the threat it poses to the revenue system.• Risk assessment and ranking—a ‘risk appetite model’ is used to analyse the likelihood of an identified risk occurring and the consequence of that risk. Risks assigned a severe/ major ranking (i.e. those with the highest scores per the risk appetite model) are flagged for immediate corrective action. Risks assigned a moderate rating are subjected to regular monitoring. Passive surveillance is given to minor risks.• Key risk indicators—these facilitate on-going monitoring; the aim here is to settle on a set of indicators that are adequately representative of the risks under consideration and use data that is easily accessible on a monthly or quarterly basis.• Treatment options—following assessment and ranking of risks, treatment options are considered and mitigation activities included in corporate and operational plans.Some work remains to fully operationalize the risk management process. For example, risk registers are not properly maintained in accordance with the methodology in some operational areas. The Tax Administration acknowledges that continuing efforts are needed to embed risk management at all levels within the organization. |
| P2-3-2 | AFR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: A formal methodology is used to estimate revenue leakage, but is applied selectively. Estimation of revenue losses is usually limited to situations where a change to the law is sought to address a specific compliance risk. This is generally done as part of the budget process. |
| P2-4 | AFR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: As with compliance risks, a sound process for managing institutional risks exists but is not fully implemented. Aspects of the risk management framework that are yet to achieve full traction at an operational level include, for example, capturing all known institutional risks in formal risk registers. |
| P3-8-1 | AFR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: The tax administration routinely seeks feedback from taxpayers. This is done in a variety of ways, including through outreach programs, regular surveys of large taxpayers, and use of questionnaires in day-to-day interactions with taxpayers. All feedback surveys are conducted by the Tax Administration itself; there are no perception surveys undertaken by independent third parties. |
| P3-8-2 | AFR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: The tax administration takes account of taxpayer input in designing service programs and products, generally in an ad hoc rather than systematic way. |
| P4-12-3 | AFR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: A large proportion of returns are filed late. Around half, only, of income tax returns of companies and self-employed individuals are filed on time. The situation is similarly poor for PAYE withholding returns filed by employers. See on-time filing statistics in Tables 2 to 4 of Appendix III (i.e. CIT (49 percent), self-employed PIT (49 percent), PAYE withholding (59 percent), and VAT (71 percent). |
| P4-12-5 | AFR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: A large proportion of returns are filed late. Around half, only, of income tax returns of companies and self-employed individuals are filed on time. The situation is similarly poor for PAYE withholding returns filed by employers. See on-time filing statistics in Tables 2 to 4 of Appendix III (i.e. CIT (49 percent), self-employed PIT (49 percent), PAYE withholding (59 percent), and VAT (71 percent). |
| P5-17-1 | AFR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: A high percentage of VAT is paid on time. Around 86 percent of the value of total VAT payments due is paid on time, and more than 70 percent of the number of VAT payments due are received on time—see payment statistics in Table 5 of Appendix III. A major contributor to performance has been the introduction of the country Inter-bank Payment and Settlement System/Real Time Gross Settlement System (ZIPPS/RTGS)—discussed later under P8-21. All payments exceeding 100,000 countryn currency must be made through ZIPPS/RTGS. |
| P5-17-2 | AFR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: A high percentage of VAT is paid on time. Around 86 percent of the value of total VAT payments due is paid on time, and more than 70 percent of the number of VAT payments due are received on time—see payment statistics in Table 5 of Appendix III. A major contributor to performance has been the introduction of the country Inter-bank Payment and Settlement System/Real Time Gross Settlement System (ZIPPS/RTGS)—discussed later under P8-21. All payments exceeding 100,000 countryn currency must be made through ZIPPS/RTGS. |
| P9-29-1 | AFR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: Internal controls for most key tax administration operations are fully documented and kept in a central repository. The internal audit unit maintains the documentation,known as the ‘audit universe’, as part of its role of reviewing and confirming the effectiveness of internal controls and governance processes of the Tax Administration. |
| P9-29-2 | AFR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: There is an effective internal auditoperation. The Tax Administration has an adequately resourced and trained internal audit unit reporting directly to the Commissioner General and the Audit Committee of the Governing Board. At the beginning of each year the Governing Board approves an annual audit plan comprising internal control checks, system based performance audits, and financial audits. The audit program provides adequate coverage of key operations and scrutiny of revenue accounting and internal financial management.The Tax administration acts on internal audit findings and recommendations. |
| P9-31 | AFR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: There is a moderate level of public confidence in the tax administration. This is evidenced by survey results and direct feedback from taxpayers and tax intermediaries. |
| P3-8-2 | AFR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: Information is generally current. Procedures are in place to ensure regular and systematic updating of information each time there is a change in the law. Taxpayers are informed of these changes through both print and electronic media. The Tax Administration has dedicated technical staff responsible for updating information products and raising taxpayer awareness of changes to the law or administrative procedures. |
| P9-29-2 | AFR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: Staff integrity assurance mechanisms are in place. The Tax Administration has an internal affairs unit that reports to the Commissioner General and investigates matters pertaining to corruption or questionable integrity of tax officials. The unit cooperates with the country’s corruption and prosecution bodies and keeps integrity-related statistics for management purposes. |
| P1-1-2 | EUR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: Inactive records for foreign citizens are not routinely and systematically removed from the database. Generally, the registered taxpayer database is frequently updated with any changes relating to the taxpayer (such as change of name, address, detecting inactive taxpayers etc.) through extensive use of third party information. However, this is not possible for foreign citizens who are registered as taxpayers using D-numbers. This number is issued by the Tax administration, several other public and private agencies. The D-number is used for identification by public authorities, obtaining short term work permits, opening a bank account and applying for welfare benefits. An individual can obtain a D-number without physical identification. Records show that out of the 1.6 million foreign registered citizens with D-numbers only about 400,000 are active. An audit report by the Office of the Auditor General expressed concern with the existing D-number arrangement. |
| P2-3-2 | EUR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: Tax Administration undertake a series of initiatives, linked together in a structured process, to assess, rank and quantify taxpayer compliance risks. Estimates on undeclared taxable income arising from unregistered businesses, tax evasion, tax avoidance and tax fraud are made at the micro level using different methodological approaches. Attitude/behavior studies are commissioned by the Tax Administration annually. Using the OECD risk management model, Tax Administration rank sectors for non-compliance behavior. These are then assessed and ranked in terms of likelihood and impact. Currently, the sectors identified as high risk include finance, fishing, associated entities and related parties, transfer pricing and e-commerce. Tax Administration undertook a VAT gap study in 2009 in collaboration with Statistics the country. This study concluded that using national accounts as a source of establishing the tax gap for the country does not produce reliable results. Since then, Tax Administration no longer uses national accounts or macro data to determine its VAT gap. |
| P2-5 | EUR | B | FIRST | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: Partial quantification of compliance impact is undertaken. Quantification of compliance impact is undertaken for most mitigation activities in respect of the identified risk areas and is used to develop future year compliance plans. The regions’ progress on implementation of planned risk mitigation activities is monitored, and procedures for providing feedback into future compliance plans exist. Processes are in place for Tax Administration to alert MOF of the identified weaknesses that can expose the tax system to high levels of risk. |
| P3-9 | EUR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: Service delivery standards exist and are routinely monitored. Service delivery standards within which, requests from taxpayers are responded to exist and are met. However, the results are not publicly reported. The standards include the following; telephone calls from taxpayers must be answered and dealt with within 6 minutes. A call back solution is available for those taxpayers that are not attended to when they call and such call backs must be done within 30 minutes, walk-in taxpayers must be attended to at tax offices within 30 minutes, emails must be responded to in less than 5 days and the web form requests have to be responded to within 24 hours. |
| P5-17-2 | EUR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: Sufficient evidence for scoring the indicator was not available at the time of the assessment3. Around 87 percent of the value of total VAT payments due is paid on time. See Table 5 in Attachment III. |
| P5-18-2 | EUR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: Arrears management is sound. On average, the end-year stock of arrears was equivalent to 6 percent of annual tax collection for the 2011-13 review period. Collectable tax arrears represented 5.8 percent of annual collections, on average for the same period. Sufficient evidence was not available to score the dimensions for old debt stock and the number of tax arrears cases (P5-12-3 and P5-12-4). |
| P7-24 | EUR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: Service delivery standards exist for determining objections and are routinely monitored, but results are not publicly reported. The service delivery standards exist, for objections. The tax administration is expected determine 90 percent of the objections within 3 months. In 2013, 91.1 percent of the objections were determined within the specified period. |
| P9-29-1 | EUR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: There is a reasonably effective internal audit operation but has limited capacity. There is an Internal Audit Unit that reports directly to the Director General, but it is thinly resourced with 6 people. Although independent consultants are hired from when need arises. In Tax Administration internal control is seen as the responsibility of line managers. The Unit prepares an annual audit plan aligned to the Tax Administration’s multi-year strategic plan and is approved by the Director General. This plan comprises internal control checks and system based performance audits. Its coverage includes scrutiny of revenue accounting and all key operations with an exception of internal financial management that falls under the purview of the Auditor General. Management acts upon the internal audit findings and recommendations. |
| P9-29-2 | EUR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: Staff integrity assurance mechanisms are in place. Tax Administration has an anti corruption mechanism managed by the Head of the Internal Audit Unit and is assisted by a Legal Specialist. Where necessary, investigations special consultants are engaged to assist in investigating matters pertaining to corruption or questionable integrity of staff members in corroboration with relevant enforcement agencies. Pro-active activities such awareness and training activities on integrity and ethics issues aimed at preventing inappropriate behavior by members of staff are undertaken. |
| P9-30-1 | EUR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: There is relatively strong independent external oversight of Tax Administration’s operations and financial performance. The Auditor General performs an annual audit of Tax Administration, covering revenue collections, institutional spending, and operational performance. A report is presented to Parliament. The tax administration responds to the Auditor General’s findings and recommendations. Although the external review findings are publicly reported, Tax Administration’s responses to the findings are not. |
| P1-1-1 | AFR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: The registration process and taxpayer database are sound but are complicated by use of multiple identification numbers. Observation of the registration process of a taxpayer during a field visit to the branch provided evidence that standard operating procedures, including identity checks, are used to ensure correct registration. The approval process of the registration, by a team leader, demonstrated that the registration process has adequate controls. Information on each taxpayer’s obligations across all core taxes, including their compliance history, is available online to frontline staff. This provides the basis for effective compliance management both at the individual taxpayer level as well as for the taxpayer population as a whole, or segments thereof. For example, the system permits a view of the registered taxpayer base from a variety of perspectives, including: entity type, associated entities (related parties), industry segment, geographic location, turnover, etc. Multiple registration numbers for different tax types are used in the Tax Administration system. Although these numbers are linked within the database use of a single unique identification number for each taxpayer would be better practice from the perspective of taxpayers and tax administration alike. Tax Administration advised that a single registration system is under development, but not yet implemented. The aim of the new system is to deliver, over time, streamlined numbering and creation of a consolidated profile of each taxpayer, thereby enabling an enhanced single view of a taxpayer’s tax affairs. |
| P1-1-2 | AFR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: Inactive records are not routinely and systematically removed from the database. This problem is particularly evident in the area of VAT taxpayer registration. Although detailed deregistration procedures are available the requirement for a pre-cancelation audit has resulted in a backlog of pending cancelations for this tax. Tax Administration acknowledges the need to clear this backlog but has also made the point that all inactive records in the database have been assigned a status code (e.g., when an individual dies, or a business ceases trading) to inform Tax Administration’ business processes. Information from third party sources (e.g., Department for Home Affairs, Companies and Intellectual Property Commission, and Master of the High Court (trust registration)) is used by Tax Administration to verify the accuracy of taxpayer details on the register. |
| P1-2 | AFR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: Tax Administration undertakes a series of initiatives to identify unregistered individuals and businesses. Key amongst these is the use of third party data from the Department for Home Affairs, the Companies and Intellectual Property Commission and the Master of the High Court (trust registration). Targeted registration drives are undertaken against identified “high risk” trade categories such as the transport and construction industries and mobile teams are used on a door-to-door basis in more remote regions. Tax Administration’ compliance plans and reports all prominently address the issue of taxpayer registration and the importance of ensuring entities that are not registered for tax become registered. Evidence of Tax Administration’ pursuit of registration through education, outreach and enforcement initiatives was obtained. |
| P4-12-1 | AFR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: Filing rates are generally good. The filing rates for CIT, VAT, and PAYE returns for the 2012/13 income year are 85, 84, and 99 percent respectively—see Tables 2 to 4 in Attachment III. |
| P4-12-3 | AFR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: On-time filing is generally satisfactory except for CIT returns. On-time filing rates for CIT, VAT, and PAYE returns for the 2012/13 income year are 48, 63, and 75 percent respectively—see Tables 2 to 4 in Attachment III. |
| P4-12-5 | AFR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: On-time filing is generally satisfactory except for CIT returns. On-time filing rates for CIT, VAT, and PAYE returns for the 2012/13 income year are 48, 63, and 75 percent respectively—see Tables 2 to 4 in Attachment III. |
| P5-18-1 | AFR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: Overall, arrears management is sound. See arrears data in Table 6 of Attachment III.On average the end-year stock of arrears was equivalent to 12 percent of annual tax collections during the 3-year period 2011-13. ‘Collectible’ tax arrears represented 9.3 percent of annual collections, on average, for the same period. |
| P5-18-2 | AFR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: Overall, arrears management is sound. See arrears data in Table 6 of Attachment III.On average the end-year stock of arrears was equivalent to 12 percent of annual tax collections during the 3-year period 2011-13. ‘Collectible’ tax arrears represented 9.3 percent of annual collections, on average, for the same period. |
| P6-19-1 | AFR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: Verification actions resulted in additional tax assessments of 2.1 percent of total tax revenues in 2012/13. This result is consistent with the expected additional tax resulting from the execution of a compliance program aligned with a moderate taxpaying culture. |
| P9-31 | AFR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: There is a moderate level of public confidence in Tax Administration. This is evidenced by the November 2013 public opinion survey. The results showed that 69.3 percent of taxpayers and tax intermediaries trust Tax Administration in administering the tax laws. |
| P1-1-2 | WHD | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: The soundness and strength of the taxpayer database hosted in the tax administration’s tax system MARANGATU was verified and authenticated through the interrogation of the system. Both a business and an individual taxpayer’s account were examined in the system during a field visit to the Collection Directorate. The database includes all the mandatory fields such as the taxpayer’s full name, address, date of incorporation (date of birth in the case of an individual), nature of business activities and information on all the taxpayer’s related parties. Information on the taxpayer’s compliance history was stored in the system. The system is centralized and provides a single view of each and every taxpayer. In addition the system provides a national view of all taxpayers.Inactive taxpayers are continuously and systematically removed from the database. However, Tax Administration does not systematically use third party information to verify the genuineness of the documents submitted such as the national registration card and certificate of incorporation. All VAT and Personal Income Tax taxpayers are automatically removed from the database if they have not submitted any tax returns in 3 and 12 months respectively. As a means of ensuring that the database contains genuine taxpayers, at the time of registration, all taxpayers are required to submit certificate of incorporation for business taxpayers and national registration card for individual taxpayers. Further documentation providing proof of residence or in the case of the business its area of operation is submitted. Tax Administration encourages taxpayers to update their demographics information online. |
| P2-6-1 | AFR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: A structured process is in place to identify, assess, prioritize and mitigate institutional risks across the organization. Tax Administration manages institutional risks in a structured way by applying a risk assessment methodology. This covers risks associated with loss of confidential taxpayer information, failure of IT systems and inappropriate behavior of tax officials such as misuse of public office for personal gain. The process is part of a multi-year strategic and operational planning process. A separate unit (Internal Audit) is responsible for managing key institutional risks and prepares reports and risk matrix on a frequent basis. Access controls in the IT systems are in place to protect taxpayer information and maintain data secrecy. Disaster recovery plans are not fully implemneted. Internal controls and staff integrity assurance mechanisms will be further discussed in POA 9. |
| P4-12-1 | WHD | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: Filing rates are generally satisfactory. The filing rates for CIT, PIT, and VAT returns for the 2013 income year are 52.5, 65.0 and 86.4 percent respectively—see Tables 2 and 3 in Attachment III. |
| P4-12-2 | WHD | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: Filing rates are generally satisfactory. The filing rates for CIT, PIT, and VAT returns for the 2013 income year are 52.5, 65.0 and 86.4 percent respectively—see Tables 2 and 3 in Attachment III. |
| P4-12-3 | WHD | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: Filing rates are generally satisfactory. The filing rates for CIT, PIT, and VAT returns for the 2013 income year are 52.5, 65.0 and 86.4 percent respectively—see Tables 2 and 3 in Attachment III. |
| P7-23-2 | WHD | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: A graduated mechanism of administrative and judicial review is in place and is used; however, there is no a specialist tax disputes tribunal. Taxpayers dissatisfied with Tax Administration’s decision on an objection may appeal to the judiciary to review the case; the appeal system is based on two stages, the first one is the “Tribunal de Cuentas” which covers all the cases against the public sector—not only tax cases—and then escalate to the second stage which is the Supreme Court. |
| P9-29-2 | WHD | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: Appropriate staff integrity reporting mechanisms are in place, however integrity statistics are not publicly available. The internal audit unit is empowered to investigate potential wrongdoing acts by tax officials, fulfill special dossiers and recommend sanctions when applicable. A new Code of Conduct is currently designed to strength integrity assurance mechanisms and international technical assistance has been provided to train staff to comply with the code. |
| P9-30-1 | WHD | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: While proper annual audit arrangements are in place to oversee tax administration operations, reporting of findings and responses are not publicly available. Tax Administration’s operations and financial reports are overseen by the National General Controller, the General Audit Office and the Internal Audit Office from the Ministry of Finance. In those cases where recommendations are presented to the tax administration as a result of internal audits, a due process is followed to address the underlining issues and to follow up corrective actions until completion. Audit reports issued by the General Controller office are publicly available, yet the actions taken by the audited unit to correct reported weaknesses are not. |
| P3-8-1 | AFR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: Unless one is present at a local unit or communicates by telephone with the Service Center, not all the information produced by the Tax Administration is available in written form. The Tax Authority produces a large amount of information on physical media but this is not reflected on its website and is not made available at its DAFs, where information is offered verbally. An immense effort is made to produce leaflets on all taxes, based on current legislation, and these are distributed systematically to all units. In addition, considering the population’s limited access to the Internet in the country’s interior, in recent years the Tax Administration has made a great effort to reach taxpayers in more remote regions by creating dozens of fixed and mobile collection stations that provide verbal information directly to the taxpayers. |
| P3-8-3 | AFR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: The ease of access to information is not consistent with the resources available at the Tax Administration. The availability of information on the Tax Administration’s website or through brochures in the local units does not reflect the quantity of material produced by the Tax Administration. Taxpayers may access information through the Service Center, the local units, and through the caravans and brigades organized by the Fiscal Education groups and the DAFs, reaching different points in the country. The Tax Education project to make information available and to “popularize the tax” stands out and was internationally recognized in an exclusive chapter on the country’s experience in a book published by the OECD.Close to 36,000 disseminators were trained for Tax Education activities. The Service Center, despite a large investment and the best installations, has services that are entirely under-utilized by the taxpayers, with extremely rare daily calls during the periods when the mission visited, while the DAFs see large numbers of taxpayers. The mission had access to a large amount of disseminated material, through the Communication and Image Office, but that information was not found during visits to the UGCs and DAFs and employees in these units do not have such material installed on their computers. |
| P3-11-2 | AFR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: Discussions and information related to the Audit Committee’s meetings are systematically and routinely documented, including evaluations of earlier meetings.The records from all meetings of the Audit Committee from July 2007 to August 2014 (the most recent meeting) notably include general meeting summaries, lessons learned from previous meetings, and the balance sheet of the Audit Committee’s specialized areas. On the one hand, while discussions and evaluations carried out with political authorities and taxpayers’ representatives and taxpayer associations are significant and routine, it does not appear that the same level of attention is given to the “ordinary” taxpayer. At the UGCs and DAFs visited by the mission, it did not appear that taxpayers’ comments are received or used nor was the mission able to determine whether any comments made on the AT website are taken into consideration. |
| P7-23-1 | AFR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: The process for resolving taxpayers’ challenges is to a large extent independent of the audit process. Independence is ensured in cases where there has been an offense,pursuant to the provisions of the General System on Tax Offenses (Regime Geral das Infrações Tributárias - RGIT),10 in which case the dispute does not go through the Tax Administration but proceeds directly to the Tax and Administrative Tribunals (created by Law No. 2/200411 and implemented as of 2009). However, in cases where no offense has been committed, challenges filed by taxpayers pass through up to three appeals stages within the Tax Administration: the DAFs level, the General Directorate of Taxes (DGI), and the President. During the field visit to the city, it was confirmed that complaints may be analyzed by the same auditors who notified the taxpayer or by their audit colleagues, which is not good international practice. The disputes areas of the DAFs play a role in completing the audit process and do not analyze and judge complaints per se. At the central level, the General Director of Taxes supervises both audit and disputes activities. The mission was informed that significant audit cases result in the identification of an offense and go directly to the Court, as indicated in the RGIT, ensuring independence between audit and dispute areas in most cases. |
| P7-23-2 | AFR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: There is a graduated process of dispute resolution. There are hierarchical structures within the administrative and judicial spheres. The structure of the three appeals levels within the Tax Administration does not represent good international practice (see TADAT Field Guide, POA 7). In the judicial sphere, there are three bodies: the tax courts, the second section of the administrative tribunal, and the full panel of the same court (Art. 13, Law 2/2004). There is evidence of efforts to standardize and ensure the objectivity of dispute procedures at the Tax Administration (for example, Circular No. 09/GAB-DGI/2011). However, there is no complete, detailed, approved manual of procedures on the dispute process. |
| P7-23-3 | AFR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: Information available to the public on the right of appeal is limited. The Tax Administration site does not provide summary and explanatory guidelines on the appeals process,12 although the Tax Administration informed the mission that it gives lectures on taxpayers’ inherent guarantees regarding tax disputes. The sites of the Tax and Administrative Tribunals are limited13 and many pages are in the test phase, even though the tribunals have been in operation for more than five years. There is no evidence of brochures specifically intended to explain taxpayers’ rights to the dispute process. However, violation orders and notification warrants inform the taxpayer regarding the right of appeal (although in some cases the information is generic and does not clearly specify the legal basis). It was explained to the mission that when completing an audit, auditors also verbally inform taxpayers of the right to dispute their findings. |
| P7-24 | AFR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: The Tax Administration prepares and publishes highly detailed annual reports on its financial and operational performance that also include actions planned for the upcoming year. The report on 2014 performance and the projection for 2015 was prepared and is pending approval from the High Tax Council (CST). The 2011-2014 strategic plan was prepared and is available, but it is not published on the Tax Administration website. On this point, there is a discrepancy between the links for accessing the Portuguese and English language versions. The 2015-2019 strategic plan is ready for publication but has not been made publicly available yet because the 2014 national budget was not approved by the Parliament. The 2012 report and 2013 projections are available for consultation on the Tax Administration website address, as are the 2010 – 2014 activities plans web address. The Tax Administration reports to the Parliament indirectly. The performance reports go through the Ministry of Finance and in the context of a General State Account. The IMF’s report on Fiscal Transparency (December 2014)21 suggests that the prompt submission of earnings statement reports to Parliament (including contributions from the tax administration system) is weak. In addition, the Tax Administration does not have a comprehensive compliance management plan (see POA2) and it is thus not available for publication. In summary, the Tax Administration discloses elements of its plans but not necessarily before the period covered by the plans. |
| P9-30-1 | AFR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: The financial and operational performance of the Tax Administration is audited annually by the Administrative Tribunal (TA). Completed reports are published on the Tax Administration’s website address and are available to the public. An example of an external audit report is the report on government revenue for 2012 covering the DAFs of Pemba, Second District of the cities and the large taxpayer unit of cities. However, the Tax Administration’s responses are not published. Regular audits of the Tax Administration are also conducted by the General Inspectorate of Finances, an internal audit arm of the Ministry of Finance and Economy. |
| P9-30-2 | AFR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: The AT prepares and publishes highly detailed annual reports on its financial and operational performance that also include actions planned for the upcoming year. The report on 2014 performance and the projection for 2015 was prepared and is pending approval from the High Tax Council (CST). The 2011-2014 strategic plan was prepared and is available, but it is not published on the Tax Administration website. On this point, there is a discrepancy between the links for accessing the Portuguese and English language versions. The 2015-2019 strategic plan is ready for publication but has not been made publicly available yet because the 2014 national budget was not approved by the Parliament. The 2012 report and 2013 projections are available for consultation on the Tax Administration's website address, as are the 2010 – 2014 activities plans (web address). The Tax Administration reports to the Parliament indirectly. The performance reports go through the Ministry of Finance and in the context of a General State Account. The IMF’s report on Fiscal Transparency (December 2014)21 suggests that the prompt submission of earnings statement reports to Parliament (including contributions from the tax administration system) is weak. In addition, theTax Administration does not have a comprehensive compliance management plan (see POA2) and it is thus not available for publication. In summary, the Tax Administration discloses elements of its plans but not necessarily before the period covered by the plans. |
| P1-2 | AFR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: The Tax Administration has access to a number of third party information sources and also conducts inspection visits to “recruit” unregistered taxpayers. The CRMMD interrogates the business intelligence system for unregistered taxpayers at least once every end of tax reporting year—a practice observed by the assessment team to be rather late. However, district offices make regular visits to business premises and traders to identify qualifying taxpayers. Monthly reports on taxpayer recruitment are produced by each district station and these are brought to the attention of Tax Administration’s senior management team. The Tax Administration annual reports also show the number of taxpayer recruited and their revenue contributions (see web address). However, no study that focuses on registration non-compliance has as yet been undertaken. As is observed in POA3, taxpayer education and tax registration campaigns are conducted regularly. |
| P3-8-1 | AFR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: Tax Administration employs numerous channels to provide a wide range of taxpayer information for all core taxes. Tax Administration routinely communicates frequent messages concerning taxpayers’ rights and responsibilities through radio, television, brochures, print media, school programs, workshops and clinics, the website and Twitter, and in meetings with the private sector and advisors. The Private Sector Federation (PSF)—with semiannual high level meetings,participation in the district Tax Advisory Council (TAC)10 meetings, and ad hoc meetings on specific industry topics as required—is the primary collaborator in promoting tax compliance. |
| P3-8-2 | AFR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: There is no evidence of a concerted strategy to target the distinct information needs of large, medium, and small businesses and individuals. Though the Tax Administration has prioritized promoting the use of electronic services and the presumptive tax regime among small taxpayers, it has given no specific focus to disseminating information of special interest to large businesses, for example, the country’s approach to taxation of multinational enterprises, or to midsize businesses. |
| P3-8-3 | AFR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: The Tax Administration offers low cost access to information through a number of channels, though the ease of use varies among them. The channels include a call center, a website and written correspondence and request for rulings. Through its website and electronic and print media, Tax Administration routinely makes available current law and administrative policy—but only after they are put into effect. Tax Administration’s website contains a recent compendium of operative legal authority, for which the Taxpayer Service Department (TSD) staff is charged with daily updates. However, the brochures and the web pages often lack dates of publication or updating, thus not assuring that the information is current. For example, the registration information at web address article169 is not current.Both the call center and the website are easily accessed and heavily used, but the website’s design limitations reduce its usefulness. During the most recently reported six month period, the call center received around 15,000 calls. The calls are, depending on the caller’s telecom service, either free or inexpensive.12 “Hits” on the website exceed 80,000 annually. The website contains a large volume of general information, but its contents are not sufficient to provide specific information of particular interest to different taxpayer segments, its links are sometimes broken and not descriptive, and headings are sometimes not reflective of page contents. These limitations reduce the ease with which an inquirer can find answers on the website. Answers to written requests for general information or to those seeking legal interpretation are available, but the process for receiving and answering them is not documented. Taxpayers may seek information via email, as noted on some Tax administration brochures, or letter. In the case of a taxpayer seeking legal interpretation, the Tax Administration offers tax rulings it considers binding on the tax authority and those rulings are termed clarifications. There are no documented procedures governing the information required from the taxpayer, the format of the request, and limitations on the binding nature of the response. There are no published practice notes to inform taxpayers of the Tax Administration’s interpretation of law and of its application. The Tax Administration has a documented service delivery strategy which is in turn reflected in the Taxpayer Service Department’s Business Plan. Among the channels included in the Plan, with specific due dates, are educational sessions, collaboration with schools, production of dramas, engaging in radio and television programs, sports sponsorship, and use of social media. The Tax Administration has dedicated physical resources and staff to provide taxpayer information through the media, the call center, the website, interaction with stakeholders, and responses by way of email and written correspondence. The TSD has a staff complement of 23 to handle web design; preparation and dissemination of educational materials, including brochures; educational activities; responding to inquiries in the call center; answering information requests by email; and preparation of materials for the media. The web designer has hardware and software to monitor and manage the site, including that required for responding to email inquiries. The call center, with six workstations, is equipped with specialized call center software. The Legal Department’s Policy Advisory Unit is charged with responding to taxpayer’s inquiries requiring legal interpretation. |
| P3-11-1 | AFR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: Tax Administration uses several avenues to solicit feedback on its performance. Among these are comments from the call center, emails, the website, the front desk and suggestion boxes in Tax Administration offices, feedback during workshops and the regularly scheduled meetings with the private sector and tax advisors. The TSD summarizes the feedback and forwards the summary to affected departments.Tax Administration conducted an independent taxpayer satisfaction survey in 2011, and another one, being conducted by a private sector firm, is currently underway. Tax Administration has an articulated strategy to perform such a survey every two to three years and to improve taxpayer satisfaction taking the results of the survey into account. |
| P7-23-2 | AFR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: A tiered review mechanism is in place and is used. There is a graduated mechanism of administrative and judicial reviews in place. However, this process consists only of a review process within the tax administration and a full judicial process. There is no specialized tax tribunal; hence, the lower courts provide the first avenue of judicial appeal for a taxpayer dissatisfied with the outcome of the appeal process. Proposals to Tax Administration up a specialized tax tribunal have been made to government, and it continues to be a thrust of Tax Administration in its quest to enhance services to its taxpayers.18 |
| P3-8-1 | AFR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: Service delivery standards in relation to meeting taxpayer and intermediary requests for information and advice are laid out in the Taxpayers’ Charter. Performance against these standards is tracked, but the results are not made public. There are standards for every aspect of taxpayer contact and communication: calls will be answered within 3 rings (a CISCO call monitoring system routes unanswered calls to an open line); taxpayer response to phone questions within 10 minutes; emails within 24 hours of receipt; letters within 3 days of receipt into the Client Support Unit. General standards of service are communicated in the Taxpayer Charter, while specific standards are used and tracked internally, the results are not made public. |
| P3-11-1 | AFR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: A variety of methods are used to obtain performance feedback from taxpayers, which includes a perception survey conducted by an independent party in 2010. International good practice encourages an independent survey of taxpayer perception every 1 to 3 years to keep current with public perception and adjust service as suggested from the data. The Tax Administration obtains this feedback on a less regular basis (3-5 years). The Tax Administration employs other tools, such as feedback via Facebook, the Tax Administration website, forms filled out at taxpayer seminars and events, telephone and walk-in centers. These are most helpful in gauging public perception. An internal study was undertaken in 2012 by the Tax Administration Research, Statistics and Policy Analysis Section – Client Value Proposition Survey, through interviews internally and externally, with findings and recommendations. |
| P3-11-2 | AFR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: Tax Administration routinely, but less systematically, takes into account taxpayer input in the design of programs and services. Both the 2010 independent survey and the 2012 Tax Administration survey produced findings and recommendations indicated consultation with taxpayers. The team’s observation from a visit to the Service Management unit also demonstrates that taxpayer’s inputs are considered in designing new processes. It was pointed out that before rolling out the e-Tax system, it was piloted with representatives of taxpayers. |
| P9-29-1 | AFR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: There is an effective internal audit operation that provides a fairly good level of internal assurance. The internal audit unit is independent and well-trained (27 auditors and 13 compliance officers with at least two professional qualifications each). The Commissioner IAC reports directly to the Commissioner General and the Tax Administration Board of Directors. The annual audit program comprises internal control checks, system based performance audits, and financial audits. The program provides wide coverage and scrutiny in respect of most, but not all, key operations. For instance, registration and filing are not routinely covered. Quarterly internal audit reports are sent to the Commissioner General. The status of each audit query signals the extent to which the recommendations of internal audit have been implemented. |
| P9-29-2 | AFR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: Staff integrity assurance mechanisms are in place and follow many of the good practices. The function of the internal affairs unit is executed by the internal compliance unit of the IAC department. The Manager Compliance reports directly to the Commissioner Internal Audit and Compliance who reports directly to the CG. The internal compliance unit is in charge of strengthening ethics, integrity, anti-corruption issues and staff complaints. It investigates wrong-doing of staff and gives input in the formulation of ethics policies of the Tax Administration. The compliance unit has appropriate investigative powers and exercises them with due process. After investigation, cases that deal with wrongdoing or indiscipline at a low/medium level are handed over to the Departmental Disciplinary Committee. Cases that deal with higher levels of indiscipline or wrongdoing or cases that involve management staff are handed over to the Management Disciplinary Committee. The internal compliance unit also provides leadership to the formulation of integrity and ethics policy and in criminal matters, it cooperates with the IGG and the Anti-Corruption Court. However, the internal compliance unit does not investigate Commissioners. The internal compliance unit maintains integrity-related statistics for the organization. The statistics show the number of cases handled by the IAC, the nature of offense and the status (terminated, suspended, cautioned, exonerated, referred to IGG; or prosecuted). However, the integrity statistics are not publicly reported. |
| P9-31 | AFR | B | FIRST | 2015 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: There is a moderate level of public confidence in the tax administration. According to the countrywide feedback survey on service delivery, conducted in 2011, the average level of public confidence is 71 percent. This can be broken down as follows: (i) 63 percent of the public believe that there exists a good relationship between the Tax Administration and Taxpayers, a positive public perception; (ii) 69 percent of the public believe that there is minimal corruption (minimal (65 percent) or none at all (4 percent)) while 29 percent believe that corruption is prevalent in Tax Administration; (iii) of the taxpayers, 82 percent of the taxpayers believe that there is minimal corruption ((73 percent) or none at all (9 percent)), while 14 percent believe that corruption is prevalent in Tax Administration. |
| P1-2 | EUR | B | REPEAT | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: There are initiatives to detect businesses and individuals who are required to register but fail to do so, using third party information, although the use of inspections of business premises is less active. The initiatives to identify unregistered businesses are planned and conducted mainly by the Anti-Fraud Directorate. The Tax Administration has established protocols with government agencies, banks, motor vehicle registry, online trading, and Customs and other third parties. An example of this initiative is a project involving obtaining information from courier companies through which a large number of unregistered online vendors were identified. Other projects included the identification of unregistered beauty salons, private tutors and crypto currency activities. However, the use of surveys and inspections of commercial centers with high risk of non-registration is less frequent. Reports on actions taken and the results of these actions are documented. The Fiscal Procedure Code stipulates that government agencies can require mandatory registration if not done voluntarily. |
| P2-3-1 | EUR | B | REPEAT | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: The Tax Administration undertakes some intelligence gathering and environmental scanning to identify compliance risks, but it is not comprehensive. Analysis of tax declarations and audit results is carried out on a regular basis. Data from some external sources including banks, Customs, the TRA, Labor Inspectorate, and the land and vehicle registries is sourced but risk-driven analysis of external data is limited. Some industry-based research has also been undertaken (e.g., on-line trading platforms, health products) following the COVID19 pandemic. Limited research on the shadow economy has been used to identify PIT risks and a multi-year PIT compliance strategy 2023-2025 has been developed. VAT gaps analyses have been conducted. The Tax Administration has incorporated the outcomes from its intelligence gathering processes into a 2021–2024 strategic plan. There is no evidence that research into the factors that influence taxpayer behavior has been conducted. |
| P3-8-1 | EUR | B | REPEAT | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: Taxpayers have access to information on core tax obligations through a range of channels. The Tax Administration’s program to support voluntary compliance is coordinated by the General Directorate for Taxpayer Assistance in liaison with the Communication, Public Relations and Mass-media Service, and the territorial field offices. Information is provided at no cost through: • The Tax Administration website – this provides 24/7 access to information and self-service facilities, although it is not always easy to navigate for key taxpayer segments and sectors.• Online access to educational videos, webinars on topical issues, an active Facebook account, and regular fiscal information bulletins and media releases.• A centrally managed contact center (with 90 telephone lines), an extensively used online contact form facility and chat service.• Walk-in service centers across the local office network. About 2 million taxpayer visits were made to local offices during 2022, but a significant reduction in face-to-face communication is a key part of the Tax Administration’s digitalization strategy.• Regular engagement with business and tax intermediary representatives.• Programs for teaching school and university students about taxes. |
| P3-8-2 | EUR | B | REPEAT | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: Dedicated staff are assigned to ensure that taxpayer information is kept current. Six members of the headquarters unit are responsible for updating the website material and maintaining social media pages. Legislative changes and orders amending procedures are posted on the website as soon as they are published in the official gazette. A weekly legislative news bulletin is also published on the website highlighting any law changes and procedural orders made in the previous week. |
| P3-10 | EUR | B | REPEAT | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: Compliance obligations are simplified for small taxpayers and there is secure access to taxpayer accounts, as well as analysis of common errors; however, forms and processes are not regularly reviewed to minimize compliance costs. Micro-enterprises pay profit tax based on a flat percentage of turnover. Natural persons may use single entry bookkeeping and certain traders and crafts persons can opt to be taxed on published income norms. Smaller enterprises also benefit from less frequent filing and payment obligations, and taxpayers with salary income only are not required to file declarations. Common errors found in audit activity and the most frequently asked questions in the contact center are published twice yearly and help target and refine public information products and services. The taxpayer portal gives secure 24/7 access to tax accounts and other information, including access by authorized agents. The recent expansion of the range of services provided through the SPV has been generally well received by tax intermediaries and their clients, and the number of digitalized forms has increased. However, reviews of tax declarations and other forms are not carried out regularly to ensure that only information that is needed and used is sought from taxpayers. Because of the combination of flat rate income taxation and widespread (final liability) withholding, pre-filling in declarations would not significantly reduce compliance costs. |
| P3-11-1 | EUR | B | REPEAT | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: Feedback mechanisms are in place through consultation with stakeholders and regular surveys conducted solely by the Tax Administration. Recent examples of taxpayer satisfaction surveys conducted by the Tax Administration include call center operations and taxpayer assistance generally (both in 2021), tax payment arrangements (2022), and audit activity (2023). None of these were conducted independently. An active Facebook account also provides a useful ongoing feedback medium. Representatives of business groups and tax intermediaries provide feedback through regular engagement with the Tax Administration (both formal and informal). |
| P3-11-2 | EUR | B | REPEAT | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: Active involvement of taxpayers and intermediaries in the design and/or testing of new products or processes is limited. While taxpayers have been involved in testing some new initiatives, such as the SAF-T requirement, they do not usually play an active role in forms design, web page content, or clarity of public rulings. Deficiencies in administrative processes and products are identified through the feedback mechanisms referred to in the previous paragraph. |
| P4-12-1 | EUR | B | REPEAT | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: On-time filing rates for core taxes are generally good, except for PIT. · For CIT taxpayers: 82.1 percent · For large CIT taxpayers: 97.5 percent · For PIT taxpayers: 71.3 percent · For VAT taxpayers: 91.2 percent · For large VAT taxpayers: 99.6 percent · For excise duty payers: 88.1 percent · For large excise duty payers: 99.2 percent · For PAYE taxpayers: 95.1 percent. |
| P4-12-4 | EUR | B | REPEAT | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: On-time filing rates for core taxes are generally good, except for PIT. · For CIT taxpayers: 82.1 percent · For large CIT taxpayers: 97.5 percent · For PIT taxpayers: 71.3 percent · For VAT taxpayers: 91.2 percent · For large VAT taxpayers: 99.6 percent · For excise duty payers: 88.1 percent · For large excise duty payers: 99.2 percent · For PAYE taxpayers: 95.1 percent. |
| P4-14 | EUR | B | REPEAT | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: Electronic filing is mandatory for all core taxes, except for PIT. For all core taxes, other than PIT, e-filing rates were close to 100 percent. For PIT, only 70.7 percent of declarations were filed electronically. |
| P5-15 | EUR | B | REPEAT | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: Electronic payment rates are high for all core tax categories except PIT. Cash payments continue to be accepted at the Tax Administration offices. For PIT, the value of electronic payments received during 2022 was 74.5 percent of the total value of PIT collections. State agencies and state-owned enterprises make tax payments via treasury account transfers. While technically not bank transfers, these are nonetheless electronic payments. |
| P5-17-1 | EUR | B | REPEAT | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: Compliance levels for timely payment of VAT are weak for large taxpayers. VAT payments are generally made monthly, with quarterly payment allowed for businesses with an annual turnover below the Country's currency equivalent of EUR 100,000 (and semi-annually or annually for certain other cases requiring the Tax Administration approval). For all categories of taxpayers, 85.4 percent of the number of VAT payments due were received on time and 83.7 percent of the value of VAT payments was paid on time during 2022. For the large taxpayer category, the total value of timely VAT payments was 89.3 percent of payments due. |
| P6-20 | EUR | B | REPEAT | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: Data from the Tax Administration’s internal sources and a range of external sources is used to undertake large scale automatic cross checking to verify amounts reported by taxpayers in their tax declarations. Data from Customs, the Trade Authority and Labor Inspectorate (employment contracts) is cross matched with amounts reported on VAT and CIT declarations. The Tax Administration also uses data reported to it through the third-party reporting regimes for withholding arrangements (e.g., wages/salaries, dividends, interest). More recently, data from online internet vendor platforms has been used to identify underreporting of income. Data from other sources (e.g., cash register data) is available. However, the required data warehouse and analytical capacity is not sufficient for effective automatic cross-checking. |
| P6-21 | EUR | B | REPEAT | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: The Tax Administration has no cooperative compliance arrangements with taxpayers. The LTO is currently working on an implementation plan to provide the opportunity for some taxpayers to participate in a “horizontal monitoring” program. |
| P7-23-3 | EUR | B | REPEAT | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: General information on the dispute resolution process is published and taxpayers are made aware of their dispute rights in assessment decisions, but auditors are not required to explicitly inform taxpayers. The Tax Administration’s website contains relevant legislative documents as well as a catalogue of services which includes information on administrative dispute rights. Additionally, information on appeals is available on the MOF website and these are specifically included in the tax assessment decisions. There is no evidence of instructions to auditors to explicitly inform taxpayers on their dispute rights. |
| P7-25 | EUR | B | REPEAT | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: Dispute outcomes of a material nature are analyzed and taken into account in the formulation of policy, legislation and administrative procedures. Dispute outcomes are regularly monitored and anonymized decisions of relevant cases are published in a database on the website of the MOF Important court decisions, including those of the Court of Justice of the EU, are also disseminated internally to auditors and other tax professionals via internal circulars. Analyses of dispute outcomes of a material nature (e.g., affecting a large number of taxpayers) are regularly undertaken and internal guidance is issued to form administrative practices and procedures. Input is also provided to the legal and legislative directorates of the Ministry of Finance to formulate policy and legislation. |
| P8-26 | EUR | B | REPEAT | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: The Tax Administration provides input to the Government tax revenue forecasting and estimation process but does not monitor or report on carried forward tax losses. A specialized unit in the Tax Administration cooperates regularly with the MOF on the monitoring of actual revenue collections. The causes of substantial deviations are analyzed closely and communicated to the Tax Administration senior management and the relevant MOF unit. The level of VAT refunds is followed closely as a component of monitoring the tax collection performance. All VAT refunds are paid from current revenue. The MOF monitors and publishes tax expenditures by tax type on an aggregated basis for each of the main tax types. In the case of VAT credits, the Tax Administration monitors the carry forward amounts. |
| P8-27 | EUR | B | REPEAT | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: The Tax Administration’s accounting system meets government accounting and IT standards; however, no regular internal audit is conducted to ensure that the accounting system aligns with tax laws. The system fully interfaces with the MOF’s revenue accounting system. Tax payments made before 14:00 hours are posted to taxpayer accounts on the following day. The accounting system includes a whole-of-taxpayer view of account details for core taxes, automatic calculation of interest charges, a full suite of accounting transactions, and the capability to generate a statement of account. |
| P5-16 | WHD | B | FIRST | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: Advance payment arrangements and withholding at source mechanisms are in place, but withholding at source is not in place for interest. Advance payments for Income tax (companies and sole proprietors) are paid quarterly—April 15, July 15, October 15 and 31st of December (Article 42b Income Tax Act), subject to the submission of final returns at the end of the year. Payment for the first quarter should be made at the time of filing of the first preliminary tax return. Taxes are withheld on the payments of employment income and dividends (Article 52e Income Tax Act). For interest, there is no mandatory reporting or disclosure mechanism in place. |
| P4-12-3 | MCD | B | FIRST | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: Timely filing rates are less than 80 percent for VAT and less than 90 percent for Excise. International good practice is 100 percent on time filing for large VAT and Excise payers, and at least 90 percent overall rates of on-time filing for all taxpayers for both tax types. On-time filing of Excise returns by large Excise payers at only 87.9 percent is particularly concerning as it is lower than the minimum accepted international standard. |
| P5-17-1 | MCD | B | FIRST | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: The value of payments made on time by large VAT payers is lower than international good practice. The international good practice is that 100 percent of VAT payments by large taxpayers (by number and value) are paid on time and that 90 percent of overall VAT payments (by number and by value) are paid on time. In the country, for large taxpayers, only 92.79 percent, by number, and 93.69 percent, by value, were paid on time. In relation to overall payments, only 83.48 percent, by number, and 89.25 percent, by value, were paid on time. The weakest performance was the value of the VAT paid on time by large taxpayers. |
| P6-21 | MCD | B | FIRST | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: A system of binding public and private rulings is operated however, no cooperative compliance agreements have been entered into with any taxpayers. The Tax Administration conducts a range of proactive initiatives to encourage accurate reporting, including offering specific services and incentives to SMEs and having lowered penalties on voluntary disclosures. On both VAT and Excise the Tax Administration provides public clarifications as well as private clarifications to taxpayers from all segments. The Tax Administration considers private clarifications to be administratively binding. In general, the Tax Administration approaches securing compliance from taxpayers in a highly cooperative way, encouraging openness and providing a high quality service. However, there are no formal cooperative compliance agreements (also known as horizontal monitoring or enhanced taxpayer relationship regimes) that place specific conditions upon individual taxpayers in return for enhanced service |
| P8-26 | MCD | B | FIRST | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: The Tax Administration contributes to government revenue forecasting and oversees collection levels, but does not actively track tax expenditures and losses carried forward. The Tax Administration collects data on tax revenue and economic conditions, providing input for budgeting and revenue forecasting. According to the Financial Circular, a revenue forecast should be prepared and updated twice a year or when requested. The Tax Administration monitors actual tax collection by preparing a trend analysis and a forecast analysis against budget forecasts, and provides the analysis to the government each month. Additionally, the Tax Administration forecasts VAT refund levels to ensure adequate funds for legitimate claims. However, there are no established processes or practices for regularly monitoring and reporting on the impact of tax expenditures on revenue or for monitoring the stock of carried-forward tax losses available for offset against future tax liabilities. The Tax Administration does produce an analysis of zero-rated or exempt taxpayers. |
| P8-28-1 | MCD | B | FIRST | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: The implemented VAT refund system aligns with sound international practices. However, there is no provision for paying compensation to taxpayers if refunds are delayed. The Tax Administration has introduced an automated risk-based verification process that assesses excess credit VAT returns, with a preference for expediting the process for low-risk taxpayers. According to the data provided by the Tax Administration, 64 percent (by number of cases) and 74 percent (by value) of VAT refund processing is done in a timely manner - within 30 calendar days. Approved refund amounts are credited to the taxpayer's account, accessible through the taxpayer portal. Also, the Tax Administration allocates budget funds to fulfill legitimate refund claims promptly. The current tax legislation allows for any excess VAT refund amounts to be offset against other VAT obligations. When CIT is fully implemented, the tax legislation will also need to allow for excess VAT refund amounts to be offset against CIT tax arrears as well as VAT obligations to maintain sound international practice. Where VAT refunds are delayed there is no provision to provide compensation to the taxpayer for the delay. While interest cannot be paid under Islamic law, taxpayers are required to pay a penalty if they make late payments and international good practice is to also provide some compensation to taxpayers if the tax administration makes late refunds. |
| P4-14 | EUR | B | FIRST | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: E-filing is mandatory in respect of CIT, VAT, and large taxpayers. Consequently, 100 percent of returns in these tax categories are filed electronically. Filing of PAYE returns is slightly lower (98 percent), and this is explained by the mandatory requirement for employers to e-file applying only to those entities with five or more employees. PIT electronic filing is lower than in other areas, at 81 percent in 2022. This is explained by Tax Administration’s continued provision of non-electronic return filing for taxpayers who do not have consistent access to online services. |
| P5-17-1 | EUR | B | FIRST | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: The on-time VAT payment performance falls below filing performance in this area. The obligation to pay VAT falls due when returns are filed. Data provided in Attachment III, Table 12, show on-time payment performance of VAT returns is 81 percent by number of returns, and 82 percent by value of payments. For large taxpayers, on-time payment performance is 98 percent by number of returns and 93 percent by value. Despite consistently high on-time filing performance, late payment by a small proportion of large taxpayers results in relatively weak performance in this critical area of compliance. |
| P6-22 | EUR | B | FIRST | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: An annual VAT gap study is undertaken under the EU VAT Gap Program but gap measurement of other core taxes occurred after a five year interval; the studies have informed the preparation of compliance plans. In 2007, FAD conducted an RAGAP exercise. The results of this led to a review of what the Tax Administration considered to be high-risk business sectors and resulted in the inclusion in subsequent compliance plans of additional sectors. In 2022, an EC-funded tax gap study covering VAT, PIT and the hidden economy was undertaken by external consultants in collaboration with the Tax Administration, MoF and the National Statistics Institute. The report, published in mid-2023 is under consideration by the Tax Administration. All recent tax gap studies have been prepared using internationally recognized methodologies by independent external bodies, and as such all are considered of high credibility. |
| P8-26 | EUR | B | FIRST | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: The Tax Administration has a unit that provides regular input on tax revenue collections to the MoF. The Analyses and Forecasts Directorate monitors revenue collected against budgeted revenue forecasts daily. Formal monthly and quarterly reports on collections against forecasts are submitted to the MoF, in addition to any ad hoc reports that the Ministry may request. Based on collection results for the year to date, the Tax Administration reports also include estimates of collections to the end of the fiscal year. Revenue forecasts include an estimate of the cost to revenue of tax incentives and exemptions granted. VAT refund obligations are monitored by the Tax Administration and forecasts of refund obligations prepared. This is done to ensure that funds are available to meet legitimate refund claims when they arise. The revenue foregone as a result of tax reliefs administered by the Tax Administration is monitored and reported to the MoF. However, the Tax Administration does not monitor the stock of tax losses carried forward that may be offset against future tax liabilities. |
| P9-29-1 | EUR | B | FIRST | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: The Tax Administration has an independent Internal Audit Directorate (IAD) that reports directly to the DG. The mandate of the Internal Audit specifies its functions and duties. The IAD prepares a plan for three years, annual central audit plans comprising internal monitoring of all key operational performance, and an annual report to the DG. An external audit is performed every five years by a procured external party. IT system security and controls are monitored by both the IAD and the Inspectorate. Audit trails and user access information can be generated, and some automated system generated reports for surveillance are also available. There is regular training for the existing seven auditors. |
| P9-32-2 | EUR | B | FIRST | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: The Tax Administration publishes its future directions and plans on the Tax Administration website within 3 months. Both strategic and annual plans are finalized by December for the next period and are made public either at the end of the current year or in the beginning of the next year. The annual plan is part of the MoF’s budget plan and is typically published in January-March of the commencement of the year covered. The current strategic plan covers years 2021-25 and was published in February 2021. |
| P3-10 | AFR | B | REPEAT | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: Services and products to reduce taxpayers’ compliance costs have been implemented- but tax declarations and other forms are reviewed on an ad hoc basis. Taxpayers and their authorized agents can access account details, register, file, and pay online through the taxpayer portal with 24-hour access. Additionally, simplified and less frequent filing and payment arrangements are afforded to small taxpayers through the presumptive tax regime. Information on the presumptive tax is available on the Tax Administration website and in brochures .Small taxpayers can also utilize the tax centers for assistance in filing their tax returns. The system is designed to prefill tax declarations using information from the Registration, TANCIS and EFDMS systems. Frequently Asked Questions and common misunderstandings of the law are reviewed to help refine public information, products and services, however tax declarations and other forms are reviewed on an ad hoc basis, to ensure that only information that is needed and used is sought from taxpayers. |
| P3-11-1 | AFR | B | REPEAT | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: The Tax Administration has various channels and mechanisms to solicit feedback from taxpayers on products and services-but surveys of taxpayer perceptions are less frequent than every three years. Taxpayers provide feedback through emails, telephone, WhatsApp, social media website, service centers, as well as through a variety of regular stakeholder meetings and public forums such as tax education forums, tax seminars, and outreach programs. Statistically valid perception surveys were undertaken in 2013, 2018, and 2022. However, these surveys are conducted only every four or five years. The surveys are based on a statistically valid sample of key taxpayer segments and stakeholders and are conducted by Tax Administration and by an independent third party. External surveys were conducted in 2013 and 2022, and a survey by Tax Administration was conducted in 2018. |
| P5-18-3 | AFR | B | REPEAT | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: Tax arrears that are more than 12 months reflect a sound performance for tax arrears management. At an average ratio 36.7 percent for the last three years, debt older than 12 months as a percent of total debts reflects sound performance on arrears management . This ratio is well within the 25-50 percent range which is the requirement for sound international good practice. |
| P6-21 | AFR | B | REPEAT | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: The Tax Administration has a system of public and private binding rulings. The Tax administration Act (Rev.2019) provides for a system of public and private binding rulings which guide taxpayers on tax treatment of certain transactions for all core taxes. However, there is no evidence of the existence of any form of cooperative compliance program. |
| P7-23-1 | AFR | B | REPEAT | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: A multi-tiered review mechanism is in place and is used. There is a graduated mechanism of administrative and judicial reviews, and it consists of four stages. (i) a single administrative review process within the tax administration, (ii) a Tax Revenue Appeals Board, (iii) a Tax Revenue Appeals Tribunal and (iv) a Court of Appeal . These four stages with a six months’ timeline for the first stage make the dispute resolution in the tax system particularly lengthy . Good international practices show that a tax system can handle fairly and effectively a complex tax dispute with threestages. The statistics provided by the Tax Administration show that out of an average of 2,300 objections filed by axpayers per year, an average of 500 administrative decisions are brought by taxpayers before the Tax Revenue Appeals Board; 100 before the Tax Revenue Appeals Tribunal, and 30 before the Court of Appeal. |
| P8-26 | AFR | B | REPEAT | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: The Tax Administration’s Research and Planning Department regularly forecasts revenue and VAT refund levelsbut does not monitor tax losses or refunds carried forward. Tax Administration has dedicated expert staff from diverse professional backgrounds (Economics, Statistics and IT) who routinely gather data on tax revenue collection and economic conditions to provide input to government budgeting processes of tax revenue forecasting and tax revenue estimating. The division also monitors tax revenue collections against budgeted revenue forecasts on a monthly basis and the findings are also shared with the Ministry of Finance monthly. Further, the section forecasts VAT refund levels to guide the Ministry of Finance (MOF) on estimated funds requirements to meet all legitimate refund claims when they occur. The section also monitors and reports on the cost to revenue of tax expenditures quarterly. However, there was no evidence showing that the Tax Administration monitors and reports on the stock of tax losses and credits/refunds carried forward by taxpayers that may be offset against future tax liabilities. |
| P9-29-2 | AFR | B | REPEAT | 2019 | English | Scored B because sound perfomance fairly close to internationally accepted good practise was detected in: Staff integrity assurance mechanisms are robust, but integrity statistics are not published. A professional code of ethics is in place and all staff must sign the code, with records of staff acceptance maintained. Internal Affairs reports directly to the Commissioner General. Appropriate investigative powers are set out in section 5 of the Tax Administration Act and in internal affairs processes that set out the mandate as it relates to investigations of fraud and maladministration (suspected criminality is investigated by the National Anti-Corruption Agency – NACA) on referral from Internal Affairs. TheTax Administration collaborates with NACA and other agencies e.g., the Financial Intelligence Unit and regular collaboration takes place with the police and the public prosecutor. The Tax Administration maintains integrity statistics, but these are not made public. |
