Voluntary tax compliance Cooperation between DIAN and Skatteverket Anders Stridh & Lennart Wittberg, 1 – 5 June 2015

Intangible values

How do taxpayers perceive the Tax Agency?

Proactive and useful communciation Taxpayers that dont contact the tax administration Taxpayers that contact the tax administration Failure demand Value demand Failure demand is created by the organisation not working properly. (often 40-50 % of all contacts) Value demand is the demand the administration wants. It reduces the number of errors and increase compliance. Were is my refund? 4 4

Information Interaction Transaction

Examples A brochure is sent to taxpayers that have sold shares or property New businesses are invited to information meetings We cooperate with industry associations and they educate their members We advertise in media Day for filing tax return 6 6

Summary, our strategic approach Focus on the result of the contact and not the channels per se, but have a range of different channels Proactive information, reduce failure demand Building community confidence In every contact 7 7

OECD developments 2012 2010 2008 2004 2002 Right from the start Strategic approach Right from the start We need to know Understanding behaviour 2012 Other than audits? 2010 Innovative treatments Holistic view Risk management 2008 Better selection Audits 2004 2002 8 8

Focus shift Focus on the taxpayer ”We need to fix the taxpayer” Focus on the environment 9 9

..one size does not fit all!

How we work with changes – as it has turned out Knowledge Insights Changed mindset Changed working methods “The Road Ahead” is about us changing our view on the taxpayers and thus changing our way of working

Moving from output to outcomes “Do the right thing” Outcome Changed behaviour Indicators Output Revenue collected Input Auditors Activities Do Audits “Do things right”

Measuring if the tax gap is increasing or decreasing Tax information map Determining how secure the tax base is How easy/difficult it is to comply Assessing what the tax agency does to make it easy to comply Assessing complexity of legislation Measuring attitudes and norms Indicators from surveys

Information levels in the tax information map

Tax information map

Combining different indicators Tax information map Easy/difficult to comply Attitudes and norms Change in compliance behaviour

Creating a pro compliance environment Preventing non-compliance Guiding the way

Macro level Economic growth Tax evasion This is the long term correlation. The opposite can be true in the short term.