Evaluating Outcomes: Tax Simplification Pathfinder Workshop 19 September 2001

… to collect over time the highest net revenue…. having regard to: resources available to the Commissioner the importance of promoting compliance, especially voluntary compliance compliance costs incurred by taxpayers.

maximising revenue maximising compliance maximising voluntary compliance

2. Tailoring our interactions with taxpayers Create pressure down Use full force of the law Deter by detection Assist to comply Make it easy Compliance Strategy Willing to do the right thing Try to, but don’t always succeed Don’t want to comply Have decided not to comply Attitude to Compliance Factors that influence taxpayer decisions and behaviour Psychological Industry Business Sociological Economic Taxpayer Level of compliance costs High Low

Lessons Outcome definition 1. Even when theory is well known and researched, there are questions about what does it actually mean. Is everyone understanding the same thing? 2. Inter-relationships between outcomes – it’s not linear. 3. Know the research Implementing outcome-based management 4. Outcomes for whom? Will determine the measures and any chosen measures reflect a view of the world. How will they use the outcome measures? -community:? -government:maximise revenue -administration:maximise compliance 5. Level of outcome also determines role of understanding contributing factors and attribution.