Tax Administration Diagnostic Assessment Too l POA 3: SUPPORTING VOLUNTARY COMPLIANCE

Desired Outcome of POA 3 Taxpayers have the necessary information and support to comply voluntarily. To promote voluntary compliance, tax administration must adopt a service-oriented attitude towards taxpayers. Tax administrations must ensure that taxpayers have the information and support they need to meet their obligations and claim their entitlements under the law. Advice and assistance to taxpayers play a crucial role in bridging the knowledge gap. Tax administration must make effort to reduce the compliance costs for taxpayers, such as, by providing: (i) simplified reporting and record keeping for small businesses, (ii) pre- filled returns for employees and passive income earners, and (iii) online taxpayer portal. Taxpayers expect the tax administration to provide summarized, understandable advice on which they can rely.

Good Practice in Supporting Voluntary Compliance Public education and information through guides, brochures websites, FAQs Customized information for specific taxpayer segments Use of cost effective online service delivery channels Commitment to service delivery standards in taxpayer services Regularly updating information on changes in law to procedures Measures to reduce taxpayer compliance cost Monitoring questions and common legal errors to refine information products Monitoring taxpayer perceptions & seeking feedback

Performance Indicators for Supporting Voluntary Compliance Dimensions High Level Indicators P3-7: Scope, currency and accessibility of information M1 Range of info to explain obligations and entitlements Degree to which info is current on law and policy Ease for taxpayers to obtain info and advice P 3-8: Scope of initiatives to reduce compliance cost M1 Extent of initiatives to reduce taxpayer compliance cost Time taken to respond to requests for info and advice P 3-9: Monitoring of taxpayer feedback on products and service M1 Use and frequency of methods to obtain feedback How much taxpayer input goes into design of service programs & products

Scoring P3-7-1: Range of Information Available A Information on main taxpayer obligations and entitlements READILY available Information available in respect of ALL core taxes Information is tailored to the needs of ALL key taxpayer segments and industry groups Information is tailored to the needs of intermediaries and disadvantaged groups

Scoring P3-7-1: Range of Information Available B Information on main taxpayer obligations and entitlements READILY available Information available in respect of ALL core taxes Information is tailored to the needs of AT LEAST ONE taxpayer segments or industry groups Information is tailored to the needs of intermediaries and disadvantaged groups

Scoring P3-7-1: Range of Information Available C Information on main taxpayer obligations and entitlements READILY available Information available in respect of ALL core taxes Information is tailored to the needs of ALL key taxpayer segments and industry groups Information is tailored to the needs of intermediaries and disadvantaged groups

Scoring P3-7-2: Currency of Information A Procedures ensure regular and systemic updating of information Dedicated resources available to update information Taxpayers made aware of changes in law or administrative policy through proactive client engagement, before obligation becomes effective Taxpayers made aware of changes in law or administrative policy through general communication, before obligation becomes effective

Scoring P3-7-2: Currency of Information B Procedures ensure regular and systemic updating of information Dedicated resources available to update information Taxpayers made aware of changes in law or administrative policy through proactive client engagement, before obligation becomes effective Taxpayers made aware of changes in law or administrative policy through general communication, before obligation becomes effective

Scoring P3-7-2: Currency of Information C Ad hoc actions taken to updating of information Dedicated resources available to update information Taxpayers made aware of changes in law or administrative policy through proactive client engagement before obligation becomes effective Taxpayers NOT ROUTINELY made aware of changes in law or administrative policy before obligation becomes effective

Scoring 3-7-3: Ease of Access of Information A Tax administration provides a broad range of taxpayer education programs such as through seminars and programs for school students Information is available through a variety of service delivery channels: phone, website, factsheets, brochures, rulings Information is available at minimal or no cost Information is available at a time convenient to taxpayers, including outside business hours

Scoring 3-7-3: Ease of Access of Information B Tax administration provides taxpayer education programs for small and micro businesses, new businesses and new employers Information is available through a variety of service delivery channels: phone, website, factsheets, brochures, rulings Information is available at minimal or no cost Information is available at a time convenient to taxpayers, including outside business hours

Scoring 3-7-3: Ease of Access of Information C Taxpayer education programs are provided on an ad hoc basis Information is available through a variety of service delivery channels: phone, website, factsheets, brochures, rulings Information is available at minimal or no cost Information is available at a time convenient to taxpayers, including outside business hours

Scoring 3-7-4: Response Time for Taxpayer Request At least 90% of telephone enquiries are answered within 2 minutes A At least 80% of telephone enquiries are answered within 2 minutes B At least 70% of telephone enquiries are answered within 2 minutes CD The requirements for a C rating are not met

Scoring 3-8: Scope of initiatives to reduce compliance costs A Simplified record keeping and reporting requirements for small taxpayers Use of pre- filled tax declarations Taxpayers’ common questions and misunderstandings routinely analyzed to improve information products Secure online taxpayer portal or mobile platform available with 24-hour access Tax declarations and forms reviewed regularly to ensure that only information that is used is sought

Scoring 3-8: Scope of initiatives to reduce compliance costs B Simplified record keeping and reporting requirements for small taxpayers Use of pre- filled tax declarations Taxpayers’ common questions and misunderstandings routinely analyzed to improve information products Secure online taxpayer portal or mobile platform available with 24-hour access Tax declarations and other forms reviewed regularly to ensure that only information that is used is sought

Scoring 3-8: Scope of initiatives to reduce compliance costs C Simplified record keeping and reporting requirements for small taxpayers Use of pre- filled tax declarations Taxpayers’ common questions and misunderstandings routinely analyzed to improve information products Secure online taxpayer portal or mobile platform available with 24-hour access Tax declarations and other forms reviewed regularly to ensure that only information that is used is sought

Scoring 3-9-1: Use and Frequency of Taxpayer Feedback A Tax administration regularly obtains feedback from taxpayers through various methods, e.g., surveys, s, website, meetings a and contact centers Taxpayer perception surveys, based on statistically valid sample, from key taxpayer segments conducted by independent party at least every 3 years

Scoring 3-9-1: Use and Frequency of Taxpayer Feedback B Tax administration regularly obtains feedback from taxpayers through various methods, e.g., surveys, s, website, meetings a and contact centers Taxpayer perception surveys, based on statistically valid sample, from key taxpayer segments conducted by independent party or tax administration at least every 5 years

Scoring 3-9-1: Use and Frequency of Taxpayer Feedback C Tax administration obtains feedback from taxpayers through various methods, on an ad hoc basis Taxpayer perception surveys from key taxpayer segments conducted on an ad hoc basis OR based on not statistically valid sample

Scoring 3-9-2: Use of Taxpayer Input in Designing Taxpayer Service A Tax administration regularly consults with taxpayer groups to identify deficiencies in processes and products Active involvement of taxpayers in the design and testing of new processes and products

Scoring 3-9-2: Use of Taxpayer Feedback in Designing Taxpayer Service B Tax administration regularly consults with taxpayer groups to identify deficiencies in processes and products Active involvement of taxpayers in the design and testing of new processes and products

Scoring 3-9-2: Use of Taxpayer Feedback in Designing Taxpayer Service C Tax administration consults with taxpayer groups on an ad hoc basis to identify deficiencies in processes and products Active involvement of taxpayers in the design and testing of new processes and products

Table 11 of the Field Guide Checklist of Questions and Evidence for POA 3