Tax Administration Diagnostic Assessment Tool POA 1: INTEGRITY OF THE REGISTERED TAXPAYER BASE

Desired Outcome of POA 1 All businesses, individuals and other entities that are required to register are included in the taxpayer registration database. Information in database is complete, accurate and up-to-date Taxpayer registration and numbering are the fundamental first steps in administering taxes Registering and numbering each taxpayer underpins key administrative processes associated with filing, payment, assessment, collection and dispute resolution.

International Good Practice in Taxpayer Registration Accurate and reliable information on taxpayers Updated taxpayer data cleaned of inactive or duplicate records Dormant records are identified and segregated for follow up action IT system provides complete view of taxpayer data to frontline staff IT system provides national view of taxpayer data for management information IT system interfaces with other sub-systems (filing, payment processing, etc.) Able to generate pre-filled returns or estimated assessments Unique taxpayer identification numbers -TIN Program for detection of unregistered taxpayers

P1-1: Accurate and reliable taxpayer information M1 Adequacy of Information Accuracy of Information P1-2: Knowledge of potential taxpayer base M1 Extent of initiatives to detect unregistered businesses and individuals Performance Indicators for POA 1 Dimensions High Level Indicators

Scoring P1-1-1: Adequacy of Information A Registration database includes all relevant details of taxpayer Registration database is centralized and computerized Each registered taxpayer has a unique high integrity TIN IT system provides a full view of taxpayer for frontline staff IT system provides country- wide view for management information IT system interfaces with other IT sub- systems IT system provides audit trail of user access IT system generates tax declarations and enforcement lists IT system provides secure access for taxpayer registration and updates

Scoring P1-1-1: Adequacy of Information B Registration database includes all relevant details of taxpayer Registration database is centralized and computerized Registered taxpayers have more than one TIN but these are linked IT system provides a full view of taxpayer for frontline staff IT system provides country- wide view for management information IT system interfaces with other IT sub- systems IT system allows deregistration and archive of information IT system generates tax declarations and enforcement lists IT system provides secure access for taxpayer registration and updates

Scoring P1-1-1: Adequacy of Information C Registration database includes all relevant details of taxpayer Registration database is computerized BUT decentralized Taxpayers have more than one TIN but these are linked at the decentralized level IT system provides a full view of taxpayer BUT at a decentralized level IT system provides decentralized view for management information IT system interfaces with other decentralized IT sub-systems IT system allows decentralized deregistration and archive of information IT system generates tax declarations and enforcement lists IT system provides secure access for taxpayer registration and updates

Scoring P1-1-2: Accuracy of Information Information A Identification and segregation of dormant records (stop filers, recalcitrant taxpayers) for follow up action Identification and removal of inactive taxpayers (dead persons, defunct business), duplicate, false and invalid records Checking authenticity and proof of identity as well as legal basis of registrant Routine verification of information held in the database through third party cross checking Management and audit reports indicate accuracy of the registration database

Scoring P1-1-2: Accuracy of Information Information B Identification and segregation of dormant records (stop filers, recalcitrant taxpayers) for follow up action Identification and removal of inactive taxpayers (dead persons, defunct business), duplicate, false and invalid records Checking authenticity and proof of identity as well as legal basis of registrant Verification of information through third party cross checking is done on a case-by-case basis Management and audit reports indicate accuracy of the registration database

Scoring P1-1-2: Accuracy of Information Information C Identification and segregation of dormant records (stop filers, recalcitrant taxpayers) is ad hoc Ad hoc identification and removal of inactive taxpayers (dead persons, defunct business), duplicate, false and invalid records Checking authenticity and proof of identity as well as legal basis of registrant is done on an ad hoc basis Verification of information through third party cross checking is done on a case-by-case basis Management and audit reports either unavailable or indicate low level of accuracy of the registration database

A Systematic use of third party information sources Program of inspections and field survey of business premises and traders Reports show actions and results in detecting unregistered businesses and individuals Scoring P-1-2: Knowledge of potential taxpayers

B Systematic use of third party information sources Program of inspections and field survey of business premises and traders Reports show actions and results in detecting unregistered businesses and individuals Scoring P-1-2: Knowledge of potential taxpayers

C Systematic use of third party information sources Program of inspections and field survey of business premises and traders Reports show ad hoc actions and results in detecting unregistered businesses and individuals Scoring P-1-2: Knowledge of potential taxpayers

Table 5 of the Field Guide Checklist of Questions and Evidence for POA 1