1. Administrative Dimensions of Tax Reform
Presentation at World Bank, April 2003

2. Overview Tax administration and tax policy Tax administration reform
Issues and examples

3. Tax Policy and Tax Administration
Tax policy + no administration = 0
No policy + administration = policy
Tax policy + administration = real policy

4. Task of Tax Administration
How much?
How?
How costly?

5. What Have We Learned? Know the environment Keep it simple
Taxpayer as “client”

6. The Tax Evasion Game
The pP approach
The players
The context

7. Compliers and Non-compliers
Different values?
Different incentives?
Different policies?

8. Environmental Factors
“Culture”
Politics
Law
Economics

9. Economics of Tax Administration
Inputs
Production process
Outputs

10. Key Elements
Information system
Rewards and penalties
Strategies
ECM

11. Tax Administration Reform
The will
A Strategy
Resources

12. Facilitating Compliance
Identification
Assessment
Collection
Service

13. Keeping Taxpayers Honest
Know the problem
Monitor closely
Enforce

14. Controlling Corruption
Incentives
Training
Organization
Monitoring

15. Coping with Inflation
Collection lags
Enforcement
Assessment

16. The Hard-to-Tax Type I and Type II errors Objectivity
Uses and limits of presumption

17. Penalties
No cheap finance
Focus on key points
Keep it reasonable

18. Amnesties
Ever popular
Almost always bad

19. Organizing to Tax Revenue authorities Large taxpayer offices
Privatization

20. Computerization TINs Re-engineering organization The human element
Buy don’t build

21. An Example - Poland Policy formulation Sequencing issues
Attitudinal change