Developing and Implementing Industry-based Compliance Projects
As in other countries throughout the world, tax administrations in South East Europe are appropriated resources that are well short of what is required to ensure full compliance from each and every taxpayer. Anyway, governments and communities expect their respective administrations to optimize tax collections. Achieving this requires methodologies for determining the most rational allocation of available tax administration resources to compliance efforts.
For some years, the International Monetary Fund (IMF) has assisted tax administrations in South East Europe develop and implement contemporary compliance risk management (CRM) methodology, including developing strategies and compliance projects for mitigating major “risk clusters (e.g. industry sector based). While most tax administrations have a good understanding of CRM principles, many are experiencing difficulties in translating these principles into practice. In general, only a small part of their compliance efforts are based on compliance strategies and projects developed in accordance with contemporary CRM methodology. Thus, it is questionable whether compliance efforts are effectively addressing the major risks that make up the respective countries’ tax gaps.
What you learned
The aim of this workshop was to facilitate tax administrations in Albania, Bosnia and Herzegovina, Kosovo, Montenegro, North Macedonia, and Serbia in implementing contemporary CRM methodology that would better enable them to mitigate major compliance risks (these that make up the bulk of their respective countries’ tax gaps) and through this increase taxpayer compliance and optimize revenue collection.
The participants from each of the tax administrations were able to develop and implement compliance improvement plans (CIPs) by:
- Improving their understanding of the key components of the CRM process and implementation steps
- Understanding and articulating the particular issues and problems that impede their efficient and effective implementation of industry CIPs
- Developing practical solutions to their specific problems and common problems across all tax administrations
- Creating an action plan and timeline for dealing with the problems impeding the implementation of industry CIPs
How you benefited
General framework for the workshop was the ABCD model:
- Where are you now?
- Where do you want to be?
- How do you get there?
- How will you measure and monitor your progress?
The workshop was designed for heads and key personnel of tax administration compliance risk management units or departments.
The main lecturer was Mr. Stephen Howlin (External IMF Expert, Australia) who was supported by Mr. Allan Jensen, Mr. Pekka Ruuhonen, and Mr. Jan Hansen (all IMF Revenue Administration Advisors in Southeast Europe).
This learning initiative was supported by: