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Are Semi-Autonomous Revenue Authorities the Answer to Tax Administration Problems in Developing Countries?—A Practical Guide

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Author Info
Arthur Mann
Abstract

This paper describes and analyzes the experiences of several developing countries that have adopted the growing trend toward establishing semi-autonomous revenue authorities (SARAs) to administer tax collections. By removing the basic tax administration functions from the traditional line departments in the ministry of finance and granting the SARA a greater degree of autonomy to administer its own internal systems, the expectation has been that real revenue collections will be enhanced, tax-related corruption and evasion will be reduced, and taxpayer services will be improved. After carrying out an in-depth analysis of five SARA cases and taking into account the results of studies done by others, this paper concludes that SARAs have neither lived up to expectations nor can they be categorized as having failed. Tax administration efficiencies have risen and receded, and SARAs have not proven to be quick-fix panaceas. They do provide a platform from which tax administration efficiencies can be generated, but their mere establishment offers no guarantee of success.

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Paper provided by Development Alternatives, Inc., Fiscal Reform in Support of Trade Liberalization Project. in its series Working Papers with number fr1002.

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Length: 112 pages
Date of creation: Aug 2004
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Handle: RePEc:dai:wpaper:fr1002

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  1. McMillan, John & Zoido, Pablo, 2004. "How to Subvert Democracy: Montesinos in Peru," Research Papers 1851r, Stanford University, Graduate School of Business. [Downloadable!]
  2. Katherine Baer & Olivier P. Benon & Juan Toro R., 2002. "Improving Large Taxpayers' Compliance: A Review of Country Experience," IMF Occasional Papers 215, International Monetary Fund.
  3. Van Rijckeghem, Caroline & Weder, Beatrice, 2001. "Bureaucratic corruption and the rate of temptation: do wages in the civil service affect corruption, and by how much?," Journal of Development Economics, Elsevier, vol. 65(2), pages 307-331, August. [Downloadable!] (restricted)
  4. Mark Gallagher, 2004. "Assessing Tax Systems Using a Benchmarking Methodology," Working Papers fr1001, Development Alternatives, Inc., Fiscal Reform in Support of Trade Liberalization Project.. [Downloadable!]
  5. McMillan, John & Zoido, Paolo, 2004. "How to Subvert Democracy: Montesinos in Peru," CEPR Discussion Papers 4361, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  6. Osoro, N.E., 1995. "Tax Reforms in Tanzania: Motivations, Directions and Implications," Papers 38, African Economic Research Consortium.
  7. Jorge Martinez-Vazquez & F. Javier Arze & Jameson Boex, 2004. "Corruption, Fiscal Policy, and Fiscal Management," Working Papers fr1003, Development Alternatives, Inc., Fiscal Reform in Support of Trade Liberalization Project.. [Downloadable!]
  8. Janet Gale Stotsky & Asegedech WoldeMariam, 1997. "Tax Effort in Sub-Saharan Africa," IMF Working Papers 97/107, International Monetary Fund.
  9. Richard M. Bird, 2003. "Administrative Dimensions of Tax Reform," International Tax Program Papers 0302, International Tax Program, Institute for International Business, Joseph L. Rotman School of Management, University of Toronto, revised May 2003. [Downloadable!]
  10. Odd-Helge Fjeldstad & Bertil Tungodden, 2001. "Fiscal corruption: A vice or a virtue?," CMI Working Papers WP 2001:13, CMI (Chr. Michelsen Institute), Bergen, Norway. [Downloadable!]
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  11. Odd-Helge Fjeldstad, 2002. "Fighting fiscal corruption: The case of the Tanzania Revenue Authority," CMI Working Papers WP 2002:3, CMI (Chr. Michelsen Institute), Bergen, Norway. [Downloadable!]
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