IDEAS home Printed from https://ideas.repec.org/p/imf/imfwpa/2020-142.html
   My bibliography  Save this paper

Raising Tax Revenue: How to Get More from Tax Administrations?

Author

Listed:
  • Eui Soon Chang
  • Elizabeth Gavin
  • Nikolay Gueorguiev
  • Mr. Jiro Honda

Abstract

Can we empirically show the benefits of improving the practices and characteristics of tax administration agencies for revenue collection? While many country experiences suggest a strong link, there is little systematic empirical evidence on the matter. This paper analyzes the association between tax collections and tax administrations, using the novel dataset (ISORA). We find that tax performance is positively and strongly associated with the operational strength of tax administrations. Among emerging and low-income economies, countries at the top 25 percent (in terms of the operational strength) collect substantially larger tax revenues (by 3¼ percent of GDP) than countries at the lowest 25 percent, assuming other conditions are equal. Our results also suggest that adopting key administrative practices such as compliance risk management and use of third-party data is associated with stronger tax collections. Furthermore, larger staffing of a tax agency improves tax revenue up to a point. These findings have important policy implications, particularly during the unprecedented global pandemic situation.

Suggested Citation

  • Eui Soon Chang & Elizabeth Gavin & Nikolay Gueorguiev & Mr. Jiro Honda, 2020. "Raising Tax Revenue: How to Get More from Tax Administrations?," IMF Working Papers 2020/142, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2020/142
    as

    Download full text from publisher

    File URL: http://www.imf.org/external/pubs/cat/longres.aspx?sk=49584
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Andreas Freytag & Krige Siebrits, 2023. "Replacing Customs Revenue with Taxes on Income and Domestic Consumption: The South African Experience," CESifo Working Paper Series 10698, CESifo.
    2. Moore, Mick, 2021. "Glimpses of Fiscal States in Sub-Saharan Africa," Working Papers 16977, Institute of Development Studies, International Centre for Tax and Development.
    3. Mick Moore, 2021. "Glimpses of fiscal states in sub-Saharan Africa," WIDER Working Paper Series wp-2021-151, World Institute for Development Economic Research (UNU-WIDER).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:imf:imfwpa:2020/142. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Akshay Modi (email available below). General contact details of provider: https://edirc.repec.org/data/imfffus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.