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Tax Administration Reform in Transition: The Case of Croatia


  • Katarina Ott

    (Institute of Public Finance)


The paper discusses the basic issues of modern public administration in general and tax administration in particular, trends in their development and reforms in tax administrations. The main weight in reforms concerns problems of prevention of tax evasion, measures for making tax administration more efficient and reducing the complexity of taxation laws. Special attention is paid to tax administrations in transition countries with an emphasis on public officials, "big state", revenue collection problems and tax administration reforms. Particular problem of running the state in small countries is also discussed. It can be concluded that modern tax administrations are concerned with a stronger focus on taxpayers, specialisation of personnel, independence from the ministries of finance and privatisation of those areas which could be better performed by the private sector. In order to accomplish the above mentioned goals, many countries have set in motion tax administrations reforms aimed at solving some of the key problems such as low salaries and the connected problem of attracting high quality personnel, corruption among tax administration personnel and complex and incomprehensible tax laws. Most reforms stress functional organisation of tax administration, organising a special customer service units and separate departments to deal with the largest enterprises. This should also reduce tax revenue collection costs and help to prevent tax evasion. The extent to which Croatia, as a transition country, a small country and a country carrying out reform of its fiscal system (including tax administration reform), fits in with the processes described above is discussed in detail. Suggestions for further improvement of tax administration in Croatia are also given.

Suggested Citation

  • Katarina Ott, 1998. "Tax Administration Reform in Transition: The Case of Croatia," Occasional paper series 05, Institute of Public Finance.
  • Handle: RePEc:ipf:occasi:5

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    References listed on IDEAS

    1. Murray, Matthew N., 1995. "Sales Tax Compliance and Audit Selection," National Tax Journal, National Tax Association, vol. 48(4), pages 515-30, December.
    2. Murray, Matthew N., 1995. "Sales Tax Compliance and Audit Selection," National Tax Journal, National Tax Association;National Tax Journal, vol. 48(4), pages 515-530, December.
    3. Glenn Jenkins, 1992. "Economic Reform And Institutional Innovation," Development Discussion Papers 1992-04, JDI Executive Programs.
    4. Pommerehne, Werner W & Weck-Hannemann, Hannelore, 1996. "Tax Rates, Tax Administration and Income Tax Evasion in Switzerland," Public Choice, Springer, vol. 88(1-2), pages 161-170, July.
    5. Richard M. Bird, 2014. "Administrative Dimensions of Tax Reform," Annals of Economics and Finance, Society for AEF, vol. 15(2), pages 963-992, November.
    6. David Wildasin, 1996. "Introduction: Fiscal Aspects of Evolving Federations," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 3(2), pages 121-135, May.
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    Cited by:

    1. Michael Faulend & Vedran Sosic, 1999. "Is Unofficial Economy a Source of Corruption?," Occasional paper series 09, Institute of Public Finance.
    2. Katarina Ott, 2002. "The Underground Economy in Croatia," Occasional paper series 12, Institute of Public Finance.
    3. Michael Faulend & Vedran Šošić, 2000. "Is Unofficial Economy a Source of Corruption?," Working Papers 2, The Croatian National Bank, Croatia.

    More about this item


    taxation; fiscal policy; tax reforms;

    JEL classification:

    • H2 - Public Economics - - Taxation, Subsidies, and Revenue


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