OECD: Tax collection, tax trends in 56 tax administrations

OECD: Tax collection, tax trends in 56 administrations

A report from the Organisation for Economic Co-operation and Development (OECD) reveals information about tax collection among 56 tax administrations. The OECD report notes that tax administrations continue to face challenges of improving their performance.

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According to the OECD report—Tax Administration 2015—a survey of  56 advanced and emerging economies (including all OECD, EU, and G20 countries), identifies fundamental elements of modern tax administration systems and uses data, analyses, and examples to identify key performance trends, recent innovations, and examples of good practice.

Among the many findings and observations, the OECD report highlights:

  • Tax authorities are currently managing the addition of new activities while also dealing with reductions in staffing (significant reductions having been reported in Australia, the United Kingdom, and the United States).
  • The tax administrations are making investments in digital services, with average IT expenditure, as a percentage of the total budget, remaining constant at 9.5% (except in Austria, Finland, Singapore, and Norway where approximately 25% of the total budget is spent on IT).
  • Concerning large taxpayer management, over 85% of tax administrations adopted the OECD’s “structured co-operative compliance model” recommended for managing the  largest taxpayers, and approximately 33% use similar arrangements to manage the tax affairs of high net-worth individuals.
  • “Tax gap” continues to be a focus, with 43% of tax authorities reporting they undertake or are researching estimates of the aggregate tax gap for some or all of their major taxes.
  • There is greater focus on disclosure policies to improve tax compliance and bolster tax revenues, but only 40% of countries reported they have a policy to encourage taxpayers to use voluntary disclosure programs. 
  • Electronic matching of VAT invoices continues to expand. 

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