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A basic tool to assess tax administration strength in emerging Europe
Author(s) -
Crivelli Ernesto
Publication year - 2019
Publication title -
economics of transition and institutional change
Language(s) - English
Resource type - Journals
eISSN - 2577-6983
pISSN - 2577-6975
DOI - 10.1111/ecot.12204
Subject(s) - tax administration , business , tax revenue , index (typography) , public economics , revenue , strengths and weaknesses , tax reform , key (lock) , administration (probate law) , compliance (psychology) , accounting , economics , computer science , political science , computer security , psychology , law , social psychology , world wide web
Large tax compliance gaps, together with the need to generate additional tax revenue have put a premium on tax administration reform in emerging Europe. The key features of an efficient tax administration are well established, but an objective assessment of the relative strengths and weaknesses of tax administrations have been lacking. This paper proposes a simple index of tax administration strength, based on objective indicators reflecting key organizational and operational aspects of revenue administrations relative to international best practice. A diagnostic test is then conducted to assess the performance of the proposed index in its ability to predict variations in tax collection efficiency in emerging Europe.