Effectiveness of tax collection

The tax administration has a compliance improvement plan in place

The compliance improvement plan refers to one (or more) documents that reflect the objectives and measures to enhance compliance with the tax legislation by tax payers.

The compliance improvement plan is comprehensive

A comprehensive compliance improvement plan covers all main taxes and duties. It gives a diagnosis of the existing situation and includes objectives, indicators and an action plan with measures for more than one tax category.

Implementation rate of the activities in the compliance improvement plan (%)

Review of an implementation report of the compliance improvement plan to determine the extent to which planned measures were implemented. Points are allocated based on the implementation rate of activities in the compliance improvement plan (x). • x < 60% = 0 points. • 60% ≤ x < 95% = linear function. • x ≥ 95% = 2 points.

Aggregate tax outturn

Data and documents provided by revenue administration, document review, calculation sheets on revenue credibility: comparison plan and outturns.

Tax composition outturn (%)

Data and documents provided by the revenue administration, calculation sheets to compare plan and outturns for three major taxes (PIT, CIT and VAT).

Stock of tax arrears at the end of the last completed fiscal year (%)

Data and documents provided by revenue administration, document review, calculation sheets on revenue credibility: comparison plan and outturns. Interview with the entity collecting most of the governments’ revenues. Points are allocated based on the stock of revenue arrears in the last fiscal year expressed as percentage of the total revenue collection for the year (x): • x > 40% = 0 points. • 40% ≥ x > 10% = linear function. • x ≤ 10% = 5 points.