| Tax administration staff | Tax administration continues to modernize its operations. Central data– driven case selection will help focus on high-risk cases | Proactive engagement of audit staff, message from commissioner, team meetings | Early and continuous | Inform/consult |
| Other government departments such as budget department, treasury | This reform will not negatively impact revenues and, over time, will improve results | Meeting | Early | Inform |
| Taxpayers | Tax administration continues to modernize its operations; audit case selection will have a stronger focus on high-risk taxpayers | Press releases, interviews, website | Ahead of implementation | Inform |
| Chambers of Commerce/industry associations | Tax administration continues to modernize its operations; audit case selection will have a stronger focus on high-risk taxpayers | Meetings, periodic information bulletins | Early and continuous | Inform/consult |
| Tax administration staff | Tax administration continues to modernize its operations. Central data– driven case selection will help focus on high-risk cases | Proactive engagement of audit staff, message from commissioner, team meetings | Early and continuous | Inform/consult |
| Other government departments such as budget department, treasury | This reform will not negatively impact revenues and, over time, will improve results | Meeting | Early | Inform |
| Taxpayers | Tax administration continues to modernize its operations; audit case selection will have a stronger focus on high-risk taxpayers | Press releases, interviews, website | Ahead of implementation | Inform |
| Chambers of Commerce/industry associations | Tax administration continues to modernize its operations; audit case selection will have a stronger focus on high-risk taxpayers | Meetings, periodic information bulletins | Early and continuous | Inform/consult |
This is a generic title and is the equivalent of the Ministry of Economy, Ministry of Economy and Finance, Treasury, or other similar titles, depending on the country.
MTRSs are promoted by the Group of Twenty (G20) and international organizations—see the report of February 2016 titled “Enhancing the Effectiveness of External Support in Building Tax Capacity in Developing Countries,” prepared for submission to G20 finance ministers by the IMF, Organisation for Economic Co-operation and Development (OECD), United Nations (UN), and World Bank Group (WBG).
The main challenges of taxing the informal economy are the high compliance and administrative burden (i.e., collection costs), the fear of making the tax system complex, and the significant use of resources of the administration for potentially low tax revenue. To tackle the informal economy, tax administrations may consider developing new compliance-management strategies, increasing existing compliance and enforcement activities, and creating new administrative capacities, for example, establishing units dedicated to the informal economy. They could also develop incentive and education programs to encourage voluntary compliance.
An SMC is the forum that the head of the tax administration uses to discuss and make decisions on the strategic plan and management of the implementation. The SMC reports to the head of the tax administration, and its members should include, at a minimum, the director of the Office of Strategic Management (OSM) as well as the directors of the Planning, Program Design, and Reform, Regional and District Operations, and the director of the Support Functions. The OSM is explained later in this chapter.