José Maria Pires, Stephen Howlin, and Mr. Frank van Brunschot
To improve the management of tax compliance risks, tax administrations are increasingly seeking opportunities to enhance their access and use of data. For many years, there has been a worldwide trend to implement electronic fiscal reporting (also known as fiscalization) to achieve these aims. Fiscalization refers to the process of automated reporting of a taxpayer’s business activities to the tax administration. When implemented as an integral part of compliance risk management processes, fiscalization will contribute to an improvement in tax compliance by making it easier for taxpayers to voluntarily comply, and discouraging taxpayers who may choose to not report their business transactions. However, fiscalization alone will not address all tax compliance risks. This how-to note provides practical guidance about the case for fiscalization and implementation approaches, including good practices and practices to avoid in relation to the key dimensions of fiscalization: data collection, data analysis, integration with compliance risk management, consumer engagement, and implementation.
This technical assistance report highlights residential property price index (RPPI) mission in Bangladesh. The authorities should compile an experimental RPPI for Dhaka using a single preferred method that follows international best practice. The Bangladesh Bank (BB) should implement the recommended improvements to the compilation methods for the experimental RPPI. The BB should consider publishing the experimental RPPI on their website along with the sub-indices for the four regional strata. The authorities should provide additional human resources to the RPPI team for data collection, respondent management and data cleaning. The response rate has been low for the new reporting template. The impediments identified include the voluntary nature of the pilot survey and the staff resources assigned in BB. It is recommended to make the new reporting template mandatory and provide additional human resources to the RPPI team. The additional variables collected on the new reporting template can be used to improve the stratification and model specification.