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Author:
Mr. Eric Hutton
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Fiscal Affairs Department

Contents

  • I. How do Countries Measure Noncompliance and Other Revenue Foregone in Value-Added Tax?

  • II. What is “Value-Added Tax Gap” Under the IMF Revenue Administration—Gap Analysis Program?

  • III. How is the Value-Added Tax Gap Measured by the IMF Revenue Administration—Gap Analysis Program?

    • A. Potential VAT Revenue

    • B. Actual Value-Added Tax Revenue

    • C. Measuring and Reporting the Gap

  • IV. How can the Value-Added Tax Gap be Used to Improve Compliance?

    • A. Breaking Down the Tax Gap to Support Taxpayer Compliance Management

    • B. Tracking Changes in the Gap to Support Taxpayer Compliance Improvements

  • V. Final Remarks

  • References

  • Tables

    • 1. The Various Measures for Actual Value-Added Tax

  • Figures

    • 1. Illustration of the Components of the Tax Gap

    • 2. Breakdown of the Components of the Tax Gap

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The Revenue Administration–Gap Analysis Program: Model and Methodology for Value-Added Tax Gap Estimation
Author:
Mr. Eric Hutton