Innovations in Tax Compliance : Conceptual Framework
This paper presents a conceptual framework for developing more effective approaches to tax reform and compliance. The framework proposes that by combining complementary investments in enforcement, facilitation, and trust, reformers can not only str...
| Main Authors: | , , , , |
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| Format: | Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2019
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/816431569957130111/Innovations-in-Tax-Compliance-Conceptual-Framework http://hdl.handle.net/10986/32492 |
| Summary: | This paper presents a conceptual
framework for developing more effective approaches to tax
reform and compliance. The framework proposes that by
combining complementary investments in enforcement,
facilitation, and trust, reformers can not only strengthen
enforced compliance but can also (a) encourage
quasi-voluntary compliance, (b) generate sustainable
political support for reform, and (c) create conditions that
are more conducive to the construction of stronger fiscal
contracts. A key challenge for governments lies in finding
the right combination of these three measures --
enforcement, facilitation, and trust—to achieve revenue and
broader development goals. The framework proposes greater
reliance on locally grounded binding constraints analysis,
coupled with careful attention to understanding politics and
the drivers of trust in particular contexts, to guide
analysis of how best different investments may be combined,
prioritized, or sequenced. This framework can help policy
makers to think about the right combination of strategies in
specific contexts, and thus to allocate resources most effectively. |
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