Tax Administration Diagnostic Assessment Tool

POA 3: SUPPORTING VOLUNTARY COMPLIANCE

Desired Outcome of POA 3

Taxpayers have the necessary information and support to comply voluntarily.

• To promote voluntary compliance, tax administration must adopt a service-oriented attitude towards taxpayers.

• Tax administrations must ensure that taxpayers have the information and support they need to meet their obligations and claim their entitlements under the law.

• Advice and assistance to taxpayers play a crucial role in bridging the knowledge gap.

•Tax administration must make effort to reduce the compliance costs for taxpayers, such as, by providing: (i) simplified reporting and record keeping for small businesses, (ii) pre-filled returns for employees and passive income earners, and (iii) online taxpayer portal.

• Taxpayers expect the tax administration to provide summarized, understandable advice on which they can rely.

Good Practice in Supporting Voluntary

Compliance

Public education and information through

guides, brochures websites, FAQs Customized

information for specific taxpayer

segments

Use of cost effective online service delivery

channels

Commitment to service delivery standards in

taxpayer servicesRegularly updating

information on changes in law to

procedures

Measures to reduce taxpayer compliance

cost

Monitoring questions and common legal

errors to refine information products

Monitoring taxpayer perceptions &

seeking feedback

Performance Indicators for Supporting Voluntary Compliance

Dimensions

High Level Indicators

P3-7: Scope, currency and accessibility of information

M1

Range of info to explain

obligations and

entitlements

Degree to which info is current on law and policy

Ease for taxpayers to obtain info and advice

P 3-8: Scope of initiatives to reduce

compliance costM1

Extent of initiatives to

reduce taxpayer

compliance cost

Time taken to respond to requests for info and

advice

P 3-9: Monitoring of taxpayer feedback

on products and service

M1

Use and frequency of methods to

obtain feedback

How much taxpayer

input goes into design of service

programs & products

Scoring P3-7-1: Range of Information Available

A

Information on main taxpayer obligations

and entitlements READILY available

Information available in respect of ALL core taxes

Information is tailored to the

needs of ALL key taxpayer segments

and industry groups

Information is tailored to the needs of

intermediaries and disadvantaged groups

Scoring P3-7-1: Range of Information Available

B

Information on main taxpayer obligations

and entitlements READILY available

Information available in respect of ALL core taxes

Information is tailored to the

needs of AT LEAST ONE taxpayer

segments or industry groups

Information is tailored to the

needs of intermediaries and

disadvantaged groups

Scoring P3-7-1: Range of Information Available

C

Information on main taxpayer obligations

and entitlements READILY available

Information available in respect of ALL core taxes

Information is tailored to

the needs of ALL key taxpayer

segments and industry

groups

Information is tailored to the

needs of intermediaries

and disadvantaged

groups

Scoring P3-7-2: Currency of Information

A

Procedures ensure regular and systemic

updating of information

Dedicated resources available to update

information

Taxpayers made aware of changes in law or

administrative policy through proactive client

engagement, before obligation becomes

effective

Taxpayers made aware of changes in law or

administrative policy through general

communication, before obligation becomes

effective

Scoring P3-7-2: Currency of Information

B

Procedures ensure

regular and systemic

updating of information

Dedicated resources

available to update

information

Taxpayers made aware of changes in law or

administrative policy through

proactive client

engagement, before

obligation becomes effective

Taxpayers made aware of changes in law or

administrative policy through general

communication, before obligation becomes effective

Scoring P3-7-2: Currency of Information

C

Ad hoc actions taken to

updating of information

Dedicated resources

available to update

information

Taxpayers made aware of changes in law or

administrative policy through

proactive client

engagement before

obligation becomes effective

Taxpayers NOT

ROUTINELY made aware of changes in law or

administrative policy before

obligation becomes effective

Scoring 3-7-3: Ease of Access of Information

A

Tax administration

provides a broad range of

taxpayer education

programs such as through

seminars and programs for

school students

Information is available through a variety of

service delivery channels:

phone, website, factsheets, brochures,

rulings

Information is available at minimal or no cost

Information is available at a

time convenient to taxpayers,

including outside

business hours

Scoring 3-7-3: Ease of Access of Information

B

Tax administration

provides taxpayer

education programs for

small and micro businesses, new businesses and new employers

Information is available through a variety of

service delivery channels:

phone, website, factsheets, brochures,

rulings

Information is available at minimal or no cost

Information is available at a

time convenient to taxpayers,

including outside

business hours

Scoring 3-7-3: Ease of Access of Information

C

Taxpayer education

programs are provided on an

ad hoc basis

Information is available through a variety of

service delivery channels:

phone, website, factsheets, brochures,

rulings

Information is available at minimal or no cost

Information is available at a

time convenient to taxpayers,

including outside

business hours

Scoring 3-7-4: Response Time for Taxpayer Request

•At least 90% of telephone enquiries are answered within 2 minutesA•At least 80% of telephone enquiries are answered within 2 minutesB•At least 70% of telephone enquiries are answered within 2 minutesC

D The requirements for a C rating are not met

Scoring 3-8: Scope of initiatives to reduce compliance costs

A

Simplified record

keeping and reporting

requirements for small taxpayers

Use of pre-filled tax declarations

Taxpayers’ common

questions and misunderstandi

ngs routinely analyzed to

improve information products

Secure online

taxpayer portal or mobile

platform available

with 24-hour access

Tax declarations and forms reviewed

regularly to ensure that only information that is used is sought

Scoring 3-8: Scope of initiatives to reduce compliance costs

B

Simplified record

keeping and reporting

requirements for small taxpayers

Use of pre-filled tax declarations

Taxpayers’ common

questions and misunderstandi

ngs routinely analyzed to

improve information products

Secure online

taxpayer portal or mobile

platform available

with 24-hour access

Tax declarations and other forms

reviewed regularly to

ensure that only information that is used is sought

Scoring 3-8: Scope of initiatives to reduce compliance costs

C

Simplified record

keeping and reporting

requirements for small taxpayers

Use of pre-filled tax declarations

Taxpayers’ common

questions and misunderstandi

ngs routinely analyzed to

improve information products

Secure online

taxpayer portal or mobile

platform available

with 24-hour access

Tax declarations and other forms

reviewed regularly to

ensure that only information that is used is sought

Scoring 3-9-1: Use and Frequency of Taxpayer Feedback

A

Tax administrat

ion regularly

obtains feedback

from taxpayers through various

methods, e.g.,

surveys, emails, website,

meetings a and

contact centers

Taxpayer perception surveys , based on

statistically valid

sample, from key taxpayer segments conducted

by independent

party at least every 3

years

Scoring 3-9-1: Use and Frequency of Taxpayer Feedback

B

Tax administrat

ion regularly

obtains feedback

from taxpayers through various

methods, e.g.,

surveys, emails, website,

meetings a and

contact centers

Taxpayer perception

surveys, based on

statistically valid

sample, from key taxpayer segments conducted

by independent party or tax administration at least

every 5 years

Scoring 3-9-1: Use and Frequency of Taxpayer Feedback

CTax

administration obtains feedback

from taxpayers through various

methods, on an ad hoc basis

Taxpayer perception

surveys from key taxpayer

segments conducted

on an ad hoc basis OR based on

not statistically

valid sample

Scoring 3-9-2: Use of Taxpayer Input in Designing Taxpayer Service

ATax

administration

regularly consults

with taxpayer groups to identify

deficiencies in

processes and

products

Active involvemen

t of taxpayers

in the design and testing of

new processes

and products

Scoring 3-9-2: Use of Taxpayer Feedback in Designing Taxpayer Service

BTax

administration

regularly consults

with taxpayer groups to identify

deficiencies in

processes and

products

Active involvemen

t of taxpayers

in the design and testing of

new processes

and products

Scoring 3-9-2: Use of Taxpayer Feedback in Designing Taxpayer Service

CTax

administration

consults with

taxpayer groups on an ad hoc basis to identify

deficiencies in

processes and

products

Active involvemen

t of taxpayers

in the design and testing of

new processes

and products

Table 11 of the Field

Guide

Checklist of Questions and Evidence for POA 3