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Tax Compliance Burden Maturity Model

 

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Published: 23 December 2019

 

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While incredibly important for successful tax administration, compliance burden measurement and minimisation is not carried out by a single function within tax administration. The Tax Compliance Burden Maturity Model therefore focuses on a single overall description of maturity in this area rather than on the range of institutional arrangements and procedures more appropriate for a model covering a large tax administration function (such as tax debt management).

The Model highlights that in order to understand and address compliance burdens as effectively as possible requires both a top-down and a bottom-up approach. There needs to be an overall strategy in place and a culture that recognises the importance of minimising burdens while collecting the right amount of tax. Each part of the administration also has a role in understanding and reducing burdens, including the opportunities available through incremental change and through more fundamental redesign of policies and processes.

An explanation of the how the maturity model can be used can be found in Chapter 1. A worksheet to record the outcomes of discussions is available. It is requested that after undertaking a self-assessment, the completed worksheet is sent to the FTA Secretariat at FTA@oecd.org. The results of the initial piloting of the model by twenty-one tax administrations (including some non-FTA members) were analysed by the OECD FTA Secretariat. A "heat map" contained in Chapter 2 of the report shows the reported maturity of different administrations, on an anonymous basis. This will be updated as more self-assessment reports are received.

 

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