Using Top-Down Compliance Gap Techniques to Supplement the Compliance Risk Management Framework

Elena D'Agosto, Michael Hardy, Stefano Pisani and Anthony Siouclis

No 2025/003, IMF Technical Notes and Manuals from International Monetary Fund

Abstract: Traditional top-down tax gap assessments identify the size of a tax gap, but not its origins. By extracting more granular information from top-down tax gap assessments, and combining this information with compliance risk management (CRM) techniques, it is possible to: improve the accuracy of CRM techniques; improve the consistency of the likelihood and consequence dimensions of compliance risk assessments; identify emerging areas of tax compliance risk and; better disaggregate the direct and indirect revenue effects of compliance interventions, including the “behavioral component” within the indirect effects. Finally, it is also possible to determine the optimal revenue recovery from each segment of the taxpayer population.

Keywords: tax administration; tax compliance; tax gap; compliance gap; Compliance Risk Management; CRM; direct revenue effect; indirect revenue effect; taxpayer behavioral component; compliance risk-management framework; compliance gap technique; IMF Library; taxpayer compliance; compliance index; Auditing; Tax return filing compliance; Value-added tax (search for similar items in EconPapers)
Pages: 28
Date: 2025-01-24
New Economics Papers: this item is included in nep-iue, nep-pbe and nep-rmg
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