The effects of a risk-based approach to tax examinations: evidence from a tax pilot programme in Tanzania

Amina Ebrahim (), Elineema Kisanga, Ezekiel Swema (), Vincent Leyaro (), Edwin Mhede, Ephraim Mdee (), Heikki Palviainen () and Jukka Pirttilä ()
Additional contact information
Amina Ebrahim: United Nations World Institute for Development Economics Research
Elineema Kisanga: University of Dar Es Salaam
Ezekiel Swema: Tanzania Revenue Authority
Vincent Leyaro: University of Dar Es Salaam
Ephraim Mdee: Tanzania Revenue Authority
Heikki Palviainen: Tampere University
Jukka Pirttilä: University of Helsinki

International Tax and Public Finance, 2025, vol. 32, issue 3, No 8, 871 pages

Abstract: Abstract Technical assistance and increased use of ICT in tax administrations hold promise for greater revenue collection. Yet, the evidence on how these activities work in the real-world circumstances of developing countries is scant. The paper attempts to fill this gap by evaluating an intervention undertaken jointly by the Finnish and Tanzanian revenue administrations. The programme introduced a new risk-based case selection method for enhancing the effectiveness of firm tax examinations in Tanzania complemented by supplementary staff training and developing management practices. Our results, stemming from a difference-in-differences analysis and administrative data from the Tanzanian Revenue Authority, indicate that the intervention increased the corrected amount of taxable income by approximately 20% during the first year of the new approach.

Keywords: Risk-based approach; Firm tax audits; Tanzania (search for similar items in EconPapers)
JEL-codes: C93 H26 (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s10797-024-09858-5 Abstract (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kap:itaxpf:v:32:y:2025:i:3:d:10.1007_s10797-024-09858-5

Ordering information: This journal article can be ordered from
http://www.springer. ... ce/journal/10797/PS2

DOI: 10.1007/s10797-024-09858-5

Access Statistics for this article

International Tax and Public Finance is currently edited by Ronald B. Davies and Kimberly Scharf

More articles in International Tax and Public Finance from Springer, International Institute of Public Finance Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().