Collecting Taxes During an Economic Crisis: Challenges and Policy Options

John Brondolo

No 2009/017, IMF Staff Position Notes from International Monetary Fund

Abstract: The global financial and economic crisis presents major challenges for tax agencies. With the economic downturn, tax agencies are encountering emerging compliance problems and greater demands for taxpayer support in the face of prospective budget cuts. To help address these challenges, this paper encourages tax agencies to develop a tax compliance strategy for the crisis by (1) expanding assistance to taxpayers, (2) refocusing enforcement on emerging compliance risks, (3) enacting legislative reforms that facilitate tax administration, and (4) improving communication programs. In each of these areas, the paper identifies specific measures to underpin the strategy, drawing on practices from leading tax agencies and experiences from IMF technical assistance. The paper also highlights emerging tax compliance issues in the financial sector.

Keywords: SPN; tax agency; income tax; compliance strategy; rebate program; tax law; tax issue; tax information exchange agreement; tax arrears; tax return; tax rebate program; tax implication; enforcement action; tax professional; stimulus initiative; Tax refunds; Economic recession; Tax return filing compliance; Global (search for similar items in EconPapers)
Pages: 39
Date: 2009-07-14
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Citations: View citations in EconPapers (27)

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