Page 2 - Working Paper (The Myths and Realities of Tax Performance Under Semi-Autonomous Revenue Authorities)

The Myths and Realities of

Tax Performance

Under Semi-Autonomous

Revenue Authorities

B. Bawono Kristiaji and Adri A. L.
Poesoro 1

Separation of the tax administration TABLE OF CONTENTS
from the Ministry of Finance has become
growing trends in the last two decades.
Many countries have established more
autonomous tax institution known as Semi 1. Introduction ............... 3
Autonomous Revenue Authority (SARA).
2. Why SARA needs to
SARA refers to the institutional framework be Considered? .......... 3
and governance for organizations involved
in the collection administration, where 3. Research
the framework is to provide a greater Methodology .............. 4
autonomy than regular departments or
directorates. Pros and cons of the benefits 4. Some Preliminary
of SARA is natural and basically can be seen Findings ..................... 6
through experiences in several countries.
Unfortunately, limited empirical study on 5. SARA and Tax
performance of the SARA created a little Revenue ..................... 7
room for policy makers to determine their
stance. 6. Decision to Adopt
SARA .......................... 9
In this paper, we are not only analyze
the main factors behind decision to 7. Conclusion:
implement SARA but also test the myths of Demistfiying SARA .... 10
impact of SARA model to tax performance
and other relevant indicators through
utilizing econometric approach in order to
demystify SARA.

1 B. Bawono Kristiaji is a Partner, Tax Research and Training Services
DANNY DARUSSALAM Tax Center and received his Master from
PPIE, FEUI. Further, Adri A. L. Poesoro is a Chief Economist DANNY
DARUSSALAM Tax Center and a Doctoral graduate from Claremont
Graduate University, USA. The author would like to thank Darussalam for
his comments and suggestions; as well as to Hiyashinta Klise and Toni
Febriyanto for their research assistances.

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