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Figure 1 - Analytical Framework
Economic Level
Economic Structures
and Activities
Tax Revenue Governance
Institutional Factor SEMI AuTONOMOuS REvENuE AuThORITy
Democracy (Polity)
Socio-demographic
and stand-alone institution, SARA is expected to In some countries, SARA has been proved for
be more focused in their duties, it can effectively improving tax performance; however, in other
manage its affairs, free from political interference countries, adopting SARA does not impact on the
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in daily activities, and execute management productivity of tax revenue. The ambiguous
strategies that can boast human resources (HR) results clearly unable to convince the policy makers
independently (ranging from recruitment, retain, to immediately adopt institutional SARA for their
dismiss or to motivate HR). 7 tax authorities.
Myths and realities of the benefits of SARA 3. Research Methodology
basically can be seen through experiences in
several countries. Most of the existing literatures
In order to test the myths of impact of SARA
attempt to formulate indicators appropriate to
model to tax performance and other relevant
evaluate the performance of taxation before and
indicators, we utilize econometric approach.
after the implementation of SARA models. The
Please note that the criteria for SARA used in this
indicators used in the evaluation generally still
paper refers to data that is originally published
have weaknesses in measuring quantitatively the
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14
13
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by the OECD , ADB , Mann , and Taliercio .
implications of the adoption of SARA, especially
Basically, SARA, according to those authors, refers
when it tries to measure the performance in the
to the authority and power possessed by the tax
form of tax staff, culture, tax corruption, and so
authorities rather than on the structural position
on. Therefore, it is not surprising that, rather than
of the agency (separately or is under the Ministry
evaluate studies on the evaluation of the impact of
of Finance or Ministry of the other equivalent).
SARA usually tends a survey on public perception. 8
Our hypothesis is that with more autonomy in
One of the previous studies that try to find
tax administration will positively impact the tax
relationship between tax revenues and other tax
revenue performance as consequences of effective
performances with the application of the SARA
and efficient tax administration. Further, we also
system is only study held at the sub-national
think that there are specific indicators which may
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government level in Peru. This study showed that
drive the decision to be more or stagnant autonomy
local governments that are adopting SARA models
(see out analytical framework on Figure 1)
can better mobilize stabel tax revenue.
In essence, it can be stated that the assessment
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of the implementation of SARA is still perplexing.
(2006).
11 For example, SARA model applications in African countries. Most of
and Manuals (Juni 2010): 2 those countries are still facing non-compliance problem as well as steady
7 William Crandall dan Maureen Kidd, “Revenue Administration: tax ratio.
Autonomy in Tax Administration and the Revenue Authority,” IMF 12 OECD, OECD Tax Administration 2013: Comparative Information
Technical Notes and Manuals, (2010): 8 on OECD and Other Advanced and Emerging Economies (Paris: OECD
8 Survey conducted by IRAS in 2011 showed better tax services reaching Publishing, 2013), 29.
95%. In 1992, tax authority in Singapore changed its form from Inland 13 Asian Development Bank, “Institutional Arrangements for Tax
Revenue Department (IRD) to Inland Revenue Authority of Singapore Administration in Asia and the Pacific”, the Governance Brief Issue 19
(IRAS). Please see Asian Development Bank, “Institutional Arrangements (2012).
for Tax Administration in Asia and the Pacific,” ADB Governance Brief 14 Arthur Mann, “Are Semi-Autonomous Revenue Authorities the Answer
Issue 19, (2012): 6 to Tax Administration Problems in Developing Countries? A Practical
9 Please see Christian von Haldenwang, Armin von Scholler, dan Melody Guide”, USAID Review for Fiscal Reform in Support Trade Liberalization
Garcia, “Tax Collection in Developing Countries – New Evidence on Semi- Project (2004).
Autonomous Revenue Agencies (SARAs)”, 31 July 2012. 15 Robert Taliercio Jr., “Designing Performance: The Semi-Autonomous
10 Maureen Kidd dan William Crandall, “Revenue Authorities: Issues and Revenue Authority Model in Africa and Latin America” World Bank Policy
Problems in Evaluationg Their Success”, IMF Working Paper WP/06/240 Research Working Paper 3423, (2004)