1. AN
INTEGRATED
ASSESSMENT
MODEL FOR
TAX
ADMINISTRATION
COMPREHENSIVE MODEL TO ASSESS THE
OVERALL PERFORMANCE OF TAX
ADMINISTRATION
PUBLIC SECTOR AND GOVERNANCE GROUP (PRMPS)
WORLD BANK GROUP

2. Rationale for developing this tool by
the World Bank Group
• Important role and increasing capacity building work of the WBG in tax
policy and revenue administration:
– As of December 2011, around 126 WBG operations (credits, loans, and
technical assistance advisory services) have components involving tax policy
and revenue administration.
– These operations target more than 70 countries-most of the operations target
Low Income Countries in AFR, and Upper Middle Income Countries in LAC and
ECA.
• IEG Evaluation (2008) of the WBG support for PS reform recommended:
– Better upstream diagnosis to better understand the context of reforms; and
– Implementation of a set of tangible indicators to measure effectiveness and
progress towards achievement of objectives;
• A standardized and comprehensive tool to assess the performance of tax
administration has not been developed yet.
1

3. Tools currently available to measure the
performance of tax administration
OECD´s Comparative Information Series for OECD and non-OECD
countries (2010)
Comparative Information Series: A pilot study on Revenue
Administration in Sub-Saharan Africa (OECD/ATAF)
Public Expenditure and Financial Accountability (PEFA) Framework
The European Commission´s Fiscal Blueprints
The USAID´s Collecting Taxes Database
Diagnostic Framework for Revenue Administration (WB/RAPTG,
2000)
2

4. INDEX
3

5. IAMTAX: a comprehensive model to assess the
performance of tax administration
• The World Bank (PRMPS) has developed the IAMTAX as a comprehensive and
systematic tool for assessing tax administration performance over time.
• Overall performance of tax administration is analyzed by covering a wide array of
elements encompassing three levels of analysis: (i) legal and regulatory framework;
(ii) institutional set-up/capacity building; and (iii) core business processes.
• The model is built on benchmarking analysis, but it recognizes the fact that no one-
size fits all.
“As a result, the model places strong emphasis on a country’s context and its evolving
nature by proposing a framework to better accommodate changes in the country’s
environment”.
4

6. IAMTAX: Objectives and main elements
• The IAMTAX consists of two main elements:
(i) the diagnostic tool; and
(ii) the measurement framework
• The diagnostic tool would :
 assess the current situation of a given tax administration; and
 establish the baseline for the entire set of indicators against which the performance
of tax administration would be monitored and assessed throughout a period of
time.
The diagnostic tool would play a critical role in putting into context the current performance
of a given tax administration vis-à-vis the proposed measurement framework.
• The measurement framework would contribute towards achievement of two main
objectives:
 identify and asses performance gaps of tax administration by comparing the actual
performance against a set of desirable benchmarks and good practices
(“benchmarking” tool); and
 assess and monitor performance of tax administration over time.
5

7. Using the IAMTAX as a benchmarking tool
6

8. Finding the core strategic dimensions of the model
Current trends in
tax administration:
✓ A new paradigm for ✓ New organizational
control of compliance model
✓ Customer orientation ✓ Process orientation
✓ Market segmentation ✓ The key role of ICT
together with risk ✓ International dimensions
analysis techniques as a of taxation
central plank of a
modern control of
compliance strategy
7

9. Core Strategic Dimensions of the Measurement Framework
• The measurement
framework has been
developed around a
reference system that
consists of 14 core
strategic dimensions
D widely recognized to be
I key features of modern
M tax administrations.
E
N
S • The reference system
I ultimately centers on a
O new paradigm of tax
N administration that
focuses on encouraging
S compliance and
cooperation with
taxpayers.
3 LEVELS OF ANALYSIS
Legal and Regulatory Institutional set-up Core business
Framework and capacity building processes
8

10. Measurement Framework Indicators
IAMTAX Indicators
Type of taxpayer
Outcome
indicators
(30)
Intermediate Economic sector
output
indicators
(20)
Drill down
indicators
Geographic
Location/
Region
9

11. Reference system is linked to the environment in which
tax administration operates…..
Key Objectives Strategic Dimensions Operational Level
A. Simplification of tax legislation;
Transparency, B. Client/taxpayer orientation; Outputs Outcomes
equity and C. Enhancing voluntary compliance; • No. of tax audits; • Change in compliance
simplification • Tax disputes resolved; behavior;
D. Extensive use of Information and
of tax • Increased level of
Communication Technology; • Tax services provided;
legislation
E. Segmentation of taxpayers; • Tax arrears collected; voluntary compliance;
F. Application of risk based criteria to • Other
analyze and monitor tax
Strategic Vision compliance;
G. Information as a fundamental Core Business Processes
asset of the tax administration; Market segmentation (Tax
Mass Processes (Processing of
H. Emphasis on Human Resource audit function, revenue arrears
tax returns, taxpayer services..)
Management; management…)
I. Increasing relevance of Taxpayer registry Taxpayer account
Effectiveness international taxation;
J. Equity and transparency of tax
system;
K. Process orientation;
Third party
Efficiency L. Planning as a core element of tax e - Offices Banks
information
administration;
M. Increasing the analytical capacities
of tax administration
Taxpayer N. External communication policy, Inputs
services and Human resources; budget; and infrastructure
which fosters relations with the
external (physical and IT)
communication private sector and other
stakeholders; Environment
10

12. Grouping strategic dimensions into key objectives
Strategic Vision,
Legal and
Regulatory
Framework
Operational
Performance
11

13. Good Practices in Tax Administration
• The model incorporates a significant number of good
practices (190) extracted from the current literature
and the extensive experience of the World Bank
Group in tax administration reform projects.
Good practices are classified
according to the three levels
of analysis:
(i) legal and regulatory
framework;
(ii) institutional set/up and
capacity building; and
(iii) core business processes. 12

14. Methodology of the Benchmarking Tool
• Each strategic dimension is linked to a • The “benchmarking tool” would
set of good practices, outcome and determine how the tax administration
intermediate output indicators. scores in each of strategic dimensions
and key objectives.
• Strategic dimensions are grouped into
5 key objectives including (i) • It would also determine how the tax
transparency, equity, and simplification administration scores in (i) good
of tax legislation; (ii) strategic vision; practices, outcome and output
(iii) effectiveness; (iv) efficiency; and indicators; (ii) particular processes or
(v) taxpayer service and external functions; and (iii) specific level or sub-
communication. level of analysis.
• Objective values or range of values are The overall score of the tax administration
assigned to each of the indicators. would be the sum of scores of each
strategic dimension.
• Application of the model involves a
comprehensive analysis of tax
administration processes by using all
available information sources.
13

15. IAMTAX: Reporting Results
14

16. IAMTAX: Assessing performance of the tax
administration from different perspectives
14 Strategic Dimensions
5 Key Objectives
12 Core Business Processes
15

17. Reporting results for each strategic dimension
16

18. IAMTAX: Approach to Key Objectives
17

19. Reporting results for key objectives
18

20. IAMTAX: Approach to Core Business Processes
19

21. Performance assessment graphics
20

22. Reporting Results: Tax Administration performance over
time
Strategic Vision
Taxpayer service
Tax audit performance
Revenue arrears management
21

23. Reporting Results: Strategic Vision and Operational
Performance
OUTSTANDING
PERFORMANCE
GOOD PERFORMANCE
AVERAGE PERFORMANCE
LOW
PERFORMANCE
22

24. Reporting Results: Performance of a given Tax Administration in
Strategic Vision and Operational Performance
Country X
23

25. Reporting Results: Cross-Country Comparison in LAC Region
(hypothetical situation)
H
I
G
F
E
B C D
Country A
24

26. Comparative Analysis of Tax Administrations in LAC
Region (hypothetical situation)
H
201
6
I
F
E
20 G
12
B C D
Country A
25

27. IAMTAX AS A
DIAGNOSTIC AND MONITORING TOOL
“Theory is when you know everything but nothing works. Practice is
when everything works but nobody knows why. We have put together
theory and practice: nothing is working… and nobody knows why”
(Albert Einstein)
26

28. IAMTAX as a Diagnostic and Monitoring Tool
Setting a Setting a
Diagnosis of a tax Analyze the baseline baseline and
administration underlying respective
factors that targets for the
explain indicators over
institutional a period of time
gaps or
weaknesses
Analyze the Monitoring
Context With the help of Performance Monitoring
the diagnostic Performance
tool against targets
27

29. IAMTAX as a Diagnostic and Monitoring Tool-
Monitoring progress over time
Year 1 Targets Year 2 Targets Year 3 Targets
Indicators Diagnostic tool
baseline
Country X Country X
Supervision Monitoring and Supervision
mission 2012 assessing compliance mission 2014
against targets
Measurement Benchmarking
framework tool
28

30. Full set of Indicators and Good Practices
OUTCOME INTERMEDIATE
INDICATORS OUTPUT
(30) INDICATORS
(20+40) GOOD
PRACTICES
(190)
DRILL DOWN DRILL DOWN
INTERMEDIATE
OUTCOME
OUTPUT
INDICATORS INDICATORS
Indicators and good practices used to
Indicators and good practices used as
a benchmarking tool + carry out diagnosis and monitoring of
tax administration 29

31. Implementation of the model-
Roadmap
Refine the
methodology
Prepare documents,
questionnaires and indicators
matrix and monitoring cards
Analyze tax administration
Validate the proposed set
processes by using all
of indicators and good
available information
practices
sources
The results of the first pilot will be
used to build a web application which
would produce reports and results of
the gap analysis, and transform them
in a graphical form
30

32. IAMTAX-Indicators Matrix
31

33. IAMTAX: Indicators Cards
32

34. Web page IAMTAX: Assessment tool
www.iamtax.org
WORLD BANK IAMTAX
The IAMTAX is a tool that evaluates in a comprehensive and systematic way performance of tax
administration. It consists of two main elements: a diagnostic tool and a measurement framework.
The measurement framework would contribute towards achievement of two main objectives:
identify and assess performance gaps of tax administration by comparing the actual performance
against a set of desirable benchmarks and good practices (“benchmarking” tool); and assess and
monitor performance of tax administration over time (diagnostic and monitoring tool). The
diagnostic tool would: (i) assess the current situation of a given tax administration; and (ii)
establish the baseline for the entire set of indicators against which the performance of tax
administration would be monitored and assessed throughout a period of time.
Methodology 
Diagnostic tool 
Measurement framework 
Best Practices 
List of indicators 
Statistics and reports 
33

35. Additional functionalities of the model
Comparative
Studies of
Documents
Tax
Database Administrati
on
Manual of
Tax Case
Administrati Studies
on
34