Revenue Administration in Sub-Saharan Africa - International Tax ...

Key observationsSurvey results indicate that revenue bodies are in transition and their organizationalstructures are based on a hybrid model comprising both functional 41and taxpayersegmentation features. This is in line with current practice in tax administration. Toimplement truly functional and segmented organizational models, a number ofrevenue bodies are currently implementing reforms, including streamlining businessprocesses, implementing appropriate IT systems, and designing risk-driven taxpayersegmentation compliance programs. The establishment of a dedicated headquartersfunctions to provide guidance to field delivery has recently been a key development ina number of countries. The headquarters function is typically responsible for:(1) Strategic and operational planning on a national level;(2) Development of national programs;(3) Provision of technical advice and guidance to operational field units;(4) Establishment of performance targets and measurement systems; and(5) Monitoring and evaluation of field operations.A review of organizational structures of a number of revenue bodies indicates they aremoving towards flatter organizational structures by reducing the direct reporting linesto the chief executive. 42It is also noted that resources have been dedicated to setting up taxpayer service andinvestigations programs. It is generally recognized that the effectiveness of theseprograms will largely depend on:(1) In the case of the former, the ability to implement innovative service, assistanceand education programs that are tailored to the needs of the different taxpayersegments; and(2) In the case of the latter, specialization and creation of effective linkages with theaudit program. 4341 This analysis applies mostly to Anglophone countries as Francophone countries have traditionally been organizedon a functional basis with the collection enforcement function falling under the Treasury.42 Articulating clear organizational structures, functions, and reporting lines is generally regarded as good practice as itpromotes organizational clarity and reduces conflict.43 IMF experience shows that cases referral guidelines (audit and investigations functions) have either not beendeveloped or are not effectively being utilized. As a result the investigations units depends largely on local knowledgeand third party information to generate cases, and in some cases the distinction between audit and investigations hasbeen lost.32