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

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Survey results (Table 10 and Annex 2)• Revenue bodies recognize the need to strengthen strategic planning andmanagement and have established appropriate structures to drive this process,including setting up corporate planning units.• All revenue bodies develop 3 to 5-year business/corporate plans using anestablished planning framework.• These plans are published and disseminated widely in all revenue bodies(except Sierra Leone) and are available on their respective official websites.• Fourteen revenue bodies prepare annual performance reports but only 11publish these reports. 61• Strategic planning and performance management systems differ acrossrevenue bodies—in terms of scope, content and application.• The mission statements of the surveyed revenue bodies adequatelycommunicate their respective mandates as established in the legalframework. 62• The visions of revenue bodies are clustered around the need to build andsustain an internally efficient and effective revenue organization or agency thatcan be regarded as a world class organization.• The values 63set by revenue bodies emphasize integrity, professionalism,fairness and equity, trust and respect, and service excellence, among others.•Goals and objectives as stated by the reviewed revenue bodies capture threeimportant aspects of revenue administration; namely revenue collections,service delivery, and organizational efficiency and effectiveness. They are alsoaligned with the organizational vision and mission statement and strategiesand actions for achieving them are specified for each objective . 64• All plans feature a set of performance measures and indicators (both qualitativeand quantitative).• Revenue bodies surveyed have established departments/units responsible forperiodic monitoring, evaluation and reporting on performance at the corporate,operational and tactical level.• They have also established research and planning units to help gatherinformation necessary to evaluate and report performance to management, theboard of directors and other stakeholders.61 In Zambia, preparation and publication of an annual performance report is a legal requirement.62 For example, Rwanda Revenue Authority (RRA)’s mission statement recognizes its mandate for collecting revenue,providing input to tax policy development and service delivery. SARS’ mission statement similarly clearlycommunicates its mandate—to optimize revenue yield, to facilitate trade and to enlist new tax contributors bypromoting awareness of the obligation to comply with tax and customs laws, and to provide a quality, responsiveservice to the public.63 Which are a set of commonly held beliefs that all members of the organization ascribe to. Upholding commoncorporate values is important in shaping organizational culture and is a hallmark of high performing organizations.64 There are similarities in the corporate objectives and goals formulated by revenue bodies and the strategies forachieving them, indicating similarity of issues and challenges, information sharing and benchmarking among SSA taxadministrations, and the influence of development partner institutions.43
Key observationsThe corporate planning process is an important aspect of any organization. Further,the use of credible performance management frameworks is an important aspect ofthis process. 65 Survey results indicate that the practice of preparing multi-yearbusiness/corporate plans has taken root in all the countries. 66 However, a review of thequality and diversity of performance measures used by revenue bodies indicates widevariations, with many using a mix of output, process and few outcome indicators tomeasure organizational performance. 67 Also, the survey noted that revenue bodieshave established departments responsible for periodic monitoring, evaluation andreporting on performance of corporate, operational, tactical, and individualperformance imperatives. 68 A few revenue bodies also indicated they had adoptedmodern practices and technology in monitoring, evaluation and reporting.65 A general recommendation is that revenue bodies should develop performance indicators that are measurable andrealistic, and combine output, process and more importantly outcome indicators. The latter could include measures oforganizational efficiency (reducing cost of collection and reducing registration and refund processing time) andeffectiveness (increasing voluntary compliance and reducing compliance costs). Overall, it is recognized that revenuebodies can realize tremendous performance improvements by enhancing capacity in formulating a wide range ofperformance measures.66 A common IMF observation in this area is the need to develop plans that are fully costing and prioritized which willensure that scarce resources are efficiently allocated.67 South Africa, for example, uses a wide range of, and plans to develop output-oriented performance measures (seeSARS strategic plan for FY 2010/11 – 2012/13).68 An effective monitoring, evaluation and reporting framework provides feedback on performance against agreedtargets and importantly early-warning signals for action.44
Page 1 and 2: INTERNATIONALTAXDIALOGUE2010Revenue
Page 3 and 4: Table 12: Total cost of collection
Page 5 and 6: PCCAPAYEPITPSVRAGBRRARTSASACUSARSSS
Page 7 and 8: Executive summaryRevenue administra
Page 9 and 10: Institutional arrangements for reve
Page 11 and 12: • All unified semi-autonomous rev
Page 13 and 14: B. Scope of revenue bodies’ respo
Page 15 and 16: C. Relative autonomy of revenue bod
Page 17 and 18: Survey results (Table 3)• All rev
Page 19 and 20: Key observationsRevenue administrat
Page 21 and 22: You are entitled to expect SARS:Box
Page 23 and 24: Box 4: An example of a codified set
Page 25 and 26: Table 2: Tax and non-tax revenues a
Page 27 and 28: Table 4: Decision making structures
Page 29 and 30: The organization of revenue bodiesC
Page 31 and 32: The ‘taxpayer segment’ model: A
Page 33 and 34: Key observationsSurvey results indi
Page 35 and 36: Box 6: The common characteristics o
Page 37 and 38: C. Office network and staffingIntro
Page 39 and 40: Table 7: Selected features of the o
Page 41 and 42: Table 9: Number of staff and distri
Page 43: A. Strategic planning and managemen
Page 47 and 48: Table 10: Selected management pract
Page 49 and 50: A. An overview of funding mechanism
Page 51 and 52: B. Revenue administration expenditu
Page 53 and 54: Table 13: Share of total wage bill
Page 55 and 56: Revenue performance 76Chapter VKey
Page 57 and 58: Table 15: Revenue collection data f
Page 59 and 60: Domestic tax return filing, assessm
Page 61 and 62: A. Taxpayer registration and design
Page 63 and 64: VAT• All the surveyed countries h
Page 65 and 66: C. Taxation of small and micro-busi
Page 67 and 68: D. Use of modern electronic applica
Page 69 and 70: Table 18: PIT filing, assessment an
Page 71 and 72: CountryHow is the final annual PIT
Page 73 and 74: Table 20: VAT filing, assessment an
Page 75 and 76: CountryTable 21: Taxation of small
Page 77 and 78: CountryBasis used todeterminetaxMal
Page 79 and 80: Use of electronic application in ta
Page 81 and 82: Legal and administrative powers of
Page 83 and 84: functions. These powers are also co
Page 85 and 86: Table 26: Information gathering pow
Page 87 and 88: CountryTable 28: Interest and admin
Page 89 and 90: CountryTable 29: Interest and admin
Page 91 and 92: CountrySouth AfricaTanzaniaUgandaZa
Page 93 and 94: CountryMalawiMauritiusRwandaSierraL
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AnnexesAnnex 1: Organization struct
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KRABoard of DirectorsCommissionerGe
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ZRABoard of DirectorsCommissionerGe
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ERCADirector GeneralAdvisory BoardE
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MauRABoard ofDirectorsInternal Audi
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Clarify SARS’operatingmodel,strea
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Enhancethe URAcorporateimageLevel o
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KRAMissionVisionValuesTo promote co
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ZRAMissionVisionValuesTo maximize a
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MauRAMissionVisionValuesTo continua
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GRAMissionVisionValuesTo supervise
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Source: ECRA• Cross cutting issue
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MalawiType of taxRevenue collected
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GhanaTax categoryRevenue collection
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