Using Stochastic Frontier Analysis, this paper updates, for 123 countries, the estimates of tax capacity-defined as the maximum level of revenue a country can feasibly achieve - and tax effort - measured as the ratio of actual tax revenue to tax capacity. It also introduces two novel models that...

The digitalization of global supply chains and the increasing complexity of international trade have created both opportunities and challenges for customs administrations. The European Union has responded to these dynamics through the new EU customs reform, which aims to achieve full digital...

In 2021, the Republic of Georgia established a Large Taxpayer Office (LTO) to strengthen tax administration and improve compliance among firms that contribute a disproportionate share of revenue. This paper draws on that quasi-experiment to estimate the causal impact of intensive oversight, with...

The IMF conducted a repeat Tax Administration Diagnostic Assessment Tool (TADAT) evaluation of Armenia's tax administration system from May 12 to May 27, 2025. The assessment aimed to establish an updated baseline for tax administration performance, identify areas for potential reform, and...

This report presents the 2025 TADAT assessment of Fiji’s tax administration against international good practices across nine performance areas. Strengths include taxpayer service information, risk profiling, and voluntary compliance support. Weaknesses were found in data integrity, human...

This technical assistance report presents a comprehensive assessment of the Yemen Customs Authority’s (YCA) operational challenges and reform opportunities amidst an ongoing conflict and economic crisis. Customs revenue, a critical fiscal source for Yemen, has suffered significant decline due...

This paper develops a data-driven methodology for detecting potential profit shifting by multinational enterprises in South Africa. Drawing on detailed administrative tax and customs data, we construct a series of red-flag indicators based on firm-level profitability, intra-group transactions,...

Tax revenue generation is crucial for economic management and development in both developed and developing countries, as it supports public services, infrastructure, and social programs, thus fostering sustainable development and economic stability. This study aims to investigate the effect of...

IMF Fiscal Affairs Department mission reviewed Kosovo's tax administration progress, highlighting achievements in increased revenue collection and compliance risk management. Recommendations for further improvement include focusing on digital transformation, enhancing human resource capacity,...

The Scottish Government has a range of tax powers at its disposal, which it has used in recent years to forge an increasingly distinct tax policy from the rest of the UK. In its 2025-26 Budget, the Scottish Government made a number of tax policy changes, including to income tax, business rates,...

This study investigates how strategic interactions between corporate tax planning and tax enforcement are affected by two policy instruments: strengthening tax enforcement by increasing the number of specialized enforcement staff and improving tax audit technologies. I employ an economic model...

Tax administrations increasingly use audits via mail (correspondence audits) to audit taxpayers. Correspondence audits are cheaper than face-to-face audits but their effects on compliance are unclear. We investigate the effects of correspondence and face-to-face audits on post-audit tax...

This paper explores the governance effect of tax administration digitization on corporate tax avoidance. Using data from 2,032 firms publicly listed in China during 2010 and 2020, our paper is among the first to report that the development of digital technologies such as big data and cloud...

Tax compliance remains a critical issue in corporate taxation research, particularly in understanding the causal link between the administration of corporate tax and tax avoidance. This study investigates the potential simultaneous relationship between the two by analyzing 277 listed firms...

The workshop aimed to explore adaptive IT solutions for enhancing digital tax administration in fragile and conflict-affected states, focusing on modernizing tax systems, improving revenue collection, promoting transparency, and reducing corruption through digitalization strategies

This report provides a summary of guidance provided to State Taxation Administration officials on ways to advance risk management for large taxpayers. Building from previous FAD guidance, this report focused on enhancing risk management, and governance and accountability

The Islamic Republic of Mauritania will soon commence gas production through the Grand Tortue Ahmeyim, a major natural gas development situated offshore between Mauritania and Senegal. This mission assessed the current situation of the management of the hydrocarbon tax revenues and provided...

The objective of this note is to summarize the role of behavioral science in tax compliance and tax administration, elaborating on a previous note outlining the World Bank's past work in this area (Dalton et al., 2021). This note will provide an overview of a behaviorally informed approach to...

The aim of this paper is to provide a legal documentation that is conducted under a thorough review of tax legislation and create a dataset, consisting of 120 laws that brought significant changes in the vast majority of categories of taxes in Greece from 1974 to 2018. It is noteworthy that a...

To combat firms exploiting transfer pricing as a tool for tax avoidance, the Organisation for Economic Co-operation and Development (OECD) introduced the Base Erosion and Profit Shifting Action 13 (BEPS 13), enhancing tax transparency and the exchange of information with tax authorities....

There is no doubt that taxes are critical to the economic well-being of a country. What seems to be unclear is why tax compliance has been a major problem for tax authorities in Nigeria and some other sub-Saharan African states, thereby circumscribing the ability government to actualise its...

We investigate the impact of tax-related human capital (THC) on corporate financial reporting aggressiveness. Using the presence of former or current tax officers from tax authorities on a firm's board of directors as a proxy for THC, we find that firms with tax officer directors report their...

This summary provides an overview of guidance provided to Lebanon’s Ministry of Finance regarding the digital transformation of tax administration. It opens by describing the need to take a holistic approach to digital transformation. In Lebanon, holistic thinking is critically essential and,...

This report applies the IMF’s RA-GAP methodology to estimate the ITBIS gap in the Dominican Republic between 2018 and 2023. Official ITBIS revenue increased from 4.6% to 5.0% of GDP, and the compliance gap ranged from 36.5% to 41.6% of potential during the period. The sectors with the greatest...

Building on previous studies, we propose a robust estimation strategy to uncover the causal effects of tax administration strength on tax revenue in 121 countries over the period 2014–2022. Our novel approach utilizes a unique expert survey to construct an Operational Strength Index of tax...

The FITAS assessment tool allows an evaluation and rating of a tax administration’s capacity to manage international tax risks, against a continuum that represents progress toward international good practice. For each FITAS category and element, questions have been designed to help tax...

This IMF report summarizes the technical assistance for Ukraine's customs reforms under the National Revenue Strategy. Key advice includes stakeholder engagement, effective performance indicators, and improved risk management to ensure sustainable revenue mobilization

This IMF report summarizes the technical assistance to Ukraine's customs for the National Revenue Strategy, focusing on risk management, IT improvements, stakeholder engagement, and change management to enhance customs revenue and operational accountability and efficiency

This technical note provides an introduction to generative artificial intelligence (GenAI) and its potential to support compliance risk analysis in tax and customs administration. Written primarily for a technical audience, it seeks to raise awareness of GenAI by explaining and demonstrating its...