Tax Administration Information Systems: Concept, Design, and Implementation

Abstract

In the past few years, international organizations including the Asian Development Bank (ADB), have partnered with other associations and platforms, such as the Addis Tax Initiative, to improve domestic revenue mobilization (DRM) to provide governments with resources that are needed to meet sustainable development goals and lift their populations out of poverty. Improvements to tax systems can take the form of improved laws, administrative practices, and training programs. This brief focuses on an improved tax administration information system (TAIS) for tax authorities. This includes the TAIS basic administration machinery that interfaces to allow taxpayers to register, file, and provide pay electronically; data warehouses; data matching; internal control functions; and management information systems. An improved TAIS allows a level of transparency that flows onto other agencies and to the government. For example, a high net wealth individual unit in a tax authority that effectively operates can detect wealth gains by corrupt civil servants, politicians, and criminals, and help bring these people to justice. Tax authorities can provide information to, or conduct joint operations with, police and other government departments such as those handling social security payments and government contracts.