Risk-Based Tax Audits : Approaches and Country Experiences.
Title:
Risk-Based Tax Audits : Approaches and Country Experiences.
Author:
Khwaja, Munawer Sultan.
ISBN:
9780821387559
Personal Author:
Physical Description:
1 online resource (156 pages)
Series:
Directions in Development
Contents:
Contents -- Foreword -- Acknowledgments -- Contributors -- Abbreviations -- Overview -- PART I Fundamentals of Risk-Based Audits -- Chapter 1 Key Principles of Risk-Based Audits -- Chapter 2 Risk-Based Audits: Assessing the Risks -- PART II Approaches to Audits for Different Taxpayer Segments -- Chapter 3 A Risk-Based Approach to Large Businesses -- Chapter 4 Simplified Risk Scoring for SMEs -- PART III Infrastructure for Risk Analysis -- Chapter 5 Database and IT Framework for Risk Analysis -- Chapter 6 Building and Integrating Databases for Risk Profiles in the United Kingdom -- Chapter 7 Data Warehouse and Data-Mining Tools for Risk Management: The Case of Turkey -- PART IV Country Experiences in Risk-Based Tax Audits -- Chapter 8 Sweden -- Chapter 9 The Netherlands -- Chapter 10 Bulgaria -- Chapter 11 India -- Chapter 12 Ukraine -- Chapter 13 Kazakhstan -- Chapter 14 Which Audit Selection Strategy? A Review -- Chapter 15 Conclusion: Lessons for Reforms -- Glossary -- Boxes -- 2.1 Parametric Methods in Risk Assessment -- 2.2 List of Possible Variables in an Audit Selection Strategy -- 2.3 Heckman Procedure for Correcting Selection Bias -- 4.1 Taxation of SMEs in the United Kingdom -- Figures -- 0.1 Key Concepts of Modern Revenue Administrations -- 1.1 Separating Audit Case Selection and Audit Implementation -- 1.2 A Model of Tax Compliance -- 2.1 Examples of Data Mining Techniques -- 3.1 Typical Segmentation of Taxpayers and Revenue Collections -- 4.1 Additional Audit Revenue in Germany in 2008 -- 4.2 Percentage of Firms Inspected by Tax Officials in the Europe and Central Asia Region, by Size, 2009 -- 4.3 Example of a Simplified Risk Classification Table for Small Manufacturers in the Republic of Yemen -- 5.1 Data Flows in Risk-Based Audit Models -- 5.2 Tanzania's ITAX -- 9.1 Diagram of Risk Management Process -- 14.1 Risk Assessment Cycle.
Tables -- 1.1 Factors of Tax Compliance -- 2.1 Confusion Matrix -- 2.2 Audit Selection Strategy for VAT in Delhi, India -- 4.1 Audit Frequency in Relation to Business Size in Germany -- 4.2 Key Risk Sectors Identified in Select OECD Countries -- 4.3 Performance Benchmarks for Bakeries in Australia, by Annual Sales Range -- 4.4 Prevalence of Presumptive Regimes for SMEs -- 14.1 Country Experiences in Risk-Based Tax Audits -- 15.1 Risk Assessment Strategy and IT Sophistication.
Abstract:
This book serves as a toolkit on risk-based audits and brings together country experiences for implementing risk-based audit systems. Risk management is an important element of effective and efficient compliance management in revenue administration. It is impossible for any revenue administration to control and check every single taxpayer, and an unnecessary waste of scarce enforcement resources on routinely examining low-risk, compliant taxpayers. The opportunity costs for such roving examinations are high. Just as a private business allocates its resources to areas they feel have the most potential for generating revenues and profits, a modern revenue administration selects cases for audits using methods focused on high-risk taxpayers. This targeted focus is likely to raise higher revenue and, arguably, provide a stronger deterrence for non-compliance. Risk management techniques should not be considered to be confined to the selection of tax audit cases. It is part of a holistic and cooperative approach to enhance compliance. This is dramatically changing the way revenue administrations and taxpayers interact with each other.The effectiveness of a risk-based compliance management has been enabled by, and depends fundamentally on, the use of automated systems to: (1) gather third-party information and match with taxpayer reporting using reliable databases and a unique taxpayer identification number; (2) undertake selective checks based on risk analysis; (3) standardize payment processes (e.g., payments through banks) and accounting requirements; (4) provide assurance that the legislation and procedures are being applied uniformly; and (5) provide adequate, timely information to support management decision making and tax policy formulation.
Local Note:
Electronic reproduction. Ann Arbor, Michigan : ProQuest Ebook Central, 2017. Available via World Wide Web. Access may be limited to ProQuest Ebook Central affiliated libraries.
Genre:
Electronic Access:
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