IMF -通過(guò)法律設(shè)計(jì)加強(qiáng)稅收治理 Strengthening Tax Governance Through Legal Design

StrengtheningTax

GovernanceThroughLegalDesign

LydiaSofrona,ChristopheWaerzeggersandBrendanCrowley

WP/25/17

IMFWorkingPapersdescriberesearchin

progressbytheauthor(s)andarepublishedtoelicitcommentsandtoencouragedebate.

TheviewsexpressedinIMFWorkingPapersare

thoseoftheauthor(s)anddonotnecessarily

representtheviewsoftheIMF,itsExecutiveBoard,orIMFmanagement.

2025

JAN

?2025InternationalMonetaryFundWP/25/17

IMFWorkingPaperLegalDepartment

StrengtheningTaxGovernanceThroughLegalDesign

PreparedbyLydiaSofrona,ChristopheWaerzeggersandBrendanCrowley

AuthorizedfordistributionbyAlessandroGulloJanuary2025

IMFWorkingPapersdescriberesearchinprogressbytheauthor(s)andarepublishedtoelicit

commentsandtoencouragedebate.TheviewsexpressedinIMFWorkingPapersarethoseofthe

author(s)anddonotnecessarilyrepresenttheviewsoftheIMF,itsExecutiveBoard,orIMFmanagement.

ABSTRACT:Well-functioningtaxsystemsanchortheirgovernancearrangementsinlaw.Thispaperdevelopsananalyticalframeworkfromwhichthecorelegalprinciplesforsoundtaxgovernancecanbederivedtoinformthedesignofcountries’legalframeworksforadministrationandtaxprocedure.Itthenappliesthisanalytical

frameworktoderivekeylegalfeaturesthatshouldbeembeddedinlawsfortaxadministration—including

additionalconsiderationsforsemi-autonomousrevenueauthorities—andtaxprocedure,toensureabalancebetweentaxadministrationpowersandadequatetaxpayerprotections.

RECOMMENDEDCITATION:Sofrona,Lydia,Waerzeggers,ChristopheandCrowleyBrendan.2025.

“StrengtheningTaxGovernanceThroughLegalDesign”.IMFWorkingPaperNo.25/17.InternationalMonetaryFund.WashingtonD.C.

JELClassificationNumbers:

H1,H2,K33

Keywords:

Taxgovernance;taxlaw;taxadministration;taxprocedure;legaldesign

Author’sE-MailAddress:

lydiasofrona@;cwaerzeggers@;bcrowley@;

*Theauthorswouldliketothankeveryonewhokindlyprovidedfeedbackonearlierdraftsofthepaper,includingFundcolleaguesfromtheLegalDepartment(includingAlessandroGullo,CarineChartouni,JoannaGrochalska,EmmanuelMathias,Joel

Turkewitz,andAdrianWardzynski),andallcolleaguesfromtheFinancialandFiscalLawDivisionwhoparticipatedinthe

internaldiscussionsaroundthispaper),theFiscalAffairsDepartment(DorisAkolandJuanRedondoSanchez)andMiddleEastandCentralAsianDepartment(JeanvanHoutte),andexternalreviewers(RichardMontroyandTomStory).Anyerrorsare

thoseoftheauthors.

WORKINGPAPERS

StrengtheningTaxGovernanceThroughLegalDesign

PreparedbyLydiaSofrona,ChristopheWaerzeggers,andBrendanCrowley

IMFWORKINGPAPERSStrengtheningTaxGovernanceThroughTaxLegalDesign

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Contents

Introduction 3

I.TaxGovernance:ConceptandCorePrinciples 4

A.TaxGovernance:ConceptandGeneralPrinciples 4

B.GovernanceinTaxAdministrationandTaxProcedure:CorePrinciples 6

II.GovernanceArrangementsinTaxAdministration 7

A.CoreGovernancePrinciplesforTaxAdministration 8

B.LegalDesignConsiderations 11

C.AdditionalConsiderationsinSemi-AutonomousRevenueAuthorities 16

III.GovernanceArrangementsinTaxProcedure 21

A.CoreGovernancePrinciples 21

B.LegalDesignConsiderations 23

C.EnsuringAdequateTaxpayerSafeguardsthroughGovernanceArrangementsinTaxProcedure 25

IV.Conclusions 28

AnnexI.EnsuringAdequateTaxpayerSafeguardsthroughGovernanceArrangementsinTax

Procedure;aChecklist 29

AnnexII.ExamplesofMandateProvisionsandMissionStatements 34

AnnexIII.InstitutionalOversightandAccountabilityProvisionsintheCanadaRevenueAgencyAct 39

References 41

BOXES

Box1.BasicDesignElementsofaStaffIntegrityFramewor 9

Box2.ExamplesofProvisionsfortheAwardingofLegalPersonality 17

Box3.Greece:AStatutoryFrameworkfortheRelationshipbetweentheMoFandtheIndependentAuthorityfor

PublicRevenue(IAPR) 18

Box4.StepsforSettingUpaGovernanceFrameworkinTaxProceduresLegislation 23

Box5.NecessaryStepsfortheSuccessfulIntroductionofaTaxProceduresLaw 24

Box6.KeyTaxAdministrationPowersandtheirImpactonFundamentalTaxpayerRights 26

FIGURES

Figure1.CoreGovernancePrinciplesinTaxAdministrationandTaxProcedure 7

Figure2.Commonareasofdiscretionarypowers 11

Figure3.TaxAdministrationLegalFramework:EnsuringFunctionality 16

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Introduction

DerivingfromtheGreek‘kubernan’(‘tosteer’),1theterm‘governance’hasvariousmeaningsdependingonthecontextinwhichitisused.Inthecontextofpublicadministration,‘governance’isgenerallyusedto

refertothecombinationofinstitutions,rules,mechanisms,andestablishedpracticesthroughwhicha

governmentauthorityexercisesitspowersandfunctions,dischargesitsresponsibilities,andmanagesitspublicresources.Inturn,‘goodgovernance’isamorequalitativeconcept,asitimpliesthatthequalityofgovernanceimpactsitseffectiveness.2Economicaspectsofgoodgovernanceincludeadministrativeefficiencyandpolicy

effectiveness.Theyalsoincludenotionsoffairnessandequity,sinceseriousshortcomingsinthe

evenhandednessoftheimplementationofagovernanceregime—asdistinctfromthesocialorpolitical

preferencesthatitembodies—canunderminetrustandcompliancewithinstitutions,laws,andpoliciestothedetrimentofeconomicgoalsoverthemediumtolongterm.3Goodpublicgovernancealsohasanimportantfiscalcomponentasitrelatestohowpublicmoniesareraised,managed,andspent.

Inasystemofgovernmentthatisbasedontheruleoflaw,governancearrangementsneedtobe

supportedbywell-designedandcomprehensivelegalframeworks.Thisisparticularlyimportantinthe

contextofdesigningandimplementingreforms,asgovernancearrangementsareoftenkeytoensuringthat

reformsappropriatelyinteractwithexistingrules,structuresandinstitutions.Inenvironmentswhereruleoflawisweakandcorruptionissystemicandpervasive,adoptingstronglegalframeworkscanhelpaspartofbroadereffortstomitigatethosechallenges.Thispaperfocusesprimarilyoncountrycontextswheretheruleoflawisrelativelyrobust.

Levyingandenforcingtaxesareamongstthecoremanifestationsofsovereigntyandexerciseofpublicauthority.Toensurethatthepowersassociatedwiththatauthorityareexercisedinatransparentand

evenhandedway,appropriategovernancearrangementsmustbeinplacetoensurethattaxpayers’rightsarerespected,voluntarycomplianceispromoted,andappropriatetaxpayersafeguardsareinplacewhenenforcedcomplianceactionneedstobeundertaken.

Conversely,governancevulnerabilitiesinthetaxsystemweakenagovernment’sabilitytocollectrevenuesandcreateopportunitiesforcorruption.Poorrevenuecollectioninturncreatesor

exacerbatesfiscalimbalances,deficitanddebtaccumulationandunderminespublicservices.4Poor

governanceofthetaxsystemalsohasmoreimplicitandperhapsmoreinsidiousconsequences,linkedtobehavioralaspects:itcangiverisetoanengrainedcultureof‘creativecompliance’andlowtaxmorale,5withcorruptpracticesfurthererodinggeneraltrustingovernment.Toreduceopportunitiesforcorruption,institutionsneedtobeupgradedcontinuously,tokeeppacewithnewchallengesastechnologiesand

opportunitiesforwrongdoingevolve,andtoensureintegrityofprocesses,especiallyinhigher-riskareas(forexample,procurement,taxadministration,publicenterprises),andtopromoteeffectiveinternal

1OxfordAdvancedLearnersDictionary(10thedition).

2AccordingtoUNESCAP,goodgovernancehaseightmajorcharacteristics:Itisparticipatory,consensusoriented,accountable,transparent,responsive,effectiveandefficient,equitableandinclusiveandfollowstheruleoflaw.SeeUNESCAP,2009.

3SeeIMF,2017,whereareviewofthevariousdefinitionsintroducedbyInternationalOrganizationsfortheterms“governance”and“goodgovernance”ispresented.

4SeeIMF,2018.

5Whereasstronggovernance,ensuringthatresourcesareusedtransparently,efficiently,andeffectively,wouldsupporttaxmorale.SeeIMF,2020a.

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controls.6Akeycomponenttoencouragetaxcomplianceistofostertaxpayer’strustinthetaxsystem.For

thistohappen,thetaxadministration7needstobe—andmustbeperceivedtobe—arules-based,transparent,fairandaccountableinstitution.

Wheregovernancevulnerabilitiesinthetaxsystemexist,theycanoftenbetracedbacktoweaknessesinthelegalframeworkunderpinningthetaxsystem,includinginstitutionalandproceduralaspects.8

Weaktaxlawdesignintheseareascanfacilitatecorruptionbypromotingastateof‘corruptlegality’:legalgaps,unnecessarycomplexityandambiguitypresentampleopportunitiestotaxofficialsfor‘negotiated

interpretations’and‘creativeenforcement’oftaxlawsagainsttaxpayerswhointurncomply‘creatively’withtheirtaxobligations.

Strengtheningthelegalframeworkisthereforenecessary—althoughnotinitselfsufficient—toaddressgovernancevulnerabilitiesinthetaxsystem.Thechancesofsuccessarehigherwherecorruptionisnot

systemic9andwhencountriesimproveseveral,mutuallysupportinginstitutions.Forexample,reformstotax

administrationwillhavegreaterpayoffiftaxlawsaresimplifiedandthescopefordiscretionbytaxofficialsis

reduced.10Thispaperpresentsananalyticalframeworkonthekeylegaldesignfeaturesnecessaryforgood

governanceofthetaxsystem,withaparticularfocusonnecessarylegalarrangementstosupporttheoperation

ofthetaxadministrationandhowitinteractswithtaxpayers.Itdoesnotdealwithbroadertaxpolicy,

institutionalandoperationalissues,whichcanalsohaveimportantbearingsonthegovernanceofthetaxsystem.

Thispaperisstructuredaroundthefollowingsections:SectionIoutlinessomebroadertaxgovernanceconsiderationsandpresentsasetofcoregovernanceprinciplesintaxadministrationandtaxprocedure.

SectionsIIandIIIapplythesecoreprinciplestoderivekeylegalprinciplesthatstrengthengovernance

arrangementsfortaxadministration(sectionII)andtaxprocedure(sectionIII).Finally,sectionVIofferssomeconclusions.

I.TaxGovernance:ConceptandCorePrinciples

A.TaxGovernance:ConceptandGeneralPrinciples

Taxgovernancecanbedefinedasacoherentsetofrulesandinstitutionsthatcomprehensivelygovernthetaxsystem.Itincludesbutgoesbeyondjusttheinstitutionalgovernanceofthetaxadministration,andcutsacrossothermajoraspectsofthetaxsystem:taxpolicyandlegaldesign,thelawmakingprocess,tax

6IMF2019a.

7Theterm“taxadministration”isusedgenericallytorefertotheadministrativefunctiontaskedwithintheexecutivebranchof

nationalgovernmentwiththeadministrationandcollectionof(most)taxesandduties,aswellasanyotherpublicrevenuecollectedonbehalfofthestateoritssubdivisions.Unlessotherwisespecified,italsoincludesSemi-AutonomousRevenueAuthorities

(SARAs)furtherdiscussedbelow.

8Whilethefocusofthispaperisonthelatteraspectsofthetaxlawframework,systemicvulnerabilitiescanariseelsewhere—suchasfromweaknessesinsubstantivetaxlawsgivingrisetointerpretationdifficultiesandavoidanceopportunities.While

acknowledgedhere,suchotherareasarenotthemainfocusofthispaper.

9Thecorruptionvulnerabilitiesofajurisdictionneedtobeconsideredfromthebeginningtodeterminewhichreformsareconsistentwiththeoperativepoliticalincentivesandorganizationalcompetencies.SeeIMF,2023b.

10IMF2019a.

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procedure,oversightstructures,thejudiciary,theinternationaltaxframework,11andevenextendsto

taxpayers.12Alltheseaspectsmusteffectivelyinteractonthebasisofacomprehensiveandcoherentlegalframeworkthatensurestherespectoffundamentallegalprinciples,mostnotably,legalcertainty,equityandfairness,andproportionality.Thismayimply,forinstance,thatthejudiciaryisempoweredtoaddress

governanceshortcomingsinthedesignoradministrationoftaxlawsbasedongeneralprinciplesof

administrativeorconstitutionallawtoensurelegalcertaintyandadherencetotheruleoflaw.13

Well-functioningtaxsystemsanchortheirgovernancearrangementsinlaw.Suchsystemsarebuilton

keyprinciples,promotingtheruleoflaw14?whichhashistoricallybeenconceivedasacornerstoneoflegitimategovernment?throughthedesignofpropergovernancestructures.15Acarefullydesignedlegalframeworkcanpromoteimprovementsintaxpolicyandadministration,whichstrengthenstateaccountabilityand

responsivenesstoitscitizens.Inturn,betterpoliticalgovernanceisachieved,withtheaimtoachieveefficientandeffectiverevenuecollectionthatwillsupporttheimplementationofgovernmentpolicies.

Conceptually,taxlawframeworkscanbedividedinthreetypesofrules:substantivetaxrules(whatis

beingtaxed),procedural(sometimesreferredtoas‘formal’)taxrules(howaretaxescollected),andinstitutionalrulesandarrangements(whoadministerstaxes).Whiletheremainderofthispaperfocusesonthelattertwo,16certainoverarchinglegaldesignprinciplesandconsiderationsapplyacrossallthree―interrelated―typesof

rulestostrengthengovernancearrangements:

.Reducinguncertainty,through:(i)identifyingobsoleteprovisionsandarrangements;(ii)untangling

dysfunctionaltaxprovisions;(iii)introducingcomprehensive,clearandsimplerulesinsubstantiveandproceduraltaxlegislation;and(iv)reducingbureaucracythroughclearandtransparentprocedures.

.Aimingforstructure,through:(i)consolidatingfragmentedtaxprovisionsundertaxcodes;(ii)legislatingforchangestotaxlawonaperiodicbasisusingspecifictaxbillsratherthanmakingtaxchangesviaother

non-taxspecificlegislation;and(iii)developinganimpactassessmentframework,includingimplementationconsiderations,revenueimpactandexpostevaluation.

11SeeEuropeanCommission,2020,whereinternationaltaxgoodgovernanceisseentoencompasstaxtransparency,fairtax

competition,theabsenceofharmfultaxmeasuresandtheapplicationofinternationallyagreedstandards.Ontheexpansionofthegoodgovernanceconceptto(international)taxationseeGonzálezdeFrutos,U.,2019.Theroleofsoftlawinstrumentssuchas

codesofconductshouldalsobeacknowledged.

12TheAustralianTaxOffice(ATO)hascompiledasetofsevenprinciplesofeffectivetaxgovernanceforcorporatetaxpayers:(1)Accountablemanagementandoversight;(2)Recognizetaxissuesandrisks;(3)Seekadvice;(4)Integrityinreporting;(5)

Professionalandproductiveworkingrelationship;(6)Timelylodgmentsandpayments;and(7)Ethicalandresponsiblebehavior.

.au/businesses-and-organisations/corporate-tax-measures-and-assurance/privately-owned-and-wealthy

-groups/tax-governance/tax-governance-guide-for-privately-owned-groups/corporate-governance-and-tax-governance/seven-principles-of-effective-tax-governance#ato-Coreelementsofeffectivetaxgovernance

13Seeforexample,SupremeCourtofPakistandecisionsCPNo.398-L,CPNo.584-LandCPNo.674-Lof2018,accordingtowhichthefurtherdelegationofpowersandfunctionsbytheCommissionerofInlandRevenuetohissubordinateOfficersofInland

Revenue(OIRs)undertheSalesTaxAct1990wasunlawfulandvoid;alsoGreekSupremeAdministrativeCourtDecision681/2020whichruledthatthetaxauthoritiesmustgrantthetaxpayeraccesstotheelectronicfileheldabouthim,includinganyinformation

aboutunauthorizedaccessbythirdpersons.

14Suchasadherenceandaccountabilitytothelaw,equalitybeforethelaw,fairnessintheapplicationofthelaw,separationof

powers,legalcertainty,avoidanceofarbitrariness,proceduralandlegaltransparency.See

/ruleoflaw/what-is-the

-rule-of-law/,Pistone,P.,Roeleveld,J.,Hattingh,J.,PintoNogueira,J.andWest,C.,2019,atch.2.3.

15Foradetailedanalysisoftheoriginsandcorrelationbetweentaxandgoodgovernance(andfurtherreferences)seeEuropeanParliament,2015.

16Whilenotthefocusofthispaper,substantivetaxrulessuchasthedenialofdeductionforbriberypayments,andthedesignoftaxpreferencesorincentives,arealsoimportantfromataxgovernanceperspective.

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.Ensuringtransparentandeffectiveimplementationoftaxrulesandtaxreforms,through:(i)accesstojusticeandenforcementofrelevantcourtdecisions;(ii)sequencedapplicationofreforms,basedonanassessmentoftheadministrativecapacitytoimplementthem.

.Getting‘buyin’:Ensuringafairandinclusivediscussiononproposedtaxpoliciesandmeasures,engagingallkeystakeholders,throughaformalandinclusivepublicconsultationprocess.

.Administeringtaxes‘well’,by:(i)strengtheningtaxadministrationinstitutionalarrangementsthatprovideforsufficientautonomybalancedwithtransparencyandaccountabilitymechanisms;(ii)ensuringefficientandeffectiveinteractionwiththetaxpolicyfunction;andutilizingsecondaryinstruments(e.g.,regulations)or

administrativeactions(e.g.,guidance)toenhanceflexibilityandprovideforclearimplementationarrangements.

.Ensuringtaxpayerfairness,through:(i)transparentandwellgovernedimplementationoftaxlawsincludinginaninternationalcontext;(ii)enhancingeffectivenessofdisputepreventionanddisputeresolution

mechanisms;(iii)establishingstrongconfidentialityanddatagovernancetoensuredatareliabilityandintegrity;(iv)minimizingdiscretionintheapplicationoftaxlaws;and(v)addressingequalityandequityconcernsintaxation(forexample,genderdiscriminatorypolicies).

B.GovernanceinTaxAdministrationandTaxProcedure:CorePrinciples

Thereisno“onesizefitsall”institutionalmodelfortaxadministration.Thisisbecauseofcountry

specificities,suchasbroaderpolicyconsiderations,socioeconomiccircumstances,degreeofadministrative

(in)efficiency,anddisparitiesacrossnationallegalsystems.Nevertheless,variousattemptshavebeenmadetoidentifygoodpracticesorkeyattributesforasoundtaxadministration17oritsinstitutionaldesign,18whileless

sowithregardtotaxprocedure19ortheunderpinninglegalframeworks.

Thispaperattemptstocompileandanalyzeasetofcorelegalprinciplesforsoundgovernance

arrangementsintaxadministrationandtaxprocedure,toinformthedesignofcountries’taxlaw

frameworks.Theseguidingprinciplesfordesigningthestructureandoperationsofthetaxadministration—regardlessofitsspecificinstitutionalsetup—arereflectedinthetaxprocedurelegalframework.Theycan

broadlybegroupedunderthefollowingcategories:

(a)Transparencyandaccountability;(b)Sounddecision-makingstructures;

(c)Fairness;and

(d)Effectivenessandefficiency.

Whilethefirsttwoprinciplesmainlyinformthedesignoftaxadministrationlegalframeworksandthelattertwoasmainlyapplyingtotaxprocedures,synergiesexistbetweenthem.Forexample,fairness,effectivenessandefficiencyare‘communicated’tothetaxpayerthroughproceduralsafeguardsbutalsoinforminternal

17Somelandmarktechnicalstandardshavebeendevelopedfortaxadministration,namelytheTADATframework.SeealsoCIAT,1996,USAID,2004,whereasetofbestpracticesintheestablishmentofSARAsisproposed,EuropeanCommission,2007.

18SeeIMF,2010a,2010band2010d,WorldBank,2019,AsianDevelopmentBank,2020,Box3.1,whichattemptstocodifyandpresentasetofgoodpracticesoninstitutionalsetupsforrevenueadministration,basedonIOs’existingliterature.

19SeePistone,P.,2019,atsec.1.2.Theauthorarguesthatthetaxproceduralprincipleshaveauniversalvocation,whichtheauthorintendstoaddressacrosstheirmainsourcesinsearchofacommondimension,oratleastcommonstandards.

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arrangementsinthetaxadministration,suchasthestaffintegrityframework,andareoftenreflectedintaxadministrations’missionstatements(seeSec.II.B,below).Ontheotherhand,whiletransparencyand

accountability,andsounddecision-makingstructuresarekeyconsiderationsindesigningtaxadministration

frameworks,theyalsosignificantlyimpacttaxprocedures,forexampleinthewaythetaxadministrationappliesdiscretionarypowersawardedtoit.

Figure1presentstheabovesetofcoregovernanceprinciplesintaxadministrationandtaxprocedure,furtherdiscussedinsectionsIIandIIIrespectively.

Figure1.CoreGovernancePrinciplesinTaxAdministrationandTaxProcedure

II.GovernanceArrangementsinTaxAdministration

Thissectiondiscusseskeyinstitutionaldesignconsiderationsforenhancinggovernanceintax

administrations.Thesearederivedfromtheabovecoregovernanceprinciples(i.e.,transparencyand

accountabilityandsounddecision-makingstructures),andarecomplementedbyaseriesofparticulardesignconsiderationsforsemi-autonomousrevenueauthorities(SARAs),whichraisespecificissues.

Taxadministrationsarecomplexorganizationsthatplayakeyroleinsupportinggovernmentfiscal

policies.20Theyhaveawidearrayoffunctionsandpowers,withcriticalmacroeconomicanddevelopmentalroles.21Taxadministrationsarealsooftenlargeorganizationswithuniquefeatures.Theycloselyinteractwithotherfiscalandstateinstitutionsandtheefficientandeffectiveexecutionoftheirmandateiscriticalto

20IMF,2019a,Annex2.3.

21Inthesensethatthetaxreceiptstheymanagearecriticaltostabilityandgrowth.SeeIMF,2015a,OECD,2014b.Onbroader

considerationsonhowpromotinggoodgovernanceisoneofthebasicelementsthatcontributestoeconomicgrowthseeIMF,1997.

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countries’stabilityandgrowth.Theyrequirelargeandspecializedworkforcesoftensupportedbyextensive

officenetworksthroughwhichtheyinteractwithtaxpayersandacomplexnetworkofstakeholders.They

typicallyplayaroleinenforcingawiderangeofdiverselegislationinrelationtowhichtheymayhaveintrusivelegalpowers.22Theiroperationreliesonamultitudeofcorebusinessprocesses,includingandincreasingly

digitalsystemscapableofholdingandanalyzingvastamountsofconfidentialorsensitiveinformation.Theirperformanceisincreasinglymonitoredagainstperformancetargets,includinginrelationtorevenuecollection.Throughtheirtechnicalexpertisetaxadministrationstypicallyalsohaveapolicyadvisoryrole.Theirpublic

facingrolerequiresthemtobedirectlyaccountablenotonlytothegovernmentand/orparliamentbutalsototaxpayers.

Achievinggoodgovernanceintaxadministrationhasprovenchallenginginmanycountries.Tax

administrationsoftenfacegovernancevulnerabilities,regardlessoftheirinstitutionalmodel:theirorganizationalstructurehasoftenremainedtoocomplexandnon-transparent,withhighcomplianceandadministrationcostsandwidediscretionarypowers.Thesechallenges,whichmayalsooftenbecausedbycorruptinterests,may

leadto—realorperceived—corruptbehaviorandpoorservicedeliverystandards,inturnjeopardizingtaxpayercomplianceandunderminingoverallpublictrustandconfidenceingovernment.Absentarobustoreffective

accountabilityframeworkadministrativeautonomymaybemisunderstoodormisused.

Thetaxadministrationlegalframeworkneedstoreflectcertaincoregovernancefeaturestohelp

addressthesechallenges.Taxadministrations’institutionalarrangementsdifferwidelyacrosscountries,

dependingontheirlevelofinstitutionalautonomy(seebelow).23SucharrangementsmaybefoundinageneralTaxAdministrationandProceduresAct(TAPA),usuallyinadedicatedtaxadministrationsection.Inother

cases,mostcommonlywhena(semi-autonomous)revenueauthorityexists,astand-alonelawisadoptedsuchasaTaxAdministrationAct(TAA).Conversely,fortaxadministrationsoperatingasa(ormultiple)ministerial

department(s),therelevantlegalframeworkmaybebasedonsecondarylaworothersubsidiaryinstruments

(forinstance,ministerialdecreeorregulationonMinistryofFinanceorganization).Regardlessofthe

institutionalarrangements—andofthenatureofthelegalinstrumentsonwhichthesearebased—thefollowingcoregovernancefeaturesneedtohaveasolidbasisinlawtoensurepropergovernanceintaxadministration.

A.CoreGovernancePrinciplesforTaxAdministration

Accountabilityandtransparency

Therelevantlegalframeworkshouldprovideforrobustaccountabilityandtransparencyarrangementsfortaxadministration,inlinewiththebroaderlegal,politicalandsocioeconomiccountrycontext.24,25

Accountability