Revenue administration reform enables the reformed revenue system to be implemented effectively and efficiently in practice. These reforms can be complex, often taking several years in low-capacity environments.
International best practice is for administration to be based on risk-based approaches to voluntary compliance and self-assessment, with the emphasis on keeping tax administration and taxpayer compliance costs as low as possible.
Administration reform often focuses on treating taxpayers as customers through improved taxpayer services, which requires intensive support for human resource development, infrastructure and equipment modernisation, improved processes and procedures and an organisational structure that mirrors taxpayer structure and is based on functional specialisation.
Developing effective revenue administration requires hands-on work with revenue officers. Being embedded with beneficiary counterparts enables intensive support for both strategic and tactical development.
Reforms generally begin in areas of the administration that collect most revenue, such as establishing and developing a large taxpayer office, followed by medium taxpayer offices. Similarly, administration reforms in geographic areas often begin with those that have most revenue potential, such as major service or industrial centres or busy borders.