Strengthening Tax Audit Capabilities General Principles a–

Informations

• Publié par: Mubos
• Nombre de lectures: 31
• Langue: English

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ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT



INFORMATION NOTE

Strengthening Tax Audit Capabilities:
General Principles and Approaches


Prepared by
Forum on Tax Administration’s
Compliance Sub-group 16 October 2006


CENTRE FOR TAX POLICY AND ADMINISTRATION
TABLE OF CONTENTS
ABOUT THIS DOCUMENT ..................................................................4
Purpose ....................................................................................................................................... 4
Background ................................................................................................................................ 4
Caveat ......................................................................................................................................... 4
Inquiries and further information............................................................................................ 4
SUMMARY.......................................................................................... 5
INTRODUCTION.................................................................................6
Managing and improving compliance..................................................................................... 6
Focus of this note—small and medium-sized businesses......................................................... 6
Providing a snapshot of current practice..................................................................................7
1 THE ROLES OF THE TAXPAYER AUDIT PROGRAM..................8
The roles of the taxpayer audit program ................................................................................. 8
What is an audit? ....................................................................................................................... 9
Types of audits ........................................................................................................................... 9
The audit context—administrative assessment versus self-assessment................................10
Key audit characteristics.......................................................................................................... 11
2 LEGAL FRAMEWORKS............................................................ 12
Why have legal frameworks? ..................................................................................................12
Taxpayers’ record keeping obligations ...................................................................................13
Giving tax officials access to taxpayers’ books and records ..................................................14
Givi offiess to third party information ...........................................................15
Obtaining information from other national revenue bodies .................................................15
Powers of revenue bodies to amend returns ...........................................................................16
Sanctions for non-compliance .................................................................................................16
Formal statements of taxpayers’ rights and obligations- an audit context.......................... 17
3 ORGANISATION & MANAGEMENT OF THE TAXPAYER AUDIT
FUNCTION...............................................................................18
Organization of tax audit operations ......................................................................................18
Resources for the tax audit function........................................................................................19
Strategic management and the audit function .......................................................................19
Operational management ........................................................................................................21
Who conducts the Audit?.23
Scope of Audit........................................................................................................................... 23
Other case management factors ............................................................................................. 24
Publicity as leverage for Audit................................................................................................ 25
Performance objectives and measurement ............................................................................ 26
Outcome Measures................................................................................................................... 30
Evaluation of audit activities ...................................................................................................31
4 AUDIT TECHNIQUES............................................................... 33
Key principles.......... 33
Audit support tools .................................................................................................................. 34
Audit Planning ......................................................................................................................... 36
Pre-contact Analysis & Case Selection methods .....................................................................37
Examination Techniques .........................................................................................................40
Use of indirect methods to verify income ............................................................................... 42
Working papers...... 44
Finalising the Audit ................................................................................................................. 44
2
5 AUDIT WORKFORCE MANAGEMENT ISSUES ........................46
Competency / capability models............................................................................................. 46
Identifying the required competencies ....................................................................................47
Assessing competencies ........................................................................................................... 49
Improving competencies and addressing capability gaps ................................................... 50
Recruitment...............................................................................................................................51
Training and development...................................................................................................... 53
Initial training ......................................................................................................................... 53
Ongoing training and development ....................................................................................... 53
Mentoring and coaching programs........................................................................................ 54
Accreditation models ............................................................................................................... 55
Job rotation and/or placement programs............................................................................. 55
Career paths, grading and promotion systems..................................................................... 55
Knowledge-sharing initiatives................................................................................................ 56 ledge tests ........................................................................................................................57
Measuring cost benefits of competency improvement programs .........................................57
Incentives to participate in competency improvement programs ........................................57
Performance management and motivation........................................................................... 58
Remuneration .......................................................................................................................... 58
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ABOUT THIS DOCUMENT
Purpose

This information note, prepared by the Forum’s Compliance Subgroup, focuses on audit
programmes and the conduct of individual audits. It identifies common key features of
effective audit activity found in a wide variety of tax administrations and outlines the
principles underpinning these characteristics.

Preparation of this note was assisted greatly by the contribution of revenue bodies in
Australia, Canada, France, New Zealand, United Kingdom, and United States.
Background

Since its establishment in July 2002, the Forum on Tax Administration (FTA), a
subsidiary body of the OECD’s Committee on Fiscal Affairs (CFA), has operated with the
broadly stated mandate … to develop effective responses to current administrative issues
in a collaborative way, and engage in exploratory dialogue on the strategic issues that
may emerge in the medium to long term. To carry out this mandate, the Forum’s work is
directly supported by two specialist Sub-groups: Compliance and Taxpayer Services
(previously e-services)—that each carry out an agreed program of work.

The Compliance Sub-group provides a forum for members to share experiences and
knowledge