Dimension 19.1. Timing, coverage and data requirements

Time period Coverage Data requirements/ calculation Data sources
At time of assessment. CG
  • Information provided to payers on most revenue obligation areas, and rights, including at a minimum redress processes and procedures.
  • Notes on whether the information provided to payers is comprehensive, up to date, and easy to access.
  • The means by which information is provided.
  • Tax code and other revenue legislation. In resource-rich countries, additional legislation may include relevant information as part of natural resource management arrangements.
  • Revenue agency websites and publications. with information on key obligations and rights.
  • Customized information products tailored to the needs of key payer segments.
  • Documented procedures (of the entities collecting most or majority of the central government revenue).
  • (The best information sources are the revenue authorities, and investment and promotion agencies. Information should also be triangulated with taxpayer and business associations, chamber/s of commerce, etc. Some countries have one-stop shops, government service centers, or e-government portals that perform some or all of the client service involved in revenue administration.)

‘Up-to-date’ is the degree to which information is current in terms of the laws and administrative procedures.

Dimension 19.2. Revenue risk management


19.2:1. This dimension assesses the extent to which a comprehensive, structured and systematic approach is used within the revenue entities for assessing and prioritizing compliance risks. Modern revenue administration relies increasingly on self-assessment and uses risk-based processes to ensure compliance. Resource constraints are likely to dictate that revenue administration processes are focused on identifying payers and transactions with the largest potential risk of noncompliance. An efficient risk management process contributes to minimizing evasion and

irregularities in revenue administration as well as lowering the cost of collection for revenue collecting agencies and cost of compliance for payers. The assessors should consider the use of risk management process in registration, filing, payment, and refunds of tax, customs, and social security payments. They should comment on the efficiency of these processes. The assessment should also look into the mitigation measures in place such as audits, investigations, transfer pricing controls, and outreach activities/ communication.

19.2:2. The PEFA report narrative should comment on whether the approach used covers all categories of revenue; key payer segments (such as, at a minimum, medium and large revenue payers); and the four main revenue obligation areas. It should note any differences in revenue authorities’ approaches to assessing and prioritizing compliance risks and mitigation measures. The focus is on those entities


PEFA Handbook Volume 1: The PEFA Assessment Process – Planning, Managing and Using PEFA