Dimension 19.1. Timing, coverage and data requirements
|Data requirements/ calculation
|At time of assessment.
‘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
DIMENSION MEASUREMENT GUIDANCE
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