Voluntary tax complianceCooperation between DIAN and SkatteverketAnders Stridh & Lennart Wittberg, 1 – 5 June 2015

Intangible values

How do taxpayers perceive the Tax Agency?

4

Proactive and useful communciation

Failure demand Value demand

Taxpayers that contact the tax administration

Taxpayers that dont contact the tax administration

Failure demand is created by theorganisation not working properly.

(often 40-50 % of all contacts)

Value demand is the demand theadministration wants. It reduces the

number of errors and increase compliance.

Were is my refund?

Information

Interaction

Transaction

6

Examples

• A brochure is sent to taxpayers that have sold shares or property

• New businesses are invited to information meetings

• We cooperate with industry associations and they educate their members

• We advertise in media– Day for filing tax return

7

Summary, our strategic approach

• Focus on the result of the contact and not the channels per se, but have a range of different channels

• Proactive information, reduce failure demand

• Building community confidence– In every contact

2002

2008

2010

OECD developments

2012

Audits

Riskmanagement

Innovativetreatments

Understandingbehaviour

Right fromthe start

2004

Better selection

Holisticview

Other thanaudits?

We need to know

Strategic approach

Focus shift

Focus on the taxpayer”We need to fix the taxpayer”

Focus on the environment

..one size does not fit all!

How we work with changes – as it has turned out

12

Knowledge Insights Changed mindset

Changed working methods

“The Road Ahead” is about us changing our view on the taxpayers and thus changing our

way of working

Moving from output to outcomes

“Do things right”

“Do the right thing”

Outcome

Changed behaviour

Indicators

Input

Auditors

Activities

Do Audits

Output

Revenue collected

Measuring if the tax gap is increasing or decreasing

1. Tax information map– Determining how secure the tax base is

2. How easy/difficult it is to comply– Assessing what the tax agency does to make it easy to

comply– Assessing complexity of legislation

3. Measuring attitudes and norms– Indicators from surveys

Information levels in the tax information map

Tax information map

Combining different indicators

Tax information map

Easy/difficult to comply

Attitudes and norms

Change in compliance behaviour

Creating a pro compliance environment

Preventing non-compliance

Guiding the way

Macro level

Economic growth

Tax evasion

This is the long term correlation. The opposite can be true in the short term.