The OECD has published a guidance note on monitoring of taxpayers’ compliance. The guidance is to provide practical guidance to revenue bodies.

This guidance draws largely on the experience of national revenue bodies in advanced economies.

The key statement in the guidance note is that revenue bodies ideally require a comprehensive set of practical outcome–related measures on taxpayers’ compliance (covering the major risk types) in order to gauge progress towards achievement of their primary goal (i.e. to improve overall compliance with tax laws).

It is noted that there are indications that revenue bodies are increasingly relying on the deployment of random audit-type activities, conducted to varying degrees of coverage and over varying periods of time, to inform their knowledge and understanding of taxpayers’ behaviour and the effectiveness of their strategies in improving taxpayers’ compliance.

One of the recommendations is that revenue bodies in OECD member countries are encouraged to improve their understanding of taxpayers’ compliance and the effectiveness of their compliance improvement programs by developing a compliance monitoring framework.

In addition, revenue bodies are encouraged to document and publish their approaches (and where applicable, any related qualifications and limitations concerning the measures and indicators applied) and the results of their monitoring efforts in this area to promote greater dialogue, understanding and exchanges of experience among national revenue bodies.