9173416 TADAT POA4

1. Tax Administration Diagnostic Assessment Tool
POA 4: TIMELY FILING OF TAX DECLARATIONS
Pre-Assessment

2. Desired Outcome of POA 4
The desired outcome is: Taxpayers file their tax declarations on time.
• Tax declarations are the principal means by which a taxpayer’s liability is established.
• There are monthly or quarterly or annual cycles for filing declarations, which vary from
tax to tax.
• Tax laws and administrative rules specify who is required to file and when, and what
supporting documents are required.
• It is important that all taxpayers who are required to file do so at the time when it is due.
• Failure to meet the filing requirement on time may result in penalties, interest or
prosecution.
• Tax declarations may be paper-based or in electronic form and may be filed by the
taxpayers themselves or their tax accountants/lawyers.

3. Good
Practice in
Filing of Tax
Declarations
Simplifying filing
requirements,
including pre-
filling of tax
declarations
Being
proactive in
reminding
taxpayers of
approaching
deadlines
Using
automated
processes to
identify
taxpayers who
have failed to
file on time
Timely follow up
and enforcement
action tailored to
the circumstances
and filing history
of non-filers
Using profiling
techniques based
on behavior to
predict effective
actions to achieve
on-time filing
Outreach
programs to
assist taxpayer
groups and
intermediaries
Promoting use
of electronic
filing for all
core taxes
Having a solid
IT system that
monitors and
manages filing
compliance

4. Performance Indicator for P4-10: Filing of Tax Returns
Dimensions
High Level Indicator
P4-10: On-time filing rate [M2]
Number of
CIT
declarations
filed by the
statutory
due date in
percent of
expected
declarations
by registered
CIT
taxpayers
Number of
PIT
declarations
filed by the
statutory
due date in
percent of
expected
declarations
by registered
PIT taxpayers
Number of
VAT
declarations
filed by the
statutory due
date in
percent of
expected
declarations
by registered
VAT taxpayers
Number of PAYE
withholding
declarations filed
by the statutory
due date in
percent of
expected
declarations by
registered
employers
Extent to which
tax
declarations
are filed
electronically
P4-11: Use of
electronic filing

5. What is expected declaration?
Dimensions
For TADAT purposes of measuring on-time filing rates, “expected tax declarations“
means the number of declarations that the tax administration expects to receive from
all registered taxpayers that are required by law to file returns.
Excluded from the measure are:
* Unregistered taxpayers
* Non-mandatory tax declarations from taxpayers who have no legal obligation to file,
e.g., taxpayers who are
below the declarations filing threshold, or
exempt category

6. Scoring P4-10-1: On-time Filing Rate for CIT Returns
Total number of CIT declarations filed by the statutory due date in percent of the
total number of CIT declarations expected from registered CIT taxpayers
Number of CIT declarations filed by the due date x 100
Number of CIT declarations expected from registered CIT taxpayers
A
- Ratio is above 90
percent for all
taxpayers
- Ratio is at least
99 percent for all
large taxpayers
B
- Ratio is above 75
percent and up to
90 percent for all
taxpayers
- Ratio is at least
95 percent for all
large taxpayers
C
- Ratio is above
50 percent and up
to 75 percent for
all taxpayers
- Ratio is at least
90 percent for all
large taxpayers
D
The requirement
for a C rating or
higher are not
met OR
information
insufficient

7. Scoring P4-10-2: On-time Filing Rate for PIT Returns
Total number of PIT declarations filed by the statutory due date in percent of the
total number of PIT declarations expected from registered PIT taxpayers
Number of PIT declarations filed by the due date x 100
Number of PIT declarations expected from registered PIT taxpayers
A
Ratio is above 90
percent
B
Ratio is above 75
percent and up to
90 percent
C
Ratio is above 50
percent and up to
75 percent
D
The requirement
for a C rating or
higher are not met
or information
insufficient

8. Scoring P4-10-3: On-time Filing Rate for VAT Returns
Total number of VAT declarations filed by the statutory due date in percent of the
total number of VAT declarations expected from registered VAT taxpayers
Number of VAT declarations filed by the due date x 100
Number of VAT declarations expected from registered VAT taxpayers
A
- Ratio is above 90
percent for all
taxpayers
- Ratio is at least
99 percent for all
large taxpayers
B
- Ratio is above 75
percent and up to
90 percent for all
taxpayers
- Ratio is at least
95 percent for all
large taxpayers
C
- Ratio is above
50 percent and up
to 75 percent for
all taxpayers
- Ratio is at least
90 percent for all
large taxpayers
D
The requirement
for a C rating or
higher are not
met OR
information
insufficient

9. Scoring P4-10-4: On-time Filing Rate for PAYE Returns
Total number of PAYE withholding declarations filed by employers by the statutory
due date in percent of the total number of PAYE declarations expected from
registered employers
Number of PAYE withholding declarations filed by the due date x 100
Number of PAYE withholding declarations expected from registered employers
A
Ratio is above 90
percent
B
Ratio is above 75
percent and up to
90 percent
C
Ratio is above 50
percent and up to
75 percent
D
The requirements
for a C rating are
not met
OR information
insufficient

10. Scoring P4-11: Use of Electronic Filing
The extent to which tax declarations are filed electronically
A
At least 85 percent
of declarations are
filed electronically
for each of the core
taxes
All large taxpayers
file electronically
B
At least 70 percent
of declarations are
filed electronically
for each of the core
taxes
At least 80 percent
large taxpayers file
electronically
C
At least 50 percent
of declarations are
filed electronically
for at least two core
taxes
D
The requirement for
a C rating or higher
are not met
OR information
insufficient

11. Table 14
of the Field
Guide
Checklist of Questions and Evidence for POA 4