IMF How To Notes

How to Implement Electronic Fiscal Reporting (Fiscalization)

Author/Editor:

José Maria Pires ; Stephen Howlin ; Frank van Brunschot

Publication Date:

November 6, 2023

Electronic Access:

Free Download. Use the free Adobe Acrobat Reader to view this PDF file

Summary:

To improve the management of tax compliance risks, tax administrations are increasingly seeking opportunities to enhance their access and use of data. For many years, there has been a worldwide trend to implement electronic fiscal reporting (also known as fiscalization) to achieve these aims. Fiscalization refers to the process of automated reporting of a taxpayer’s business activities to the tax administration. When implemented as an integral part of compliance risk management processes, fiscalization will contribute to an improvement in tax compliance by making it easier for taxpayers to voluntarily comply, and discouraging taxpayers who may choose to not report their business transactions. However, fiscalization alone will not address all tax compliance risks. This how-to note provides practical guidance about the case for fiscalization and implementation approaches, including good practices and practices to avoid in relation to the key dimensions of fiscalization: data collection, data analysis, integration with compliance risk management, consumer engagement, and implementation.

Series:

How-To Note No 2023/003

Subject:

Compliance risk management Data collection Economic and financial statistics Economic sectors Fiscal reporting Public financial management (PFM) Revenue administration Tax administration core functions Tax policy Tax return filing compliance Taxes

Frequency:

occasional