Factors affecting tax control performance: Literature review

Abstract

Tax control is considered as the main tool that helps tax administrations to enforce tax legislation. Its importance is all the more crucial given that tax resources account for more than 80% of the Moroccan budget revenue. It is in this context that its performance and its ability to achieve its main objectives is paramount. This study is based on a narrative literature review in order to detect the aspects of tax control performance and identify the main factors that affect its performance according to authors. This work identifie three main factors that affect tax control performance: organizational factors, controller related factors and infrastructure factors. It is therefore essential for tax administrations to focus on these factors in order to ensure the performance of tax controls.

This study takes the form of a literature review on empirical and theoretical studies that have addressed the issue of tax control performance.

The article sheds light on the concept of tax control performance by defining its dimensions, which are mainly related to: effectiveness, efficiency and economy. Tax control is characterized as highly performing when it increases the state’s tax revenues through its deterrent effect on tax evasion and non-compliance. It must also achieve this goal by optimizing the human and material resources available through an optimization of its procedures and the high qualitification of the verificator. These three key dimensions are crucial to understand its full scope. Concerning the factors affecting tax control performance, they relate mainly to the organizational dimension through management support and availability of resources, the personnal dimension related to the controller’s skills and experience, as well as the infrastructure aspect related to the material and equipment made at the disposal.

Keywords: Performance; Tax Control, Tax Administration; Public sector

Classification JEL: H83

Paper type: Theoretical Research