Tax Law Technical Note

Legislating for Fair and Effective Tax Collection

By Irving Aw, Brendan Crowley, Cory Hillier, Rose A Nyongesa, Lydia E Sofrona, Christophe J Waerzeggers

March 18, 2025

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Irving Aw, Brendan Crowley, Cory Hillier, Rose A Nyongesa, Lydia E Sofrona, and Christophe J Waerzeggers. "Legislating for Fair and Effective Tax Collection", Tax Law Technical Note 2025, 001 (2025), accessed March 19, 2025, https://doi.org/10.5089/9798229004756.008

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Summary

Fair and effective tax collection is critical to the success of any tax system in raising revenue and should be properly legislated. Voluntary payment of taxes by taxpayers is always preferred and should be encouraged and supported by the tax procedure legal framework. However, the law should also provide for protective measures to prevent taxpayers from frustrating tax collection efforts by taking either themselves or their assets out of the tax administration’s reach. As a last resort, the tax administration should be able to compel the recovery of outstanding tax debts from taxpayers or certain third parties through different legislative measures. Such powers should however be complemented by adequate safeguards for taxpayers. This note focuses on the key issues that should be taken into consideration in designing tax law provisions to support fair and effective tax collection.

Subject: Collateral, Financial institutions, Revenue administration, Tax administration core functions, Tax arrears management, Tax collection, Tax law, Tax policy, Taxes

Keywords: Clearance certificate, Clearance mechanism, Collateral, Compelled Recovery, Crisis Events, Installment Arrangements, IT system, Legislation, Penalties regime, Protective Measures, Tax administration core functions, Tax arrears management, Tax Collection, Tax law, Tax law provision, Tax Liens, Tax procedure, Tax rulings regime

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