Electronic Fiscal Devices (EFDs) An Empirical Study of their Impact on Taxpayer Compliance and Administrative Efficiency

March 30, 2015

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Peter Casey, and Patricio Castro. Electronic Fiscal Devices (EFDs) An Empirical Study of their Impact on Taxpayer Compliance and Administrative Efficiency, (USA: International Monetary Fund, 2015) accessed November 21, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

Several administrations have adopted electronic fiscal devices (EFDs) in their quest to combat noncompliance, particularly as regards sales and the value-added tax (VAT) payable on sales. The introduction of EFDs typically requires considerable effort and has costs both for the administration and for the taxpayers that are affected by the requirements of the new rules. Despite their widespread use, and their considerable cost, EFDs can only be effective if they are a part of a comprehensive compliance improvement strategy that clearly identifies risks for the different segments of taxpayers and envisages measures to mitigate these risks. EFDs should not be construed as the “silver bullet” for improving tax compliance: as with any other technological improvement the deployment of fiscal devices alone cannot achieve meaningful results, whether in terms of revenue gains or permanent compliance improvements.

Subject: Administration in revenue administration, Institutional arrangements for revenue administration, Revenue administration, Small and medium enterprises, Tax administration core functions, Taxes, Value-added tax

Keywords: Administration data systems, Administration in revenue administration, Business community, Cash register, Core tax information, East Africa, Electronic fiscal devises, Goods and services tax, Institutional arrangements for revenue administration, Noncompliance, Revenue administration, South America, Tax administration, Tax administration core functions, Tax authorities, Value-added tax, VAT, WP

Publication Details

Pages:

56
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2015/073
Stock No:

WPIEA2015073
ISBN:

9781475521023
ISSN:

1018-5941

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