Boosting Tax Revenue and Compliance: The Impact of Large Taxpayer Offices in Emerging Economies

• Establishing a Large Taxpayer Office (LTO) in Georgia increased annual tax collections by 0.4% to 0.7% of GDP, mainly through improved VAT and withholding tax compliance.
• The LTO achieved higher compliance by combining targeted enforcement with enhanced taxpayer services and more focused audits.
• The greatest revenue gains were seen in sectors with strong third-party reporting and transaction traceability.
• Enhanced supervision of large taxpayers led to significant and growing revenue gains as the LTO matured, with benefits extending to new firms added to LTO oversight.
• Setting up an LTO is an investment in fiscal capacity, aligning tax administration and large firms’ objectives, and can deliver substantial revenue gains even in resource-constrained countries.

Source: regfollower.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

---

---