The primary goal of every tax administration is to collect its tax and duties.
Why people pay?
- Public confidence in the tax system.
- Social behavior. Readiness to declare and pay w/o direct intervention by the tax administration.
- Clarity about tax obligations. Transparency and disclosure.
- Good administration. Trust results in compliance.
- Deterrence. Tax administration’s actions to counter non-compliance.
Compliance risk management (CRM) is the structured process tax administrations use to identify and prioritize how they will handle and improve taxpayer compliance with the four core compliance obligations.
