How tax administrations can relate to tax service providers

Tax administrations can adopt different types of network strategies for co-operating with TSPs. This chapter identifies four basic network strategies. These strategies can be characterised as being more closed (specifically targeting businesses’ tax processes) or more open (looking at the broader business processes). They can also be more “governmentdriven” versus more “market-driven”. It is important that such strategies fit the broader compliance strategy of a tax administration and meet the specific legislative, technological and cultural environment of a tax administration. “Finding the right strategy” involves many factors, and the right strategy is often not a single strategy. The environment may be different for different taxpayer segments, types of tax service providers or industries, and given that tax administrations also operate in existing networks and alliances, a combination of network strategies may be helpful.

Rethinking Tax Services: The Changing Role of Tax Service Providers in SME Tax Compliance

How tax administrations can relate to tax service providers

four network strategies