Tax and Customs Administration implementing right policy to check tax returns but lacks information on optimal capacity

Focus enforcement more on SMEs and on information on large corporations

The Tax and Customs Administration has focused its efforts more on the prevention of incomplete and incorrect tax returns in recent years in order to ensure that individual and business taxpayers pay the taxes they owe. In the Court of Audit’s opinion, this is a positive approach. This more preventive policy is a systematic and structured response to the conduct of individual and business taxpayers. The Administration still lacks the information it needs to determine whether it has enough effective tools and staff. It is important to know what the Administration’s optimal capacity is because 12,700 of its 16,000 FTEs are engaged in enforcement. The Administration still has difficulty determining whether its policy on enforcing tax laws also leads to greater compliance with the duty to pay taxes.