33. Key Administration Processes

A tax administration has some core functions. They include taxpayer registration, tax payments, filing tax returns for both direct and indirect taxes. They include, among others, taxpayer identification, registration and payment arrangements, audit and scrutiny and, in association, developing risk-based audit selection and protocols, training and placement of audit staff on the basis of competency and specialisation in carrying out audit and scrutiny, and combined audit of direct and indirect taxes such as income tax and GST or VAT. Core functions also include the application of tax deducted at source (TDS), carrying out refunds and foreign tax credit in a timely manner, installing self-assessment requirements and procedures thereof and using tax recovery when needed to minimise delinquency or eliminate stopfilers. What emerges is that processes can become quite complicated unless simplicity for ease of compliance and administrative convenience are preserved and nurtured as a strategy and an objective to be achieved. This chapter elaborates on those core functions of a tax administration.