The tax man cometh but is he efficient

1
The tax man cometh but is he efficient?

• Dag Fjeld Edvardsen
• Finn R Førsund
• Sverre A.C. Kittelsen
• Frode Lindseth
• Workshop by UPEG at EERC
• Kyiv, Ukraine July 4-5, 2005

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Output and Input variables

• Outputs
• Number of people registered by home address and
  number of relocations during the year
• Number of false registrations detected by
  control activities
• Number of tax returns from employees and
  pensioners
• Number of complaints on tax assessment
• Number of returns from non-incorporated
  businesses
• Number of corporate tax returns

3
Output and Input variables, cont

• Inputs
• Gross inputs Total operating costs including
  manpower, offices and current expenses
• Net inputs Adjustment for rent, administration
  and travel costs

4
Frequency distribution for the uncorrected
efficiency score
5
Frequency distribution for the bias corrected
efficiency score
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Corrected and uncorrected E-scores
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Bias-corrected efficiency score and confidence
intervals
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Distributions within each year
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Distributions within each year
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Distributions within each year
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Malmquist 2004/2002
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Malmquist productivity development
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Productivity change vs Size
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50 smallest
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10 Best Practice Units, all years