Tax Audit assessment: Setting up Performance Indicators for the Moroccan Tax Authority

Abstract

Based on a study of the various performance indicators in the public sector, and based on the professional experience the authors have accumulated either in working for the Moroccan Tax administration, or in interacting with it , our research aims to develop a set of performance indicators to be used by the Moroccan tax authority in order to assess the performance of tax audits. The article discusses first the concept of performance in its broad sense by highlighting the usefulness of its measurement as the triggering element of the management loop in the field of management in general, and in public management in particular.  The following section gives particular attention to identifying the main ratios among the most commonly used in public management. After demonstrating the need to setup a system for assessing the tax audit process, the paper suggests to the Moroccan Tax Authority a well-defined, comprehensive, and detailed model that covers all strategic and operational aspects related to tax audit. Indeed, the proposed model includes not only the financial and quantitative aspects, but it goes beyond them and covers the qualitative aspects related to internal processes and resources management. Finally, the end of the paper aims to underline the key factors that significantly influence the tax audit process. These factors, whether endogenous or exogenous to the tax administration, are likely to constitute sources of influence on the desired performance.

Classification JEL: H83

Paper type: Theoretical Research