Applicating of an international experience of using performance indicators in the activity of ukrainian tax authorities

Abstract

At the present stage of the tax system's development it is necessary to introduce a system of tax authorities' performance indicators, which could indicate a positive or negative changes in the relevant structures, as well as indicate how a task of reforming the tax system is solved. The aim of the article is to study the international experience in applying the key indicators of tax authorities' effectiveness and to develop a system of these indicators for use in Ukraine. An introduction of key performance indicators' system is quite common in both the public and the corporate sector in developed economies. Key performance indicators can be defined as quantitative and qualitative indices, which are used on a regular basis to assess the progress of the organization in relation to the stated objectives. The study has concluded that key performance indicators' system of the UK tax authorities, considered in the article, can be used in the development of key performance indicators' system of tax authorities in Ukraine. Such a system should be based on a comprehensive rating evaluating the effectiveness of various elements of tax administration: registration of taxpayers, tax consulting, processing tax reporting, information-analytical support of the State Tax Service, tax control, tax audits, appointment of sanctions and penalties, administration of the tax debt. Mechanisms of tax administration should certainly provide high fiscal efficiency, but at the same time focus on the lowest costs on both public funds and funds of individual contributors. The results of the study show that the tax administration can not be assessed unambiguously. The efficiency of tax administration will affect both the current macroeconomic situation in the country and the quality of the administrative procedure. Therefore, the key performance indicators of the tax authorities should be selected on the basis of understanding the need to identify different effects (results), resulting from the activities of tax authorities.