Abstract—This paper provides a way to undertake tax administration performance management based on a combination of an integrated approach and an open system approach. A conceptual framewor k for the new approach to tax administration performance management is developed. The distinct feature of the framework is that it highlights the critical process of transforming inputs into outputs/outcomes in a tax administration by diagnosing the interrelation of the components in the process, i.e. formal organisation, informal organisation, task and people. These components contain both institutional and behavioural factors which have significant effect on tax administration performance and should be managed in an integrated and open system approach. A set of guidelines is also developed in this paper to enable application of the performance management framework. A case study was undertaken to test the applicability of the framework to tax administration based on the guidelines developed. The case study shows that the framework enable better management of tax administration performance by providing valuable feedback on the present state of a tax administration, identifying possible reasons for underperformance and highlighting ways in which a tax administration can improve its performance.
Index Terms—Tax administration, performance management, integrated, open system.
M. Mansor (PhD) is with the School of Accountancy, College of Business, Universiti Utara Malaysia, 06010 Sintok, Kedah, Malaysia (e-mail: firstname.lastname@example.org).
M. Tayib (PhD) was with the School of Accountancy, College of Business, Universiti Utara Malaysia, 06010 Sintok, Kedah, Malaysia. He is now with Universiti Tun Abdul Razak, Capital Square, Block C & D, No. 8, Jalan Munshi Abdullah, 50100 Kuala Lumpur, Malaysia (e-mail: email@example.com).
Cite: Muzainah Mansor and Mahamad Tayib, "Tax Administration Performance Management: Towards an Integrated and Open System Approach ," International Journal of Trade, Economics and Finance vol. 3, no. 2, pp. 136-142, 2012.