Co-operative Compliance in Tax Administration: The Case of Ireland

Tax administrations worldwide face similar challenges in improving taxpayer
services, addressing non-compliance and reducing costs. Initiatives aimed at
achieving these goals are often adopted across many jurisdictions and sup
ported by international organisations. This chapter discusses the Irish experience of Co-operative Compliance (CC), a tax administration initiative which is strongly supported by the Organisation for Economic Co-operation and Development (OECD) and has been implemented in over 30 tax jurisdictions to date. CC envisions taxpayers voluntarily working with tax administrations in a real-time transparent manner, with the aim of providing benefits for both tax administrations and taxpayers. Drawing on Irish Revenue and OECD publications, public discourse and relevant scholarly work, this chapter reveals that, 15 years since its introduction in Ireland, the practical implementation of CC raises broader questions worthy of further research including the motivations of tax administrations in the selection and adoption of new schemes; the performance measurement and management systems employed to assess such initiatives; and the impact of CC on trust levels of taxpayers, advisers and Revenue. A more in-depth review of Irish CC is required to enhance our understanding of programme specific challenges, motivations and outcomes and also provide a broader understanding of the multiple variables at play in the design, adoption, evaluation and amendment of any similar initiative in tax administrations.