Page 2 - Working Paper (The Myths and Realities of Tax Performance Under Semi-Autonomous Revenue Authorities)
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The Myths and Realities of

                                                                   Tax Performance

                                              Under Semi-Autonomous

                                                          Revenue Authorities

                   B. Bawono Kristiaji and Adri A. L.
                   Poesoro  1

                   Separation  of  the  tax  administration                   TABLE OF CONTENTS
                   from the Ministry of Finance has become
                   growing trends  in the last two decades.
                   Many  countries  have  established  more
                   autonomous tax institution known as Semi                  1.  Introduction ............... 3
                   Autonomous Revenue Authority (SARA).
                                                                             2.  Why SARA needs to
                   SARA refers to the institutional framework                   be Considered? .......... 3
                   and governance for organizations involved
                   in the collection administration, where                   3.  Research
                   the framework is to provide  a greater                       Methodology .............. 4
                   autonomy than  regular  departments or
                   directorates. Pros and cons of the benefits               4.  Some Preliminary
                   of SARA is natural and basically can be seen                 Findings ..................... 6
                   through experiences in several countries.
                   Unfortunately, limited empirical study on                 5.  SARA and Tax
                   performance  of  the  SARA  created  a  little               Revenue ..................... 7
                   room for policy makers to determine their
                   stance.                                                   6.  Decision to Adopt
                                                                                SARA .......................... 9
                   In  this  paper,  we are not  only analyze
                   the main factors  behind  decision  to                    7.  Conclusion:
                   implement SARA but also test the myths of                    Demistfiying SARA .... 10
                   impact of SARA model to tax performance
                   and other relevant  indicators  through
                   utilizing econometric approach in order to
                   demystify SARA.

                   1 B. Bawono Kristiaji is a Partner, Tax Research and Training Services
                   DANNY  DARUSSALAM  Tax Center and received his Master from
                   PPIE, FEUI. Further, Adri A. L. Poesoro is a Chief Economist DANNY
                   DARUSSALAM Tax Center and a Doctoral graduate from Claremont
                   Graduate University, USA. The author would like to thank Darussalam for
                   his comments and suggestions; as well as to Hiyashinta Klise and Toni
                   Febriyanto for their research assistances.


                   The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or
                   entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate
                   as of the date received or that it will continue to be accurate in the future. The author’s views expressed in this Working Paper do not
                   necessarily reflect of the views of DANNY DARUSSLAM Tax Center. Working Papers describe research in progress by the authors and are
                   published to elicit comments and to further debate.
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