Laws must be simple and clear
THE TARC recommends:
1. Simplicity, clarity and ease of compliance - Laws must be simple and clear so that the taxpayers should be able to understand and know their rights and responsibilities.
2. Consistency in application - Laws must be applied consistently across the tax administration and their interpretation should be consistent with legislative intent.
3. Fairness, reasonableness, judiciousness and transparency - The taxpayer should perceive that the administration acts fairly and judiciously and respects taxpayers' rights and that transparency and openness informs all the actions of the administration.
4. Trust-based approach, enablement and empowerment - The administration's approach is based on trust and focused on enabling, clarifying and helping the taxpayer to comply with his obligations. It should seek to reduce complexity and enhance simplicity.
5. Customer focus - Taxpayers' interests and concerns should be central to the efforts of the administration and they should have a voice in the design of policies and processes. The overall objective should be to enhance taxpayer convenience and reduce taxpayer costs. The process of interaction with the administration should be simple and convenient.
6. Integrity, courtesy and professionalism - The administration must ensure that employees act with integrity and possess the required professional knowledge, skills and competencies for their functions.
7. Accountability - The tax administration must be accountable to people. The accountability framework should travel beyond the traditional financial accountability to the parliament and should encompass accountability at the organizational as well as employee level.