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UNU-WIDER and ATI launch innovative Tax Gap Toolkit

A launch event is organized on 10 December, at 2pm (CET) to introduce the Tax Gap Toolkit and demonstrate its features and functionalities. A discussion led by the International Monetary Fund will follow to explore the potential impacts of the toolkit on tax policy and administration. 
About the toolkit 

Mobilizing domestic revenue is crucial for supporting economic growth, reducing inequalities, and providing essential public services, and efficient tax systems are essential for achieving this goal. Tax gap analysis is a critical component of this effort.

The Tax Gap toolkit is a global public good developed in partnership with the Addis Tax Initiative, to support the realization of the ATI Declaration 2025. The toolkit estimates the difference between the potential tax revenue and the actual tax revenue collected, providing revenue authorities and policymakers with a measure of the amount of tax revenues lost or forgone due to non-compliance. Conducting a tax gap estimation enables authorities to inform better allocation of limited resources and develop strategies to combat or reduce significant tax gaps and improve tax collection.

The toolkit builds on UNU-WIDER research in Zambia and Tanzania under the Domestic Revenue Mobilization programme.

About ATI  

The Addis Tax Initiative (ATI) aims to promote fair and effective domestic revenue mobilisation (DRM), policy coherence and the social contract through partnerships and knowledge building. As a multi-stakeholder partnership, the ATI plays an essential role in fostering collective action to improve tax systems in light of recognised gaps in development finance. Emerging from the Third International Conference on Financing for Development in Addis Ababa in July 2015, the ATI has significantly contributed to the implementation of the Addis Ababa Action Agenda (AAAA) and is firmly anchored within the Financing for Development process.

Partners

The Tax Gap toolkit was developed with support from the International Tax Compact (ITC), which facilitates the Secretariat of the ATI. The ITC is funded by the German Federal Ministry of Economic Cooperation and Development, co-funded by the European Union, and implemented by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH.
This work is part of UNU-WIDER’s Domestic Revenue Mobilization programme, which is funded by Norad – The Norwegian Agency for Development Cooperation.