Database and IT Framework for Risk Analysis

Discusses the importance of computerization and information technologies (IT) for the success of risk management in revenue administration, which involves creating and managing large databases of relevant taxpayer information, setting up risk-based audit selection systems, and using these systems to manage compliance. Anefficient risk-based audit selection system should be part of a much broader IT infrastructure that manages the entire tax administration operations, either as a stand-alone system or as a module embedded in a full-fledged tax management system. Examples of the creation and implementation of a tax administration IT infrastructure in both Malaysia and Tanzania are presented.