An IOTA Workshop on “Use of Performance Indicators and Measures for Decision-Making Process” was held in Budapest on 29 November – 1 December 2017. The workshop attracted 42 participants from 24 IOTA tax administrations to discuss how they measure their performance and the implication for the decision-making process.
Measuring outputs is the conventional way of assessing whether revenue bodies are on the right path for achieving their outcomes. However, output measures alone (e.g. measuring traditional output for ensuring tax compliance such as auditing submitted tax returns) do not allow revenue bodies to properly assess the effectiveness of their strategy to achieve the desired outcomes. As a results, changing from short-term output measures to long-term outcome measurement is essential, but this is a complex and challenging process requiring a change of culture and mindset in a tax administration.
At the plenary session, participants had the opportunity to get acquainted with the approach, data analytics and tools developed by tax administrations in Belgium, Spain, France, Hungary, Greece, Italy, Norway, Slovakia, Poland, Portugal and United Kingdom.
The workshop continued with group discussions sharing the insights and best practice adopted to measures performance indicators. Concerns about the implications for the whole decision-making process were also taken into consideration, particularly when the performance measures are focused on the revenue body’s outputs rather than the impact on the desired outcomes.
Further information about the workshop, including all presentations, is available here.