Philippines - Revenue Administration Reform
| Reference ID | DDI-MCC-PHL-SWS-RARP-2015-V01 |
| Year | 2014 - 2015 |
| Country | Philippines |
| Producer(s) | NORC at the University of Chicago |
| Sponsor(s) | Millennium Challenge Corporation - MCC - |
| Metadata |
 Documentation in PDF
|
| Created on | Aug 02, 2016 |
| Last modified | Mar 08, 2018 |
| Page views | 36266 |
| Downloads | 1716 |
Overview
Identification
ID Number DDI-MCC-PHL-SWS-RARP-2015-V01 |
Version
Version Description
Anonymized dataset for public distributionOverview
Abstract
The Millennium Challenge Account-Philippines' (MCA-P) implementation of the Revenue Administration Reform Project (RARP) is expected to improve tax administration, increase tax revenue collection and reduce incidence of corruption among various agencies involved in the tax administration processes including the Department of Finance (DOF), the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC). One of the main objectives of the RARP evaluation is to measure via a baseline and endline changes brought about by the project components on the following: (1) efficiency of tax administration, (2) tax revenue, and (3) incidence of corrupt activities in the DOF, BOC, and BIR. Given the non-random nature of RARP interventions across different components, the RARP evaluation will be primarily based on a quantitative analysis and a qualitative assessment of implementation of various components of RARP. The quantitative analysis component of RARP evaluation will attempt to identify changes in critical indicators before and after the implementation of the RARP by comparing the baseline values with the post intervention data to be obtained from the follow up round(s) of taxpayers' and personnel survey and other administrative sources whenever feasible to get such data.
In an ideal situation, the most rigorous evaluation would have been a randomized design where participating offices are randomly assigned to receive one or more components of RARP and then their performances over time are compared with the counterfactual (in this case, the offices not exposed to RARP components). However, based on the information received from MCA-P regarding the (non-random) selection of offices for treatment and implementation of RARP components such as eTIS, AATs, and RIPS, and the lack of a plausible counterfactual, it was determined that a rigorous randomized impact evaluation was not possible for this study.
Thus, the evaluation involves a comparison of 2014 baseline data and 2015 follow-up data from surveys of businesses, individual taxpayers, and personnel from the DOF, BIR and BOC. MCA-P engaged the services of a data collection firm, Social Weather Stations (SWS) which collected the baseline and follow-up data. This data was subjected to a data quality review and then shared with NORC for analysis. The baseline data was collected during July 2014 - December 2014. The follow-up data was collected during September 2015 - January 2016.
Statistical analysis was used to identify whether there exist any statistically significant differences between the baseline and the follow-up values. Though the RARP Activities of chief concern for Study V have not yet been completely deployed, it is expected that this evaluation will help MCC to learn about the process of implementation of different components of the RARP and its influences on the tax administration and compliance.
Evaluation Methodology
Pre-PostUnits of Analysis
individuals, corporationsKind of Data
Sample survey data [ssd]Questionnaires
1. Socio-demographic profile of taxpayers/ respondents2. Extent of compliance with tax obligations
3. Perception of corruption by taxpayers on BIR
4. Level of awareness of the RIPS-DOF efforts to curb corruption and perception of corruption in DOF
5. Experiences in availing BIR of core processes and services
6. Level of awareness of taxpayers with regard to their tax obligations
7. Level of awareness of taxpayers of BIR services and programs in the areas of tax registration and filing
8. Level of satisfaction of taxpayers with BIR's respective services and programs used
9. Perception on the likelihood of being caught by BIR and/or RIPS- DOF for non-compliance to tax obligations (e.g. tax evasion) and if caught, the likelihood of severe penalties
10. Feedback on the automated systems in terms of promoting operational efficiency and reducing discretion and opportunities for corruption
11. Perception of corrupt activities in DOF, BIR, and BOC
12. Awareness of and support for DOF efforts to address corrupt practices
Geographic Coverage
National CoverageProducers and Sponsors
Primary Investigator(s)
| Name | Affiliation |
|---|---|
| NORC at the University of Chicago |
Other Producer(s)
| Name | Affiliation | Role |
|---|---|---|
| Social Weather Stations | Carried out data collection |
Funding
| Name | Abbreviation | Role |
|---|---|---|
| Millennium Challenge Corporation | MCC |
Metadata Production
Metadata Produced By
| Name | Abbreviation | Role |
|---|---|---|
| Social Weather Stations | Conduct data collection | |
| NORC at the University of Chicago | Documentation of the study |
Date Produced
2016-05-20Metadata Version
Version 1Metadata ID Number
DDI-MCC-PHL-SWS-RARP-2015-V01MCC Compact and Program
Compact or Threshold
Philippines CompactProgram
The Revenue Administration Reform Project addresses the need to raise tax revenues and reduce tax evasion and revenue agent-related corruption. A key constraint to economic growth in the Philippines is the lack of growth enhancing investments in public goods such as infrastructure and social services. This project will focus on increasing the efficiency and sustainability of revenue collection through a redesign and computerization of business processes. The project will narrow the gap between potential and actual collections by reducing the discretion of individual tax and customs collection officers, and help improve the predictability and impartiality with which revenue laws and regulations are enforced. Some of these activities are extensions of the Philippines’ threshold program activities that concluded in May 2009.MCC Sector
Capacity Building and Institutional Development (Cap Bldg & Inst Dev)Program Logic
1. BIR revenue administration reform activity a. eTIS sub-Activity MCA-P funding will provide an International Monetary Fund (“IMF”) resident advisor on tax administration and support the cost of short-term IMF tax administration specialists as well as other systems and technology consultants, the training of BIR staff, and the procurement of equipment related to the implementation of eTIS. b. Automated Auditing Tools sub-Activity MCA-P will purchase software licenses for automated auditing tools and provide computers to run them. It will also pay for a subscription to a data base service to provide BIR with transfer pricing information and provide training for the use of these tools. c. Public Awareness Campaign sub-Activity Funding will be provided for consulting services and to support the costs of implementing a public awareness campaign regarding BIR services and programs. Individuals and businesses in the Philippines have a limited understanding of their tax obligations and BIR programs. Under this sub-activity would also include a change management program for the internal organization of the BIR. 2. Revenue Integrity Protection Service (“RIPS”) activity a. Funding will be provided for the acquisition and customization of case management software, a related data depository system, and training. This will support RIPS, a relatively new unit within the Department of Finance, and is intended to strengthen surveillance and discipline of the Department of Finance and its attached agencies through administrative actions such as temporary suspensions or dismissals.