Tax Administration Responses to COVID-19: Recovery Period Planning, a report prepared by the Organization for Economic Cooperation and Development’s Forum on Tax Administration (FTA) in cooperation with the Intra-European Organisation of Tax Administrations (IOTA) and the Inter-American Center of Tax Administrations (CIAT), outlines how tax administrations can prepare for the potentially prolonged, uncertain and complex recovery period from the Covid-19 crisis.

The report highlights that even during the immediate crisis period, there will be significant benefit from early business restoration planning to help identify the main challenges and opportunities for both tax administrations and taxpayers, and to take early preparatory actions.

In undertaking business restoration planning, tax administrations will need to take into account the distinguishing features of the Covid-19 pandemic which, unlike other crises, are likely to persist during the recovery period.

In particular, the continued risks to health, including from further outbreaks; the impacts on staff and administration systems as a result of the need for continuing adjustments; and the potential length and volatility of the recovery period given the depth and scale of the economic shock.

An additional report, Tax Administration: Privacy, Disclosure and Fraud Risks Related to Covid-19, highlights the increased security risks and greater opportunities for errors, misconduct and fraud in the current environment, including as a result of increasing remote working.

The report provides examples of these high-level risks and identifies some mitigation actions that tax administrations may wish to take.

‘Early planning for the recovery period from COVID-19 is critical given the scale of the challenges and risks that lie ahead,’ says Pascal Saint-Amans, the director of the OECD Centre for Tax Policy and Administration. ‘The collaborative work being undertaken by the FTA, CIAT and IOTA, including outreach to developing countries, is vitally important in helping to mitigate those risks as well as identify opportunities to increase the effectiveness and efficiency of tax administration in a post-crisis world.’

For more information on the work of the Forum on Tax Administration in response to Covid-19, visit http://oe.cd/fta.