Impact of Tax expenditure on revenue collection

Description

Introduction

Tax incentive provisions typically have conditions applicable for the period within which the preferred activity should be undertaken and for which the tax incentive is available. It may also be necessary to fulfil certain other conditions, such as the ‘forming’ of a ‘new’ undertaking.

Tax expenditures must be managed as carefully as outlay expenditures if governments want to use their limited financial resources efficiently. This means that the cost of tax expenditures must be identified, measured and reported to compare their monetary value with that of outlay expenditures.

The focus of this training will be on the impact of those incentives on revenue collection. Participants will learn and discuss the criteria for evaluating tax incentives and provide an analysis of typical incentives using examples of situations in which incentives have no justification and instances where some, but not all, may be useful.

• Course Content
• Assessment of Typical Tax Incentives: Advantages and disadvantages
• Issues in Measuring Tax Expenditures
• The Implication of Ignoring Tax Expenditures in the Budget
• Budgeting for Tax Expenditures
• Enforcement of Caps on Tax Expenditures
• Potential Tax Incentives for the emerging economy

Learning outcomes

• Identifying strategic aims of tax Incentives for an Economy
• Analyse and measure the impact of Tax Expenditure on an economy
• Identify Issues concerning tax expenditure
• Evaluate Minimizing Problems of Incentives
• Evaluate and Maximise advantages of Incentives
• Understand, Identify and prioritise Incentives for encouraging economic activity
• Learn how to craft Objectives and Key Results using a specific vocabulary