Other important allies in making tax administrations and their fight against tax avoidance and tax evasion more efficient are digitalisation and data. Increased data availability combined with the right IT tools to analyse these data means more transparency, which increases the potential to detect tax avoidance and tax evasion more efficiently and effectively. However, to benefit from this, data needs to be collected and managed appropriately, i.e., in terms of its storage, organisation, use and disposal. This comes with a lot of responsibility to keep the data secure given that tax information is globally considered highly sensitive. Therefore, tax administrations must learn how to handle data along the whole data lifecycle. In this context, an individual data management framework and policy is required that formalises roles and accountabilities related to data management activities within the tax administration.
The practical guide "Data Governance for Tax Administrations" developed by Centro Interamericano de Administraciones Tributarias (CIAT) with funding from German development cooperation aims to support low-capacity countries with ensuring appropriate data governance with guidance on how to set up such an individual framework and policy and what to take into account. The framework includes comprehensive suggestions tailored to the needs of tax administrations in low-capacity countries, to the respective tax administration sector, to different maturity levels and to organisational structures. Finally, it also includes a roadmap that can serve as a guidance for tax administration when setting up their internal data management processes.