VITARA - Payment and Debt Management

This module aims to build knowledge and understanding of how payment and debt management (DM) contributes to taxpayer compliance, and key considerations in managing and resourcing the debt management function in a tax administration. The module begins with defining the concept of payment and debt management and their relevance for taxpayer compliance, before it moves on to deal with the development and implementation of a debt management strategy. In the remaining sections of the module, the DM function's organizational and governance arrangements as well as management information issues are covered and learners are introduced to mechanisms to optimize voluntary payments, legal enforcement actions, treatment of uncollectible debts as well as dispute resolution in the context of debt management. The course is a joint initiative of four international organizations: Inter-American Center of Tax Administrations (CIAT), Intra-European Organisation of Tax Administrations (IOTA), International Monetary Fund (IMF), and Organisation for Economic Co-operation and Development (OECD).

• define how payment and debt management (DM) activities play a role in encouraging, maintaining, and enforcing compliance.
• outline a tax administration's DM strategy, and its elements.
• identify what to consider in creating a DM Strategy.
• describe how a DM strategy will support the overall revenue administration strategy.
• understand the roles of HQ and field operations in debt management.
• define what a typical DM organizational structure looks like.
• explain how appropriate recovery targets are set.
• prepare relevant performance indicators for the DM function.
• understand relevant Management Information Systems and how they can assist DM work.
• list approaches and mechanisms to engage with taxpayers before the payment due date to maximize collection.
• identify the typical suite of enforcement tools that modern tax administrations employ to protect government revenues and how these tools are utilized.
• utilize or establish write-off provisions to clear debts from government accounts that are either uncollectible or not economical to recover.
• understand the relevance and impact of dispute resolution for DM.