Finding and implementing a tax service provider strategy

The developments discussed in this report present tax administrations with challenges and dilemmas. The shifts in the market of tax service providers bring opportunities to better serve the taxpayer and improve tax compliance. Tax administrations need to consider their strategies: allowing a strong role for the tax services industry, or focusing more on strengthening the direct relationship with SMEs – enabled by the same technological developments that are reshaping the market of tax service providers. This chapter aims to provide guidance on how tax administrations can develop and implement a TSP strategy with TSPs and how this can be put into action. It also discusses the technical, legal and organisational conditions that are important to make such a strategy work.