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How does the efficiency of tax administration affect government revenue collection? 


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The efficiency of tax administration plays a crucial role in government revenue collection. Inefficient tax systems lead to significant revenue losses, highlighting the importance of effective tax administration in instilling taxpayer confidence and ensuring compliance. Studies show that tax revenue inefficiency is positively related to corruption, democratic accountability, and law and order, while negatively associated with bureaucratic quality and government stability. Enhancing tax administration efficiency can help countries mobilize more revenue, with potential improvements ranging from 3% to 79% in African tax administrations. Effective tax administration, including factors like tax laws, human resources, and technological infrastructure, significantly impacts the effectiveness of revenue collection, emphasizing the need for continuous improvement in tax administration practices.

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The effectiveness of tax administration impacts government revenue collection by influencing tax compliance, reducing arrears, and enhancing tax reporting quality, ultimately improving revenue generation.
Efficiency of tax administration impacts government revenue by enhancing tax collection through measures like taxpayer registration, information processing, verification, and control, ultimately improving budget fillings and financial stability.
Efficient tax administration, validated by a reliable scale, enhances government revenue collection by instilling taxpayer confidence, ensuring compliance, and potentially increasing revenues, as shown in the Nigerian oil sector.
Tax revenue inefficiency, influenced by factors like corruption and bureaucratic quality, impacts government revenue collection. Strengthening tax administration can enhance revenue performance and state-business-civil society relations.
Efficient tax administration is crucial for African countries to enhance revenue collection, as inefficiencies exist, with potential improvements of 3 to 79% through autonomy, informal sector size, and taxpayer segmentation.

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