The efficiency of tax administration can increase if there is improved management of requests by taxpayers for support and advice. Following two previous studies on the improvement of service demand the OECD’s Forum on Tax Administration requested the relevant subgroup to look at ways of increasing facilities for taxpayer self-service. It was noted that while more channels for self service are becoming available for taxpayers they are not necessarily decreasing the demand for traditional forms of support which are more costly for the tax administration.

A report entitled “Increasing Taxpayers’ Use of Self-Service Channels” examines ways to manage this problem. The report looks at a framework for developing digital services, including static website information, interactive and transactional services and seamless services that reduce the need for the taxpayer to interact with the tax administration.

Instead of setting up particular forms of taxpayer self-service in isolation, the tax administration must have a complete vision for delivering these services encompassing individuals and businesses. The services must be developed in consultation with taxpayers and their use must be encouraged by the use of incentives or compulsory measures. Use of self service could also be promoted in coordination with intermediaries and third party providers. This should lead to a decreased demand for traditional support services from the revenue bodies and thereby save costs.

The four elements in the process are monitoring service demand; user-centered service design; purposeful implementation; and effective channel management. There is no single solution that could be applied universally by all tax administrations to ensure sustained use of self service channels by taxpayers. The tax administration must therefore ensure that they are aware of the characteristics of their external and internal environment and can take account of this knowledge when implementing their self service channels. Greater coordination of service delivery should lead to a whole-of-government approach and to an attitude of “digital by default”, building digital services to such a high standard that people prefer to use them. These concepts can drive the take up of self service by taxpayers.

The report recommends that revenue bodies must identify opportunities to offer self services by using effective monitoring and data analytics supporting their understanding of service demand. They should take an approach that is centered on the user when designing new services or transferring existing taxpayer services to digital channels. The take up of digital services by taxpayers should be promoted by the use of incentives or by mandatory use.

Taxpayers should be guided to the use of the self service channels by education and communications from the tax administration. In-channel support should be provided to ensure that taxpayers continue using the preferred channels. Appropriate metrics should be used to measure the effect of the self service offerings on the demand for services and this information can be used to identify further possibilities for increasing taxpayer self service channels.