The progress made by the ATI members towards the fulfilment of the three ATI commitments is monitored annually by the International Tax Compact (ITC). For this monitoring exercise, the International Tax Compact combines quantitative and qualitative information, based on both publicly available data and surveys filled out by ATI partner countries and ATI development partners.
Monitoring of ATI Commitment 1
- The monitoring of ATI Commitment 1 uses Official Development Assistance (ODA) data that shows the support of the ATI development partners to projects fostering the mobilisation of domestic revenues. In this context, the evolution of commitments and gross disbursements reported to the OECD DAC (Development Assistance Committee) under the CRS (Common Reporting Standard) purpose code 15114 for domestic revenue mobilisation is evaluated. As part of the monitoring process, the ATI development partners are given the opportunity to review the data they had reported to the OECD DAC and adjust information, making the provided data highly reliable, accurate and detailed.
Monitoring of ATI Commitment 2
- The monitoring of ATI Commitment 2 is based on different quantitative and qualitative indicators that assess the performance of ATI partner countries’ tax systems in raising domestic revenues. These include, but are not exclusive to, tax-to-GDP ratio, tax rates and tax-free thresholds, revenue trends, tax expenditure estimation, timely filling of declarations, timely payment of taxes, use of electronic services, effective audit programme, effective arrears management, the use of dispute mechanisms, and the impact of taxation on inequality. Sources of indicators comprise the International Survey on Revenue Administration (ISORA), the International Budget Partnership (IBP), OECD, Oxfam and the International Monetary Fund (IMF). ATI partner countries are also given the opportunity to report on the progress of their own national indicators.
Monitoring of ATI Commitment 3
- The monitoring of ATI Commitment 3 makes use of narrative contributions by ATI signatories on efforts and concrete measures taken to promote policy coherence for development. In a survey provided by the International Tax Compact, the ATI signatories can, for instance, highlight national policies they have adopted or international agreements they have transformed into national law, which foster the reflection of development goals in tax policies and reforms.
Apart from monitoring the progress made against meeting the three ATI commitments, the ATI monitoring also promotes peer learning through the dissemination of good practices, helps identify regional and topical trends in the area of domestic revenue mobilisation, and gives an outlook on planned future activities to enable effective coordination.
The ATI Monitoring Framework outlines the monitoring process. Further detailed information on the ATI monitoring can be found in the concept note for the 2016 ATI Monitoring methodology and in the methodology chapter of the 2015 ATI Monitoring Report (pp. 28-32).
The information collected in the ATI monitoring process is also made available in the DRM Database, which provides an overview of all technical assistance projects carried out worldwide to support domestic revenue mobilisation in partner countries. The full datasets underlying the monitoring exercises are available here for 2015, here for 2016, and here for 2017.