Enhancing Taxpayer Registration with Inter-Institutional Data Sharing – Evidence from Uganda

Abstract

Comprehensive population data is often lacking in many developing countries, especially in Africa. This is a critical challenge for tax administrations, who are already grappling with a substantial hidden informal economy. Recent studies highlight the importance of national identification (ID) data for enhancing tax collection efforts. This study looks into the impact of inter-institutional collaboration to share national ID data on tax administration data quality and functions. The Uganda Revenue Authority (URA) has integrated its registration system with that of the National Identification and Registration Authority (NIRA) and Uganda Registration Services Bureau (URSB), which allows it to access ID data for individuals and businesses. The Instant Tax Identification Number (Instant TIN) – an interface pulling this third-party data into the taxpayer registration form – promises a swifter registration process for taxpayers, and better data on taxpayers.