Use of Technology in Tax Administrations 1 - Developing an Information Technology Strategic Plan (ITSP)

Sep 22, 2026

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Use of Technology in Tax Administrations 1 outlines how tax administrations develop an Information Technology Strategic Plan (ITSP) to strengthen governance of revenue systems. It targets developing countries that are largely manual or rely on outdated legacy IT, explaining the questions to ask and the issues to consider when building an IT strategy. The note connects IT strategy to organizational strategy, defines desired IT functionality, clarifies when and why an ITSP should be developed, and specifies who should be involved and in what roles, including guidance on whether to address risk management.

LanguageEnglish

CategoryPresentations

FormatPDF

Pages19

Reading Time7 min

AccessFree to download

Introduction

Purpose and target administrations

IT Strategy and Organizational Strategy

Linking IT strategy to organizational strategy and plan

Developing the ITSP

Key questions and issues to consider

Desired functionality and timing

Roles and involvement

Risk management in the ITSP

Foundations for Core Tax Functions

T E C H N I C A L N O T E S A N D M A N U A L S Use of Technology in Tax Administrations 1: Developing an Information Technology Strategic Plan (ITSP) Prepared by Margaret Cotton and Gregory Dark With contributions from Peter Menhard and John Ryan Authorized for distribution by Sanjeev Gupta Fiscal Affairs Department I N T E R N A T I O N A L M O N E T A R Y F U N D INTERNATIONAL MONETARY FUND Fiscal Affairs Department Use of Technology in Tax Administrations 1: Developing an Information Technology Strategic Plan (ITSP) Prepared by Margaret Cotton and Gregory Dark With contributions from Peter Menhard and John Ryan Authorized for distribution by Sanjeev Gupta March 2017 DISCLAIMER: This Technical Guidance Note should not be reported as representing the views of the IMF. The views expressed in this paper are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management. | JEL Classification Numbers: | H20, H29, M10, M15 | | --- | --- | | Keywords: | Tax administration, information technology, strategic plan, organization strategy | | Authors’ E-Mail Addresses: | [mcotton@imf.org](mcotton@imf.org)
[gdark@tpg.com.au](gdark@tpg.com.au) | T E C H N I C A L N O T E S A N D M A N U A L S Use of Technology in Tax Administrations 1: Developing an Information Technology Strategic Plan (ITSP) Fiscal Affairs Department March 2017 I N T E R N A T I O N A L M O N E T A R Y F U N D This technical note is the first of three addressing information technology themesand issues relevant to tax administrations. This note focuses on the use of technology in tax administrations and how to develop an information technology strategic plan (ITSP) and is intended for developing country tax administrations that are largely manual or have legacy information technology (IT) systems that are outdated. The second note addresses how to select an IT system for core tax administrations functions. And the third note covers implementation of a commercial-off-the-shelf (COTS) system. Ideally, the notes would be read in order but a tax administration that already has an ITSP may choose to go straight to note two to determine the type of system most suited to its circumstances or note three if the preferred system has already been selected. The content of these technical notes reflects the themes and issues the IMF Revenue Administration Divisions are frequently called upon to assist member countries with. These technical notes are primarily for use by tax administrations that have no technology to manage their core tax processes, or their technology is limited and outdated. The notes may, however, also be of interest to more advanced administrations. These notes focus on core tax functions and do not address other business systems (e.g., payroll, finance, document, and asset management systems) . For advanced IT tax administrations, there is a wealth of other information available including the OECD Forum on Tax Administration publication: Technologies for Better Tax Administration. A Practical Guide for Revenue Bodies, May, 2016.1 1 [http://www.oecd.org/tax/forum-on-tax-administration/publications-and-products/technologies-for-better-tax](http://www.oecd.org/tax/forum-on-tax-administration/publications-and-products/technologies-for-better-tax)administration-9789264256439-en.htm TECHNICAL NOTES AND MANUALS Use of Technology in Tax Administrations 1: Developing an Information Technology Strategic Plan (ITSP) Margaret Cotton and Gregory Dark2 This technical note and manual (TNM) addresses the following questions: • What questions need to be asked and what issues should be taken into account when developing an IT strategy? • What is the link between the IT strategy and the organizational strategy and plan? • What functionality should the IT strategy aim for? • What is an Information Technology Strategic Plan (ITSP), why is it important and when should it

FAQs

Which administrations is this technical note intended for?

It is primarily intended for developing country tax administrations that are largely manual or have legacy IT systems that are outdated. It may also be useful for more advanced administrations.

What key topics does the ITSP development guidance cover?

It addresses questions and issues for developing an IT strategy, the link between IT strategy and organizational strategy, targeted IT functionality, and what an Information Technology Strategic Plan (ITSP) is and why it matters.

Who should be involved in developing the IT strategy and ITSP?

The note explains that the strategy should involve relevant stakeholders and defines roles for those participating in developing the plan.

Sep 22, 2026

Upload by Eliana