In 1991, Peru undertook perhaps the most radical reform of the tax administration in the Third World as President Fujimori created the National Tax Administration Superintendency (SUNAT): calculated a semi-autonomous revenue authority with putting the tax system of the country in order. The reform met with initial success, as increased sales and reduced tax evasion, although SUNAT strategy came from the same government that they be interviewed together. In particular, the powerful Ministry of Finance raise … Read more »

In 1991, Peru undertook perhaps the most radical reform of the tax administration in the Third World as President Fujimori created the National Tax Administration Superintendency (SUNAT): calculated a semi-autonomous revenue authority with putting the tax system of the country in order. The reform met with initial success, as increased sales and reduced tax evasion, although SUNAT strategy came from the same government that they be interviewed together. In particular, the powerful Finance Ministry raised doubts about the wisdom of SUNAT autonomy and called for a second look at the reform model. At the same time, corporate taxpayers as well as the informal sector, vigorously joined the debate. This reform of the public sector, celebrated as a major achievement in the tax administration, raises serious questions about the reform of the state in developing countries through a review of the old, fine line between politics and administration. HKS case number 1,596.0
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from
Robert Taliercio
21 pages.
Release Date: 1 July 2000. Prod #: HKS496-PDF-ENG
Increase revenue or increase Hackles: Radical reform of the public sector in Peru’s National Tax Adminstration Superintendency HBR case solution

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