Driving Tax Administration Excellence: An Innovative Balanced Scorecard Perspective

Abstract

The Balanced Scorecard (BSC) approach has been widely accepted as a very comprehensive framework for performance measurement. Despite extensive applications in private sector organizations, its adaptation to public sector entities, particularly tax administrations, remains limited. The aim of this paper is to contribute to the literature with the application of Balance Scorecard tailored for Tax Administrations. This paper proposes an augmented Balanced Scorecard model specifically tailored for tax administrations, reinterpreting the traditional four perspectives-Financial, Customer, Internal Process, and Learning and Growth-into dimensions that address the unique strategic and operational challenges faced by tax authorities. The proposed framework comprises Tax Revenue Efficiency and Collection, Operational Capacity and Compliance Management, Taxpayer Service Experience, and Learning and Growth. This model aims to facilitate improved strategic alignment, performance management, and organizational learning in tax administrations. While empirical validation remains outstanding, the paper offers a theoretically grounded foundation to support future research and practical implementation within the public fiscal governance domain.