We seek feedback and advice about how we estimate the gap from our external and internal subject matter experts. Based on the advice, the reliability for this estimate is medium with a score of 19.
While the current method is considered acceptable, it is possible to use a random enquiry model on this population. This would provide more granular insights into the gap estimate and overall compliance for this population. In addition, this year’s gap estimates maintain the current approach to debt, underestimating the final gap estimate. As a result, we have examined more closely the reliability rating to reflect this. For this gap we have downgraded the overall reliability rating but it still remains medium.
Figure 3: Reliability rating scale from very low to very high – medium business income tax gap