​Return on Investment – Compliance

Measure

The return on investment (ROI) for compliance efforts is calculated by dividing the total compliance revenue generated by the total compliance expenditures incurred each fiscal year. Compliance revenue results from the agency taking some form of action (audit, collection or criminal investigation) to ensure a taxpayer fulfills their Minnesota tax obligations.  

How We Are Doing

Caution

Goal  

Return on Investment of $7.75 for compliance efforts for fiscal year 2013.

Why This Is Important

This measure will help us determine the cost and effectiveness of our activities and help us make improvements to achieve positive outcomes.

Although the vast majority of the taxpayers voluntarily comply with the tax laws, the focus of tax compliance is on taxpayers that do not voluntarily file, pay or comply with tax laws.

The return on investment provides an indication of the overall efficiency of the agency; a higher or increasing ROI indicates the department is using taxpayer resources efficiently to meet the agency’s mission.