The 18-page guidance said that pandemic decision-making committees, comprising senior officials, should meet frequently to adapt continuity plans as the disease disrupts its operations and as governments task tax administrations with further responsibilities to respond to the crisis.
"Most tax administrations will have business continuity plans for dealing with one-off events which may be of short duration or geographically confined," the OECD said. "Some may, though, not have plans which cover the range of issues relevant to a pandemic, in particular the risks to health, the impact on staff numbers and working locations, the potential length of a pandemic, the strains that might arise on the IT infrastructure and the economy-wide shocks."
As consumers have stayed indoors and many businesses have shuttered amid the outbreak, governments around the globe have scrambled to get money into the hands of its citizens. Because tax administrations already have systems in place to interact financially with both individuals and businesses, many governments have looked to them as the quickest way to deliver relief payments. The U.S. CARES Act, for instance, authorizes $1,200 payments from the Internal Revenue Service by direct deposit or mail.
This gives tax administrations — already cash-strapped in many cases — a new responsibility as it also maintains revenue collection and hopes to keep its own operations in place.
The OECD said the decision-making committees should identify critical functions, such as maintaining operating infrastructure, criminal investigations, making timely payments and bringing in "key revenue." It should also outline the staffing and information technology requirements for these tasks and develop plans for how to respond if those needs are impacted by the pandemic.
Tax authorities should also be mindful of their role in maintaining public morale and faith in government services amid the panic that will naturally arise from a deadly pandemic, the OECD said.
"Pandemics can be a confusing, demoralizing and frightening time, particularly in a period where there are rapid and uncertain changes in the impact of, and responses to the pandemic," the report said. "Clear communications are vital to helping staff and taxpayers to understand their options and responsibilities and to provide a supportive and inclusive environment."
--Editing by Vincent Sherry.
For a reprint of this article, please contact reprints@law360.com.
