The reforms were remarkably successful:by 1997 internal tax revenue had recovered to 13 percent ofGDP-despite an extremely difficult political and economicenvironment-and 90 percent of large corporate taxpayerssurveyed believed that taxpayer services had improved. Thereforms had several key elements: granting the National TaxAdministration Superintendency (SUNAT) meaningfuladministrative and financial autonomy, implementing radicalpersonnel reform, investing in infrastructure andinformation technology, and generating public support. Thereforms also forged a new relationship between taxpayers andthe tax agency and committed to improving services. At thesame time, the agency made clear its intention to enforcecompliance with the tax code. SUNAT's experience offersseveral lessons for tax administration reform in othercountries. First, the immediate efficacy of SUNAT as asemiautonomous revenue authority was due to a combination ofseveral factors, perhaps the most important of which was acoupling of political leadership with managerial expertise.But Peru's experience also highlights pitfalls to avoidfor other countries engaging in tax administration reform.
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