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In 1991 Peru undertook perhaps the most radical tax administration reform in the developing world as President Fujimori created the National Tax Administration Superintendency (SUNAT): a semi-autonomous revenue authority charged with putting the country''s fiscal house in order. The reform met with initial success as it increased revenues and reduced evasion, though SUNAT''s strategy came to be questioned by the same government that created it. In particular, the powerful ministry of finance raised doubts about the wisdom of SUNAT''s autonomy and advocated taking a second look at the reform model. At the same time, corporate taxpayers, as well as the informal sector, vigorously joined the debate. This public sector reform, hailed as an important achievement in tax administration, raises serious questions about the reform of the state in developing countries by revisiting the old, fine line between politics and administration. The case grapples with the question of how to professionalize key line agencies while at the same time maintaining political support for reform.