EVALUATION REPORT OF THE TAX ADMINISTRATION AND REFORM PROJECT (INCLUDED AS ANNEX C OF PROP)

THE IMPLEMENTATION PHASE IS UNDERWAY; THE AUDIT DIVISION IS OPERATIONAL. LEGISLATION HAS BEEN PROPOSED TO LEGALLY SANCTION ALL REORGANIZATION MEASURES AND TO VEST IN THE DIRECTOR GENERAL (DG) OF THE TAX OFFICE OVERALL ADMINISTRATIVE RESPONSIBILITY FOR THE OPERATIONS OF THE TAX OFFICE. STATISTICAL INFORMATION ON ALL TAXES HAS IMPROVED WITH APPOINTMENT OF NEW DIRECTOR FOR THE DIVISION OF DATA PROCESSING WHO WORKS WITH THE OAS ADVISOR TO IMPROVE QUALITY & TIMELY SUBMISSION OF REVENUE DATA. A SINGLE-PAYMENT DOCUMENT HAS BEEN DESIGNED TO ALLOW DIRECT PAYMENT OF TAXES TO THE TAX OFFICE. THE EFFECT WILL BE TO IMPROVE QUALITY & REDUCE PROCESSING TIME,THUS IMPROVING MANAGEMENT'S USE OF STATISTICS AND OVERALL REVENUE COLLECTIONS. TAX COURSES WILL BE CONDUCTED FOR 350 TAX OFFICE EMPLOYEES IN THE NEW SYSTEMS. A REPORT ON THE OFFICE OF INTERNAL TAXES (FOR FUELS,ALCOHOL,TOBACCO,BEVERAGES) IS NEARING COMPLETION BY AN IRS TECHNICAL ADVISOR. REGARDING COLLECTION PHASE OF PROJECT, A COLLECTION DIVISION WAS INCLUDED IN REORGANIZATION OF THE TAX OFFICE AND POLICY GUIDELINES COVERING MAJOR DIVISION FUNCTIONS HAVE BEEN APPROVED: INSTALLMENT PAYMENTS WILL BE ALLOWED ONLY IN HARDSHIP CASES; TAX AMNESTIES HAVE BEEN ELIMINATED; AN ENFORCEMENT UNIT HAS BEEN CREATED TO FOLLOW-UP ON NON-FILERS AND DELINQUENT TAXPAYERS. A MONTHLY BULLETIN IS NOW BEING PUBLISHED FOR TAXPAYER EDUCATION ON TAX LAWS,DECREES,ADMINISTRATIVE RULINGS. TECHNICAL ASSISTANCE WILL BE EXTENDED TO THE TAX OFFICE,ESPECIALLY FOR THE VALUE ADDED,LAND PRODUCTIVITY AND EXCISE TAXES.