Fiscal Reform and Public Financial Management (FRPFM) Activity

The project is funded by the United States Agency for International Development (USAID) and is implemented by the International Tax Support Division (ISTD). The project's main objective is to enhance the capacity of the ISTD senior managers to design and implement effective compliance strategies. To achieve this goal, the project employs compliance strategies used in OECD countries and other jurisdictions. The strategies focus on improving tax administration, enhancing taxpayer services, and promoting voluntary compliance. The project's agenda includes several key topics, such as the core functions of tax administration, understanding the taxpayer, improving compliance, and working with stakeholders. The core functions of tax administration are divided into four pillars: timely registration, filing tax information and returns on time, reporting complete and accurate information, and payment of tax obligations on time. The project also emphasizes the importance of understanding the taxpayer, including their compliance attitude, behavior, and influencing factors. The influencing factors are categorized into business, sociological, economic, and psychological factors, which include factors such as business structure, cultural norms, amount of investment in business, and trust in government and tax administration. The project's methodology involves comparative studies of OECD countries and other jurisdictions to identify best practices in tax administration. The studies focus on the use of new technologies, tools, and data to improve the effectiveness and delivery of contemporary services, as well as reducing the cost of tax operations and burdens on taxpayers. The project's findings indicate that the use of new technologies, tools, and data can improve the effectiveness and delivery of contemporary services, while reducing the cost of tax operations and burdens on taxpayers. The project also highlights the importance of understanding the taxpayer and their compliance attitude, behavior, and influencing factors in designing effective compliance strategies. The project's implementation details include training programs for ISTD senior managers, which focus on the core functions of tax administration, understanding the taxpayer, improving compliance, and working with stakeholders. The training programs aim to enhance the capacity of ISTD senior managers to design and implement effective compliance strategies. The project's geographic focus is on a specific region, where the ISTD is responsible for tax administration. The project's timeframes are not specified, but the project's activities are ongoing, with regular evaluations and assessments to ensure the project's objectives are met. The project's recommendations include the use of new technologies, tools, and data to improve the effectiveness and delivery of contemporary services, as well as reducing the cost of tax operations and burdens on taxpayers. The project also recommends understanding the taxpayer and their compliance attitude, behavior, and influencing factors in designing effective compliance strategies.