CaribTax

completed

Project Description The project will have two main components: 1) Simplification of Tax Administration, which includes support to taxpayer education and communication strategies, and Tax dispute and appeals mechanisms, (which will be piloted in 2 OECS countries) and 2) Tax Incentives Framework Reform, which will be piloted in piloted in 1 OECS country). This project is part of a broader program in Latin America and the Caribbean. The two components of the project will consist of the following: Component 1: Pilot on Business Taxation Simplification (2 OECS countries): Tax administrative simplification activities aimed at making tax compliance less cumbersome and improve the relationship with taxpayers. This component will have three subcomponents: - Tax Compliance Simplification by improving procedures and tax requirements. - Education and Communication to taxpayers to reduce transaction costs of compliance through more transparency and predictability. - Tax dispute and appeals mechanisms to provide a viable channel for settlement of revenue collection disagreements. Component 2: Pilot on Improving Tax Incentives for Investment (1 OECS country): Improving the Tax Incentives Framework to promote more effective tax incentives to achieve and track policy objectives. The project will help prepare a Cost-Benefit Analysis of the main tax incentives, help review the incentives framework and define policy guidelines; and, organize regional conferences to encourage an evidence-based approach towards tax incentives, focusing on effectiveness, promote the endorsement of regional policy guidelines and provide input to the design of a regional project on tax incentives reform.