Kazakhstan - Tax Administration Reform Project

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The development objectives of the Tax Administration Reform Project for Kazakhstan are: (i) to reform and strengthen the tax administration in order to improve the level of voluntary taxpayer compliance with tax regulations; (ii) to enhance effectiveness to fight tax evasion; and (iii) to increase administrative efficiency and reduce the potential for corruption. There are four components to the project: (1) an institutional development component will finance the following activities: (a) a comprehensive review and redesign of the organizational structure of the tax administration at headquarters and regional offices; (b) reorganization and consolidations of local offices based on a rationalization program; (c) analysis and reform of the managerial structure of the tax administration and decision-making modalities; and (d) comprehensive review of human resource (HR) policies, civil service legislative framework, and development of reformed workforce planning and strategy; (2) an operational development component will finance the following activities: (a) review and redesign of the business processes of the tax administration; (b) development of an integrated database for taxpayers; (c) streamlining of data/information exchange procedures with relevant government bodies; (d) development of universal filing methodology for the tax administration; and (e) development of a risk-based audit selection methodology; (3) an information technology (IT) infrastructure development component will finance: (a) capacity building in organization and management of the IT modernization; (b) development of integrated tax management system; (c) development of integrated data warehouse; (d) development of concept, architecture and applications for data processing centers (DPC); (e) development of voice and data networks; (f) development of call center; and (g) development of video-conferencing facilities; and (4) a project management component will finance goods, consultants' services, training and operating costs of the tax committee to support project coordination, implementation, and management. This will include: (a) a tax reform advisor; (b) a change management advisor; (c) procurement consultants including IT procurement consultants; (d) monitoring and evaluation of project including taxpayer surveys; (e) translation services; (f) project audit; and (g) project management operations.