Tax Administration Modernization Project

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The development objective of Tax Administration Modernization Project for Moldova is to improve revenue collection, tax compliance and taxpayer services. This project has five components. 1) The first component, Tax Policy Reform, will finance a comprehensive review of the legal framework including: (i) revisions to align Moldovan legislation on Value Added Tax (VAT) and Excise Duties in line with the European Union (EU)-Moldova Association Agreement; (ii) options to strengthen legislation and administrative practices to counter international profit shifting and base erosion risks for the Moldovan tax base and relevant capacity building in State Tax Service (STS) and Ministry of Finance (MoF); (iii) strengthening national tax legislation by ensuring consistency of primary and secondary lax legislation, access to tax rulings and improvements in administration of local taxes and fees. 2) The second component, Institutional Development, will support changes to STS’s organizational structure and strengthen back office functions. 3) The third component, Operational Development, will finance functions that deal directly with taxpayers. 4) The fourth component, Information Technology (IT) Infrastructure and System Modernization, will acquire and implement an Integrated Tax Management System that will unify IT support for all business functions including: user role management and security, transaction audit trails and logging, taxpayer registration, returns processing, accounting, payment processing, collections and enforcement, objections and appeals, audit, risk assessment, management reporting, case work flow, data warehouse and business intelligence tools, a document management system and a portal interface. 5) The fifth component, Project Management and Change Management,will finance: national and international consultants to support procurement, financial management and technical implementation; international advisors for IT project management, training and change management; and operating costs associated with the implementation of the Project