INTERNATIONAL
Finance Corporation (IFC) has decided to help Organization of Eastern
Caribbean States (OECS) undertake The Caribbean Business Taxation Reform
Project (CaribTax) for improving the institutional, regulatory and
administrative framework for business taxation.
According
to an IFC disclosure, the project's objectives are to reduce complexity
for businesses when complying with tax obligations, and improve the
management of the tax incentives framework. The project will pilot two
components:
1)
in two countries, and 2) a reform of the tax incentives framework in
one country. CaribTax project is part of a broader IFC program in Latin
America and the Caribbean.
OECS
comprises nine countries - Antigua and Barbuda, Commonwealth of
Dominica, Grenada, Montserrat, St Kitts and Nevis, St. Lucia and St
Vincent and the Grenadines. Anguilla and the British Virgin Islands are
associate members of the OECS.
Under
the tax simplification reform component of the project, the three focus
areas will be 1) Tax Compliance Simplification by improving procedures
and tax requirements; 2) Education and Communication to taxpayers to
reduce transaction costs of compliance through more transparency and
predictability and 3) Tax dispute and appeals mechanisms to provide a
viable channel for settlement of revenue collection disagreements.
Under
the tax incentives reforms component of the project, the authorities
will conduct a Cost-Benefit Analysis of the main tax incentives. IFC
will help authorities review the incentives framework and define policy
guidelines. It would also facilitate organization of regional
conferences to encourage an evidence-based approach towards tax
incentives, focusing on effectiveness and promoting the endorsement of
regional policy guidelines. The scope of IFC's advisory services
includes providing input to the design of a regional project on tax
incentives reform.
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