Press Release No. 16/452

European Commission and IMF Boost Support for Diagnostic Assessments of Tax Administrations

October 8, 2016

• Agreement is an important step in strengthening cooperation between the IMF and the EU in a core area of IMF expertise.
• TADAT is a collaborative effort of the following partners: The European Union, Germany, Japan, the Netherlands, Norway, Switzerland, the United Kingdom, the World Bank, and the IMF. The aim of TADAT is to provide a standardized means of assessing the health of key components of a country’s tax administration system and its level of maturity in the context of international good practice.

The European Commission and the International Monetary Fund (IMF) signed a €2 million (about US$2.2 million) agreement to support assessments of tax administrations using the Tax Administration Diagnostic Assessment Tool (TADAT). The signing took place in Washington, D.C. today, during a meeting between Stefano Manservisi, the Director General for the European Commission’s Directorate General for International Cooperation and Development (EuropeAid), and IMF Deputy Managing Director Carla Grasso.

Ms. Grasso noted that she was pleased to see the European Commission’s support for TADAT, which provides comprehensive baseline diagnostic assessments of tax administration functions that are the basis for developing prioritized and well-sequenced reform plans to boost revenue mobilization in developing countries. She noted further that the current agreement was an important step in strengthening cooperation between the two institutions in a core area of IMF expertise, and that she looked forward to concluding shortly the Strategic Partnership Framework that will guide the cooperation between the two institutions.

Mr. Manservisi stated that “Working with the IMF in the area of capacity development, including through TADAT, greatly supports the European Commission’s own 2015 ‘Collect More–Spend Better’ agenda and the broader development objectives of the European Union.” He also stated that he was confident that, going forward, the Strategic Partnership Framework that is to be concluded shortly will lead to great results in terms of better economic outcomes for the beneficiary countries.

Background information

Cooperation on capacity development has been a core component of the European Commission-IMF Partnership , and covers a broad range of issues related to good economic governance and economic institution building, as well as related human capacity development needs. In this context, the European Commission has provided steadfast support to the IMF’s multi-partner vehicles, including its network of ten regional technical assistance centers , its global thematic trust funds , and its fragile states funds; it has also supported IMF capacity development in specific countries through bilateral programs. Under the 2009 EU-IMF Framework Administrative Agreement, collaboration between the two institutions has intensified through regular staff consultations; staff exchanges; the development of a European Commission exogenous shocks facility and complementarities of EU budget support in the context of IMF lending programs; and through continued cooperation on capacity development.

TADAT is a collaborative effort of the following partners: The European Union, Germany, Japan, the Netherlands, Norway, Switzerland, the United Kingdom, the World Bank, and the IMF. The aim of TADAT is to provide a standardized means of assessing the health of key components of a country’s tax administration system and its level of maturity in the context of international good practice. TADAT helps identify the relative strengths and weaknesses in a tax administration system; facilitate a shared view among all stakeholders (e.g., country authorities, international organizations, donor partners, and technical assistance providers); and define a comprehensive reform agenda, including objectives, priorities and sequencing of implementation.

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