Tax Administration Reforms in the Caribbean: Challenges, Achievements, and Next Steps

April 4, 2017

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Format: Chicago

Stephane Schlotterbeck. Tax Administration Reforms in the Caribbean: Challenges, Achievements, and Next Steps, (USA: International Monetary Fund, 2017) accessed September 18, 2024

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

Over the past decade, governments in the Caribbean region have introduced the value-added tax (VAT) to modernize their tax system, rapidly mobilize revenue and reduce budget deficits. This paper analyzes VAT performance in the region and concludes that while it has boosted revenues, the VAT has not reached its potential. Intended as a broad-based tax with limited exemptions, a single rate and zero-rating confined to exports, the VAT’s design often lacks these characteristics. The paper also finds that although tax administration reforms can boost revenues, countries have just started to address organizational inefficiencies, data integrity issues, and operational ineffectiveness. These reforms need to intensify in order to have a more significant impact on compliance and revenue.

Subject: Auditing, Consumption taxes, Income and capital gains taxes, Public financial management (PFM), Revenue administration, Tax administration core functions, Taxes, Value-added tax

Keywords: Administration organization, Administration reform, Auditing, Caribbean, Direct tax, ECCB tax reform, Improved capacity, Income and capital gains taxes, Income tax, Mainstream operation, Resource management, Revenue administration data, Tax administration, Tax administration core functions, Tax administration organization, Tax administration problem, Tax administrations in Dominica, Tax administrations in the region, Tax administratuion reforms, Tax department, Value-added tax, Value-added tax, WP

Publication Details

Pages:

46
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2017/088
Stock No:

WPIEA2017088
ISBN:

9781475592610
ISSN:

1018-5941

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