IMF Working Papers

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

By Stephane Schlotterbeck

April 4, 2017

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

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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:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2017/088

  • Stock No:

    WPIEA2017088

  • ISBN:

    9781475592610

  • ISSN:

    1018-5941