Juan Toro Division Chief Revenue Administration Division Fiscal Affairs Department (FAD)

1. FAD TA: Designing appropriate fiscal responses to the crisis and making fiscal institutions more robust Juan Toro Division Chief Revenue Administration Division Fiscal Affairs Department (FAD)

2. FAD technical assistance (TA) • FAD coordinates closely with other TA providers: WB, IDB, EU, OECD, and donors. • Based on our comparative advantage, we focus on the design of revenue administration reforms, and rapid responses to countries’ TA needs. • Other institutions and IMF’s Regional Technical Assistance Centers support the implementation of reforms.

3. FAD TA during the crisis • Addressing fiscal challenges in crisis countries: • Hungary, Latvia, Lithuania, Romania, Ukraine,… • TA in countries suffering indirect effects: • Indonesia, Turkey, China, Macedonia, Vietnam…

4. FAD TA during the crisis • Critical challenge: • Sharp decline in government revenue • Advice focus on two critical objectives: • Contain emerging compliance risks (improve compliance) • Help taxpayers cope with the crisis

5. FAD TA during the crisis

6. FAD TA during the crisis • TA to Latvia, Lithuania, Romania, and Ukraine  adjust work plans and redeploy resources. • Hungary benefited from a medium-term TA engagement, before the Fund program. Fiscal institution-building programs in some countries have better positioned them to respond to the crisis.

7. FAD TA supports fiscal institution-building • Besides Hungary, Indonesia, Macedonia, Algeria, Cameroon, and Uganda are good examples of countries with medium-term TA programs. • FAD is also providing TA in most countries with IMF lending arrangements. • A large number of low-income countries are also receiving fiscal institution-building TA from FAD.

8. Intensity (# of missions, FY07-09): No missions Low: 1-2 Medium: 3-4 High: 5 or more FAD TA supports fiscal inst… (TA mission intensity last 3 years)

9. FAD TA supports fiscal inst… (Analytical work)

10. FAD TA supports fiscal inst… (Analytical work)

11. O N T A X A D M I N I S T R A T I O N ORGANIZATION AND MANAGEMENT O N T A X A D M I N I S T R A T I O N … TAX COMPLIANCE STRATEGY O N T A X A D M I N I S T R A T I O N Small taxpayer management David Kloeden FRAMEWORK FOR MODERN TAX ADMINISTRATION … Compliance strategy development Graham Harrison … Strategic management Dale Hart FAD TA supports fiscal inst… (Analytical work-technical notes)

12. Program of Technical Notes onTax Administration • The Framework for Modern Tax Administration • Tax Compliance Strategy • Organization and Management • Tax Administration Operations • Special Topics

13. Key lessons for TA in recent years • Rapid response was critical during the crisis and required flexibility in allocating resources. • Medium-term institution-building programs helped countries to respond to the crisis; these require sustained support in the context of surveillance and lending operations. • Analytical work is critical to keep abreast of new developments and trends.

14. THANK YOU FOR YOUR ATTENTION

15. FAD Staff Position Notes • Forthcoming SPNs: • Strengthening stabilizers • Crisis and climate issues

16. Program of Technical Notes (1)

17. Program of Technical Notes (2)

18. Program of Technical Notes (3)

19. Program of Technical Notes (4)

20. Program of Technical Notes (5)