USAID Tax Reform Program In Armenia Underway

By Tatiana Smolenskaya, Tax-News.com, Moscow

27 February 2013

The US Agency for International Development (USAID) has begun a four-year tax reform program in Armenia, with Deloitte providing advice to the State Revenue Committee on implementing improved electronic services, record-keeping and analysis, and a new tax personnel management system.

Speaking at the signing of a memorandum of understanding with USAID, Committee Head Gagik Khachatryan told reporters that the move forms part of Armenia's Tax Administration Modernization Project, which was adopted in 2012 in partnership with the World Bank.

According to Khachatryan, the result will be an electronic information management system in line with the best international practices, as well as an optimal tax authority structure, highly proficient tax personnel, a modern risk-based tax control system, and a high-quality service for taxpayers. As well as improvements to the "Taxpayer 3" electronic system, data-processing stations will be established, and the electronic reporting and payment systems will be integrated. The new management structure, Khachatryan explained, will save human and financial resources, reduce the risk of corruption, and reduce interaction between tax officers and taxpayers.

Khachatryan drew attention to Armenia's "consistent and active collaboration with partner donor organizations," which he explained contributes greatly to the implementation of reforms.

USAID has been involved in Armenia since 1992, and is currently assisting the country with economic, political and social transition. Current projects include: increasing the country's economic competitiveness; promoting civic participation and access to a wide range of media outlets; expanding access to quality health care and social services; protecting the country's most vulnerable citizens from poverty; implementing people-to-people and business-to-business ties with Turkey; and supporting Armenia's efforts to integrate fully into the regional economy.

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