During FY 1997/98 the Tax Administration Reform Project (TaxARP) continued work on the five project components described below.

BROADEN THE TAX BASE

The Taxpayer Registration Number (TRN) system was implemented in November 1996. The TRN was required to carry out specified transactions with the revenue departments. As part of the effort to broaden the tax base, effective April 1, 1997 the number was required to carry out all revenue transactions except payment of property tax.

Up to end-February 1998, 700,000 confirmed numbers have been assigned to individuals and organisations.

A TRN can now be assigned at all twenty-seven collectorates across the island following deployment of computers and staff training.

STRENGTHEN ORGANISATION AND MANAGEMENT

Reorganisation of tax administration along functional lines is continuing. Legislation to establish the new structure has been prepared and will be presented to Parliament during the 1998/99 legislative year.

During FY 1997/98, the project has emphasized training to ensure staff will be equipped to function efficiently in the new environment. Particular attention has been given to staff in the Western Region in preparation for the commissioning of the new Montego Bay Revenue Service Centre that will operate under the "one stop" concept to facilitate the taxpayer.

The programme to improve the physical infrastructure has been accelerated with construction of the new Revenue Centre in Spanish Town scheduled for completion during 1998. Refurbishing work has been completed in some collectorates and is continuing in others.

CONTROL TAX EVASION

The legal framework is under review to strengthen the enforcement capability of the administration. A bill providing for amendments to the Revenue Administration Act has been drafted and is being examined by a Select Committee of Parliament.

TaxARP continues to implement improved audit selection policies and conduct training in more up-to-date assessment and investigation methodologies.

IMPROVE TAX COLLECTION

The Crown Agents Institutional Development Group completed the first phase of the Integrated Computerised Tax Administration System (ICTAS) project in January 1998. Requirements for the system have been defined and detailed, operating and performance characteristics identified and other aspects documented.

The remaining work to customise and implement the system will be completed by year 2000.

FACILITATE VOLUNTARY COMPLIANCE

In the continuing effort to ensure taxpayer compliance, work to simplify procedural requirements has begun.

A Forms Design Sub-project with two components, training and technical work, was designed and implemented between September and December 1997. This was the first stage of an ongoing activity to design the internal and external forms to be used in the restructured tax system.

Dissemination of information through the provision of brochures and pamphlets now available in the collectorates will be further increased through the introduction of specialist taxpayer assistants. They are now being trained to handle face to face contacts and telephone queries.

In FY 1998/99, TaxARP will focus on transition activities to enhance the efficiency and effectiveness of revenue administration.

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