Enhance strategic tax administration reforms through Tax Administration Diagnostic Assessment Tool in Bulgaria, Greece, and Romania

This project aimed at improving the capacity of the tax authorities of Bulgaria, Greece and Romania to identify strengths and areas for improvement in administration of taxes upon international best practices, and to plan for reforms that will improve the efficiency and effectiveness of the organisations. To this purpose, the project included a standardised assessment by the Tax Administration Diagnostic Assessment Tool (TADAT), identification of potential reform, review and update of the strategic and reform plans of the organisations.

Context

In 2022, the DG REFORM initiated a multi-country technical support project to the EU tax administrations. The purpose of this project was to support them in using the Tax Administration Diagnostic Assessment Tool (TADAT) framework to become more efficient, robust, and resilient. Bulgaria, Greece, and Romania were the first to respond positively, and the geographical location of the three countries allowed for a unique regional approach and peer-to-peer exchanges, including sharing regional and international practices in reform prioritization, costing, and strategic planning.

In the context of the post-pandemic recovery, the war in the Ukraine, the national Recovery and Resilience Plans, and the digital and green transition, this project aimed to help Member States refocus and reallocate the resources to more comprehensive and strategic approach to reforms aligned with EU priorities. In this view, project contributed to implementation of the Package for Fair and Simple Taxation adopted by the European Commission on 15 July 2020, which sets out the path towards fairer, simpler, and modernised tax systems.

Support delivered

Under the project, the participating tax authorities received an in-depth training on TADAT framework, objective and standardized assessment report following the quality standards of TADAT Secretariat, assistance to identify areas for improvement to be addressed with reforms as a priority, and recommendations on how to improve strategic planning process and update strategic plans. Furthermore, as the communication is often key success factor for changes and reforms, the project offered targeted support on stakeholder identification, communication strategy and activities to promote the efforts of your organisations to improve through reforms.

The technical support was provided by the Fiscal Affairs Department of the International Monetary Fund in close collaboration with DG REFORM and TADAT Secretariat. Each partner brought unique expertise and resources, enhancing the overall effectiveness of the assessment process. This collaborative effort not only improved the technical quality of the assessments but also built a high level of trust among participants.

Results achieved

The project resulted in the following benefits for the participating tax authorities:

• Identified strengths and the areas for improvement in tax administration systems, processes, and institutions.
• Shared views on the condition of the system of tax administration among stakeholders.
• Established consensus on the reform agenda in short, medium, and long term with a detailed approach on how to put this agenda into action immediately after the end of the project.
• Improved institutional governance for design and implementation of reforms.
• Strengthened strategic management and planning processes based on evidence.
• Reinforced capacity of the tax authorities on strategic analysis and planning.

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