The World Bank Report No: ISR9682 Implementation Status & Results Armenia Tax Administration Modernization Project (P111942) Public Disclosure Copy Operation Name: Tax Administration Modernization Project (P111942) Project Stage: Implementation Seq.No: 1 Status: ARCHIVED Archive Date: 31-Mar-2013 Country: Armenia Approval FY: 2013 Product Line: IBRD/IDA Region: EUROPE AND CENTRAL ASIA Lending Instrument: Specific Investment Loan Implementing Agency(ies): State Revenue Committee Key Dates Board Approval Date 03-Jul-2012 Original Closing Date 30-Apr-2016 Planned Mid Term Review Date 20-Apr-2015 Last Archived ISR Date Effectiveness Date 28-Dec-2012 Revised Closing Date 30-Apr-2016 Actual Mid Term Review Date 20-Apr-2015 Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project development objective (PDO) is to modernize Armenia’s tax administration to (i) increase voluntary tax compliance, (ii)reduce tax evasion, (iii) reduce compliance costs; and (iv) increase administrative efficiency. This objective will be achieved by: • introducing modern, integrated information technology to support SRC operations; • improving data exchange between the SRC and other agencies to enhance better risk management and targeting of compliance activities (“third party information�); • reengineeringand automation of business processes to improve efficiency and effectiveness; and • expanding eGovernment, including e-filing and e-payments to lower the compliance burden for the private sector. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Institutional Development 2.20 Public Disclosure Copy Process Modernization and Compliance Management 1.00 Infrastructure and System Modernization 11.00 Project Management 0.90 Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Overall Implementation Progress (IP) Satisfactory Overall Risk Rating Moderate Page 1 of 5 The World Bank Report No: ISR9682 Implementation Status Overview The Tax Administration Modernization Project (TAMP) became effective on December 28, 2012, after the parliamentary ratification of the financing agreement. Since broad approval the State Revenue Committee (SRC) with the support from the Bank has further advanced projection preparation activities. The Project Implementation Plan (PIP) and Project Operations Manual (POM) have been completed and implementation arrangements have been set up (pursuant to the provision in the financing agreement). SRC has also prepared Public Disclosure Copy the TOR for the procurement of various consultants to support projection implementation and for initial contracts to be procured under the Project. Bank provided no objection (NO) on December 18, 2012 to the draft ToR for developing technical specifications for modules of Taxpayer 3 System. The The USAID contractor that will provide complementary technical assistance has been mobilized and commenced initial scoping and support activities with MOF and SRC. The Bank has been coordinating with USAID to ensure the close alignment of support activities from the outset. Locations No Location data has been entered Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Average Adjustment result from audits Amount(USD) Value 10.10 12.10 Date Comments Number of active VAT taxpayers Number Value 11800.00 12400.00 Date 01-Jan-2011 01-Jan-2016 Comments Number of active CIT taxpayers Number Value 28939.00 30400.00 Date 01-Jan-2012 01-Jan-2016 Comments CIT productivity Percentage Value 0.10 0.14 Date 13-Feb-2012 30-Apr-2016 Comments Public Disclosure Copy Ratio of Revenue collected to SRC operating Number Value 74.00 83.00 costs Date 13-Feb-2012 30-Apr-2016 Comments Perception of taxpayers regarding level of Percentage Value 0.00 0.00 professionalism and honesty in tax Date 13-Feb-2012 30-Apr-2016 administration as measured by Comments biannualsurveys (differentiated by gender) Intermediate Results Indicators Page 2 of 5 The World Bank Report No: ISR9682 Indicator Name Core Unit of Measure Baseline Current End Target Number of tax inspectors trained (differentiated Days Value 0.00 13800.00 by gender). Date 13-Feb-2012 30-Apr-2016 Public Disclosure Copy Comments Number of tax inspectorates Number Value 39.00 29.00 Date 13-Feb-2012 30-Apr-2016 Comments Achievement of end target will depend on network connectivity. SRC adopted modernized organizational Text Value Current SRC structure is Segmented, functional structure, based on workflow analysis based territorial structure, organization adopted. based on face-face interactions with clients Date 13-Feb-2012 30-Apr-2016 Comments Provision and Installation of Equipment and Text Value Outdated equipment and New equipment and furniture Furniture for Training Institute furniture deployed in training deployed institute Date 13-Feb-2012 30-Apr-2016 Comments Service centers established Yes/No Value No Yes Date 13-Feb-2012 30-Apr-2016 Comments Percentage of total tax returns filed Percentage Value 20.00 60.00 electronically Date 13-Feb-2012 30-Apr-2016 Comments Time to prepare and pay taxes Hours Value 500.00 400.00 Date 13-Feb-2012 30-Jun-2016 Public Disclosure Copy Comments Disaster Recovery Center Operational Yes/No Value No Yes Date 13-Feb-2012 30-Apr-2016 Comments Modern Core IT System Established and Number Value 0.00 4.00 Operational (monitored by sub-indicators:(a): Date 13-Feb-2012 30-Apr-2016 Data Processing Center Operational(b):Data Comments Modules deployed Page 3 of 5 The World Bank Report No: ISR9682 Warehouse Operational(c): IRMIS Operational (d): IT Security and Access Man Network Capacity and IP Telephony Yes/No Value No Yes operational Date 13-Feb-2012 30-Apr-2016 Public Disclosure Copy Comments Data on Financial Performance (as of 31-Jan-2013) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P111942 IDA-51140 Effective 03-Jul-2012 09-Jul-2012 28-Dec-2012 30-Apr-2016 30-Apr-2016 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P111942 IDA-51140 Effective XDR 7.80 7.80 0.00 0.00 7.80 0.00 Disbursement Graph Public Disclosure Copy Key Decisions Regarding Implementation On July 13, 2012 a Memorandum of Understanding (MoU) was signed between the World Bank and the USAID as a statement of intent that they will collaborate to achieve common objectives. Page 4 of 5 The World Bank Report No: ISR9682 Restructuring History There has been no restructuring to date. Public Disclosure Copy Related Projects There are no related projects. Public Disclosure Copy Page 5 of 5