Annex 1: Results Framework Project Development Objective (PDO): to improve the effectiveness of operational functions of Montenegro’s Tax Administration and to reduce the compliance costs for corporate taxpayers Core Unit of Measure Baseline Cumulative Target Values** Data Source/ Methodology for Data Collection Description (indicator definition etc.) 2018 2019 2020 2021 2022 PDO LEVEL INDICATORS Improved Effectiveness of operational functions Tax Gap for VAT VAT to consumption ratio is being used as proxy Percent Ratio 12.3 (2010-14 average) 12.3 12.3 12.5 12.8 13.4 Annual Monstat data and MTA’s estimates based on taxpayer survey and methodology developed in the first year of project implementation MTA Planning and Analysis Department Methodology and baseline for tax gap to be developed during the first year of the project. ratio is used as a proxy indicator. % of returns filed on time Percentage VAT: 82 (2016) CIT: 89 (2016) 82 89 82 89 86 94 90 96 92 98 Annual MTA data MTA Collection and IT Department Number of returns on time as percentage of to the total number of returns for VAT and CIT Reduced compliance costs Time it takes to pay taxes and social contributions Hours 314 (2015) 314 310 280 250 200 Annual Doing Business data MTA PMU Number of it takes to comply with tax and social security legislation
INTERMEDIATE INDICATORS Estimated tax gap is calculated annually and suitable for publication by year 5. Yes/No No (2016) No Yes yes yes Yes (with publication) Annual Monstat data and MTA’s estimates based on taxpayer survey and methodology developed in the first year of project implementation MTA Policy and Analysis Departments The internal procedure will be developed by the MTA Policy and Analysis Departments MTA satisfaction with the new skills and ability to apply them, disaggregated by gender Data from the Staff Satisfaction Survey conducted by the MTA is being used as a Proxy Percentage (2018) 65 (2016) Increase by 0%. 65 Increase by 0%. 65 Increase by 5%. 70 Increase by 7%. 72 Increase by 10%. 75 Annual Survey to be developed during first year of project implementation Independent Agency survey question on Employee satisfaction on new skills MTA Planning and Analysis Department and Taxpayer Services Department Percent of staff satisfied with the quality of new skills acquired Payment compliance rate for VAT Percentage VAT: 62 (2016) 62 62 75 80 85 Annual MTA’s Performance Indicators MTA Collection and IT Department Revenues paid on time to total revenues declared during the year Payment compliance rate for CIT Percentage CIT: 81 (2016) 81 81 86 88 91 Annual MTA’s Performance Indicators MTA Collection and IT Department Revenues paid on time to total revenues declared during the year
Table 1: Procurement packages with methods and time schedules Reference Number Type Description Domestic Preference (Yes/No) Estimated Start of Proc’mt Process Review by Bank (Prior/Post) RARP/1 Shopping PMU Office equipment including computer equipment and peripherals, furniture, FM software license No 2018-Feb Post RARP/2 ICB Equipment for primary and business continuity data centers (servers, racks, uninterrupted power supply, generators, network, tape, storage) No 2019-Jan Post RARP/3 ICB IRMS software and hardware No 2019-June Prior Table 2: Consultancy assignments with selection methods and time schedule Reference Number Selection Method Description Estimated Start of Procurement Process Review by Bank (Prior/ Post) RARP-CS/1 IC PMU local project manager 2017-Oct Prior RARP-CS/2 IC PMU local project administrative support 2017-Oct Post RARP-CS/3 IC PMU translation services 2017-Oct Post RARP-CS/4 IC PMU International advisor to project manager 2018-Mar Post RARP-CS/5 QCBS IT consulting firm to assist in stabilization of current system 2018-July Post RARP-CS/6 CQ Design and conduct taxpayer and staff survey's including analysis of results 2018-July Post RARP-CS/7 CQ Design and execution of communication strategy 2018-July Post RARP-CS/8 IC Analytics including Tax Gap 2018-July Post RARP-CS/9 QCBS Change management experts + training 2018-July Post RARP-CS/10 CQ PMU External Auditors for project 2018-Mar Post RARP-CS/11 QCBS Operational Development for MTA (registration, returns, compliance, enforcement, 2018-June Prior