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Tax Administration Reform Strategy and Implementation

Contract Award

General Information
Country:   Mongolia
Notice/Contract Number:   GAP/C/C1-008
Publication Date:   Nov 11, 2007
Funding Agency:   World Bank
Buyer:   MN-Governance Assistance
Eligibility of Bidders:   The consulting firm to be selected to provide the required technical assistance must have proven experience in providing consulting services to large organizations in the public sector in relation to institutional development, human resources management, tax process re-engineering, transparency and accountability, and accompanying IT systems development and management. Consulting firm must also have the following minimum qualifications:
• proven experience in the public sector, in particular in tax agency, over at least five multi-year engagements;
• demonstrated experience in consulting to public sector institutions, preferably revenue collection agencies, with institutional development and human resource/ compensation/ incentives issues;
• demonstrated experience in tax business processes and tax process re-engineering, including strong record of change management execution and successful implementation experience in risk management in tax administration;
• strong record of delivering complex public sector IT projects and installations on time and on budget;
• excellent analytical skills with capabilities to analyze and quickly update and summarize written and oral information;
• good communication skills with capacity to prepare effective written reports and documents, as well as for conducting interviews and presentation to small audience; strong experience in communications with public administration management.
• excellent interpersonal skills with ability to function effectively and collaboratively in multicultural team environment.
• consultant will be expected to be familiar with Mongolian legislation and in particular with civil service rules, tax policy, and tax enabling legislation in Mongolia.
• qualifications and skills required for IT consultants are specified in Attachment – 1
Original Language:   English

Contact Information
Address:   Oyungerel Gonchig
Project Manager
Project Coordination Unit of the Governance Assistance Project
Room # 304, 3rd Floor, Peace Building,
Sukhbaatar Street 8/5, Chingeltei District
Ulaanbaatar
Mongolia
Telephone:   (976-51) 265-782
Fax:   (976-11) 7011-0582
Email:   Click here

Goods, Works and Services

 

Original Text

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Contract Awarded by Quality – Based Selection (QBS)

1. Project Country: Mongolia
2. Grant Number: H222 – MOG / Governance Assistance Project (GAP)
3. Scope of Contract:

Mongolia has received a Grant from the International Development Association (IDA) for a Governance Assistance Project, and it intends to apply part of the proceeds of this grant to make payment under the contract for the Tax Administration Reform Strategy and Implementation sub-component.

The sub-component of the GAP will focus on (a) developing a modern, fair and transparent tax administration that operates with high levels of integrity; (b) promoting voluntary compliance, with a balance between good taxpayer service and effective enforcement; (c) improving the climate for business investment in Mongolia and reduce compliance costs; (d) moving the Mongolian Tax Administration away from a policing culture to a service culture while maintaining good levels of revenue collection.

The Minister of Finance has taken overall responsibility for this project, and the goal of this subcomponent is to make improvements across all relevant GDNT systems and policies – including organizational design and workflow, supporting IT systems, and other areas – in order to achieve the objectives stated above. The GAP project will then pilot these reforms in two key units: State Budget Revenue and Inspection Department (LTU) and the Khan-Uul district tax office. By demonstrating the effectiveness of the intended reforms, the Government of Mongolia would then seek to introduce the changes from the GAP project in a second phase of activity, not covered under the scope of the current project.

Tax collection will be based on voluntary compliance facilitated by an appropriate combination of taxpayer service and assistance programs, with well-managed and more strategic audit and enforcement capacity. The introduction of a risk management framework, increase of transparency, re-engineering and computerization of business processes, strengthening of the large taxpayer unit, and the introduction of best practice human resource management and incentive policies are key elements of the reform. The project will entail an investment over a period of 5 years needed to achieve the stated objectives in the basic organizational policies, platforms, and systems, and in the two pilot units. The project will have three main sub-components:

• An institutional development sub-component that will deal with the organizational design of the tax administration to match new operational requirements; strengthen the legal and regulatory framework; improve human resource management, and develop a strong focus on integrity. This activity will also develop an overall MTA corporate strategic plan. In addition, this activity will address the need to strengthen and change HR policies and strategy; augment the capacity of the State Budget Revenue and Inspection Unit (Large Taxpayer Unit); and examine the supporting legal framework to identify needed changes.
• A tax operational process re-engineering sub-component that will aim to improve the operational processes and strengthen the operational functions in all phases of work, from registration, filing, declaration and payment processing, to the downstream activities of audit, enforcement, arrears collection, taxpayer services and dispute resolution and appeal. The sub-component will concentrate on making workflow improvements in all major processes, but with special attention to instituting a risk management framework and system to better target audit activity. Additional activities in this sub-component include improvements to taxpayer service, outreach, and participation, and identification of key performance metrics for GDNT and other key policies and procedures that warrant disclosure. Finally, this component will oversee the implementation of the needed changes to all policies and platforms as required in order to enable GDNT to pilot the reforms in the LTU and Khan-Uul district tax office.
• An IT Development sub-component that will develop new IT structure and an IT strategy, and specify the software/hardware and network optimal solutions required for implementing the new information system needed to support the modernized tax operations, new workflow, revised policies, enhanced disclosure needs, and other elements of the reform plan. The IT sub-component will build the necessary IT support skills, data assets and collection processes, and back-up capabilities to support not just the two pilot reform units but the entire tax administration with upgraded IT capabilities.

The objective of this assignment is to support the GDNT in the development of a comprehensive reform of its strategy, policies, processes, and service culture, culminating in a successful trial of the new processes, policies and systems in two pilot units of the tax administration, and all of the necessary supporting activities (including the underlying IT architecture, IT strategy and technical specification required for implementing the new information system, support and consultation on preparation of related bidding document).

Disclosure Report for Contracts Awarded by QBS method

Project ID: P098426
Project name: GAP Project;
Consultant / Contractor Name & Address: SIPU International AB, Sweden in association with Swedish Tax Agency;
Contract signing date: October 24, 2007
Procurement Method: Quality-Based Selection
Price: USD 1,117,680.00
Duration: 30 man-months over an elapsed time of 8 months
Summary scope of contract: Consultancy Service for Tax Administration Reform Strategy and Implementation
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