Madagascar Administrative Tax Process Mapping
Locations within Country: Antananarivo
Services: Business Process Mapping, Business Process Reengineering, Training, Tax Automation
Context of the Assignment:
This assignment was part of the World Bank’s Second Integrated Growth Poles and Corridors Program Project (Coordination nationale du Projet Pôles Intégrés de Croissance et Corridors) (PIC2) for Madagascar. The objective of PIC2 is to contribute to increased economic opportunities and access to enabling infrastructure services, as measured by an increase in jobs and formal firms, in targeted regions.
The project comprised the following three components:
First, strengthening the enabling environment for entrepreurship and investment component will accelerate the economic recovery process by strengthening economic governance and increasing investor and private sector confidence. The project will support: (a) an investment climate reform program to improve the enabling environment for entrepreneurship and investment; and (b) a capacity building program to strengthen the government’s ability to attract and channel private investments into productive infrastructure and improved services delivery. These activities will have a strong immediate contribution to the objective by facilitating and catalyzing new private investment and job creation.
Second, sector based growth in the Atsimo-Andrefana, Anorsy and Diana regions component is composed of mutually-reinforcing activities that are specific to each select region and that aim to promote in particular tourism and agribusiness development and improved service delivery to poor populations.
Third, project implementation, monitoring and evaluation, safeguards, impact evaluation component will finance the project implementation unit and allow it to implement the project, comply with fiduciary rules and safeguards, and fulfill monitoring and evaluation, and impact evaluation commitments.
Description of the Assignment:
Apex Consulting was engaged through PIC2 to work directly with Madagascar Revenue Authority to identify, map, and simplify/streamline the administration of tax in Madagascar. The targeted processes spanned registration, filing, payment, audit, and refund for VAT, income tax, and payroll tax. Apex mapped the targeted processes and provided specific reform recommendations to the concerned authorities based on global best practices and previous experiences in the region.
The scope of the project included:
1. Benchmarking administrative procedures, using process mapping techniques
2. Evaluateing and re-engineering the mapped processes based on best practices
3. Produceing actionable reform recommendations for the government of Madagascar (GoM)
4. Training the GoM staff on doing similar business process mapping (BPM) exercise
To accomplish this assignment’s goals, we had carried out the following tasks:
- Conducted ICT assessment of tax-related procedures
- Assessed the current audit procedures
- Conducted desk research and reviewed pertinent laws, regulations, manuals, and guidelines
- Identified the key regulatory institutional stakeholders
- Developed detailed process maps of the current situation (as-is maps)
- Developed simplified/re-engineered process maps, building on the findings specified in the initial process mapping (as-is) in addition to observations, findings, and concerns observed by our team in the process of consultation with the beneficiaries such as bottlenecks, weak links, and poorly defined steps as well as improvements and simplification recommendations
- Trained staff on business process mapping and re-engineering