June 18, 2009

Moldovan Tax Chief Reports Progress in Reform

Moldova is building a portal for electronic tax services and increasing capacity for receiving and adjudicating tax appeals as part of an initiative to streamline delivery of the country’s tax services and make them more user friendly.

During a June 11 presentation at DAI headquarters in Bethesda, Maryland, Victor Coada, director of Moldova’s State Tax Service, also discussed antifraud activities that his directorate is undertaking as well as development of new taxpayer services.

DAI/Nathan Group, a joint venture of DAI and Nathan Associates Inc., is assisting Moldova to simplify its tax services and business regulations under the Business and Tax Administration Reform (BIZTAR) project, which is funded by the U.S. Agency for International Development (USAID).

Also at the presentation, DAI’s development specialist Bryanna Millis reported that the directorate last year drafted amendments to the tax code and developed a micro-simulation model for the updated tax code, as well as analyzed value-added tax provisions to address fraud.

Attending the presentation from USAID were Robert Aten, a team leader in the Economic Growth and Trade (EGAT) Bureau, David Dod, a senior economist with the bureau; and Valerie Chien, desk officer for Ukraine, Moldova, and Belarus.

DAI President and CEO Jim Boomgard introduced Coada, and DAI’s Mark Gallagher served as moderator. To round out the discussion, DAI’s Christina Erickson and Steve Rozner discussed tax reform projects that DAI has implemented in El Salvador and Bosnia and Herzegovina.

In coordination with BIZTAR, Coada on June 8-9 attended a conference in Washington, D.C., hosted by the International Monetary Fund, and on June 10 held meetings with officials from the Treasury Department and District of Columbia tax offices.

Under BIZTAR, the DAI/Nathan Group is improving the business environment in Moldova by limiting the opportunities for corruption, reducing the red tape involved in starting and operating a business, and improving tax administration.