The World Bank Implementation Status & Results Report
Kazakhstan - Tax Administration Reform Project (P116696)
Kazakhstan - Tax Administration Reform Project (P116696)
EUROPE AND CENTRAL ASIA | Kazakhstan | Governance Global Practice |
IBRD/IDA | Investment Project Financing | FY 2010 | Seq No: 16 | ARCHIVED on 03-Oct-2019 | ISR38508 |
Implementing Agencies: REPUBLIC OF KAZAKHSTAN, State Revenue Committee
Key Dates
Key Project Dates
Bank Approval Date: 16-Feb-2010 Effectiveness Date: 17-Feb-2011
Planned Mid Term Review Date: 18-Nov-2013 Actual Mid-Term Review Date: 27-Jan-2014
Original Closing Date: 31-Dec-2014 Revised Closing Date: 31-Dec-2020
pdoTable
Project Development Objectives
Project Development Objective (from Project Appraisal Document)
The development objective of the proposed project is to reform and strengthen the tax administration in order to improve the level of voluntary compliance, enhance
effectiveness to fight tax evasion, increase administrative efficiency, and reduce the potential for corruption. The project would have a positive impact on the business
climate by improving client services, strengthening institutional and human capacity in the tax administration, and reducing the burden of taxpayer compliance.
Has the Project Development Objective been changed since Board Approval of the Project Objective?
No
Components Table
Name
Institutional Development:(Cost $4.85 M)
Operational Development:(Cost $11.28 M)
IT Infrastructure Development:(Cost $27.60 M)
Project Management:(Cost $4.20 M)
Overall Ratings
Name Previous Rating Current Rating
Progress towards achievement of PDO ►Moderately Satisfactory ►Moderately Satisfactory
Overall Implementation Progress (IP) ►Moderately Unsatisfactory ►Moderately Unsatisfactory
Overall Risk Rating ►Substantial ►Substantial
Implementation Status and Key Decisions
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The World Bank Implementation Status & Results Report
Kazakhstan - Tax Administration Reform Project (P116696)
All activities envisaged in the institutional development and operational development components have been completed, including extensive business process reengineering
and legislative changes to introduce universal filing system and improve tax administration. The Government revised the universal filing introduction schedule, which was
originally planned to be launched on January 1, 2020. According to the new schedule, the first out of four phases will kick off on January 1, 2021 and the last phase,
involving nation-wide roll out, will commence in 2025 only.
The IT Component has shown good progress since the last ISR, except in terms of procurement related to the ITMS. The Risk Management System went to operation
starting January 2019. The e-invoices system aimed at increasing VAT compliance, is progressing as planned: the E-invoicing module has been deployed and is now
successfully in use; the Virtual Warehouse is in full production status starting January 1, 2019. The remaining modules will be deployed by the end of 2019. Work on
Integrated Database is progressing as planned and will complete by December 2020. The procurement of the ICB-01 "Integrated Tax Management System (ITMS)" was
cancelled after bids were not considered to meet the minimal qualification requirements.
Risks
Systematic Operations Risk-rating Tool
Risk Category Rating at Approval Previous Rating Current Rating
Political and Governance -- ►Substantial ►Substantial
Macroeconomic -- ►Substantial ►Substantial
Sector Strategies and Policies -- ►Substantial ►Substantial
Technical Design of Project or Program -- ►Moderate ►Moderate
Institutional Capacity for Implementation and Sustainability -- ►Moderate ►Moderate
Fiduciary -- ►Moderate ►Moderate
Environment and Social -- ►Low ►Low
Stakeholders -- ►Moderate ►Moderate
Other -- -- --
Overall -- ►Substantial ►Substantial
Results
PDO Indicators by Objectives / Outcomes
Voluntary Compliance
IN00742537
►Increase in percentage of electronic filing (legal entities) (Percentage, Custom)
Baseline Actual (Previous) Actual (Current) End Target
Value 61.20 99.00 99.00 96.00
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The World Bank Implementation Status & Results Report
Kazakhstan - Tax Administration Reform Project (P116696)
Date 31-Dec-2008 04-Feb-2019 17-Sep-2019 31-Dec-2020
Enhance effectiveness to fight tax evasion
IN00742538
►Increase in adjustments made as a result of tax audits per audit (Number, Custom)
Baseline Actual (Previous) Actual (Current) End Target
Value 35.00 29.10 29.10 50.00
Date 31-Dec-2013 04-Feb-2019 17-Sep-2019 31-Dec-2020
The calculation methodology was changed during the restructuring of September 2016. If previously the amount of
adjustments (in million KZT) was divided by the number of staff working in audit, starting September 2016, the amount of
Comments: adjustments (in mln KZT) is divided by the number of audits. Subsequently the baseline and target values were
revised. The indicator is expected to pick up in the next ISR, after at least a year has passed since the RMS went live.
IN00742567
►VAT Productivity (Percentage, Custom)
Baseline Actual (Previous) Actual (Current) End Target
Value 0.30 0.35 0.38 0.40
Date 31-Dec-2010 23-Aug-2018 17-Sep-2019 31-Dec-2020
Data is for 2018
Comments:
Increase administrative efficiency
IN00742539
►Increase in percentage of field audits selected by automated procedure (Percentage, Custom)
Baseline Actual (Previous) Actual (Current) End Target
Value 0.00 0.00 17.25 50.00
Date 31-Dec-2008 04-Feb-2019 17-Sep-2019 31-Dec-2020
The Risk Management System is in full operation starting January 2019. As of September 17, 2019, 17.25%
Comments: of comprehensive field audits conducted were selected using automated procedure.
Reduce the potential for corruption
IN00742540
►Public Perception of quality of taxpayer services (Text, Custom)
Baseline Actual (Previous) Actual (Current) End Target
Average: 89.5%. 89%
Average - 88.5%, 88% legal Average - 87%: 85% (legal Average - 87%: 85% (legal
Value (legal entities); 90%
entities, 89% individuals entities), 89% (individuals) entities), 89% (individuals)
(individuals)
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The World Bank Implementation Status & Results Report
Kazakhstan - Tax Administration Reform Project (P116696)
Date 31-Dec-2010 27-Jul-2018 17-Sep-2019 31-Dec-2020
The Survey has been conducted every two years by the Taxpayers Association. This ensured the transparency and
independence of survey results. However, the Taxpayer Association informed the SRC of the shortage of funds to finance
Comments: the Survey in 2019. Thus, the Bank team and the SRC will discuss the possibility of adding the Survey into the
procurement plan during the next mission.
Reduce compliance cost
IN00742566
►Reduction in average time taken by taxpayers to comply with tax obligations as evidenced from survey (Number, Custom)
Baseline Actual (Previous) Actual (Current) End Target
Value 271.00 182.00 182.00 182.00
Date 31-Dec-2008 04-Feb-2019 17-Sep-2019 31-Dec-2018
Based on Doing Business findings.
Comments:
Intermediate Results Indicators by Components
Institutional Development
IN00742568
►Reorganization and consolidation of the TC on functional rationalization (Text, Custom)
Baseline Actual (Previous) Actual (Current) End Target
The End Target has been
The End Target has been
achieved. Tax audits
achieved. Tax audits
centralised at the oblasts
centralised at the oblasts
(regional offices) level and
(regional offices) level and Reorganization and
Value Not yet audit departments
audit departments eliminated consoldation is rolled out
eliminated at the rayon
at the rayon (district) offices.
(district) offices. Taxpayer
Taxpayer services centers are
services centers are rolled
rolled out.
out.
Date 31-Dec-2008 23-Aug-2018 23-Aug-2018 31-Dec-2018
Operational Development
IN00742569
►Development of automated risk management (Text, Custom)
Baseline Actual (Previous) Actual (Current) End Target
Value Not present RMS is fully operational RMS is fully operational Systems fully operational
Date 31-Dec-2008 04-Feb-2019 10-Sep-2019 31-Dec-2020
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The World Bank Implementation Status & Results Report
Kazakhstan - Tax Administration Reform Project (P116696)
IT Infrastructure Development
IN00742570
►Development of design and systems architecture for the integrated IT system with major functions (Text, Custom)
Baseline Actual (Previous) Actual (Current) End Target
ICB-03 under ICB-03 under
Value Not present implementation. ICB-01 - implementation. ICB-01 - System fully operational
cancelled. cancelled.
Date 31-Dec-2008 04-Feb-2019 10-Sep-2019 31-Dec-2020
Integrated Tax Management System (ICB-01) will be designed in-house by the MOF. The Project will provide requisite
Comments: hardware and licences to operate the System.
Data on Financial Performance
Disbursements (by loan)
Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed
P116696 IBRD-78350 Effective USD 17.00 13.50 3.50 6.28 7.22 47%
Key Dates (by loan)
Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date
P116696 IBRD-78350 Effective 16-Feb-2010 12-Jul-2010 17-Feb-2011 31-Dec-2014 31-Dec-2020
Cumulative Disbursements
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The World Bank Implementation Status & Results Report
Kazakhstan - Tax Administration Reform Project (P116696)
Restructuring History
Level 2 Approved on 03-Dec-2014 ,Level 2 Approved on 26-Sep-2016 ,Level 2 Approved on 07-Sep-2017 ,Level 2 Approved on 18-Jan-2018
Related Project(s)
There are no related projects.
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