Iran: ‘Comprehensive Taxation Plan’ Tipped as Turning Point

Asian share markets bounced broadly on Monday as investors dared to hope for both progress at Sino-U.S. trade talks in Washington this week and more policy stimulus from major central banks.

Iran is taking the final steps in its transition to a modern, streamlined system of taxation. By implementing the electronic execution of taxation procedures, the “Comprehensive Taxation Plan” aims to help widen the tax base, identify potential taxpayers and minimize tax evasion.

Kamel Taqavinejad, the ex-chairman of Iran National Tax Administration and the soon-to-be deputy health minister, has expounded on the progress made on each of these goals in an interview published on INTA’s website. According to Financial Tribune, a translation of his remarks follows:

The Comprehensive Taxation Plan is a turning point based on information and communications technology. It incorporates all organizational structure, pillars and procedures, as well as rules and regulations. It is devised to transform the taxation system from a traditional into a modern, contemporary system, which means that all infrastructures will undergo a meaningful change.

How It All Started

The Comprehensive Taxation Plan was put on the agenda of the Third Five-Year Development Plan (2001-6) in 2004.

Deloitte, one of Canada’s leading professional services firms, providing audit, tax, consulting, financial and risk advisory services to local and international clients, won the consultancy tender launched by the office of the Comprehensive Taxation Plan the following year.

With the help of in-house and outsourced Iranian and foreign experts, INTA designed the comprehensive taxation roadmap in five chapters and 32 projects.

Bull SAS, a French-owned computer company of worldwide recognition in the public sector for its business and technical expertise, particularly in aligning customs and tax systems to new international demands, won the international tender for the designing and pilot implementation of the project. Yet, due to reasons beyond the Ministry of Economy and INTA’s control, the contract with the French company was not signed before March 2009. Notably, the company’s contract terminated last June and all source codes are now at the disposal of INTA.

Currently, the integrated software of the plan is INTA’s biggest information and communications technology asset and part of Iran’s cyber capital.

Objectives Pursued

The plan’s macroeconomic goals include boosting tax revenues through anti-tax evasion measures, eliminating unnecessary exemptions, identifying new taxpayers and accelerating tax payment procedures, in addition to mechanizing and streamlining taxation procedures.

Increasing economic transparency and public awareness about how tax statements are presented is the most important advantage of the plan.

Tax statements, payments and other services will go online and consequently help reduce intra-city travels and related costs when the plan is implemented completely.