International Tax Administration Trends

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International Tax Administration Trends

• Terry Lutes
• ALLUVION, INC.
• November 8, 2007

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Overview

• The landscape
• Variance in needs among countries is great
• Funding sources vary carrying different processes
• Local presence/contacts is almost always
  necessary
• There is tremendous opportunity in the
  international tax administration community

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Group 1 Developed Countries

• OECD typifies rebuilding efforts after WW II and
  continued information sharing have created
  similarities
• Basic state today
• Have sound core legacy infrastructure
• Are at some stage of modernization
• Generally self-funding

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Developed Countries (cont.)

• Strategic Issues
• XBRL
• Government gateways vs. agency specific portals
• Nature of on-line services
• Modernization contracting strategy

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Group 2 Developing Countries

• Wide variance within this group China to Somalia
• Typically they
• Have tax policy issues
• Struggle with organizational and IT strategy
• Evolve in spurts
• Have lots of outside entities telling them what
  they should do

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Developing Countries (cont.)

• Examples of funding/advise sources
• World Bank/IMF
• Regional development banks (i.e. Asian, African,
  Latin American)
• European Union
• OECD
• CIAT
• Countries (U.S. Treasury Dept., USAID, USTDA)

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Doing Business Developed Countries

• Many require local presence to do business (EU
  requires EU presence)
• Self-funding means own processes
• Most have tender/RFP websites
• Some requirement pre-registration/vendor approval
  to bid (Australia)
• Some have integrator you must work through (U.K.
  ASPIRE Alliance)
• Both consulting and IT opportunities

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Doing Business Developing Countries

• Each funding source has its own rules
• IT focus is on large, comprehensive modernization
  projects
• There are some smaller, largely
  compliance-focused projects
• Internet-based services often not the focus as
  much as compliance and revenue generation
• Both consulting and IT opportunities

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Considerations Developing Countries

• Culture
• Contacts/local partners
• Contracting processes
• Timelines
• Process timelines
• Cultural timelines
• Getting paid
• Legal requirements/processes

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Summary

• There are significant opportunities in the
  international tax administration arena
• You cant do it halfwayrequires focus
• Go in with your eyes open

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• Contact information
• Terry Lutes 703.597.6471
• tlutes_at_alluvion.biz