CARIBBEAN COMMUNITY SECRETARIAT The implications for tax administration of the csme july, 2006 Lenox forte

Implications of the CSME the immediate reduction in revenue from traditional sources the shift in economic activity and trade Possible rise in intra-regional trade the production of more intangible commodities the possibility of higher leakages Difficulties in applying traditional methods of collection

Workshop Tasks – Group I Identify areas in our national legislation and administrative procedures that restrict the sharing of information across national tax administrations and propose changes Identify areas and methods of collaboration with other agencies that might facilitate the identification and capture of potential sources of taxation;

Workshop Tasks – Group II Identify areas and mechanisms that would promote cross border collaboration in tax administration on a daily basis

Workshop Tasks – Group III Examine technological applications that could assist in lowering cost to the taxpayer and encourage compliance Identify international developments in tax administration that threaten to make the region a high taxation location for investment and technological innovation; Identify potential areas of tax evasion facilitated by the CSME process that a regional approach would be a superior solution to national efforts

Workshop Tasks – Group IV Consider a schedule or plan of action for the advancement of an agenda for reform. Identification of possible sources of financing for the reform programme