8/10/2016/IMF

The European Commission and the International Monetary Fund (IMF) signed a €2 million (about US$2.2 million) agreement to support assessments of tax administrations using the Tax Administration Diagnostic Assessment Tool (TADAT). The signing took place in Washington, D.C. today, during a meeting between Stefano Manservisi, the Director General for the European Commission’s Directorate General for International Cooperation and Development (EuropeAid), and IMF Deputy Managing Director Carla Grasso.

Ms. Grasso noted that she was pleased to see the European Commission’s support for TADAT, which provides comprehensive baseline diagnostic assessments of tax administration functions that are the basis for developing prioritized and well-sequenced reform plans to boost revenue mobilization in developing countries. She noted further that the current agreement was an important step in strengthening cooperation between the two institutions in a core area of IMF expertise, and that she looked forward to concluding shortly the Strategic Partnership Framework that will guide the cooperation between the two institutions.

Mr. Manservisi stated that “Working with the IMF in the area of capacity development, including through TADAT, greatly supports the European Commission’s own 2015 ‘Collect More–Spend Better’ agenda and the broader development objectives of the European Union.” He also stated that he was confident that, going forward, the Strategic Partnership Framework that is to be concluded shortly will lead to great results in terms of better economic outcomes for the beneficiary countries.