81310203-Strengthening Digital Processes at the Cameroonian Tax Administration

The Ministry of Finance of Cameroon is committed to engage public finances reforms to increase the transparency and efficiency of their financial management. These reforms are monitored through the Global Reform Plan of Public Finance Management (PGRGFP) since 2019. Its main objective is "to provide Cameroon with a Public Finance Management system that is transparent, efficient, compliant with international standards, respectful of the legal and regulatory prerogatives and attributions of institutions and administrations, as well as those of other players [...], and resolutely placing public finances at the service of the country's development and the well-being of its citizens". A new strategic plan starting 2024 is under elaboration considering the results of the most recent Public Expenditure and Financial Accountability (PEFA) evaluation. Digital transformation is at the centre of these strategic papers with the interconnection between stakeholders being one of the biggest challenges. The DGI is a key player in the implementation of these reforms. Especially in the field of digitalisation, the DGI has engaged ambitious measures to transform the tax administration from one that focuses on transactions into one that is centred around data, increasing integrity and simplifying fiscal processes. Data analysis and management tools play a key role in modernizing the tax administration and improving its transparency. The DGI builds on capitalizing on information and communication technologies (ICT) to increase resource mobilization and improve the quality of services provided to taxpayers. Since 2018, the DGI is implementing its modernization plan, which addresses multiple challenges of the tax administration that come with a paper and cash-based institution. Reforms are carried out progressively with the support of public authorities and the accompaniment of technical and financial development partners, such as the KfW, Expertise France, European Union, IMF, World Bank and AfDB. The main objective of the reforms is to align Cameroon's tax system with international best practices and help boost its performance by transforming tax policy and the tax administration equally. In 2017 the DGI has undergone a TADAT evaluation (Tax Administration Diagnostic Assessment Tool), which recognized the progress made in the field of digital transformation and highlights several strengths and weaknesses that are gradually addressed through annual action plans. The above-mentioned IT tools are constantly refined to address weaknesses identified by the TADAT evaluation. A new evaluation is currently under preparation. The DGI's digital transformation covers the digitization of both procedures and tax functions with the aim to improve performance, by saving costs, space and human resources, and thereby securing revenues, increasing the reliability of information and simplifying procedures. DGI is currently handling its different processes and services in several separate IT systems, which will be integrated into one environment in 2024. Among them are several applications that have been developed by RDF with the support of GIZ, including ATOM for the registration of taxpayers, GovIn/TAS Gov for managing online tax declarations, FUSION a data exchange and risk analysis tool and Cerbère for tax audits. A new interconnected interface called Harmony 2 will allow its users to access through a Single Sign On the taxpayer registry, the online tax declaration services, the payment management tool and other microservices of the DGI. This will be a transitional solution in light of the ongoing development of the Integrated tax management system SIGIT, which is expected to launch in 2026 with the support of the German Development Bank (KfW). An essential pillar of the PADGOF programme"s Output 4 (Improving efficiency and transparency of tax and expenditure management by the DGI and selected sector ministries) is to finalise and sustainably anchor existing IT application within the tax administration. This includes make all existing GIZ supported applications fit for the TADAT evaluation, upgrading the DGI website to include a FAQ section on technical issues in the use of the abovementioned IT applications and the development of user manuals. In addition, user-friendliness of the existing application will be increased by, for example, developing an app that allows interaction with mobile devices. The IT Helpdesk of the DGI has to be strengthened by a trainthe- trainer course to ensure the DGIs ownership and capacities to steer these systems independently. Output 4 also envisions to contribute to an increase in the DGI's revenue mobilisation, by supporting the creation of communication materials to raise awareness and educate citizens and companies about taxes. The programme builds on the existing experience and capacity development (CD) approaches of its predecessor PAMFIP and aims to further develop, deepen and apply newly acquired or not yet sufficiently consolidated knowledge and skills as well as the associated horizontal and vertical scaling-up, e.g. of knowledge products such as manuals. Another sustainability aspect is the holistic and nuanced CD approach, which enables a broad anchoring of knowledge and competencies across different administrative and functional levels (central administration, regional tax offices and local tax centres).