Tax Simplification in Latin America and the Carribean

The proposed program seeks to add a new dimension to the provision of tax technical assistance by building-in development and growth goals in the tax system. The emphasis on simplification and adequate regimes for small and medium enterprises (SMEs) appropriate to their capacity will help create a culture of taxation, which is deemed crucial in the region in view of the size of informality. This will foster obedience to the rule of law, help increase the size of the formal sector, and thereby, promote growth and generation of revenues in the medium term.