Founding
ITIC was formed by the signing of agreements with the governments of Russia and
Kazakhstan in September 1993. The signatories were the Chairman of the Russian State
Tax Service and the Minister of Finance of Kazakhstan. These agreements have both
been renewed recently: in 1999 by Kazakhstan's Minister of State Revenue; and in
2000 by the Chairman of the Russian State Duma's Budget and Tax Committee.
Development
ITIC has gone from strength to strength since its founding days. Following its success
in Russia and Kazakhstan, it has been invited by the governments of Ukraine and
Azerbaijan amongst the former Soviet republics to undertake similar programs. Outside
the CIS, ITIC has been asked by the governments of Libya, Iraq, South Africa and
others to assist them in their tax reform works. In addition, ITIC has commenced
a highly successful regional program for the Asia Pacific countries where government
participants from more than 15 countries have participated in joint research with
private sector companies on common problems of indirect taxation.
Strategy
ITIC established a three-part strategy for success in cooperating with CIS officials
on the changes they need to make in their investment climates generally, and especially
as they apply to taxation.
- Establish long-term relationships with government and parliamentary officials in
the host countries.
- Maintain a reliable schedule of high-quality educational programs, especially Tax
Round-tables and workshops that bring Western experts face to face with the officials
who can utilize their advices and know-how.
- In all educational programs and communications, send a consistent, principled message:
the need for tax and economic reforms that will achieve prosperity and financial
stability.
As ITIC’s programs have expanded into other areas of the world, the same strategy
has been followed, with increasing emphasis on sharing expertise from within the
region. As tax administrations have developed, there is an increasing pool of experts
within ITIC program regions, where countries can utilize best practices from each
other. ITIC strategy is to capture this best practice and facilitate its dissemination
in the region.