Excessive tax burdens, especially if combined with a complex regulatory system and poorly coordinated institutions, make taxation inefficient, inequitable and ultimately unable to raise sufficient revenue.

ECOPA helps tax administrations and funding agencies improve the attractiveness of tax systems and enhance revenue mobilization. ECOPA combines its international experience of tax policy and best practices with the appropriate use of up-to-date modeling techniques.

Projects

Impact evaluation of the EU Directive on Administrative Cooperation

ECOPA is participating in the impact evaluation of the EU Directive on Administrative Cooperation (DAC), covering, inter alia, automated exchanges of information against tax evasion and BEPS (with Economisti Associati, for the European Commission, DG TAXUD, 2018-on-going).

Impact evaluation of fiscal reforms in Ethiopia

In association with Economisti Associati, ECOPA is implementing Synthetic Control Method techniques to assess the impact of tax and customs reforms in Ethiopia. For the World Bank (2018).

Taxation Analysis in Togo and Benin

Government revenue mobilization remains a major development challenge in sub-Saharan Africa. ECOPA is commissioned by the World Bank with analyzing taxation in Togo and Benin with the aim of producing reform options. The intervention includes the following components: Analysis of trends and composition of revenues (by tax and by industry), and estimation of revenue elasticity […]

Measuring tax evasion of individuals in the European Union

For the European Commission (DG TAXUD), in collaboration with Economisti Associati and Case, ECOPA is leading a study on the assets held by individuals in tax havens and the corresponding foregone taxes for the EU member states. Global and country macroeconomic data, as well as data from recent leaks (Panana Paper, Paradise Papers, etc.), are […]

Tax Incentive Analysis in Cape Verde

ECOPA has been commissioned by the World Bank to analyze Cape Verde’s tax incentive system. This project includes the calculation of Marginal Effective Tax Rates by industry and tax regime, as well as an estimate of the fiscal cost of the incentives. A methodology for appraising the cost-benefit balance of incentives is also developed. For […]

Corporate income tax simulations in Indonesia

ECOPA was commissioned by the World Bank to build a micro simulation model for CIT analysis in Indonesia. Working closely with the tax administration, ECOPA is building a micro level database with optimal sampling, including incentives, tax holidays and preferential rates. The objective of the project is to project the revenue impact of a set […]

Tax Risk Based Assessment IT Tool for Audits – Yemen Tax Authority

Based on the initial assessments carried out in earlier diagnostics, updated risk parameters, and data provided by the Large Taxpayers Department at Yemen Tax Authority, ECOPA in association with Apex Consulting, developed a risk based assessment IT tool to manage and score taxpayer based on risk characteristics and produce better audit strategies and identify high […]

Tax policy analysis in Guinea Bissau and Senegal

These two tax policy assignments included tax efficiency/equity analysis and micro-level econometric modelling.  In Guinea Bissau, ECOPA carried out: A review of the cashew sector taxation, with emphasis on tax incidence and impact on poverty (cashew being the main export crop of the country); Orientations for pro-poor taxation and competition policy in the sector. In […]

Tax Expenditure Analysis in Georgia

ECOPA implemented an analysis of tax expenditures based on a micro simulation model, including: A comprehensive inventory of tax incentives and a measurement of their revenue cost; Training and reporting on findings, methodology and policy recommendations on the country’s tax incentive system. For the World Bank (2014).

Guidelines for preparation of costs and benefits assessments of investment projects in Morocco

ECOPA carried out a review of the investment climate with a focus on business registration and investment incentives. This included the preparation of a manual for costs and benefits assessments of investment projects submitted to the National Investment Commission. Activities included: A cost/benefit analysis of the portfolio of approved investment projects, where costs were the […]

Improving micro-enterprise taxation in the OHADA region

ECOPA was commissioned by IFC to review the implementation of OHADA’s “Entreprenant” regime. The assignment included a review of the current implementation status of the regime, with in-depth case studies on 3 countries. The analysis covered three major issues: Business Registration, Access to Finance and Taxation, with recommendations on each of these aspects, with the […]

Cost-benefit analysis of investment incentives in Tunisia

ECOPA carried out the preparation and analysis of an exhaustive micro database on tax and financial investment incentives and related employment & investment over the last 10 years. Macro-level data on impact indicators (employment and investments) was mapped with micro-level data from a survey data from 139 Tunisian SMEs to provide a cost-benefit analysis for […]

Marginal Effective Tax Rates in the WAEMU zone

ECOPA calculated the Marginal Effective Tax Rate (METR) for the eight countries of the WAEMU zone, and for each tax regime. The METR is a synthetic indicator of the aggregate tax burden on firms and takes into account all tax instruments (tax on profits, property tax, indirect taxes and customs duties on inputs and investments, […]

Reform of the Investment Code in Mali

  ECOPA evaluated the Mali Investment Code for the Ministry of Finance, including the associated tax expenditure. The intervention included an analysis of the legal framework and associated procedures vis-à-vis international best practices. The fiscal attractiveness of the incentive schemes provided for by the Code was analyzed by calculating the Effective Marginal Tax Rates, with […]

Business taxation and tax incentives: analysis and recommendations for reforms

ECOPA led this two-person assignment on the analysis of the business taxation and tax incentives in DRC. The analysis included a partial equilibrium model of the Marginal Effective Tax Rate, which was used to evaluate the fiscal burden faced by businesses, including small businesses. The analysis stated the opacity of the fiscal system and the […]

Study of the impact of the Economic Partnership Agreement on customs revenue and domestic taxation

ECOPA has led this three-person EC-funded assignment on the quantitative evaluation of the impact of the Economic Partnership Agreement (a Free Trade Agreement between the EU and ECOWAS) in Mali. The study used a macroeconomic dynamic Computable General Equilibrium model of the Malian economy, including a detailed external trade module. The model provided an evaluation […]

Study of the impact of the Economic Partnership Agreement on customs revenue and domestic taxation

ECOPA led this 3-person EC-funded assignment on the quantitative evaluation of the impact of the Economic Partnership Agreement (a Free Trade Agreement between the EU and Central Africa) in Cameroon. The study relied on a macroeconomic dynamic Computable General Equilibrium model of the economy of Cameroon, including a detailed external trade module. The model provided […]