History
By 2002, Government was still unsure on whether the existing system was adequate to meet the needs of a rapidly developing economy in a challenging international environment. Government appointed a committee comprising representatives of the private sector and government to examine the institutional framework of revenue collection in Trinidad and Tobago.
The Committee, headed by former President of the Trinidad and Tobago Chamber of Industry and Commerce, the late Gordon Deane, observed the following deficiencies in the existing institutional framework:
- Deficient human resource management processes
- Inadequate management capability, accountability and training
- Inadequate staff development, training and accountability
- Lack of control over and accountability for Budgetary Allocations
- Inadequate employee compensation packages
- High incidence of corruption and corrupt practices
- Inefficient systems for internal investigation and enforcement
- Inadequate information exchange and co-ordination between the administration and of various taxes levied
- Poor customer relations
- Anti-business rules and regulations
- Lack of appropriate information technology systems
- Poor physical infrastructure and accommodation
- Deficiencies in the legislative framework.
The Committee also concluded that the revenue authority model provided an excellent framework to tackle these deficiencies.
The Trinidad and Tobago Revenue Authority’s Strategic and Operational Plan has received the requisite approval from the Minister of Finance, the Honourable Colm Imbert, and was laid in Parliament on February 24, 2023.
Summary
The Legislative framework governing the TTRA was passed by an Act of Parliament in December 2021. The Act enables the TTRA to function according to its mandate, but through a hybrid system, whereby the Enforcement Division will still be guided by the Public Service Commission.
The Trinidad and Tobago Revenue Authority Act (2021)
The Trinidad and Tobago Revenue Authority Act (2021)
Staff Structure
In the Act, the TTRA Board is responsible for the management policies which govern human resources, including those related to recruitment, remuneration, promotion, training and development, performance assessment, conditions of work, discipline, termination of employment and superannuation benefits. The Director General and the Deputy Directors General of the TTRA will be appointed by the Minister of Finance, subject to affirmative resolution of Parliament. The Deputy Director General, Enforcement shall, however, be a public officer. This position will be appointed by the Public Service Commission. Staff transferring from the CED or IRD to the Enforcement Division will also remain in the Public Service. As the IRD and CED can make their transition to the TTRA, current staff (covered under the Act) can:
- Voluntarily retire from the Public Service
- Transfer to the TTRA on terms and conditions no less favourable than those enjoyed in the Public Service
- Be appointed by the Public Service Commission to the Enforcement Division of the TTRA in a suitable post. (Note: This division remains under the purview of the Public Service Commission)
- Remain in the Public Service once an office commensurate with the office held prior to the TTRA Act is available.
Contract workers with 10 years’ service or more at either Division may elect for placement in a permanent position in the TTRA, subject only to a background check.
Other members of staff will be given the first opportunity to apply for existing jobs in the TTRA.
Vision
To be a trusted and fair revenue administration that acts with integrity and transparency, committed to closing the tax gap and to effective trade facilitation through voluntary compliance, innovative solutions, enhanced citizens’ experience and an empowered workforce.
Purpose
VISION
PURPOSE
Target: Increase revenue collections by $10b
Functions of the TTRA
- Assessment and collection of taxes under the revenue laws
- Administration of the revenue laws
- Enforcement of the revenue laws
- Enforcement of border control measures subject to any other written law
- Provision of revenue collection services to any statutory or other body to collect public monies
- Facilitation of legitimate trade
- Advising the government on tax-related matters
Strategic Objective
- Create public trust and confidence in the revenue administration system.
- Educate taxpayers effectively and make it simple for them to comply with their obligations.
- Create an innovative and data driven organization that will drive greater compliance.
- Modernize systems to enhance and streamline our online services.
- Modernize revenue collection systems and processes to drive efficiency, improve stakeholder experience and detect and reduce non-compliance.
- Create public trust and confidence in the revenue administration system.
Year 1
Integrate and Retain
To ensure a smooth and seamless integration of the Inland Revenue Division (IRD) and the Customs & Excise Division (CED) with minimal disruption to services and operations, while maintaining the budgeted fiscal year 2023 non-oil tax collections to non-oil GDP ratio.
Year 2
Transition
To introduce the use of new and innovative digital solutions including advanced data analytics geared towards promoting voluntary compliance, drive deeper insights on customers as well detect suspicious taxpayer behaviour to minimize tax leakage and tax evasion.