Terms of Reference for Feasibility Study on the Maturity of Digitalization in Tax Administrations
Background
The goal of the African-Finnish Partnerships on Taxation Capacity in Africa (AFP-TCA) Programme (2023-2025) is to strengthen the taxation capacity of African governments and pan-African organizations to increase Domestic Resource Mobilization (DRM) through informed policymaking. The programme is funded by the Ministry for Foreign Affairs of Finland, with HAUS Finnish Institute of Public Management responsible for overall programme management.
The AFP-TCA programme focuses on three key outcomes:
- Enhanced understanding of best practices in taxation policy and its implementation for improved DRM.
- Increased knowledge on taxation in the African context through improved African research capacities on taxation.
- Strengthened organizational capacity and tools for capacity building in tax-related issues within the African Capacity Building Foundation (ACBF), especially through leadership development, digital learning solutions, and improved external communication and advocacy.
HAUS is responsible for managing the programme and coordinating long-term and short-term technical assistance (TA). HAUS collaborates with African Capacity Building Foundation and VATT Institute for Economic Research in implementing the programme.
Digitalization and Tax Administration
The increasing role of digitalization in tax administration has underscored the need for a structured assessment of digital preparedness and progress in selected tax administrations.
By leveraging real-time data and automation, digitalization enables a smoother and more transparent tax administration capable of responding rapidly to changing economic conditions and societal needs. Through electronic services, taxpayers can manage their tax-related matters easily and efficiently. This improves customer experience and increases taxpayer engagement with the tax system, thereby strengthening its legitimacy.
The needs of African tax administrations in terms of digitalization are diverse. Strengthening administrative tax capacity is essential to increasing state tax revenues and promoting economic growth. Efficient ICT systems are essential to this development. Interoperability between systems is equally critical, as it ensures seamless data exchange within tax administrations, and across government sectors and stakeholders. Implementing data analytics and ICT solutions can help tax administrations identify and combat tax evasion and avoidance and cooperated with other authorities to detect and address other forms of illicit financial flows (IFFs). At the same time, these technologies improve taxpayer awareness, which, in turn, enhances the fairness of taxation. Additionally, investing in the digitalization of tax administrations in African countries involves developing skills, systems, and digital public infrastructure.
In this context, HAUS is looking for consultant/s to carry out a feasibility study to evaluate the current digital maturity of selected tax administrations, identify key areas for improvement, and explore opportunities for cooperation in:
- Implementing advanced data analytics for tax compliance and enforcement.
- Enhancing online taxpayer services to improve user experience and engagement.
- Driving process automation to increase operational efficiency.
- Strengthening good governance and digital security in tax administration.
The findings of this study will serve as a foundation for potential future Finnish collaboration in the digitalization of tax administration in the selected countries.
- Objectives of the Consultancy
The consultant(s) will conduct a feasibility study to:
- Assess the digital maturity of selected tax administrations, evaluating their current digital capabilities, infrastructure, and readiness for further digitalization.
- Identify key challenges and opportunities in digital transformation, focusing on data analytics, online services, process automation, and governance improvements.
- Provide strategic recommendations for potential areas of cooperation, including capacity-building initiatives and technological interventions.
- Offer insights to guide future Finnish collaboration and investment in supporting the digitalization of tax administrations.
Scope of Work
The consultant(s) will:
- Review existing studies, policies, and reports on digitalization in the selected tax administrations, including prior work by ATAF.
- Engage key stakeholders, including tax administration officials, policymakers, and technical experts, through interviews, surveys, or workshops.
- Develop a digital maturity assessment framework tailored to the selected tax administrations.
- Identify international best practices and relevant benchmarks for tax administration digitalization.
- Analyze the feasibility of various digitalization initiatives and their potential impact on tax administration efficiency and service delivery.
- Draft a feasibility study report, outlining findings, recommendations, and proposed areas for collaboration.
Deliverables and Timeline
Work starts as soon as possible. The consultant(s) will be expected to deliver:
- Inception Report (including methodology and work plan) within 1 week of contract signing.
- Digital Maturity Assessment Framework Within 3 weeks of contract signing.
- Draft Feasibility Study Report Within 6 weeks of contract signing.
- Final Feasibility Study Report Within 8 weeks of contract signing.
Qualifications and Experience
The consultant(s) should possess the following qualifications:
- Advanced degree in public administration, economics, information technology, taxation, or a related field.
- Proven experience in conducting feasibility studies, digital transformation assessments, or tax administration reforms.
- Expertise in tax digitalization, e-governance, and data analytics.
- Experience with African tax administration structures and prior engagement with ATAF or similar organizations.
- Strong analytical and report-writing skills.
Reporting and Coordination
The consultant(s) will report to the HAUS AFP-TCA Project Lead and Chief Partnership Adviser. Regular progress updates will be required.
Budget and Payment Schedule
The maximum budget for the consultancy is EUR 30,000. Payments will be disbursed in tranches based on the successful completion of key milestones.
Application Process
Interested consultants should submit:
- A technical proposal, outlining their approach, methodology, and work plan.
- A financial proposal, detailing the estimated costs.
- CV(s) demonstrating relevant experience and qualifications.
The proposals will be evaluated on:
- Responsiveness to the Terms of Reference and applying the evaluation criteria.
- Point system specified below:
Criteria | Max Points (100) | |
1 | Advanced degree in public administration, economics, information technology, taxation, or a related field. | 15 |
2 | Proven experience in conducting feasibility studies, digital transformation assessments, or tax administration reforms. | 20 |
3 | Expertise in tax digitalization, e-governance, and data analytics. | 15 |
4 | Experience with African tax administration structures and prior engagement with ATAF or similar organizations. | 20 |
5 | Strong analytical and report-writing skills. | 10 |
6 | Daily rate and other expenses. | 20 |
Total | 100 |
The deadline for submission of proposals is 26 May 2025 (midnight GMT +3). Proposals should be sent to lotta.fors@haus.fi and konsta.heikkila@haus.fi.
The consultant must provide his/her own workstation (laptop, Internet, scanner/printer, etc.) and have access to a reliable Internet connection.
Note:
Proposals and CVs will be shared among the selection panel.
The selected consultant will be expected to adhere to the project timeline and deliverables outlined in the terms of reference. Any deviations or challenges should be communicated promptly to the project management team.