Success Story: BearingPoint

Tax compliance as a tool for development of small-sized countries

Dutch headquartered BearingPoint Caribbean were recently awarded a World Bank funded19 project to modernize the tax administration on the Caribbean island of Grenada. The Grenada Inland Revenue Department (IRD) will be the 15th tax administration to use BearingPoint’s innovative software.

Grenada, like many other Small Island Developing States (SIDS), is highly vulnerable to climate change, natural disasters, and the economic dependence on tourism. In the post-Covid-19 era, the government of Grenada therefore wants to develop more resilience by improving fiscal sustainability. Domestic resource mobilization is now more important than ever.

This ambition closely aligns with the corporate purpose of BearingPoint Caribbean. The software developers based in Curaçao, Bonaire, Rotterdam and Deventer are on a mission to make it possible for small-scale countries worldwide to use modern technology when administering taxes. Their past performance shows that these countries can increase government revenues drastically with their 100% Dutch developed software to improve taxpayer services and more effectively enforcing compliance.

BearingPoint’s Multi Tax Solution (MTS) will be used in Grenada to improve levying, collection, audits and (online) services to taxpayers. The system will be configured to the local tax legislation and wishes of Grenada. Grenada is already the third country in 2022 to choose to implement the MTS-solution. Earlier in the year the tax administration of Suriname also chose the MTS to modernize their system, a project funded by the Inter-American-Development Bank (IADB). Many of the tax administration modernization projects in the coming years in SIDS and Developing Countries are funded by the World Bank, IMF or IADB.

BearingPoint was introduced to the Embassy of the Kingdom of the Netherlands by the Dutch Consul in Atlanta. Through the support of Team TIO (RVO) and the Netherlands Embassy Liaison Officers located in Washington D.C. BearingPoint was introduced to the Dutch Representative at the IADB. Both the Embassy and the IADB have been very helpful to connect with important stakeholders.

BearingPoint and its 115+ employees specifically focus on Tax administrations in Small Island Developing States and smaller Developing Countries in the Caribbean, the Pacific and Africa. Regions where fiscal pressure is currently limiting the growth potential of the countries, but where digital transformation of public services is in its initial stages. Strengthening revenue collection by modernizing tax administration is a very realistic and sustainable path towards more development.