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Cablegate: Gocr Requests and Embassy Supports Extension Of

This record is a partial extract of the original cable. The full text of the original cable is not available.

UNCLAS SAN JOSE 002186

SIPDIS

WHA/CEN
EB FOR WCRAFT, BLAMPRON
E FOR DEDWARDS
WHA/EPSC FOR KURS, LGUMBINER
TREASURY FOR VJORSTAD, RWARFIELD

E.O. 12958: N/A
TAGS: ETRD ECPS ECON PREL PGOV SOCI CS
SUBJECT: GOCR REQUESTS AND EMBASSY SUPPORTS EXTENSION OF
U.S. TREASURY TAX ASSISTANCE PROGRAM

1. Summary: Embassy supports GOCR request to extend
project of U.S. Treasury Department Office of Technical
Assistance (OTA) Tax Team beyond December 31, 2005 projected
termination date. End summary.

2. Charge d'Affaires received the following letter from
Minister of Finance on August 26, 2005:

Begin Text:

The purpose of this letter is to request your assistance
with securing the continuation of a technical assistance
program between the Ministry [of Finance] and the United
States Treasury Department's Office of Technical Assistance.

Under terms of an agreement signed last March between the
U.S. Treasury and President Pacheco, a technical assistance
project was initiated to assist the General Tax Directorate
in improving its programs and its institutional strength.
During the initial four months of the project, assistance
activities have begun in the following program areas: Tax
Appeals, Audit, Enforced Collection, Information Systems,
Training and Planning and Management. The impact of the
assistance initiative has been very positive, but the
accomplishments have been limited because of the shortness
of time and there remains much to do. Therefore, it is of
great importance that the project be continued at the
current or more rapid pace in 2006 in order to further the
accomplishments.

Improvement of the tax system and increased revenue
collections are of paramount importance to the continued
economic viability of Costa Rica, and I view Treasury
Project Coordinator Larry Westfall and his team of expert
tax administrators as instrumental in continuing our
progress to realizing our strategic goals and to achieve and
sustain required improvements.

Sincerely yours,
Federico Carillo Zurcher
Minister of Finance

End Text:

3. Embassy supports an extension of OTA assistance beyond
the projected termination date of December 31, 2005. We
believe that the project has been very successful to date
and will lead to more efficient tax collection and thus
long-term fiscal stability, an important corrollary to the
country's effective implementation of CAFTA-DR.
FRISBIE

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