Harmonizing domestic revenue mobilization reforms in Somalia

Capacity Building Programs for Revenue Departments of Somalia

With a vision to strengthen the function-based capabilities of Revenue Departments in Somalia, the "Somalia Customs Support Advisory Support and Analytics Project" conducted capacity building training for 64 revenue officials including 14 female officers. With the support of the Global Tax Program these trainings were organized in Addis Ababa on November 26th-28th 2022. 

Designed on the principle of the “whole of Somalia” approach, staff from the Federal Government, and Member States of Galmudug, Hirshabelle, Jubbaland and South-West States were offered bespoke courses on Tax Audit, Data Analytics for Risk Management, and Strategic Outreach and Engagement for voluntary tax compliance. 

The objective of the program was not only to share the latest theory and practice in carrying out audits, undertaking risk management functions through data analytics, and developing communication practices, but to also facilitate peer-to-peer learning and foster networking and camaraderie among the Revenue Departments at the Federal and State level. 

This program forms the basis of a sustained and expanded capacity-building initiative that will be further expanded through future World Bank projects such as the Recurrent Cost and Reform Financing Project (RCRF) and the forthcoming Somalia Enhancing Public Resource Management Project (SERP). 

Training Program Areas

Training program focused on the following critical areas:

Tax Audit

• In-depth understanding of tax audit procedures and areas.
• Capacity building in conducting tax audits
• Use of technology in a tax audit. 

Data Analytics for Risk Management

• Introduction to data analytics and applications in risk management.
• Identification of potential master trainers from among participants.
• Impart basic orientation on facilitating and conducting of data analytics training.

Communications/ Strategic Outreach and Engagement

• Research and content development.
• Media landscapes and how to choose the right communication medium for the right purpose.
• Formulation of communication plans.

Results

At the end of the training program, participants from the Revenue Departments developed ready-to-implement communication plans to roll out voluntary compliance initiatives for a variety of taxes such as Khat¹ import, income, turn-over and payroll taxes. The program also supported the roll-out of the Tax Audit Strategy and the establishment of fully functional tax audit teams within the Revenue Department. Finally, as a result of the program, the Risk Management Framework was developed for Revenue Departments.