Banking Supervision (September 16-20)
METAC continued its capacity development to the Central Bank of Jordan (CBJ) on stress test techniques, to allow the supervisors to better identify situations where a bank may face risks that might jeopardize its solvency and liquidity. The training also covered micro stress-testing and solutions to issues the CBJ staff are facing with respect to their use of the Next Generation solvency and liquidity models, as well as the correlations between risks and their impacts on stress-test outcomes.
Public Financial Management (May 1–8)
The 2017 Public Investment Management Assessment highlighted the need to strengthen the capacity to identify and manage fiscal risks arising from PPP contracts. In this context, a METAC expert joined an FAD mission to assess the exposure to PPPs contracts and propose measures to improve the capacity to manage related fiscal risks. The expert identified the PPP contracts that might result in fiscal risks and proposed a full stock-take to identify and quantify specific risks within each contract. In addition, he proposed a framework to strengthen the oversight of proposed PPP projects at the ex-ante stage together with institutional responsibilities. Finally, he advised a number of ongoing monitoring and reporting measures, the implementation of which would significantly improve the sustainability and management of fiscal risks from Jordan's substantial PPPs program.
Revenue Administration (July 15-26, November 25-December 6, January 6-17)
METAC helped the Jordanian Income and Sales Tax Department develop a mechanism where tax disputes are recorded and monitored, outcomes are evaluated, and actions are taken, resulting in the avoidance or reduction of future disputes. The mission helped to agree on a mechanism, and a detailed and time-limited action plan for implementation. METAC also advised the authorities on other actions, which would help to reduce the number of tax appeals, including through external consultation, independent internal review, improved advice and increased certainty for taxpayers.
METAC organized a two-weeks expert visit to Amman to assist the Income and Sales Tax Department (ISTD) of Jordan in developing a formal binding ruling mechanism. The visit is part of on-going project in tax administration reform supported by METAC, which aims to establish a system for issuing formal binding public and private rulings that provide taxpayers with certainty on how the tax administration will apply the tax law. The mission provided ISTD with (i) updated timeline for the implementation of a binding rulings system, including the implementation of the program for establishment of public rulings and development of a legal framework for private rulings, and (ii) roles and functions of newly established Rulings Steering Committee to oversee implementation of the Public and Private Binding Rulings system. The mission also supported the authorities in defining the key elements in the design of Private Binding Rulings.
METAC assisted the ISTD in developing a Compliance Improvement Plan. This activity is part of an ongoing project in revenue administration supported by METAC to establish an effective risk management function, where identified tax compliance risks are addressed through appropriate mitigation strategies. Specifically, METAC advised the ISTD on: (i) adopting improved governance arrangements where progress in compliance strategies is reported, and (ii) operational improvements, including training, and assessing and communicating priorities within the ISTD. A detailed plan to continuously improve development and refinement of compliance was provided. During the visit the METAC expert held a workshop on the key elements and approaches to measuring compliance, which was attended by twenty-nine officers from various ISTD directorates.
Statistics (July 8-12, 2018; February 24-28, 2019)
METAC assisted the Department of Statistics in finalizing the 2013 SUTs and integrating them in the national accounts system, thus improving the quality of GDP and related national accounts aggregates. A mission reviewed and assessed the ongoing compilation process, and helped the staff to balance the differences between resources and uses by product, and input and output by activity. The mission also provided training on the use of automatic procedures to remove small unbalances. The approaches to integrate the 2013 SUT results with the existing annual account series were discussed, and recommendations provided.
METAC evaluated current practices in the compilation of national accounts and proposed improvements to concepts definitions and methodologies. It also developed the knowledge capacity of staff to improve current practices.