Conformed Copy - L3015 - Tax Administration Technical Assistance Project - Amendment

Page 1 January 3, 1990 Mr. A. Erman Gonzalez Ministro de Economia Ministerio de Economia Hipolito Yrigoyen 250 1310 Buenos Aires Argentina ARGENTINA: Loan 3015-AR - Tax Administration Technical Assistance Project Dear Mr. Minister: I refer to the loan agreement for the above project between the Republic of Argentina (the Borrower) and the International Bank for Reconstruction and Development (the Bank), dated March 30, 1989, (the Loan Agreement) and to your Government's request t(i amend the Loan Agreement set forth in Mr. Jose Sbatella's letter dated September 15, 1989, confirmed by Mr. Ricardo Cossio. I am pleased to inform you that the Bank agrees to your request. We propose that we now proceed in two steps: (i) declare the Loan Agreement effective with the amendments relating to the recruitment of the tax inspectors, the training and some deadlines as provided in this letter; and (ii) at a later date, separately process the addition of the two new subcomponents or programs under the Project, which requires a more complex approval process within the Bank. With respect to (i) above, the following amendments to the Loan Agreement are hereby proposed: 1. A new Section 3.08 is added, to read as follows: "Section 3.08. The Borrower shall: (a) no later than March 15, 1990, prepare a program satisfactory to the Batik for the training of the new tax inspectors for DGI under Part C of the Project; and (b) carry out such program in a manner and according to a timetable satisfactory to the Bank." 2. Paragraphs (iv) and (v) of Part D of the project description in Schedule 2 to the Loan Agreement are amended to read as follows: "(iv) a six-month internal auditing pilot program with assistance from external auditors to be executed during 1990: and (v) the preparation of an auditing program for 1991 based on the findings of the auditing program for 1990 referred to in item (iv) above." 3. Paragraph 2 of Section II of Schedule 4 to the Loan Agreement amended to read as follows: "Without limitation to the foregoing, the Borrower shall employ consultants for, inter alia: (a) (i) coordinating the administration of the Project; (ii) handling the recruitment of the new tax inspectors and programmers for DGI under Part B of the Project; and (iii) handling the contracting of consultants to advise in relation to the internal auditing of DGI; (b) (i) the development of DGI's internal auditing program under Part D of the Project; and (ii) handling the review and development of tax inspection techniques under Part E of the Project." 4. Paragraph (a) of Section 3.03 of Article III, Execution of the Project, is amended to read as follows: "(a) Not later than March 15, 1990, the Borrower, through DGI, shall prepare and furnish to the Bank a list of the key indicators applicable to the information available within DGI and satisfactory to the Bank, to be used in improving DGI's internal auditing and management." 5. The amendments set forth in this letter shall become effective on the same date the Loan Agreement becomes effective. If you agree with the foregoing, please indicate so by signing and dating the confirmation form on the attached copy of this letter and returning it to us. Sincerely yours, Page 2 By /s/ Suman Bery Acting Director, Country Department IV Latin America and the Caribbean Regional Office Confirmed: Republic of Argentina By /s/ Dr. Antonio Herman Gonzalez Authorized Representative Date: February 26, 1990