ECOPA provides quantitative and qualitative analyses of various tax regimes faced by national and foreign companies. They analyze selection criteria for tax audits and provide recommendations to improve business climates, facilitate investment, and increase audit effectiveness. ECOPA uses tools like the Marginal Effective Tax Rate and econometric models to analyze tax systems and fraud risks. They have ongoing research programs on fiscal policy modeling and econometric analysis of tax revenue variations.

1. CORPORATE TAX ANALYSIS PRESENTATION OF ECOPA’S EXPERTISE ECOPA deliversquantitative and qualitative analyses of: the numerous fiscal regimesfaced by both national and foreigncompanies selectioncriteria for tax audits ECOPA providesrecommendationsto: improve the business climate and facilitateinvestments increase audit payments Copyright © ECOPA 2009 1

2. 2 CORPORATE TAX ANALYSIS THE FINANCIAL SYSTEM IS SUBJECT TO EXTERNAL INFLUENCES The fiscal system is not neutralwithin a country Fiscal Incentives Corporate Taxes Corporatebehavior Copyright © ECOPA 2009

3. 3 CORPORATE TAX ANALYSIS EXAMPLE OF DYSFUNCTION A heavytaxburden Complexregulatory System & Inefficient fiscal system Decrease in investment And Increase in taxevasion Copyright © ECOPA 2009

5. Synthetic index including the multiple effects of complextaxsystems

6. Includesamongothers the effects of both direct and indirect taxes, of the financing source and of the inflation rate

7. Allows for comparisonsacross time, countries and sectors

8. Allows for analysis of the real scope of fiscal incentives

9. Analysis of fraudrisk by firms:

10. Parametric (econometrics) and non-parametric (datamining, matching) estimates of the main riskfactors

13. Implementation of risk-based auditsCopyright © ECOPA 2009 5

15. Calculation of the marginal cost of funds (MCF) by type of tax

16. Optimization of the tax system based on MCFs

17. Calculation of METR in a CGE setting

18. Fully-fledgedmodeling of the informalsector

19. OPTAX-ECON, an econometric model of fiscal revenues variations depending on business taxation, based on detailed fiscal data for a panel of 120 countries over 10 years.Copyright © ECOPA 2009 6

20. EXAMPLES OF ECOPA’S PROJECTS Copyright © ECOPA 2009 7 L’ANALYSE DE LA FISCALITE DES ENTREPRISES 2009 – Kyrgyzstan Preliminarydevelopment of an econometric model for risk-based audits Client: FIAS/World Bank 2008 – Mali Evaluation of the investment code Client: Republic of Mali 2007 – DemocraticRepublic of Congo Business taxation and fiscal incentives: analysis and recommendations for reforms Client: FIAS/World Bank