Background

TIWB is a joint initiative of the United Nations Development Programme (UNDP) and the Organisation for Economic Co-operation and Development (OECD) launched in 2015 to support developing countries strengthen national tax administrations. Accordingly, this procurement exercise is to hire a consultant who is an industry specialist in the automotive sector to work on a specialized assignment, including to join our tax experts.

UNDP is the United Nation's global development network, advocating for change and connecting countries to knowledge, experience, and resources to help people build a better life. UNDP is on the ground in 170 countries and territories, supporting solutions to development challenges in these countries and developing national and local capacities that will help them achieve human development and the Sustainable Development Goals.

UNDP's policy work carried out at HQ, Regional and Country Office levels, forms a spectrum of deep local knowledge to cutting-edge global perspectives and advocacy. In this context, UNDP invests in the Global Policy Network (GPN), a network of field-based and global technical expertise across a wide range of knowledge domains and in support of the signature solutions and organizational capabilities envisioned in the Strategic Plan. Within the GPN, the Bureau for Policy and Programme Support (BPPS) has the responsibility for developing all relevant policy and guidance to support the results of UNDP's Strategic Plan.

The OECD is a global economic forum working with 38 member countries and more than 100 emerging and developing economies to make better policies for better lives. Its mission is to promote policies that will improve the economic and social well-being of people around the world. The OECD provides a forum in which governments work together to share experiences on what drives economic, social, and environmental change, seeking solutions to common problems.

The TIWB Secretariat is based in OECD Paris. Within UNDP, TIWB is managed under the Sustainable Finance Hub (SFH) - a finance and innovation platform, that draws on a critical mass of UNDP expertise, initiatives, and partnerships to support the mobilization and leveraging of resources for the SDGs and lead the implementation of the new UNDP’s private sector strategy and other initiatives. SFH is an integral part of both the Bureau for Policy and Programme Support (BPPS) and the Bureau of External Relations and Advocacy (BERA), as well as part of the GPN. TIWB is managed under the Sustainable Finance Hub, Bureau for Policy and Programme Support, New York with resource persons embedded in the UNDP offices in Pretoria, Bangkok, and Amman and a back office in Istanbul.

TIWB aims at a unique approach to capacity building through hands-on technical assistance on actual tax audits and related international tax issues. Specifically, the deployed expert will work with South African Revenue Service (SARS)auditors on real audit cases to increase the tax administration's capacity to collect the taxes due by multinational enterprises, thus enhancing domestic resource mobilization and combating base erosion and profit shifting (BEPS). Under TIWB, tax experts work alongside local officials of developing country tax administrations on customs and tax-related issues, delivering practical solutions by working on confidential matters while operating under strict oaths of secrecy/confidentiality agreements. With 109 Programmes to date (including 21 South-South programmes), TIWB has contributed to over USD 1.7 billion in additional revenues and tax assessments of USD 3.9 billion in programmes across Africa, Asia and the Pacific, Eastern Europe, and Latin America and the Caribbean (LAC). For further information on TIWB and the partnership between the OECD and UNDP, please visit the TIWB website.

Building on the success of the TIWB model and recognizing the needs of tax administrations, TIWB has expanded to provide support in other tax areas. To support this new phase UNDP is having a call for sector-specific tax expert on automotive to support SARS.

Duties and Responsibilities

SCOPE OF WORK, RESPONSIBILITIES AND DESCRIPTION OF THE PROPOSED ANALYTICAL WORK

2.           Duties and Responsibilities

The UNDP is looking for a consult automotive expert to work as a TIWB expert. The main responsibility will be to provide technical assistance to tax administrations and other government agencies of developing countries in automotive. The Expert will need to demonstrate extensive professional experience in the automotive sector.

The Expert will conduct on-site support through practical, hands-on, real-time audit support and guidance to execute actual audits from inception to closure. The support will include, but not be limited to the following:

1. To work directly with designated tax audit officials of SARS to enable the successful conclusion of ongoing and planned international customs audit cases in the automotive sector. This will involve helping to improve the SARS audit procedure and processes by assisting in establishing relevant risk assessment criteria for pre-audit risk assessment, reviewing the existing risk assessment framework, case selections, audit planning and scheduling of the selected cases. This will entail applying direct and indirect audit methods (e.g., verification of taxpayer’s/trader’s records and non-taxpayer source information), and participating in field audits for interviews and other information gatherings.
2. To provide pieces of training through scheduled workshops to the automotive Division of SARS on case studies around topics, which may include basic Transfer Pricing (to ensure that auditors can analyse  and interpret Transfer Pricing (TP) documents, risk management and mitigation (identify risk best practice model), value chains and links to Transfer Pricing (including on Licensing and Registration, Risk Profiling, Conducting TP (Retrospective Transfer Pricing Adjustments)and AIP, (Advance Import Payments)Accreditation, and Compliance Management).
3. To discuss best practices, assist in the implementation of recommendations and provide feedback post-implementation.
4. To train SARS customs audit officials to effectively handle complex international tax cases through reviewing international tax planning schemes, permanent establishments, transfer pricing policies, profit attribution rules, double taxation causes and methods of relief, while also developing technical guidelines, best practice toolkits, audit strategy and taxpayer interview strategy.
5. To assist in determining lines of investigation for customs audit and coordinate the audit work carried out by officials during investigations.
6. To assist in drafting necessary guidelines based on audit cases.
7. To support SARS to develop the legal framework further to address emerging Base Erosion and Profit Shifting (BEPS) challenges where necessary, as well as loopholes in the tax administration ecosystem.
8. To develop a risk assessment tool for transfer pricing issues.
9. To risk assess and analyse audit cases in cooperation with ---customsauditors.
10. To improve tax compliance in the targeted sectors through improved audit quality and effectiveness. To share good international practices.
11. To generate additional tax revenues for South Africa through additional assessments arising from audit adjustments (note that this may occur during and/or after the Programme's conclusion).
12. To assess the collective knowledge of SARS tax officials to determine the absorption of knowledge transfer and any need for subsequent training (through, for example, a case study whereby SARS officials could demonstrate acquired skills).
13. To train SARS customs audit officials to improve their general audit skills and consistency in undertaking audits.
14. To provide Programme assistance both on-site (in Pretoria and, if necessary other centres) and remotely (from home office location) through video-conferencing tools, calls or e-mail correspondence with SARS, ensuring data confidentiality. In addition, after consulting with SARS and upon approval, the Expert may work in partnership with a sector-specific expert, where required, deployed in parallel by the TIWB Secretariat throughout the Programme.
15. To regularly update the TIWB Secretariat and the UNDP on progress, and, where possible, liaise with the UNDP Country Office in South Africa during all missions. The Expert shall prepare a report at the end of each mission outlining the progress and any areas of concern and submit it to the TIWB Secretariat. In addition, at the end of the Assignment, the Expert will submit a comprehensive report highlighting the extent to which the Programme objectives and programme impact indicators were attained and identify any outstanding capacity gaps which require further reinforcement (either within TIWB or by other technical assistance programmes).
16. Ensure that the TIWB Programme aligns with and complements any other initiative on transfer pricing and international tax within SARS.

Expected outputs and deliverables:

The representative set of duties and responsibilities listed below is not exhaustive, and the terms of reference of each assignment will dictate the exact scope of the work. Key areas of support and activities will include:

Competencies

Core competencies:

1. Demonstrates integrity by modelling the United Nation’s values and ethical standards, including demonstrating there are no conflicts of interest relating to any aspect of services provided to TIWB/UNDP/ host countries;
2. Promotes the vision, mission, and strategic goals of UNDP, and partner organizations;
3. Displays cultural, gender, religion, race, nationality and age sensitivity and adaptability;
4. Able to work independently.

Functional competencies

1. Technical expertise in auditing customs;
2. Highly organized with strong analytical and research skills;
3. Excellent presentation and communications skills;
4. Ability to prepare succinct reports;
5. Ability to work in a team;
6. Diplomatic sensitivity and effective negotiating skills;
7. Focus on impact and results and positive response to critical feedback;
8. Flexible thinking.

Required Skills and Experience

Academic qualifications:

• A university degree in economics, finance, law, international taxation and/or relevant fields (or in the absence, equivalent qualifications, and professional experience) - mandatory.

Experience:

• Minimum 7 years’ work experience in a Tax Administration - mandatory
• Minimum seven (7) years’ experience in audit of multinational enterprises with a focus on valuation and or Retrospective transfer pricing adjustments, specifically in the automotive sector and ability to transfer skills/knowledge - mandatory
• Experience in auditing the Automotive Industry -mandatory.

Desirable Qualifications and Experience:

• Have a World Customs Organization (WCO) Customs Valuation accreditation (Customs Valuation Inspector) OECD accreditation (TP inspector).
• Understanding of Customs Risk Management.
• Expertise in international tax policies and legislation, with knowledge of experiences and good practices (notably, OECD guidelines) in countering cross-border tax avoidance.
• Experience with the tax administration in the related tax jurisdiction.
• Extensive experience in delivering capacity-building activities and training courses on transfer pricing and international tax issues.
• Experience in drawing up technical guidelines for auditing.
• Experience and proven success in general office practice, communication, and negotiation skills.

Language:

• Fluency in written and spoken English is required;
• Working knowledge of another UN language would be an asset

Application Procedure

The application package containing the following (to be uploaded as one file):

• A cover letter with a brief description of why the Offer considers her/himself the most suitable for the assignment;
• Personal CV or P11, indicating all past experience from similar projects and specifying the relevant assignment period (from/to), as well as the email and telephone contacts of at least three (3) professional references;

Note: The above documents need to be scanned in one file and uploaded to the online application as one document.

Shortlisted candidates (ONLY) will be requested to submit a Financial Proposal.

• The financial proposal shall specify a total lump sum amount, and payment terms around the specific and measurable deliverables of the TOR. Payments are based upon output, i.e. upon delivery of the services specified in the TOR, and deliverables accepted and certified by the technical manager. 
• The financial proposal must be all-inclusive and take into account various expenses that will be incurred during the contract, including: the daily professional fee; (excluding mission travel); living allowances at the duty station; communications, utilities and consumables; life, health and any other insurance; risks and inconveniences related to work under hardship and hazardous conditions (e.g., personal security needs, etc.), when applicable; and any other relevant expenses related to the performance of services under the contract.
• In the case of unforeseeable travel requested by UNDP, payment of travel costs including tickets, lodging and terminal expenses should be agreed upon, between UNDP and Individual Consultant, prior to travel and will be reimbursed. In general, UNDP should not accept travel costs exceeding those of an economy class ticket. Should the IC wish to travel on a higher class he/she should do so using their own resources.
• If the Offeror is employed by an organization/company/institution, and he/she expects his/her employer to charge a management fee in the process of releasing him/her to UNDP under a Reimbursable Loan Agreement (RLA), the Offeror must indicate at this point, and ensure that all such costs are duly incorporated in the financial proposal submitted to UNDP.

The Financial Proposal is to be emailed as per the instruction in the separate email that will be sent to shortlisted candidates.

Evaluation process

Applicants are reviewed based on Required Skills and Experience stated above and based on the technical evaluation criteria outlined below.  Applicants will be evaluated based on cumulative scoring.  When using this weighted scoring method, the award of the contract will be made to the individual consultant whose offer has been evaluated and determined as:

• Being responsive/compliant/acceptable; and
• Having received the highest score out of a pre-determined set of weighted technical and financial criteria specific to the solicitation where technical criteria weighs 70% and Financial criteria/ Proposal weighs 30%.

Technical evaluation - Total 70% (70 points):

• Criteria 1. Certification and accreditation on World Customs Organization (WCO), or Customs Valuation (Customs Valuation Inspector) Organisation for Economic Co-operation and Development (OECD) and (TP inspector) Weight =10%; Maximum Points: 10;
• Criteria 2. Professional expertise in international tax policies and legislation, with knowledge of experiences and good practices (notably, OECD guidelines) in countering cross-border tax avoidance Weight = 15 %; Maximum Points: 15;
• Criteria 3. Experience with the tax administration in the related tax jurisdiction and in drawing up technical guidelines for auditing Weight = 15 %; Maximum Points: 15;
• Criteria 4. Extensive experience in delivering capacity-building activities and training courses on transfer pricing and international tax issues Weight = 10 %; Maximum Points: 10;
• and
• Interview: Weight = 20 %; Maximum Points: 20.

Having reviewed applications received, UNDP will invite the top three shortlisted candidates for interview. Please note that only shortlisted candidates will be contacted.

Candidates obtaining a minimum of 70% (49 points) of the maximum obtainable points for the technical criteria (70 points) shall be considered for the financial evaluation.

Financial evaluation - Total 30% (30 points)

The following formula will be used to evaluate financial proposal:

p = y (µ/z), where

p = points for the financial proposal being evaluated

y = maximum number of points for the financial proposal

µ = price of the lowest priced proposal

z = price of the proposal being evaluated

Contract Award

Candidate obtaining the highest combined scores in the combined score of Technical and Financial evaluation will be considered technically qualified and will be offered to enter into contract with UNDP.

Institutional arrangement

The consultant will work under the guidance and direct supervision of Project Manager, TIWB and will be responsible for the fulfilment of the deliverables as specified above.

The Consultant will be responsible for providing her/his own laptop.

Payment modality

• Payments are based upon output, i.e. upon delivery of the services specified above and deliverables accepted and upon certification of satisfactory completion by the manager. 

The work week will be based on 35 hours, i.e. on a 7 hour working day, with core hours being between 9h00 and 18h00 daily.

Annexes (click on the hyperlink to access the documents):

Annex 1 - UNDP P-11 Form for ICs

Annex 2 - IC Contract Template

Annex 3 – IC General Terms and Conditions

Annex 4 – RLA Template

Any request for clarification must be sent by email to cpu.bids@undp.org 

The UNDP Central Procurement Unit will respond by email and will send written copies of the response, including an explanation of the query without identifying the source of inquiry, to all applicants.