13-17sp-en

INTER-AMERICAN CENTER OF TAX ADMINISTRATIONS - CIAT

2013-2017 CIAT STRATEGIC PLAN

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Index Introduction.................................................................................2 Methodology................................................................................3 Context.......................................................................................4 Mission........................................................................................7 Vision ..........................................................................................8 Strategic Directions and Initiatives .............................................9

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Introduction CIAT’s current Strategic Plan concludes on June 30, 2013. The Executive Secretariat, pursuant to the mandate given by the Executive Council on March 2, 2012, undertook the strategic planning process for 2013-2017.

Pursuant to the abovementioned mandate, all CIAT member countries and associate member countries were consulted for the preparation of this Strategic Plan. A Working Group formed by member countries of the different regions commissioned for this purpose prepared a proposal based on the 2010-2013 Strategic Plan and the contributions from the countries, and submitted it to the Executive Council for its discussion and subsequently, to the 47th General Assembly, for its consideration and definite approval.

A summarized definition of the “Vision” was proposed for the 2013-2017 Strategic Plan. Likewise, with respect to CIAT’s “Mission” the Working Group considered that the essence of the institution is captured in the current “Mission” thereby requiring no change. Strategic Directions and Initiatives were also reviewed and updated in accordance with the contributions from the member countries that answered the survey. Tax citizenship is included as a new Direction with its initiatives with a view to improving compliance. In addition, greater attention is devoted to such issues as tax fraud, evasion and avoidance.

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Methodology In designing the proposed 2013-2017 Strategic Plan, CIAT followed the guidelines agreed at the Executive Council meeting held in the City of Panama on March 2, 2012.

Said guidelines are aimed at the development of two basic processes: 

The Consultation Process: the CIAT Executive Secretariat requested the opinion of all member countries and associate members on the following topics set forth in the 2013-2017 Strategic Plan: -

Environmental considerations, Mission, Vision, Strategic Directions, Strategic Initiatives and Actions.

In addition, the countries were given the opportunity to propose other issues that had not been considered.

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Discussion Process: an Ad-Hoc Working Group, known as the “Technical Committee for the Preparation of the CIAT 2013-2017 Draft Strategic Plan”, was formed with the participation of officials from the CIAT Executive Secretariat and tax administration officials representing each of the regions. The specialized officials of the tax administration of each of the regions that CIAT groups was established to carry out this is process since this is a highly efficient practice used

by CIAT during previous terms. On this occasion, the members from Europe/Africa/Asia were represented by France, Italy and Kenya; North America, by the United States of America; Caribbean countries by Barbados; and the Andean countries by Ecuador.

In the "Discussion Process" of the Strategic Plan, the following aspects were discussed:    

Analysis of the environment in which CIAT interacts Internal analysis of the organization Preparation of the Mission and Vision Preparation of the Strategic Directions and Initiatives.

This Strategic Plan Proposal has been based on a simple but efficient methodology that allows for arriving at an organizational strategy which, in spite of many innovations, allows for continuing several successful projects to which the organization has devoted considerable resources.

The Strategic Plan “Discussion Process” was then followed by the approval procedure described below:      

The Executive Council examines the Strategic Plan Proposal and makes its comments.

Based on the comments made by the Executive Council, the Executive Secretariat prepared a Draft Strategic Plan and submitted the same to the Executive Council.

The Executive Council reviews the Draft Strategic Plan and presents the draft to the General Assembly.

The General Assembly evaluates the Strategic Plan Draft and approves it with the amendments that it may deem relevant.

The Executive Secretariat implements the Strategic Plan through Annual Operations Plans (POA, in Spanish or AOP, in English) and at the end of each annual term, prepares and presents the respective execution reports.

Based on the AOP reports, CIAT prepares partial reports on the level of progress of the strategy, determining, as appropriate, the need to implement the corresponding adjustments and a final report upon conclusion of the four-year term provided by the Strategic Plan.

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Considerations for future implementation To implement the initiatives provided in this Strategic Plan, the Executive Secretariat will prepare and submit for approval of the Executive Council, an Annual Operations Plan with aligned strategic indicators.

The execution of these plans will be followed-up by the Executive Secretariat through tools and methodologies that may allow, in the future, for determining and implementing a more dynamic strategy, with greater participation of the member countries. These tools will strengthen strategic planning for the following term.

Context The contributions from the member countries and the associate members regarding the "Environmental Considerations" included in the 2010-2013 Strategic Plan and the discussions within the Strategic Planning Working Group, allowed for identifying a series of factors that considerably influence the determination of the organization’s strategy due to their impact on the work of the tax administrations.

Macroeconomic Environment Fluctuations in the international economy condition CIAT’s activities, since they directly influence the results of the tax administrations and, accordingly, their needs. Some of the aspects most affected by the macroeconomic environment are: resources available for the operation of the tax administration, tax collection and the citizens’ level of compliance.

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Globalization of production and trade decisions This factor is directly linked to the new tax evasion and avoidance modalities resulting from the globalization phenomenon that leads tax administrations to seek new techniques for detecting tax fraud and ensuring the effective application of their countries’ tax systems. In this sphere, CIAT plays a key role, promoting opportunities for the discussion of tax issues and providing products and services that satisfy the needs of modern tax administrations.

The New Agenda of International Organizations In the world there are many international organizations and agencies that deal with regional or global tax policy and administration issues. This situation must be taken into consideration by CIAT to generate liaisons that may allow for coordinating efforts and generating synergies; thereby avoiding undesirable situations: duplication of activities, "political patronage" and the inefficient use of the resources of CIAT and its member countries.

The Legislation This topic deserves special attention by CIAT, since legislative changes and advances directly influence various fields of action of CIAT. Another issue worth considering is the growing influence of the tax administration in determining tax policy.

Political trends in member countries Due to different reasons this factor significantly influences tax governance and legitimacy, as well as the definition of the role of the tax administrations. Transparency, efficient budget spending, the powers of the tax administration, etc. are among the issues to be considered.

Technological Advances Technological advances considerably influence the behavior of taxpayers and the tax administrations, inasmuch as they generate new forms of action. For example, the tax administration may use the technology available to facilitate compliance, improve risk management and examination techniques, while taxpayers may use them to improve the management of taxes that are applied to them and generate new forms of evasion or avoidance. On the other hand, this factor directly influences the way in which CIAT manages its activities.

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Ways of managing public organizations This factor significantly impacts the manner in which tax administrations are structured, including their level of autonomy; the competencies that today could include customs, social security or the management of social programs; the type of human resources management or among other elements, the manner and the means in which the services are rendered.

Social Issues There are several social aspects worth observing by the tax administrations and CIAT, since they directly or indirectly condition the strategy that should be adopted by the tax administration must adopt for collecting taxes and, in turn, legitimizing the payment thereof. For example, the tax administrations should display greater collection efforts, undertaking more population awareness activities, risk generation and tax education in a context defined by high levels of tax pressure, lack of equality and profit distribution, high levels of informality, illiteracy and poverty and sanitary deficiencies.

The Environment In recent years, as a consequence of global warming and other climate phenomena generated by contamination, this factor has acquired greater relevance. Many countries have created the so-called "green taxes" and developed public administration management techniques which take into consideration the care of the environment.

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Mission

Promote international cooperation and the exchange of experiences and information and deliver technical assistance services, studies and training, contributing in this manner to the strengthening of the tax administrations of its member countries.

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Vision

Be the center of reference in best practices for tax administration of its member countries.

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Strategic Directions and Initiatives A. Develop cooperative actions to facilitate compliance and promote fiscal citizenship 1. Promote best practices in quality of service and assistance to taxpayers.

2. Promote a tax complying culture in society.

3. Promote and support the use and development of information technology and communication systems in tax administrations of member countries.

B. Develop cooperative actions to prevent and combat all forms of fraud, tax evasion and avoidance 1. Promote best practices in compliance risk management of tax administrations of member countries.

2. Promote mutual cooperation between tax administrations.

3. Promote agreements on exchange of information and support their implementation.

4. Encourage coordination among international organizations on issues of tax administration.

5. Promote dialogue between tax administrations and key stakeholders of member countries.

6. Identify, analyze and disseminate regulatory and administrative procedures to address abusive international tax planning schemes.

7. Establish “knowledge bases� (footnote) of known abusive schemes in international tax planning.

C. Develop and disseminate information, studies, research and development of good and innovative practices to improve tax policy and administration 1. Collect, organize and make available data from and to member countries related to tax laws, organizational and managerial systems, tax statistics, indicators and technological changes.

2. Conduct studies, comparative analysis of tax legislation, organizational and managerial systems, tax statistics, technological changes and systems for determining and benchmarking measures and indicators of tax administrations of member countries.

3. Disseminate information, studies and experiences and promote discussion on topics of interest, through assemblies, technical conferences, publications, meetings and virtual mode via Web related applications.

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4. Identify and promote the use of information technology and telecommunications and develop solutions and standards of the tax administrations of member countries.

D. Design, promote and implement training of human talent in coordination with the tax administrations, to assist in improving the ethics and standards of professionalism of their staff 1. Implement applications and programs developed by CIAT for the promotion of ethics and integrity in the tax administrations.

2. Identify training needs and design evaluation programs and training systems in legislation and tax administration of member countries.

3. Develop, promote and coordinate CIAT training programs in legislation and tax administration.

4. Support the creation, development and strengthening of training centers in member countries.

E. Support and execute the implementation of technical assistance projects to strengthen tax administrations 1. Provide specific technical assistance aimed at strengthening tax laws and tax administrations of member countries.

2. Provide technical assistance and programs to promote ethics and human talent.

3. Assist member countries in identifying financial resources for technical assistance.

4. Promote bilateral technical assistance among member countries.

F. Develop internal management policies and external coordination for the institutional strengthening of CIAT 1. Promote recognition of CIAT as an entity with legal status, of an international organization, by its member countries.

2. Coordinate and develop strategies for cooperation activities with international organizations, active in the field of tax administration, and other organizations.

3. Develop, implement and maintain planning and control measures to ensure a transparent, efficient and effective CIAT Executive Secretariat.

4. Develop and implement mechanisms for internal and external communications that promote the principles, values, and progress of the organization.

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