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REPORT ON THE EXECUTION OF THE ACTIVITIES PLAN FROM JULY 1st, 2010 THROUGH JUNE 30, 2011

REPORT ON THE EXECUTION OF THE ACTIVITIES PLAN FROM JULY 1st. 2010 THROUGH JUNE 30, 2011

The purpose of this report is to document to the main activities developed by the Executive Secretariat in compliance with the 2010-2013 Strategic Plan, through the execution of the Programs under the new organizational structure adopted by the organization as from 1 January 2010. The Executive Secretariat has steered its work towards research, development and innovation in tax topics and the offer of technical assistance services and international cooperation to the community of Tax Administrations of the CIAT member countries.

Program 01 Development and Institutional Events 3rd Citizen Culture Festival The CIAT Executive Secretary was invited by the Superintendence of the Tax Administration of Guatemala – SAT, to give the keynote speech at the 3 rd Citizen Culture Festival held within the framework of the Tax Culture Program being promoted by SAT. Present in this act held on August 5, was the Vice-President of the Republic of Guatemala, Dr. Rafael Espada, accompanied by the Deputy Ministers of Finance, Mr. Marco Díaz Reyez; and Culture, Mrs. Elsa Beatriz Son, as well as the SAT Superintendent, Mr. Rudy Villeda.

The Conference theme was “The role of the Tax Administrations in the Development of Tax Culture” Kenya Delegation Visits Ecuador’s SRI On 23 August, with CIAT’s collaboration, a delegation from the Kenya Revenue Authority, headed by the Commissioner for Large Taxpayers, visited the Internal Revenue Service (SRI) of Ecuador.

Officials from both tax administrations had productive discussions focused on open opportunities for future cooperation in the following areas: 1) Information sharing and strategies in dealing with multinational companies carrying out business in both countries, particularly floriculture.

2) Kenya will take advantage of Ecuador’s experience regarding Advanced Price Agreements (APAs), which possibilities it proposes to explore to use in the future.

3) The opening of mutual general cooperation channels in all Transfer Pricing areas, since both are developing countries they are facing similar challenges in dealing with multinational companies.

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Finances Sub-Committee Meeting The Finances Sub-Committee met from 1 - 3 September at the CIAT headquarters, with the participation of the representatives from Canada Mr. Marty Lybbert and Mr. Abelardo García Badilla of Mexico.

Executive Secretary participated in the Anniversary of the Ombudsman of the Population of the Republic of Costa Rica The Executive Secretary was invited as special guest on 30 September for the anniversary of the Ombudsman of the Population of the Republic of Costa Rica, where he made a presentation on “Tax Moral in the Tax Administration and their Role in Citizen’s Moral” coordinated with the Ministry of Treasury, Ministry of Planning and UNDP in the context of the promotion of the Inter-Agency Transparency Network, as well as the National Program for the Prevention and Fight against Tax Fraud with the activity: "Transparency as a Strategy against Corruption" 2010 CIAT Technical Conference CIAT Technical Conference was held on October 18-21 in Paris, France, with the sponsorship of the General Directorate of Public Finances (DGFIP, in Spanish), whose central theme was “Improvement of the effectiveness of tax administrations through new organizational models”. It was attended by participants from 34 member countries and a total of 39 delegations from other countries, international organizations and institutions with whom CIAT maintains inter-institutional relationships.

During the four days of the Conference, the delegates of CIAT member countries and other countries and international bodies shared their experiences on tax matters, which revolved around three fundamental aspects of the Conference:   

The merger of competencies in the Tax Administrations as strategy for improving effectiveness and efficiency in public administration.

Key aspects for implementing the merger of competencies in the Tax Administrations.

Emerging aspects to be considered in the merger of competencies.

Visit from Master’s degree students of Guatemala’s Universidad de San Carlos On October 29, students of the fifth quarter of the Master’s degree on Project Formulation and Evaluation from Universidad de San Carlos in Guatemala visited the premises of CIAT’s Inter-American Center in the City of Panama.

The group of students was affably assisted by CIAT’s Executive Secretary and his team of collaborators, who shared their experiences on diverse projects developed 2

and the tools used to achieve the intended objectives. They also shared experiences concerning the starting of CIAT’s new webpage and how CIAT’s advice has supported the Guatemalan tax administration.

G20 countries request CIAT, among other bodies, to support the development of more effective tax systems On November 11-12 in Seoul, Korea, the G20 discussed the global financial issue and the post-crisis world economy, and included in Annex II of its Declaration the request to international and regional organizations related to the development and greater effectiveness of the tax system, to strengthen tax systems and fiscal policies in developing countries.

This Executive Secretariat believes that the express reference made to CIAT by the G20 in the Seoul Declaration represents the recognition of CIAT’s role and the position of our organization in the international tax and fiscal community, which we have been strongly underpinning since 2010 with the support of CIAT’s member and associate countries.

The French ambassador, His Excellency Hugues Goisbault, visited CIAT On November 22, His Excellency Hugues Goisbault paid a courtesy visit to CIAT in response to an invitation from the new Chief of the French Mission for CIAT, Isabelle Gaetan. Among the topics discussed during the visit were the role of the mission of member countries and CIAT and the historical relationships between France and Spain and our institution. In broad terms, the visit was intended to favor the exchange between both parties and to take advantage of the French presidency of G20 to outline a collaborative project among participants.

The meeting was attended by the Ambassador, Mr. Hugues Goisbault, on behalf of the French embassy; Political Attaché of the Chancery, Pauline Charles Brunner, and French Mission Chief for CIAT Isabelle Gaetan. On behalf of CIAT were the Executive Secretary and his work team.

Twentieth Meeting of Tax Administrators organized by Argentina’s Institute of Public Finance Studies At the Twentieth Meeting of Tax Administrators held on December 4 in the city of Buenos Aires, Argentina, the President of IEFPA awarded CIAT with a plaque commemorating 20 years of mutual cooperation.

The plaque is in recognition to the efforts of IEFPA’s President, Raúl Roa, and the Executive Secretaries who have been strongly committed to developing joint projects targeted at research activities and the education of tax administration officers, for twenty years. In addition to the presence of prominent professionals from national, sub-national and university ambits of the Argentine Republic, the 3

event was attended by officers from Brazil, China, Spain, Peru, ECLAC and the UN. Meeting of the Executive Council’s Financial Affairs Advisory Subcommittee (FAAS) The members of the Executive Council’s Financial Affairs Advisory Subcommittee (FAAS) met on January 19 to 21 at the CIAT headquarters. The Subcommittee is formed by Mr. Marty Lybbert, Manager of the Underground Economy Section, High Risk Compliance Strategy Division of the Revenue Canada Agency; Mr. Abelardo García Badilla, General Administrator of Resources and Services, of the Tax Administration Service of Mexico; Ms. Irene Carrizo, Plans and Programs Coordinator of the General Directorate of Revenues of the Ministry of Economy and Finance of Panama, replacing Mr. Luis Cucalon, General Director of Revenues; and Mr. David Peguero, Finance Manager of the General Directorate of Internal Taxes of the Dominican Republic.

The Subcommittee met to analyze, evaluate and make recommendations on: 1. The audited financial statements through June 30, 2010.

2. The annual execution of the Budget and financial statements for 2010-2011; 3. The Executive Secretariat’s draft Annual Operational Plan and Budget for 2011-2012, to be considered by the Executive Council and subsequently by the General Assembly Executive Secretary Participates in National Tax Compliance Meeting The National Tax Compliance Meeting organized by the National Tax Superintendency (SUNAT) was held in Lima, Peru on February 17 and 18.

The purpose of this important event was to disseminate the Institutional Operational Plan for the current year among directors of SUNAT’s Internal Tax operational areas, officials from the regulatory areas and high level management, as well as to reinforce such concepts as team work, alignment and decisionmaking.

The CIAT Executive Secretary, Mr. Márcio F. Verdi, was invited to make the inaugural presentation which dealt with “The Importance of the Tax Administration in the Country’s Development”, covering key concepts and challenges faced by the Tax Administrations. This presentation contributed key and specific challenges for the Tax Administrations.

Meeting of the CIAT Executive Council On 24 and 25 February the CIAT Executive Council met in Panama, primarily to review the reports of the Executive Secretariat on the budget and activities carried out in the current period, and the draft Annual Operating Plan and budget for the 4

period 2011-2012 already discussed by the Finance Sub-Committee, and that with the approval of the Council should then be subject to the approval of the General Assembly.

At this meeting, the Council received a visit from the AFIP of Argentina, in the person of the Deputy Director of Examination, Mr. Horacio Curien, who on behalf of the Federal Administrator of Public Revenues proposed a voluntary multilateral tax information exchange agreement model an alternate to the one being worked on by the Board of Directors.

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The Executive Secretariat participated in the development of the technical program and provided support for the organization of activities, invitation to speakers and panelists, and delegations of the CIAT countries members to this forum, which together with the Internal Revenue Service of Ecuador is organizing this event with the private sector of the Ecuador which will take place on March 17, in the city of Guayaquil.

45th CIAT General Assembly During the months of January and February close follow-up was given to all prior activities of the organization of the General Assembly to be held in Quito, Ecuador 4-7 April, closely related with the work of the Organizing Committee of the Internal Revenue Service of Ecuador.

The theme of the event is “Tax Morale as a Determining Factor in Improving the Effectiveness of the Tax Administration”.

CIAT headed toward Carbon Neutrality with Implementation of a Plan at the Executive Secretariat On January 13 and 14, the CIAT Executive Secretariat was visited by the representative of Total Environmental Solutions (SAMBITO, in Spanish), Isabel Sandoval, Manager of Sustainable Agriculture to assist this institution in becoming carbon neutral, which also entails an energy savings plant and reducing the use of letterhead paper, document printing and other services.

National Tax Compliance Meeting The National Tax Compliance Meeting organized by the National Tax Superintendency (SUNAT) was held on February 17 and 18 in Lima, Peru.

The purpose of this important event was to show the current year’s Institutional Operation Plan to the directors of SUNAT’s Internal Taxes operational areas, 5

officials of the normative areas and High Level authorities of SUNAT, as well as to reinforce the concepts of team work, alignment and decision making.

The CIAT Executive Secretary, Mr. Márcio F. Verdi, was invited by the National Tax Superintendency (SUNAT), to present the inaugural lecture whose topic was “The Importance of the Tax Administration in the Country’s Development”. This presentation discussed key concepts and challenges for the Tax Administrations, especially that of Peru and how the various tax administrations are focusing on the main problems of equity, social acceptance and collection efficiency through the application of electronic tools and tax culture programs. Other important topics considered by Mr. Verdi were transfer pricing, tax havens and cooperation between tax administrations to avoid international tax fraud. He concluded by referring to the value of the service contributed by the tax administration to Society and the State and the need that it be perceived as a quality service.

Environmental Tax Forum: We must put a price on carbon The first Environmental Tax Forum was held in the city of Guayaquil, Ecuador, on March 17, 2001. It was co-organized by the Inter-American Center of Tax Administrations-CIAT the Internal Revenue Service of Ecuador-SRI and Soluciones Ambientales Totales-SAMBITO, a Guayaquil company. The Forum was held within the framework of the International Environmental Summit held in that city last March 14-17, which was inaugurated by the Chairman of the International Environmental Summit, Mr. Gustavo Manrique, the CIAT Executive Secretary, Mr. Márcio Verdi and the SRI Director, Mr. Carlos Marx Carrasco.

The topics discussed in the event dealt with tax policy and environmental taxes and incentives. The different viewpoints and experiences on the subject were presented by panelists from Germany, Colombia, Ecuador, France and the Ecuadoran entrepreneurial sector.

The Forum was widely accepted and a new version is expected to be held in 2013.

At the end of the Summit Mr. Al Gore’s lecture conclusively demanded that a price be put on Carbon!

The presentations and report of this even are available in the CIAT web.

New CIAT Executive Council The Executive Council for 2011-2012 was elected on April 2011, at the CIAT General Assembly. The Council members are: President: Carlos M. Carrasco - Ecuador Councilors: Roberto Ugarte - Bolivia Julio Pereira Gandarillas - Chile Steven T. Miller – United States Robert Joseph - Haiti 6

Luis Cucalón - Panama Gerónimo Bellassai - Paraguay José Antonio de Azevedo Pereira - Portugal Pablo Ferreri - Uruguay Technical Resolution of the 45th General Assembly The text of the Quito Declaration approved by the General Assembly at its meeting held in Quito, Ecuador, on April 4-7, was made available through the CIAT website.

The resolution recommends to the tax administrations of the CIAT member and associate member countries to consider the role they must play for contributing to sound tax morale. It is worth recalling that the main theme of the General Assembly was “Tax Morale as Determining Factor in Improving the Effectiveness of the Tax Administration”.

The WCO within the framework of the 45th CIAT General Assembly On April 7, in response to an invitation from the CIAT Executive Secretary, Mr. Kunio Mikuriya, Secretary General of the World Customs Organization attended the 45th CIAT General Assembly. Mr. Mikuriya opened the session with a statement wherein he referred to the customs experience in the field of tax ethics, specifying that even though internal taxes and customs are different cultures they both have common interests and must promote mutual cooperation.

The WCO as well as CIAT took advantage of this opportunity to exchange experiences, as well as establish closer relationships and cooperation between both organizations.

Successful conclusion of the 45th CIAT General Assembly With the co-sponsorship of the Internal Revenue Service of Ecuador, the 45 th CIAT General Assembly was held in Quito, Ecuador on April 4-7, 2011.

In this event, 58 delegations from the member countries, special guests, international organizations, speakers, moderators, commentators and other participants had the opportunity for discussing and exchanging opinions and experiences on the main theme: “Tax morale as determining factor in improving the effectiveness of the tax administration”.

This assembly was a great achievement for CIAT, not only because of the high technical level of the topics discussed, but also the high level of participation and acceptance by the international tax community.

The papers are available in the CIAT web page.

Conference on Mobilization of Revenues and Development On April 17-19, 2011, the CIAT Executive Secretary participated in the Conference held at the International Monetary Fund headquarters in Washington, D.C., where 7

he made a presentation on the work carried out jointly with the IMF and IDB in the area of “Benchmarking”.

The purpose of this event was to gather the main officials responsible for policies, academic and business experts and civil society to improve tax policy and administration decisions and counseling, by learning from past successes and failures, as well as from the most recent academic advances.

During the Conference, meetings were held of the Working Group that supports the orientations originating from the G20. The Group includes representatives from the World Bank, IMF, UNO, OECD, ATAF, the Embassy of France in the United States and CIAT. CIAT’s Birthday In the month of May, CIAT commemorated its 45th anniversary. It all started with the vision of creating an organization that would constitute a permanent forum for dealing with the tax administration issues of the countries of the Americas.

At that time, the U.S. Internal Revenue Service Commissioner, Sheldon Cohen and the Director of the Tax Administration Advisory Services, Harold Moss, became the leaders of this endeavor. Following several preliminary meetings held in Washington, with the participation of top level officials from the Americas, in May 1967, Panama served as venue for the first CIAT General Assembly. On that occasion, representatives from 17 countries of the Americas approved the bylaws which served as basis for the creation of the Inter-American Center of Tax Administrations (CIAT).

Through the years, the initiative undertaken by this group of pioneers continued to be developed until becoming something more than what had originally been visualized and which has served as inspiration for the creation of other regional tax organizations in different parts of the world. Although the intention of the founders of “providing a forum for the tax administrations” still resounds, efforts have gone far beyond that initial mandate to provide more and better services to the member and associate member countries of the CIAT community.

CIAT has evolved from the original 17 founding member countries of the Americas, to currently having 40 member countries from four continents. Although it was established as a permanent tax forum for the countries of the Americas, it has continued to develop until becoming a modern, dynamic organization of reference in the tax world.

The time has come to focus on the future, accept new challenges and imagine where we want to be within the next 45 years.

We will continue to be a modern, professional and quality organization and will endeavor to be at the forefront of world events in the field of tax administration. By means of this strategy we hope to continue to offer our member and associate 8

member countries tax information, training, research and assistance of the highest quality, according to our tradition as forum and within the spirit of solidarity that has prevailed since the beginning, among all our member countries.

In the current globalized world, organizations such as CIAT cannot operate in isolation and within a restricted geographical area. It is necessary to establish alliances with the rest of the world, in particular, with international organizations having their own fiscal and tax agenda. For this reason, since its establishment a coordination, collaboration and definitively an open strategy with such international organizations as the Inter-American Development Bank, the International Monetary Fund, OECD, World Bank, United Nations, etc. All this efforts, far from subtracting, rather add, strengthen and enrich our organization, thereby allowing to offer better and more efficient services to our member and associate member countries.

As a result of this strategy, we were recently invited by the G20 to actively participate along with other international organizations, in developing different lines of actions in taxation to be presented at the next meeting of the G20 group in November.

Finally, with great pleasure and most sincere gratitude to all, individuals, countries and organizations that have helped us to become what we are, here is to a very “Happy Birthday!”, always focused on the future, with the hope of greater achievements that are yet to become a reality in the coming years.

Secretariat of FR of Brazil and CIAT get together in Brasilia The CIAT Executive Secretary, Márcio F. Verdi; the Head of the French Mission before CIAT, Isabelle Gaetan; the Deputy Secretary of the RFB, Zayda Bastos Manatta; the Undersecretary of Customs and International Relations of the RFT, Ernani Argolo Checcucci Filho; together with Brazilian tax authorities met in Brasilia, Brazil on June 14.

Among the topics discussed where the CIAT 2011 Technical Conference to be held in Lisbon, Portugal on October 24-27 under the main theme of “Administrative Collection Process as Effective Mechanism for Increasing Revenues, wherein the RFB will make a presentation on “Models for Organizing Collection”.

Also considered was the continuation of the Cooperation Agreement between the RFB and the DGFIP of France.

Program 02 - Tax Studies and Research Collection Observatory The Tax Collection Observatory was completed in April for all taxes in the Latin America area, allowing us to present papers in major economic tax forums, such 9

as the international seminar of the ECLAC and has generated a demand by ECLAC and OECD to work with these organizations in the production of a unique Collection Database The First Meeting of the Study and Tax Research Areas The CIAT Executive Secretariat organized for the officials of the Tax Administrations of the member countries working at said units. The meeting had the participation of the representatives of 16 member countries and 4 international organizations, and was held on 13 - 15 September 2010 in the City of Panama, Republic of Panama, and its main theme was “Micro-simulation methods and their use for policy analysis and tax administration” Self-Diagnostic Project for the Promotion of Ethics at the Internal Revenue Service (SRI) of Ecuador With the presence of the Director General of the SRI, Carlos Carrasco, and Director of Studies and Training of CIAT, in representation of the Executive Secretary and senior management of the Ecuadorian tax administration, on 27 September 2010, in Quito, the launch of the "Self-Diagnostic Project for the Promotion of Ethics" took place with the presentation to the Management Committee of the Internal Revenue Service of Ecuador. This project implements the tools designed by CIAT that presents a dynamic, practical and comprehensive vision of ethics in tax administration.

Tax Burden Measurement Project In September the Department of Economic and Social Affairs of the United Nations reported that it had approved our request for financial support to develop the Tax Burden Costs Measurement Study. Once completed, this study would result in models that allow the tax administrations to measure the cost for businesses and individuals in meeting their tax obligations.

CIAT presents taxation trends in Latin American at a seminar organized by AEAT and AECID The seminar on “Structuring of information systems for analyzing revenues and evaluating the impact of tax policy measures” was held on October 25-29 at the Spanish Cooperation Center in La Antigua, Guatemala, to present AEAT’s information system and how it is used in the prevention, follow-up and analysis of tax revenues, as well as in the evaluation of policies.

Presentations were given by Rafael Frutos Vivar, Chief of AEAT’s Tax Study Unit and Coordinator of the Seminar; Natalia Losa Alvaro, Area Chief of the Tax Information Department at AEAT, and Miguel Pecho, CIAT’s Tax Study and Investigation Manager, who expounded on taxation trends in Latin America.

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Working papers on tax studies In October, CIAT Executive Secretariat launched its series of working papers with the aim of disseminating the center’s research works. The much awaited research works include not only those prepared or coordinated by CIAT Executive Secretariat but also those carried out individually or institutionally by the officers of the tax administrations of CIAT member or associate countries.     

DT 01-2010: Comparative study on the current situation of transfer pricing legislations in Latin America Isaác Gonzalo Arias Esteban – CIAT, August 2010 DT 02-2010: Taxation and Tax Administration in CIAT Member Countries Miguel Eduardo Pecho Trigueros - CIAT, September 2010 DT 03-2010: Revenue projections in Ecuador Miguel Eduardo Pecho Trigueros - CIAT, October 2010

Manual on Best Practices for Measuring Tax Expense The Second Seminar on Tax Expenses: Reducing abuse and improving effectiveness, was held on November 8-9 at the headquarters of the IDB in Washington D.C., organized by the Inter-American Development Bank (IDB) and the International Monetary Fund (IMF). Diverse experiences on measuring tax expense were presented as well as methodological proposal to assess its effectiveness.

The dissertations were given by experts from international bodies and officers of the tax administrations and finance ministers of Latin American and Caribbean countries.

CIAT’s Manager on Tax Studies and Research, Miguel Pecho, presented the advances made to the Manual on Best Practices for Measuring Tax Expense.

CIAT attends the inauguration of the Center of Fiscal Studies in Uruguay The inaugural sessions of the Center of Fiscal Studies (CEF, in Spanish) were held on November 2-3 in Montevideo, Uruguay. This center will be engaged in consulting, investigation, training and education of tax matters and public finances.

Based upon the presentations given by the IEF and CIAT, the attendees discussed the possible governance and management schemes of the CEF, the research and analysis priorities intended to improve the fiscal and taxation policy in Uruguay, the needs for training public officers and the possible cooperation alternatives for the center, on a regional and international level.

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The sessions were attended by Uruguay’s Economy and Finance Minister, Fernando Lorenzo; the General Sub-director of Tax Studies of the Spanish Institute of Fiscal Studies (IEF, in Spanish), Jesús Rodríguez Márquez, and CIAT’s Manager of Tax Studies and Research, Miguel Pecho. Representatives of the private and the local academic sector also took part.

CIAT-IDB-CAPTAC Project on the Diagnosis of the Tax Administrations of Latin America It began in December 2010. The "STATE OF THE TAX ADMINISTRATION IN LATIN AMERICA" questionnaire for this project was already developed and presented and will be sent on 15 March 2011 to the Tax Administrations, and which will form the basis for the elaboration of the study.

CIAT - AEAT – IEF Essay Contest During December 2010 the 23rd Essay Contest CIAT – AEAT – IEF was opened.

All papers must be submitted before 1 May 2011. The terms and conditions of the essay contest as well as the Research Scholarship may be downloaded at CIAT eportal in the section “Participate.”

Tax Expenditure Measurement Best Practices Manual The Third Meeting of the Working Group on the Measurement of Tax Expenditure was successfully concluded. It was held at the headquarters of the Inter-American Center of Tax Administrations (CIAT) on January 31, through February 2, 2011.

During the meeting the draft for the Best Practices Manual prepared by the Executive Secretariat (six chapters) was reviewed and the attached database was updated. The final version of both products will be at the disposal of the international tax community, in Spanish and English, during the second quarter of 2011.

CIAT/AEAT/IEF Tax Administration Review In January 2011 the electronic edition of the CIAT/AEAT/IEF Tax Administration Review No. 30 was sent and some copies were sent via air mail.

On 25 January 2011 letters were sent out to all member countries requesting the articles to be published in Edition No. 31 of the Review. Articles will be received until 15 April 2011.

V Call to the CIAT – AEAT – IEF Research Scholarship During January 2011 a letter was sent to member countries and it was published in the CIAT portal on the 5th Call for the CIAT-AEAT-IEF Research Scholarship. The deadline for the submission of applications will be on 21 February 2011. The 12

scholarship is granted for a period of eighteen months, beginning on 1 June 2011 and will end on 30 November 2012.

Progress achieved by the International Tax Planning Control Committee In February 2011, the International Tax Planning Control Committee announced the presentation of the first results of their work to be used by the Tax Administrations of the CIAT member countries.

This Committee is formed by delegates from Argentina (country which chairs the Committee), Brazil, Canada, Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, France, Italy, Kenya, Mexico, Netherlands, Paraguay, Portugal, Spain, United States, Uruguay and the CIAT Executive Secretariat, who contributed their efforts and dedication to the preparation of the documents and studies.

The finished products are: • Summary of comparative legislation on international taxation which was coordinated by Brazil. It covers tax treatment in different countries of such concepts as residence, nonresidents, anti-abuse measures, among others.

• Comparative study on tax havens. This study reviews tax legislation and examination strategies applied in relation to tax haven transactions.

• Data bases with international tax planning schemes and instruments arising from the experience of the Tax Administrations of the delegates represented in the Committee, coordinated by the Committee’s Chairman and the CIAT Executive Secretariat.

Seminar on “Revenue Mobilization in Sub-Saharan Africa” held in Nairobi, Kenya The abovementioned seminar organized by the Government of Kenya and the International Monetary Fund (IMF) with the support of the African Forum of Tax Administration and International Tax Compact of Germany was held on March 21 and 22 at the Intercontinental Hotel in Nairobi, Kenya.

The seminar was aimed at identifying best practices in tax policy and administration in the African countries as well as considering new formulas for facing such problems as trade liberalization and the proliferation of tax incentives.

The CIAT Tax Studies and Research Manager, Economist Miguel Pecho, was invited to present the progress of the CIAT Working Group on Measurement of Tax Expenses as a successful Ibero-American experience for promoting tax transparency.

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4th Meeting of the CIAT Permanent Committee on Ethics The 4th Meeting of the CIAT Permanent Committee on Ethics was held on March 31 and April 1st in Quito, Ecuador with the participation of representatives from: Canada, Colombia, Dominican Republic, Ecuador, France, Guatemala, Kenya, Netherlands, New Zealand, Panama, Spain, South Africa, Sweden and the CIAT Executive Secretariat.

The CIAT Permanent Committee on Ethics was created in 2008, sponsored and chaired by the Canada Revenue Agency. Since then, it has been working, among other things, in the development and improvement of the self-assessment tools designed by CIAT for the promotion and ethics and the exchange of experiences and best practices for promoting integrity in the tax administrations.

Permanent Committee on Ethics and Tax Administration.

A meeting was held on March 31 and April 1st, 2011 in Quito, Ecuador. The Committee’s action plan for 2011-2013 was discussed and approved in this meeting.

CIAT/AEAT/IEF Tax Administration Review- No. 31 Edition The deadline for presenting papers for publication in the CIAT/AEAT/IEF Tax Administration Review expired on April 15, 2011. This review is published as part of the Technical Cooperation Agreement between CIAT and the Institute of Fiscal Studies (IEF) and State Agency of Tax Administration (AEAT), both from Spain.

The review is mainly aimed at responding to the requests for tax policy and administration information and analysis from the CIAT member and associate member countries. In this regard, the articles should allow for international comparison and analysis of tax practice in these countries.

CIAT and ICEFI consolidate strategic alliance On April 12, Messrs. Mynor Cabrera and Jonathan Menkos, Senior Economists from the Central American Institute of Fiscal Studies (ICEFI for its Spanish acronym) met at the CIAT Executive Secretariat headquarters with the CIAT Executive Secretary and the Coordinators of the Tax Studies and International Cooperation areas, to develop the annual cooperation program between the two organizations, as a result of the Agreement signed by both parties on April 7, 2011, at the 45th CIAT General Assembly in Quito, Ecuador.

Awarding of the Fifth Edition of the CIAT – AEAT - IEF Research Scholarship According to resolution of April 5, 2011 (published on April 19 in the BOE of Spain), and following evaluation of the proposals, the jury awarded the 5 th edition of the Research Scholarship sponsored by the AEAT and IEF of Spain and CIAT to Mr. Daniel Irwin Yacolca Estares, Official of the Attorney’s Office of the National Tax 14

Superintendency of Peru, whose project was entitled: “Toward a Green Tax Reform in Latin America”.

Mr. Yacolca will undertake the research on the topic and the results will be subsequently published by CIAT, upon conclusion of the research work within 18 months.

V Announcement of the CIAT – AEAT – IEF Research Scholarship On April 5, 2011, through Resolution 7018, the Institute of Fiscal Studies awarded the research scholarship on Tax Policy or Administration issues in the IberoAmerican sphere, which was announced through Resolution 3 of January 2011.

After evaluating the proposals submitted, the jury decided that the winner of the 5 th edition of the Research Scholarship sponsored by the AEAT, the IEF of Spain and CIAT was Mr. Daniel Irwin Yacolca Estares, Official of the Attorney’s Office of the National Tax Superintendency of Peru, whose project was entitled: “Toward a Green Tax Reform in Latin America”. Mr. Yacolca will undertake the research on the topic and the results will be subsequently published by CIAT, upon conclusion of the research work for which he will be allowed 18 months, as of April 2011.

CIAT - AEAT – IEF Essay Contest The deadline for submitting entries to be considered in the XXIII CIAT – AEAT – IEF Essay Contest expired in May 2011. The papers are being evaluated by the Jury.

Permanent Committee on Control of Harmful International Tax Planning With the collaboration of AFIP of Argentina, a meeting was held in Buenos Aires in May 2011.

Studies on comparative legislation, tax havens and data base on planning schemes have already been concluded.

Closing Seminar of the VII edition of the International Master’s Program in Tax Administration and Public Finance The Seminar on “Trends in Tax Administrations, Adaptation to the new environment” was inaugurated at the headquarters of the Institute of Fiscal Studies last June 6. It was the final activity of the VII edition of the International Master’s Program in Tax Administration and Public Finance.

Present in the inauguration in their capacity of organizers and responsible for the development of the aforementioned Master’s program were Mrs. Celia de Pablos Salgado, Director of the School of Public Finance; Mr. Márcio Verdi, CIAT Executive Secretary; Mr. José Manuel Guirola López, Academic Director of the Master’s Program; Mr. Fernando Díaz Yubero, Member of the Managerial Council of the Master’s Program; Mr. Miguel Ángel Feito Hernández, General Director of 15

the CEDDET Foundation and Mrs. Pilar Seisdedos Espinosa, IGAE’s Deputy General Director of Coordination.

At this Seminar, the CIAT Executive Secretary made a presentation to the students on “The main services rendered by CIAT to the Latin American Tax Administrations”.

Tax Administration Review No.31 Continuing with its new communication strategy, CIAT published the N° 31 edition of the Tax Administration Review. It is a joint effort of the CIAT Executive Secretariat and the Institute of Fiscal Studies (IEF) and the State Agency of Tax Administration (AEAT), both of Spain. This edition of the review includes eight (8) articles covering tax design and management aspects, at the local as well as international levels, both in Latin America and Europe.

Manual on Best Practices in the Measurement of Tax Expenditures The manual is in its final stage and will be presented at the next CIAT Conference.

Observatory on Collection The information of the Tax Collection Observatory for all taxes in the Latin American area continued to be updated. Initially, the information began with that of 2006, but now it will go as far back as 1990. This goal was achieved, and the rest of the charts are being prepared for uploading in the portal.

Updating of CIAT Data At June 2011, information on the Latin American countries continues to be updated. The purpose is to have the descriptors for each country as complete as possible in order to add them to the Questionnaire of the CIAT-IDB-CAPTAC Project for the Diagnosis of the Latin American Tax Administrations. The new information covers the Tax Administration descriptors of the former CIAT taxation data base and double taxation agreements and a new section on taxpayer rights.

The Goal was achieved.

The studies on comparative legislation, tax havens and data bases on planning schemes have already been concluded.

Library: Thematic Series  

Publication of the thematic series on Tax Evasion. (No. 7, January 2011).

Publication of the thematic series on Ethics in the Tax Administration. (No. 8, February 2011).

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Thematic Bibliography In February 2011, the material for bibliography No. 4 “Impact of ICTs in the Tax Administration (Spanish and English) was sent to the publications area.

Bibliographic News There were four fortnightly installments in the Executive Secretariat of the CIAT (2 in January and 2 February 2011) and two monthly (January and February 2011) which were uploaded in CIAT’s website.

News Alert A daily delivery was prepared, 20 deliveries in January 2011 and 19 deliveries in February.

Library – March through June 2011:     

Four thematic series were published, one each month, as well as the thematic bibliography No. 5.

Inclusion in the library data base of information on the physical books of the Center’s collection was concluded.

The publication of monthly new features has continued.

Other documentation centers for exchanging publications have been identified.

Bibliographical research was undertaken for supporting the preparation of courses and for sending the Daily News Alert.

Program 03 - Training Training Activities are better visualized collectively than broken down by month of the calendar year.

CIAT promotes e-learning training in Tax Administrations The primary objective of the Executive Secretariat is to promote the means for the officers of the Tax Administrations of member and associate countries to access first-class training and thus update their knowledge of tax matters.

Through its Training program rolled, CIAT Executive Secretariat has provided ongoing education to officers from 22 countries of diverse TAs of member and associate countries, on topics such as Tax Law, International Taxation, Transfer Pricing, Tax Administration, Tax Policy and Technique, Examination and Tax Management; thereby training nearly 1650 officers from Tax Administrations and the public at large.

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Call for online course tutors With a view to expanding the body of tutors for on-line courses, CIAT is making an international public call for professionals specialized and experienced in taxation to participate in the process of selecting new tutors.

The successful experience of CIAT’s e-learning program is attributable to the technical soundness of the course contents, quality control and our excellent body of course tutors.

Courses held: Specialized Course on Tax Policy and Technique The fifth intake began on February 1 and ended on August 20 of 2010.

This course is intended to provide specialized knowledge on Tax Policy and Technique through the reinforcement of structural and strategic concepts as an essential part to understand the design and development of a country’s fiscal policy and tax system structure. The fifth intake is currently under way, with the participation of the Tax Administrations of Colombia, Mexico, Peru and the Dominican Republic and 54 students enrolled.

Specialized Course on Tax Administration The fourth edition began on March 1 and ended on August 20 of 2010.

This course is mainly intended to provide the officers of tax administrations and the public at large with specialized knowledge on all relevant topics concerning the essential functions and the support that tax administration should fulfill, as well as on current topics involving more direct action by taxpayers and the society at large.

The fourth edition of the course was carried out this year with the participation of 132 officers from the Tax Administrations of: Argentina, Colombia, Ecuador, Panama, Paraguay, Peru and the Dominican Republic, with a pass rate of 93.9%.

Course on Financial Institution and Operations Control The fifth intake began on May 3 and ended on August 20.

This course is intended to learn and identify the diverse financial operations in order to establish optimal control mechanisms targeted at contributing in the fight against tax fraud and evasion. The fifth intake of the course was held this year with the participation of 65 officers of the Tax Administrations of: Argentina, Bolivia, Costa Rica, Colombia, Chile, Peru, Paraguay and the Dominican Republic, with a pass rate of 98.5%.

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Course on Tax Management The second intake started on May 17 and ended on Friday, December 24; makeup exams are currently under way.

This course is intended to develop competencies and skills to act strategically and make decisions in the ever-changing taxation field which affect management of the Tax Administration. At this time we are conducting the second edition of the course, with the enrollment of 63 students from the Tax Administrations of: Argentina, Chile, Colombia, Mexico, Peru, Paraguay, the Dominican Republic and Uruguay.

Course on Transfer Pricing The First Module began on June 14 and ended on August 20, and the Second Module began on September 27 and ended on November 26.

A special version of the Course on Transfer Pricing is being created jointly with Guatemala’s SAT intended to train the staff that will attend the Seminar on Transfer Pricing next year.

Basic Course on Examination/Tax Audit Fundamentals The first Spanish and English edition of the course began last November 8 and ended on Friday, December 24 of 2010; the make-up exams are currently under way.

The course is intended to introduce the fundamentals of a company’s tax auditing to the new inspection officers. The course also provides an extensive description of the steps to be followed in taxpayer examinations. The first intake of the course was attended by participants from the Tax Administrations of Brazil, Chile, Costa Rica, Peru, Paraguay, the Dominican Republic, Jamaica, Kenya and Trinidad & Tobago, in which 397 officers were enrolled.

New courses The consultants who are to write up the material of the Courses on Customs, Ethics and the General Principles of Public Finances and Tax Systems have been hired.

Basic Course on Examination 1st Edition The course was held from 8 November 2010 to 7 January 2011. With the development of the course 261 students of the tax administrations of Brazil, Chile, Costa Rica, Jamaica, Kenya, Paraguay, Peru, Rep. Dominican and Trinidad and Tobago were trained.

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The goal was to present to new examination officials the fundamentals of the tax examination of company. The course also provides a comprehensive description of the steps to follow in the tax examination of a taxpayer. It was delivered in Spanish and in English.

Course Taxation 2010 - Module IV. Tax Administration From 29 November to 25 February 2011, the course was taught in Spanish and delivered to 71 staff members the Tax Administrations of Brazil, Chile, Mexico, Panama, Dominican Republic and Puerto Rico.

Its objective was to provide general knowledge on the most relevant aspects relating to the tax administration through the strengthening of fundamental concepts as an essential part in the understanding of the structure and functioning of the organization in charge of implementing a country's tax system.

Basic Course on Human Resources 1st Edition The course began on 07 February 2011 and must conclude on 17 April 2011, 48 officials of the tax administrations of Brazil, Colombia, El Salvador, Honduras, Mexico, Panama, Paraguay, Peru and the Dominican Republic are being trained.

Its goal is to provide the practical skills needed to develop all the skills for the good management of human resources within the Tax Administrations according to the capabilities of the staff.

Final reports were prepared on the following courses: Tax Management, 2nd edition, Course on Control of Financial Institutions and Operations, 5 th edition, Specialized Tax Administration Course, 4th edition.

All Moodle updates were concluded and updating of Moodle 2.0. is currently in process.

2010 Taxation Course - Module IV. Tax Administration Seventy one officials from the Tax Administrations of Brazil, Chile, Dominican Republic, Mexico, Panama and Puerto Rico, took the course in Spanish from November 29, 2010 through February 25, 2011.

Its objective was to provide general knowledge and strengthen fundamental concepts of Tax Administration that are essential for understanding the structure and operation of the organization in charge of applying the tax system in a country.

Basic Human Resources Course, 1st. Edition The course held from February 7 through April 17, 2001 was taken by 48 officials from the Tax Administrations of: Brazil, Colombia, Dominican Republic, El Salvador, Honduras, Mexico, Panama, Paraguay and Peru.

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Its purpose was to provide the necessary practical knowledge for developing all competencies for appropriate human resources management within the Tax Administrations.

Basic Customs Course, 1st Edition The first edition was held on March 28 through June 24, 2011 with the participation of 26 officials from the Tax Administrations of Brazil, Dominican Republic, Ecuador, Guatemala, Mexico, Peru and Venezuela Its objective is to disseminate customs principles and regulations, in addition to the main techniques for customs valuation.

Tax Management Course, 3rd Edition The third edition is in process from April 11 through November 18, 2011 with 67 officials from the Tax Administrations of Argentina, Brazil; Colombia, Dominican Republic, Ecuador, Honduras, Mexico, Peru, Paraguay and Uruguay.

Its objective is to develop competencies and skills for acting strategically and making decisions regarding Tax Administration management.

Basic Examination Course, 2nd Edition The second edition of the course began on May 2 and concluded on June 24, 2011, with the enrolment of 76 Spanish-speaking officials from the Tax Administrations of Bolivia, Chile, Dominican Republic, Mexico, El Salvador and Paraguay.

Basic Examination Course, 3rd Edition The third edition of the course runs from June 6 through July 29, 2011, with an enrolment of 93 Spanish-speaking officials from the Tax Administrations of Bolivia, Brazil, Chile, Guatemala, Mexico, Paraguay and Peru.

Course on Tax Ethics and Tax Citizenship The first edition runs from June 13 through August 19, 2011 with 28 officials from the Tax Administrations of Brazil, Chile, Mexico, Panama, Paraguay and Uruguay.

The main objective is for participants to understand the strategies that contribute to the promotion of ethics in the tax administrations, based on the analysis of the effects of corruption, the basic concepts of ethics in public and tax administration and the tools developed by CIAT.

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Special Edition of Course on the Control of Financial Institutions and Operations This course runs from June 27 through September 23, 2011 with the participation of the Tax Administrations of Bolivia, Costa Rica, Dominican Republic, Ecuador, El Salvador, Guatemala, Honduras, Nicaragua, Panama, Paraguay and Uruguay.

The objective is to strengthen the Tax Administrations’ control capacity for facing challenges posed by the financial activity, mainly with respect to cross-border or international transactions based on a greater and better understanding of its structure and operation, as well the alternative tax treatments and the control practices implemented by the countries.

Update, Preparation and Translation of Technical Materials The material of the Basic Human Resources Course was updated and adapted.

The material for the Transfer Pricing course is in the process of updating since December 2010 and that for the Specialized Tax Administration course since June 2011.

Consultancies were carried out in relation to the preparation of the material for the following courses:  Basic Customs Course  Tax Ethics Course Consultancies are in process since December 2010 for preparing the material of the following courses:  General Principles of Public Finance and Tax Systems Course.  Specialized Human Resources Course.

Program 04 - Technical Assistance CIAT presents Workshop during COTA Assembly On 12-15 July, the Caribbean Organization of Tax Administrators – COTA Assembly and Technical Conference was held in Barbados under the theme “The successes and challenges of Tax Administrations in maintaining efficiencies in times of Global Economic Transformation.” Raúl Zambrano, CIATA Technical Assistance Manager with Marvin Ishmael, Internal Revenue Department of Barbados, presented a Workshop on Electronic Filing of Returns and Information Returns.

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Electronic Invoice Workshop On 23 and 24 August CIAT Technical Assistance Manager, Mr. Raul Zambrano, organized an Electronic Invoice Leveling Workshop with the participation of eight officials from SRI in Quito, Ecuador.

Third CIAT Contest on Innovation in the Tax Administrations On 27 August the Inter-American Center of Tax Administrations announced from its headquarters the “Third CIAT Contest on Innovation in the Tax Administrations”.

Entries were accepted until November 30, 2010.

The purpose of this annual contest is to recognize and promote improvement and creativity in the tax administrations. It is concrete evidence of the effects of innovation in their performance which ultimately results in greater public trust. By highlighting exemplary ways of innovative performance of the tax administrations, the Program acts as a catalyst in continuous improvement for satisfying the permanent demand faced by tax administrations of finding new and better ways for achieving their institutional objectives.

The 2011 awards will be announced and presented at the General Assembly in Quito, Ecuador.

Benchmarking The Working Group on Benchmarking reviewed the defined indicators and the feasibility of using them. Some additional indicators considered as appropriate and comparable were defined. The CIAT Comparison system was presented at the Paris Technical Conference during the CIAT products session.

Additionally, in the framework of Technical Assistance activities, the system has been made available to the Brazilian states through the PROFISCO project and through the Meeting of Tax Administrators of Brazil – ENCAT and through other entities, including ATAF. The survey that is being jointly developed with IDB, IMF and CAPTAC is being integrated to the CIAT comparison system.

It is possible that the assignment of the system to PROFISCO and ENCAT will take place in the second quarter of 2011 Electronic Invoicing The activities of the Electronic Invoicing group continued with the design of and the proposal for a model for the exchange of electronic invoices in foreign trade operations in CIAT member countries. The progress made by the group as well as the proposal were presented at the Portugal Technical Conference.

An invoicing seminar was developed in cooperation with CAPTAC, which included topics related to electronic invoicing for Central American countries.

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Two possible technical assistance activities are being planned with Peru and Paraguay for the development of Electronic Invoicing training activities in their countries.

ICT Committee Two maturity schemes have been developed for two tax administration processes.

Recognition to Innovation The call to and promotion of the Innovation Competition was presented, with the participation of nine countries totaling seventeen initiatives. The announcement of the winners will take place at the Quito Assembly in Ecuador, in April 2011.

Innovation Contest Winners 2011 - 3rd. Edition, at the 45 CIAT General Assembly in Quito, Ecuador Brazil, Receita Federal do Brasil (RFB) ¨E-Process – Administrative Digital Process¨ The program consists of ending the use of paper documents within the public agency through the use of a digital administrative process. [The administrative process is a form of appeal by the taxpayer when they are in disagreement with the RFB on a tax matter.] It seeks to promote the transparency of public acts, with knowledge management, allowing more autonomy and administrative decentralization.

United States of America, Internal Revenue Service (IRS) ¨Large Business and International Division Image Network¨ (LIN)The LIN system is a system for scanning, storing, and delivering electronic tax return images to IRS examination teams nationwide. The LIN system models efficiency, effectiveness, and environmental consciousness in the IRS. The most revolutionary and impressive advances in this program are the sheer volume of data processed and the over 90% reduction in lag time between the time the tax return is filed and received by an examination team.

Mexico, Servicio de Administración Tributaria (SAT) ¨Modernization of Tax Receipts/Invoices¨ The program aims to improve services and gain more information to enable SAT more efficient and effective control mechanisms through a phased implementation strategy. Electronic invoicing was established in 2005 as an optional transaction method but in January 2011 became mandatory for entities. While it greatly benefited the Tax Administration, it was also a program of exceptional value for the commercial sector.

Peru, Superintendencia Nacional de Administración Tributaria (SUNAT) ¨Mobile Notifications¨ This program maximizes the use of modern technology and 24

makes excellent use of the synergies that are afforded by employing mobile phones, global positioning systems and the Internet to create a controlled, efficient and streamlined notification process.

Tax Intelligence internships program In-person internships were carried out in the bilateral cooperation framework from Kenya to Brazil; from Costa Rica, Panama, Paraguay to Spain; and from Ecuador to Brazil.

Project management Five projects were established with the SRI of Ecuador: Electronic Invoicing Enforced Collection Implementation of the CIAT Ethics Manual Improvement of the Taxpayer File System Examination of movement of goods The Emergency Assistance and Computerized Support Project for the General Directorate of Revenues of Panama was also established.

Technical assistance to Barbados was concluded.

Specific technical assistance activities have been carried out and these could result in long term projects with Brazilian States and the General Directorate of Taxation of Uruguay.

Updating of the technical assistance personnel ICT personnel from the Executive Secretariat were trained in new technologies related to information dissemination, channels development and provision of services through the Internet.

Development of the communications platform The new CIAT site in the Internet was developed and put into production, the corporate Blog was created, structured and enabled; CIAT’s permanent presence began in the social networks: Facebook, Twitter and YouTube.

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Program 05 - International Cooperation Meeting with Crown Agents On the 6th of July, CIAT’s Executive Secretary, Marcio Verdi, met with three representatives from Crown Agents, Michael Canvin, David Turney and Melissa Nobile in London.

CIAT are partners in a proposal submitted by Crown Agents in April for a tax research opportunity with the UK’s Department for International Development, and this meeting provided the perfect occasion to discuss this proposal and future opportunities for collaboration.

CIAT participates in the 14th IOTA General Assembly The CIAT Executive Secretary, Márcio F. Verdi, participated in the the 14 th General Assembly of the Intra-European Organisation of Tax Administrations (IOTA). The event was organized and hosted by the Federal Public Service Finance of the Kingdom of Belgium and held in Brussels on 8-9 July 2010. Among the participants were: Mr. Didier Reynders, Belgium Minister of Finance, Mr. Algirdas Šemeta, EU Commissioner for Taxation and Customs Union, Audit and Anti-Fraud, heads of Tax Administrations, representatives of international organizations, experts and researchers.

The theme of the General Assembly was “New challenges and effects on taxpayer compliance and tax revenues in times of economic crisis”. The countries who gave technical presentations on this theme were Austria, Bulgaria, Estonia, Ireland, the Netherlands, Slovakia, Spain, Switzerland and the United Kingdom. There was also a panel forum on International Initiatives in the Field of Tax Administration at which IOTA was privileged to have as speakers representatives of the European Commission, the Organization for Economic Co-operation and Development (OECD) and the International Monetary Fund (IMF).

Executive Secretary meets with IRS representatives and other executives in Washington During the week of July 19th the CIAT Executive Secretary, Marcio F. Verdi, and the Director of International Assistance and Cooperation, Socorro Velazquez, traveled to Washington, DC to meet with the US CIAT Representative and officials from other organizations. The CIAT delegation met with officials from the following organizations: US Internal Revenue Service (IRS); New Rules for Global Finance; U.S. Treasury - Office of Technical Assistance (OTA); International Monetary Fund (IMF); and, former IRS LMSB Commissioners Debbie Nolan and Frank Ng. In addition to staff present at the meeting other individuals were connected via teleconference. Specifically, Michael Lennard from the UN DESA, Michael Ango from the Federal Inland Revenue Service of Nigeria and David Spencer from the Tax Justice Network.

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Among the issues covered ranged from the project proposal submission to the UN on Measuring Tax Burden to support to the recently created African Tax Administration Forum (ATAF). The United States assured that it will continue supporting CIAT’s work in its support to other member countries.

SIECA and CIAT Analyze Joint Actions in Tax Matters To promote greater cooperation and exchange on tax technical and training aspects, the General Secretary of SIECA, Yolanda Mayora de Gavidia and the CIAT Executive Secretary of the Inter-American Center of Tax Administrations (CIAT), met at the SIECA headquarters on 10 August in Guatemala. In this meeting, they discussed common issues and analyzed joint actions in tax harmonization that may allow for devoting efforts to the exchange of technical and regional information, as well as studies and statistics. In addition, they exchanged opinions regarding initiatives for coordinating international cooperation and supporting the Central American Customs and Tax School (ECAT) through a technical cooperation agreement.

International Seminar of the State Secretariat of Finance of the State of Sao Paulo, Brazil In response to an invitation of the government of the State of Sao Paulo, Brazil, the CIAT Executive Secretary, Mr. Márcio F. Verdi, participated in the International Seminar organized by the Finance Secretariat of the aforementioned state during 12-13 August.

Other participants included representatives from Argentina, Canada, Chile, Spain, France and OECD, as well as Tax Auditors from the Federal Secretariat of Revenues of Brazil and Tax Auditors from the State of Sao Paulo and other Brazilian states.

The CIAT Executive Secretary made an important presentation on the impact of the economic crisis in the tax administrations and their future challenges, under the context of the world economy, he specifically covered the topic of the restrictions imposed by the Baning Secrecy in the daily tasks of the Tax Administrations, preventing them from fully complying with its mission and objectives.

First International Tax Administrations Seminar concludes successfully Organized by the Finance Secretariat of the State of Maranhão, Brazil, jointly with CIAT and ENCAT, and IDB’s support, the First International Tax Administration Seminar was held on August 18-20 of this year in the city of San Luiz.

Participating in this event were the Director of the State Agency of Tax Administration of Spain, Mr. Juan Manuel López Carbajo, the Director of Tax Credit Services and Management of the DGI of Portugal, Mr. Jose María Pires, international consultant Teresa Ter-Minassian, IDB specialist Luiz Vilella, the CIAT Executive Secretary, Mr. Marcio Verdi, Finance Secretaries and Undersecretaries 27

of various States of Brazil, as well as federal and state attorneys and representatives of associations and organizations.

The participants and speakers discussed key issues that impact the tax administrations, such as ethics and the citizen’s duty to pay taxes, the use of ICTs in the tax administrations, increased subjective risk, collection management and transfers and VAT co-participations at the sub-national levels.

CIAT Executive Secretariat was present with two presentations: “Ethics and Tax Citizenry” presented by the Executive Secretary and “The Tax Administration and Information and Communications Technologies” presented by the Technical Assistance Manager. The Director of Studies and Training was a commentator during the discussion of the topic “Strategies for increasing subjective risk” and was in charge of the final report of the event.

Transfer Pricing and Information Exchange Workshop-Seminar.

Within the framework of the Cooperation Agreement signed between the InterAmerican Center of Tax Administrations, CIAT and the Organization for Economic Cooperation and Development, OECD, and sponsored by the Internal Revenue Service (SRI) of Ecuador, the Seminar-Workshop on “Transfer Pricing and Information Exchange” was successfully held in the city of Quito, Ecuador on August 24-27.

The event was inaugurated by the General Director of Revenues of Ecuador, Mr. Carlos M. Carrasco, the CIAT International Cooperation Manager, Mr. Gonzalo Arias and the OECD Transfer Pricing Expert, Wolfgang Büttner, it had the participation of distinguished international speakers from different tax administrations of the CIAT member countries: Mrs. Donna O’Connor from the Revenue Canada Agency, Mr. Gerardo Montes from the SII of Chile, Mr. Sidi Mohamed Zeddoun, from the DGFIP of France, Mr. Stefano Gesuelli from the Guardia di Finanza of Italy, the Revenue Commissioner of the Kenya Revenue Authority, Mr. John Njiraini, Mr. Sergio Pérez Cruz from the SAT of Mexico, Mr. Joaquim Souza from the DGI of Portugal. Other participants were the Director of the Internal Revenue Service of Chile, Mr. Julio Pereira and representatives from Costa Rica, Dominican Republic, El Salvador, and Paraguay, as well as distinguished officials from the Internal Revenue Service and Customs Service of Ecuador.

The CIAT Executive Secretariat presented two papers: “Comparative analysis of the regimes for controlling transfer pricing in Latin America” and “Aspects to be taken into account for the effective application of the rules for controlling transfer pricing.”

During this Seminar-Workshop participants and speakers had the opportunity to discuss legal and operational aspects related to the control of abusive manipulation of transfer pricing, as well as consider the needs of the tax administrations that are 28

beginning to work in this area, which were taken into consideration by the sponsoring international organizations and representatives of the countries present.

International Seminar “Public Finances and Tax Evasion in Latin America” In Antigua, Guatemala from 25 - 26 August, the International Seminar “Public Finances and Tax Evasion in Latin America” was organized and Francisco Beiner, CIAT’s Development and Institutional Events Manager participated during the same.

CAPTAC and DGII Seminar in the Dominican Republic A meeting was held from 29 - 30 August in Santo Domingo, Dominican Republic within the collaboration framework of the DGII and the Regional Technical Assistance Center of Central America, Panama, and the Caribbean (CAPTAC) and the cooperation of the International Monetary Fund (IMF). CIAT Executive Secretary was a special guest to participate in the event and as commentator.

Seminar on Key Aspects for Human Resources Management The seminar on key aspects affecting good human resources management was held on 8-10 September in Santo Domingo, organized by CIAT and the General Directorate of Income of the Dominican Republic.

The event was inaugurated by the DGII acting director, Mrs. Germania Montás Yapur and the participants included top level human resources officials from the tax administrations of 10 CIAT member countries. Representing the Executive Secretariat was the Director of Studies and Training, Ms. María Raquel Ayala, who on behalf of the CIAT Executive Secretary, Sr. Márcio Verdi thanked the participants for their interest in exchanging experiences on a transcendental issue for the success of the organizations.

During the event, key issues were discussed such as Strategic Plans and Human Resources, ethics in the management of Human Resources, ethics in Human Resources management, incorporation and Human Resources mobility, administrative career, training, compensation and job functions manuals, where the attending countries expressed their significant advances through case studies and workshops.

3rd Meeting of the Treasury State of the "State of Minas Gerais" of Brazil This activity organized from 9 - 12 September by the Association of Tax Officials of the State of Minas Gerais AFFEMG, was held in Bello Horizonte, Brazil, and the Executive Secretary made a presentation during the Inauguration Conference on the subject “The Tax Administrations Need to Exchange Experiences and Promote Integration.”

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In the framework of this event the CIAT Executive Secretary was interviewed for the Bulleting of the Association of Officers of the State of Minas Gerais, Special Supplement, September 2010.

6th Forum on Tax Administration At the invitation of the OECD and in representation of the Executive Secretary, the Director of Cooperation and International Assistance, Socorro Velázquez, attended the 6th Forum on Tax Administration held from 15 - 16 September, in Istanbul, Turkey. The Forum discussed the topic of collaboration to improve the compliance of offshore entities. In addition to the participating in a Forum where important issues were discussed, it was also an opportunity to contact officials of CIAT member countries.

First Meeting of LAC Forum on Tax Policy This initiative is a new regional program launched by the OECD, funded mostly by Spain and supported by their largest partner in the region, CIAT. The Ministry of Economy and Finance of the Republic of Panama hosted on September 16 and 17, the first meeting of the Latin America and Caribbean Forum on Tax Policy. The meeting was inaugurated by the Minister of Economy and Finance of Panama, Mr. Alberto Vallarino Clement, Mrs. Grace Perez Navarro, Deputy Director of the Tax Policy and Administration Center and Mr. Jeff Dayton Johnson, Head of the Development Center, both from the Organization for Economic Cooperation and Development (OECD), Mr. Márcio F. Verdi, Executive Secretary of the Inter-American Center of Tax Administrations (CIAT), and Mr. Bernardo Lopez Lopez - Ríos, Representative from the Embassy of Spain in Panama.

The LAC Forum gathers expert officials from the Ministries of Finance from most of the countries of Latin America and the Caribbean. The topics discussed dealt with the role of the tax system in reducing inequality and in the promotion of social cohesion, while the bases were laid down for developing a working program that will be focused on the work of the LAC Fiscal Initiative for the future, beginning with tax policy issues identified as priorities by LAC countries.

CIAT Technical Assistance Manager participates in Seminar La Antigua Mr. Raul Zambrano, Technical Assistance Manager made a presentation during the Seminar on Communication Strategies and Electronic Services in the Tax Administrations in during this event held in the City of Antigua, Guatemala, on 1923 September 2010, organized by the Training Center of the Spanish Agency for International Cooperation and Development of the Spanish Tax Agency. Mr. Zambrano’s presentation was on the Electronic Services offered by today’s tax administrations, specifically in Latin America, challenges and opportunities.

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The 2011 International Summit on the Environment On September 24, CIAT Mr. Gustavo Manrique, President of Soluciones Ambientales Totales SAMBITO, (Total Environmental Solutions) met with the CIAT Executive Secretary, Mr. Márcio F. Verdi, to discuss important issues regarding the Environmental Tax Forum where CIAT will participate in the next International Summit on the Environment to be held in Guayaquil, Ecuador on 14 - 17 March 2011, to once again reaffirm its commitment to society, the environment and the way of contributing to its preservation.

CIAT International Cooperation and Training Regional Center in Brasilia From 26 - 29 September the Executive Secretary of the CIAT, Mr. Márcio F. Verdi, met with Mr. Mauro Bogéa Soares, Director General of the Tax Administration School - ESAF, Ana Maria Ribeiro dos Reis Deputy Director General, Genevieve Castello Branco, Director of Technical Cooperation and Research and Aloisio Ferreira de Almeida Director of Education, of this prestigious institution to finalize details for the forthcoming opening of a Regional Centre of our Center along with the ESAF at its headquarters in Brasilia, which reaffirms the presence of the CIAT at the service of the assistance and training of the tax administrations.

The Executive Secretary participates in the IDB CIAT Executive Secretary participated in the First International Seminar on Resultoriented Management Focused on State Governments on October 5-6 at the headquarters of the IDB in Washington, where he gave a presentation on the current challenges of tax administrations in Latin America, within a context affected by the recent crisis and recovery scenarios that require consolidation.

Regional Meeting for Capacities Strengthening of the Central American Tax Administrations - Examination Sector The First Regional Meeting for the Strengthening of the Capacities of the Central American Tax Administrations - Examination Sector was held on 5 - 7 October, in the City of San Salvador, El Salvador. The Minister of Treasury of El Salvador, Sr. Carlos Cáceres, opened the event and his inaugural address was followed by words from Mr. Hans Fusch - (GTZ), Mr. Socorro Velázquez - (CIAT) and Mr. Oscar Vázquez - (CAPTAC-DR/FMI) who highlighted the importance of mutual collaboration to provide coordinated assistance to the tax administrations of Latin American countries. Other attending personalities were: Lee Niederman, (US Treasury Office of Technical Assistance - OTA) and Gonzalo Arias (CIAT). The purpose of the meeting was to identify problems in the examination area of the tax administrations of Central America, which will be discussed during future activities in the framework of the ITC, with the technical support of GTZ, OTA, CAPTAC-DR and CIAT.

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CIAT invited by LEGIS, IFA Colombia and the Colombian Institute of Tax Law A coffee work session, called “Challenges common to tax administrations and large companies” was held on October 13 in Bogotá, Colombia.

CIAT’s International Cooperation Manager was the lecturer at the coffee work session organized by LEGIS, IFA Colombia and the Colombian Tax Law Institute, who discussed today’s three key aspects implying challenges to both tax administrations and large companies: transfer pricing, international tax information exchange and trends and good practices to strengthen the relationship between the tax authority and the taxpayer. The audience was composed mainly of students, independent tax advisers, tax academics and experts from major transnational companies.

Fourth Course on International Tax Law The “Fourth Course on International Tax Law” was held on October 13-15 in Bogotá, Colombia, inaugurated by the authorities of the School of Jurisprudence of Universidad de Rosario and LEGIS. The panel of lecturers was composed of prominent Colombian and international figures and consultants, and prestigious universities of the Americas and Europe, the IBFD and Colombia’s DIAN. CIAT’s International Cooperation Manager, Isaác Gonzalo Arias, expounded on “The effective implementation of tax information exchange among States”, discussing aspects concerning the current situation, the identification of “tax havens”, potential actions to fight harmful international tax competition, the risks of not effectively implementing the instruments for tax information exchange and key aspects involved in successfully implementing this practice.

United Nations’ Committee of Experts in International Cooperation for Tax Matters Between October 18 and 22, CIAT’s International Cooperation Manager, Mr. Gonzalo Arias, will meet with UN’s experts in International Cooperation for Tax Matters in Geneva, Switzerland, to discuss the issue.

CIAT-BID-InWENT Event The Regional Seminar on Poverty and Inequality in Latin America was held between October 19 and 21, in the city of Quito, Ecuador, pursuant to an agreement signed with InWENT. The Planning and Internal Control Coordinator, Julia Fontaine, gave the welcome speech on behalf of CIAT Executive Secretary.

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ITD’s Executive Committee The Director of International Assistance and Cooperation met with the ITD’s Executive Committee on October 22 in Paris, France.

Spanish AEAT and CIAT provide assistance on “International Tax Information Exchange” A study visit was carried out on October 25-27 in Madrid, Spain, to the Central Information Team of Spanish AEAT with the purpose of assisting Latin American tax administrations involved in this matter. The activity was inaugurated by José María Labeaga, Director General at the Spanish Institute of Fiscal Studies; Vicente Peirats, Chief of the International Relation Coordination Unit of AEAT; Luis Cremades, Chief of the Spanish Mission for CIAT and Isaác Gonzalo Arias, International Cooperation Manager of CIAT; and was conducted at the offices of the IEF by Milagros Arias, Chief of the Central Information Team of AEAT and María José Garde, Competent Authority for Direct Taxation of AEAT, as well as at the office of the Central Information Team with the participation of all incumbent officers.

This experience sets an example for the international community regarding the support to countries that are taking their first steps in the exchange of tax information and how their capacities can be strengthened in order to cooperate in this field. The AEAT’s authorities present stated the possibility of evaluating requests for technical assistance in operating matters from CIAT member countries that may so require it.

Seminar organized by InWent, Colombia’s DIAN and CIAT The Regional Seminar on “Taxation of large companies – Transfer Pricing” was held on November 23-25 in Bogotá, Colombia, with the presence of the officers of Latin American tax administrations, representatives of multinational companies and tax advisors.

This activity is held annually within the frame of a program financed by InWent since 2008, whose purpose is to generate an environment for discussion on the taxation of large companies among tax administration experts of Latin America and multinational companies, and tax advisors.

The meeting was attended by independent consultants, representatives of the tax administrations of Chile, Colombia, Costa Rica, Ecuador, Guatemala, Panama, Paraguay, Peru and Uruguay, and the Colombian-German Chamber of Industry, GTZ, KPMG, Morison Consulting, InWent and CIAT. On the last day, working groups coordinated by InWent and CIAT discussed the procedure to carry out an effective transfer pricing audit which shall hereafter have a place in a virtual space proposed by InWent.

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International Seminar in Costa Rica The Seminar on “Implementation and strengthening of Tax Studies and International Taxation in Tax Administrations” was held on November 24-25 in Santo Domingo de Heredia, Costa Rica. This activity was conducted by the Regional Center of Technical Assistance of Central America, Panama and the Dominican Republic CAPTAC DR, with the collaboration of the Ministry of Finance, the General Taxation Directorate, the World Bank and the Inter-American Center of Tax Administrations (CIAT).

The meeting was attended by 32 highest-level officers from all Tax Administrations of Central American countries and the Dominican Republic, as well as the most prominent, qualified and prestigious international lecturers experienced in international taxation, among them CIAT’s Executive Secretary Márcio F. Verdi, who expounded on the importance of Tax Study areas in Tax Administrations and the closeness of these areas to the General Directorate, responsible for receiving the information required to make proper decisions.

Latin American and Caribbean – European Union Forum “Environmentally sustainable tax policy and economy within the climatic change context”, Berlin The Latin American and Caribbean - European Union Forum on environmentally sustainable tax policy and economy within the climatic change context was held on November 10-11 in Berlin, Germany.

On this occasion, the Executive Secretary invited all attendees to participate in the FTA organized by CIAT within the frame of the International Environment Summit (CIMA, in Spanish), scheduled for March 14-17, 2011.

Mission at the School of Finance Administration of Brazil On December 6, the Executive Secretary arrived in Brazil to visit the School of Finance Administration (ESAF), with a view to following up the project to expand the Cooperation agreement between ESAF and CIAT, expected to result in the opening of a Regional Training Center of CIAT at the headquarters of such school in Brasilia, Brazil. This Center represents a joint effort of cooperation among the Secretaría de la Receita Federal of Brazil, ESAF and CIAT, and will make it possible to expand the offer of in-person and non-in-person courses in Portuguese, and increase educational activities offered by CIAT to member countries, which may be conducted at ESAF’s premises.

The creation of the Center also contemplates other activities, such as international events, new monograph-writing contests and an increased offer by ESAF of CIAT courses targeted at Portuguese-speaking countries, especially in the African continent.

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As a result of the cooperation agreed with CIAT, the ESAF has already offered a specific course on Tax Administration as part of the Brazilian Program of Finance Executive Development, which focuses mainly on an integrated vision of the fundamental processes to achieve an efficient and effective tax administration.

ITD Meeting – International Tax Dialogue On 10 January 2011, the CIAT Director of Assistance and International Cooperation, Socorro Velázquez, participated in the ITD meeting in Washington, D.C. The main event, International Tax Dialogue, is of great importance in what relates to the G-20 directive, by supporting the development of more effective tax systems, in particular those of developing nations.

The participants at the meeting were representatives from several international organizations with tax and fiscal focuses. This afforded the opportunity to learn the strategies that will be implemented in accomplishing G-20 agenda and the way in which all will collaborate on this initiative.

OECD Meeting -Tax and Development Task Force Sub Group on Taxation, State-building and AID The OECD Meeting took place on 12 January 2011, in Washington D.C., with the attendance, in representation of CIAT, of the Director of Assistance and International Cooperation, Socorro Velázquez.

The OECD event, Tax and Development Task Force Sub Group on Taxation, State-building and AID, is valuable and of great relevance by supporting the G-20 directives, in perfecting tax systems, particularly those of developing nations.

A broad array of topics were discussed, going from a study to determine the modality of aids, up to a study for “mapping” the donors with the purpose of determining what activities are already in process. A report on the initial strategy will be made available by the end of March 2011.

Cooperation Agreement for the Coordination and Execution of Statistics, Studies and Training Events and Activities On 18 January 2011, with occasion of the “XXIII Fiscal Policy Regional Seminar” organized by ECLAC, in Santiago, Chile, the authorities of CIAT and ECLAC, signed "Cooperation Agreement for the Coordination and Execution of Statistics, Studies, and Training Events and Activities ".

Alicia Bárcena, Executive Secretary of ECLAC and Márcio Verdi, CIAT Executive Secretary, publicly expressed their interest in implementing the aforementioned agreement as soon as possible, for which purpose they will draft an "Annual 35

Collaboration Plan", stating the commitments both parties will assume each year.

The agreement will have initially 3-year duration.

Initiative for the Coordination of Technical Assistances in the Environment of Tax Administration and Policy in the Latin American and Caribbean Region A meeting of between Representatives of different tax-related international organizations took place at the headquarters of the World Bank, in Washington, D.C., OJN 24-25 January 2011. The meeting was the result of the demands presented by the Central American countries in the framework of the First Meeting for the Strengthening of Tax Administrations of Central America, maintained in El Salvador, carried out in the framework of the ITC with GIZ, OTA US Treasury, IMF/CAPTAC-RD and CIAT. The meeting counted with the participation of representatives from the following agencies: World Bank Group (WBG), Inter-American Center of Tax Administrations (CIAT), International Monetary Fund (IMF), Organisation for Economic Cooperation and Development (OECD), Inter-American Development Bank (IDB), International tax Dialogue (ITD), International Tax Compact (ITC), Deutsche Gesellschaft für Internationale Zusammenarbeit (German Agency for International Cooperation, or GIZ), Office of Technical Assistance of the U.S. Department of the Treasury (OTA-Treasury), United States Agency for International Development (USAID), and Ibero-American and International Foundation for the Public Administration (Eurosocial).

The objective of the meeting was to improve the Exchange of information and coordination of their technical assistance activities in tax policy and administration matters to countries in Latin America.

CIAT-FMI/CAPTAC-RD-DGI PANAMÁ Seminar on Invoicing in the Tax Administrations The Seminar-workshop “Invoicing Control Systems and Electronic Invoicing in the Tax Administrations” was carried out in Panama on 14-15 February 2011.

The event was inaugurated by Mr. Márcio Verdi, Executive Secretary of the InterAmerican Center of Tax Administrations (CIAT), Luis E. Cucalón, General Director of Revenues of Panama and Oscar Vásquez, CAPTAC-RD tax specialist.

This seminar was organized by the Regional Technical Assistance Center of Central America, Panama and the Dominican Republic (CAPTAC-RD) and the Inter-American Center of Tax Administrations (CIAT), with the collaboration of the General Directorate of Revenues of.

The importance of controlling invoicing in the tax administration and the experiences of the countries of the region in implementing various invoicing systems, including fiscal equipment and electronic invoicing were the topics 36

covered. Panama is about to adopt the fiscal equipment as main means of invoicing, for the purpose of strengthening the control of invoicing and promoting tax evasion reduction.

2nd. Core Group Meeting of the ITC On 23 February 2011, the 2nd Core Group Meeting of the International Tax Compact (ITC) was held in Brussels, Belgium, hosted by the German Federal Ministry for economic Cooperation and Development, the French Ministry for Foreign and European Affairs, the Spanish Ministry for Foreign Affairs and the European Commission.

The objective of the meeting was to provide continuity to the ITC work begun in 2010, strengthening the cooperation commitments among the Core Group partners and explore concrete possibilities for cooperation, especially at the country level and in the framework of the tax and international development agenda.

In the aforementioned matter, Director of Assistance and International Cooperation, Socorro Velázquez, discussed aspects related to development and the results of the first cooperation activity organized by CIAT, GIZ, CAPTAC-RD and OTA US Treasury.

The meeting was attended by representatives from France, Germany, the Netherlands, Spain, Switzerland, the African Tax Administration Forum (ATAF), the European Commission (EC), the International Monetary Fund (IMF), the Organisation for Economic Co-operation and development (OECD), the United Nations (UN) and, as an observer, the International Development Law Organization (IDLO).

National Authority for Tax Information (NATI) Service Starting on March 21, 2011, the CIAT Executive Secretariat established in its Extranet site a new service for contacting competent authorities involved in the negotiation and management of agreements for avoiding international double taxation as well as agreements for the exchange of international tax information.

This service resulted from requests received by the Executive Secretariat in 2010 for contact data on competent authorities.

OECD/CIAT Seminar on Tax Information Exchange The OECD/CIAT Seminar on “Tax Information Exchange” as held on April 11-15, 2001 at the OECD’s Multilateral Tax Center in Mexico.

The panel of instructors was formed by Mrs. Martine Milliet (OECD), Mr. Gonzalo Arias (CIAT), Mrs. Joanne O´Neil (CRA from Canada), Mrs. Aida Ceballos (AEAT of Spain), la Mrs. Calafia Franco (SAT of Mexico) and Mr. Stefano Gesuelli (Guardia di Finanza of Italy). There were also participants from the tax 37

administrations of Barbados, Colombia, Chile, Ecuador, El Salvador, Guatemala, Kenya, Mexico, Morocco, Paraguay, Trinidad & Tobago and Uruguay.

CIAT/GIZ/OECD/SAT Seminar-Workshop With the sponsorship of the Superintendency of Tax Administration of Guatemala (SAT), the Seminar-Workshop on “Transfer Pricing and Tax Information Exchange” was successfully held in Guatemala on May 2-5, 2011. It was carried out within the framework of the Cooperation Agreements signed between the Inter-American Center of Tax Administrations - CIAT and the Agency for International Cooperation of Germany, GIZ, and between CIAT and the Organization for Economic Cooperation and Development - OECD that are aimed at strengthening and modernizing international taxation and related administrative structures of the tax administrations of the CIAT member countries.

Experts and officials from 17 tax administrations members of CIAT, as well as from the OECD, GIZ and CIAT discussed transfer pricing and tax information exchange.

The aforementioned Seminar-Workshop resulted from the need expressed by SAT of Guatemala, to strengthen the capabilities of its officials for controlling international operations. Its purpose was to make known, from the perspective of tax administration experts, the experiences of countries with varying levels of development in controlling the abusive manipulation of transfer prices and on the basis of such experiences, discuss aspects of interest to the participating countries as well as explore future cooperation actions.

Upon conclusion of the Seminar-Workshop, a session was held at SAT of Guatemala on May 6 wherein the expert speakers of the Workshop provided the SAT and Ministry of Finance officials, technical assistance in relation to specific issues.

CREDAF held its 27th General Assembly and 26th International Conference Oran, Algeria was the venue on May 15-19 of the 27th General Assembly of the Meeting and Studies Center of Tax Administration Directors (CREDAF), which also organized the 26th International Conference on “Organization of the Tax Administration and the Results”.

CIAT was represented by its Executive Secretary, Mr. Marció F. Verdi, who was very pleased at being able to participate in this great event, as well as scheduling a coordination meeting with the Executive Secretary of CREDAF, Gilles Berteau, in order to continue with the preparation of a Joint Action Plan for identifying areas of collaboration between the two organizations, exchanging materials and carrying out events.

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CIAT/AEAT (SPAIN) Seminar on “Internal control as management task in the Tax Administrations” CIAT and the AEAT of Spain held jointly a seminar on May 23-28 in Madrid, at the headquarters of the Internal Auditing Service of the Tax Agency.

The AEAT was represented by the Director of the AEAT’s Internal Auditing Service, Mr. Tomás Merola Macanás, while CIAT was represented by the Head of the Permanent Mission of Spain before CIAT, Mr. Luis Cremades Ugarte.

The other participants included representatives from the Internal Auditing Services of Brazil, Dominican Republic, Ecuador, Mexico, Paraguay and Peru.

At the sessions and intensive debates such issues as organizational aspects, the action plan, the scorecard, risk management, computerized auditing, investigation of irregular behaviors, disciplinary systems, corporate value and professional ethics were analyzed.

Visit to the Tax Commissioner of Bermuda On May 30, 2011, the Development and Institutional Events Manager, Mr. Francisco J. Beiner, visited the Office of the Tax Commissioner of Bermuda, country with close participation in the institutional activities of CIAT and member of the Executive Council until last April.

In the aforementioned meeting Mr. Beiner conveyed greetings from the Executive Secretary and discussed several institutional issues with the Acting Commissioner; Mr. Mannard Packwood, Miss Michelle Hunt and Mr. Richard Fox, who take turns in the Commissioner's functions.

The CIAT Executive Secretary visits the State Agency of Tax Administration (AEAT) On June 7, the CIAT Executive Secretary, Mr. Márcio Verdi, accompanied by the Head of the Permanent Mission of Spain before CIAT, Luis Cremades Ugarte, visited the headquarters of the Spanish Tax Agency.

During this visit, a meeting was held with the AEAT’s Managerial Council chaired by its General Director, Mr. Juan Manuel López Carbajo. An analysis was made of all the activities jointly carried out by CIAT and the AEAT in the field of technical assistance to several Latin American countries, training, studies, research and the active participation of the AEAT in various Working Groups, Permanent Committees and Publications. Also discussed were future actions with emphasis on the mutual commitment between both organizations to continue collaboration for supporting all actions whose objective is the improvement of the Tax Administrations of the countries that are currently part of the CIAT Community.

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“Analysis of the legal framework for controlling transfer prices in Latin America” In June, the CIAT Executive Secretariat updated the report known as “Analysis of the legal framework for controlling transfer prices in Latin America”, which was developed by the International Cooperation Management Office, with the valuable support of officials from the tax administrations of Argentina, Brazil, Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, El Salvador, Guatemala, Mexico, Uruguay, Panama, Peru, and Venezuela.

The purpose of the report is to make known in a relatively simple and schematic manner, the existing provisions in Latin American countries for controlling transfer prices.

Program 06 - Communication and Publications CIAT’s new Website On October 8, the Inter-American Center of Tax Administrations, within the framework of the initiatives set forth in 2010-2013 Strategic Plan, implemented a new communication policy which began with the opening to the general public of the Organization’s Website. This policy will accomplish a major milestone in October: the evolution of our Internet site and the launch thereof at the Technical Conference in Paris, France.

The communication strategy will be supplemented by the participation of CIAT in digital social networks, where you may follow us in Twitter and thus be timely informed on training activities; and in Facebook, a space intended to expand the presence of in-person events organized and coordinated by CIAT and provide access to diverse videos posted on Youtube regarding selected papers of technical assemblies and conferences.

Bibliographical news We include for reference the most recent documents prepared by CIAT and other publishers in November, which have appeared in magazine articles or other periodical publications, investigations and relevant studies.

CIAT/AEAT/IEF Tax Administration Magazine No 30, December 2010 This new edition of CIAT/AEAT/IEF Tax Administration Magazine features articles on topics related to the local taxation of diverse countries in Latin America, such as fiscal decentralization, environmental taxes, effective tax burden in the industry and tax control, as well as topics concerning international taxation controls.

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CIAT Portal New portal administration process continues The new Website image update process begins in January and February 2011.

Publications: Newsletter - eCIAT Two contributions and two Special Bulletins were disseminated in January 2011; 2 Bulletins were made in February. Distribution was in English and Spanish.

CIAT Review January 2011, electronic and printed publication of the new edition of the new issue of the Tax Administration Review No. 30 in Spanish and English.

CIAT Thematic Series Document Thematic series No. 7, on Tax Evasion, was published in January 2011.

The publication of thematic series No. 8, on Ethics in The Tax Administration, was carried out in February.

Thematic Bibliography The editing and publication of bibliography No.4 “Impact of ICTs in Tax Administration” was carried out in February 2011, in Spanish and English.

Proceedings published 

The proceedings of the Technical Conference held in Paris, France 2010 were published. They were also uploaded in the Web site, disseminated in the eCIAT Newsletter (Spanish and English as well as distributed by air mail.

Thematic Series 

Four monthly thematic series were published in March through June dealing with: Tax Expenditure, Institutional Strengthening of the Tax Administrations, Management Control in the Tax Administrations and Human Resources in the Tax Administrations

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CIAT Thematic Bibliography 

Bibliography No. 4 dealing with “The Impact of ICTs in the Tax Administration” was published in March (Spanish and English).

Theses Series 

Works selected by the Studies Management Office were received for diagramming and editing in June and one of them was uploaded in the Web.

Serial Working Documents 

In the months of May and June the works (electronic documents) of this area (CIAT portal) were updated in accordance with the format determined with the Studies Management Office.

CIAT/AEAT/IEF Review 

Edition of the No. 31 Tax Administration Review as well as the preparation of the PDF electronic format (Spanish edition) was concluded in June and published in the CIAT web.

Newsletters eCIAT Newsletter 

Fortnightly dissemination of the e-CIAT Newsletter (Spanish and English).

Also sending of special announcements for the Innovation Contest, Papers for the No. 31 Review, Report on “Analysis of the legal framework for controlling transfer pricing in Latin America, NATI Service, CIAT/AEAT/IEF Essay Contest.

Tax News Alert 

Preparation and electronic dissemination of this daily newsletter is undertaken in March and until June 2011. (It is sent to all users registered in My CIAT)

Communication and Publications Coordination   

Process guides or manuals on the services and processes (CIAT portal) were prepared.

Inclusion of titles of books in the library’s physical collection (classification and cataloguing) was concluded.

Processing of two ISSN permits for the Paris 2010 Conference and two ISSN permits for the comparative series.

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The publication of monthly innovations (4 monthly and 8 forthnightly) has been followed up.

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Support to the Communication and Publications area by sending the Daily News Alert.

Zero Carbon Project 

The Communication and Publications coordination office was part of the special working group for implementing internal activities on initiating the “CIAT supports the Conservation of the Planet” plan.

Strategic Alliances

CIAT / ICEFI - Cooperation Agreement Subscription venue: Quito, Ecuador (45th CIAT General Assembly) Signature: 7 April 2011 Enforcement date: 7 April 2011 Expiration: 3 years with one-year extensions General purpose of the Agreement: The agreement is aimed at coordinating agendas in areas of common interest; pooling resources and expertise when appropriate; achieving synergies as a result of joint activities; making use of the global networks of both organizations to achieve mutual benefit; improving the coordination of related activities and sharing of knowledge and ideas.

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ECLAC / CIAT – Agreement for the coordination and implementation of joint activities Subscription venue: Santiago de Chile Signature: 18 January 2011 Enforcement date: 18 January 2011 Expiration: 3 years with one-year extensions General purpose of the Agreement: The agreement is aimed at coordinating agendas in areas of common interest; pooling resources and expertise when appropriate; achieving synergies as a result of joint activities; making use of the global networks of both organizations to achieve mutual benefit; improving the coordination of related activities and sharing of knowledge and ideas.

DGII of Dominican Republic / CIAT - Technical Cooperation Agreement for Custody and Administration of Data Backups Subscription venue: Montevideo, Uruguay (44th CIAT General Assembly) Signature: 15 April 2010 Enforcement date: 15 April 2010 Expiration date: Renewable every two years General purpose of the Agreement: The purpose of the Agreement is for the CIAT Executive Secretariat to render the custody and backup administration services for the tax information and applications' systems to the Internal Revenue Directorate of Dominican Republic, with a view to ensuring the necessary conditions to enable operational continuity of the TA in cases of force majeure.

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SRI from Ecuador / CIAT Framework Agreement on Technical Assistance, Training and Mutual Cooperation Subscription venue Quito, Ecuador Date Signature 23 Feb 2010 Enforcement date 23 Feb 2010 Expiration date Indefinite General purpose of the Agreement The purpose of the Agreement is to promote and foster a mutual cooperation framework and undertake joint collaboration actions that favor training and rendering specialized Technical Assistance and tapping into CIAT expertise, knowledge, and qualifications in all the relevant areas of the TA to strengthen the SRI in the areas of tax policy, proceedings, collection, auditing, enforced collection, legislation, management, organization, information systems, human resources, training and IT

SEHP, AEAT, IEF of Spain/CIAT Technical Cooperation Agreement Subscription venue Madrid, Spain and Sto. Domingo, Dominican Republic (43rd CIAT General Assembly) Date Signature 16 April 2009–21 April 2009 Enforcement date 1 July 2009 Expiration date 1 July 2011 General purpose of the Agreement The purpose of the Agreement is to continue with the Technical Assistance and training support to CIAT Executive Secretariat in Ibero-American countries, and cooperation in joint projects, under the scope of the CIAT strategic plan and its annual operating plans.

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IOTA/CIAT Memorandum of Understanding on International Cooperation Subscription venue Florianopolis, Brazil ( 40th CIAT General Assembly) Date Signature 6 April 2006 Enforcement date 6 April 2006 Expiration date Indefinite General purpose of the Agreement The purpose of the Agreement is to maintain and promote cooperation among both organizations through the exchange of information and experiences and undertaking joint projects relevant to the Tax Administration area

MEFI France /CIAT Administrative Tax Cooperation Agreement Subscription venue Paris, France Date Signature 21 Sep 2001 Enforcement date 1 Jan 2002 Expiration date Indefinite General purpose of the Agreement The Agreement is aimed at maintaining and promoting technical cooperation ties on tax matters between both parties, through the exchange of experiences in the field of tax and customs administration, the promotion of professional education initiatives; internships, dissemination of the information material; as well as through the organization of international meetings.

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Receita Federal- ESAF Brazil /CIAT Memorandum of Understanding Subscription venue Santo Domingo, Dominican Republic (43 CIAT General Assembly) Date Signature 21 April 2009 Enforcement date 21 April 2009 Expiration date Indefinite General purpose of the Agreement The purpose of the MOU is the promotion of the technical cooperation and exchange of information with a view to the development of the tax administration professionals of Brazil and the CIAT member countries.

2010-2014 CTPA (OECD)/CIAT Cooperation Program that renews the Memorandum of Understanding on International Cooperation (1999) Parties CTPA (OECD) and CIAT Subscription venue Montevideo, Uruguay (44th CIAT General Assembly) Date Signature 15 April 2010 Enforcement date 15 April 2010 Expiration date 5 years, renewable General purpose of the Agreement The subscription of this instrument renews the cooperation program between both organizations, to strengthen and modernize the international taxation areas and structures of the Tax Administration, by exchanging experiences on tax matters among CIAT and OECD member-countries within the framework of the taxation cooperation programs from both organizations.

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