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eCIAT

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ISSN 1684-9833 • Year 3 / No.10 /June 1, 2012

The Executive Secretariat Informs UN Officials visit the CIAT Executive Secretariat Last May 23 -25, a meeting of coordination with UN Officials of the Financing for Development Office, Department of Economic and Social Affairs was carried out at the CIAT Headquarters in order to plan the project that aims to measure the administrative costs and tax compliance in Latin American countries.

The Executive Secretariat Informs UN Officials visit the CIAT Executive Secretariat Secretariat of Federal Revenues of Brazil provides assistance to the DGI of Panama, within the framework of the ITC/GIZ/CIAT Collaboration Agreement

On behalf of the UN attended Ms. Dominika Halka, Economic Affairs Officer and Harry Tonino, Inter-regional Adviser. On behalf of the CIAT: Mr. Socorro Velazquez, Miguel Pecho and Gonzalo Arias, Planning and Institutional Development Director, Tax Studies and Research Director, and Cooperation and International Tax Director respectively.

The aforementioned project will have 20 months to formulate a methodology, two working groups and two tests pilot in Latina American countries.

CREDAF celebrates 30 years of activities The Tax Administrations Inform Argentina - Approval of the Management Plan 2011: $ 540,134 million were obtained in terms of tax revenue, 31.8% more than in 2010 Bolivia – National Tax Service launched calendar of fairs to create Tax Culture Brazil - Wikijur is a new RFB knowledge collaboration and dissemination tool Costa Rica – Ministry of Finance launches “Digital Treasure” Nicaragua - DGI, INSS and Managua Mayor´s Office will sign an agreement for the creation of the single taxpayer registry document of the general regime Paraguay – The implementation of MECIP progresses in the Ministry of Finance Events IBFD News Training Post of the Month New in the Web Our Documents Other Documents

In the picture: Right to left. Socorro Velazquez, CIAT Planning and Institutional Development Director; Miguel Pecho, CIAT Tax Studies and Research Director; Raul Zambrano, CIAT Technical Assistance and Information Technology and Communication Director;Dominika Halka, UN Economic Affairs Officer; Marcio Verdi, CIAT Executive Secretary; Harry Tonino, UN Inter-regional Adviser; Gonzalo Arias, CIAT Cooperation and International Tax Director

Secretariat of Federal Revenues of Brazil provides assistance to the DGI of Panama, within the framework of the ITC/GIZ/CIAT Collaboration Agreement The “Secretariat of Federal Revenues of Brazil (SRF) provided assistance in auditing of multinational companies to the DGI of Panama during sessions held on May 14-18 of the current year in the CIAT Executive Secretariat’s conference room.

This activity has been the result of theAgreement signed between CIAT/GIZ/”International Tax Compact” at the last CIAT Technical Conference, through which CIAT has been able to carry out numerous financed programs which promote collaboration between the tax administrations, mainly with respect to auditing of multinational companies and financial institutions and operations.

This is an example of the cooperation which CIAT endeavors to promote in the future and which is mainly based on the “good will” of those administrations which, through

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the years, have acquired considerable experience in various spheres, as is the case of the “Secretariat of Federal Revenues of Brazil”.

The assistance was conducted by Mr. Iágaro Jung Martins, General Coordinator of Examination and given to a group of officials of the DGI of Panama, headed by Mr. Gregorio Melo, Head of the Large Business Examination Department.

Some of the important topics covered were general aspects of examination at the SRF, procedures for selecting taxpayers, planning and control of the examination function, assessment system, administrative process, special controls on cigarettes and drinks, transfer pricing and harmful tax planning.

We invite you to CIATalks, the space provided by CIAT. Read the posts, give your opinion and actively participate.

CIAT is a public international organization which groups the tax administrations of 40 countries, (31 Amarican countries, 6 European countries, 2 African countries and one Asian country), for the purpose of providing an integral service for the modernization of those administrations, by promoting their evolution, social acceptance and consolidation through the exchange of knowledge, experiences and the rende-

Such assistance has been timely, given the reforms implemented by the Government of Panama which include, among other aspects, regulations to avoid abusive manipulation of transfer prices, such concepts as “permanent establishment” and numerous agreements to avoid international double taxation.

View of participants in the bilateral technical assistance sessions for strengthening the examination function.

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Shown in the picture is Mr. Iágaro Jung Martins, General Coordinator of Examination at the Secretariat of Federal Revenues of Brazil.

Shown in the picture, from left to right: Gregorio Melo, Head of the DGI’s Large Business Examination Department; Odaira de González, DGI Tax Auditor; Gonzalo Arias, CIAT Director of International Cooperation and Taxation, Márcio Verdi, CIAT Executive Secretary; Iágaro Jung Martins, General Coordinator of Examination at the RFT and Gloriela Atencio, DGI Tax Auditor.

Contact us: CIAT Executive Secretariat / e-CIAT Newsletter P.O. Box 0834-02129 Panama, Republic of Panama.

Phone (507) 265-2766 / 265-5994 Fax: (507) 264-4926 E mail:ciat@ciat.org Web Site: http://www.ciat.org

View of the participants in the assistance sessions.

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CREDAF celebrates 30 years of activities With the accomplishment of the 27th International encounter of the Study and Meeting Center for Tax Administration Managers, which brings together French-speaking countries, 30 years of CREDAF cooperation activities have been completed.

The meeting was held in Beirut, Lebanon, from 7 to 10 May 2012 about “Tax Organization and Information”. It was attended by 125 delegates from 31 countries CREDAF members and guests from 9 international organizations.

Dr. Márcio F. Verdi, CIAT Executive Secretary, participated as a special guest in this event.

27th International encounter of the Study and Meeting Center for Tax Administration Managers

The Tax Administrations Inform Argentina - Approval of the Management Plan 2011: $ 540,134 million were obtained in terms of tax revenue, 31.8% more than in 2010 Among the objectives achieved, more than 20 million affidavits for tax determination were submitted, recording 101% compliance on the annual target set.

The AFIP Advisory Council approved the Management Plan progress for the first quarter of 2012 and 2011. Among the main results achieved last year, the $ 540.134 million obtained from taxation resources (taxes, foreign trade and social security), are highlighted, which represented an increase of 31.9% in relation to the year 2010.

Meanwhile, during the first quarter the growth of inter-annual tax revenue is highlighted: $ 148,490 million, representing 29.1% more than the January-March period last year.

Carlos Alberto Sánchez Correspondent

Bolivia – National Tax Service launched calendar of fairs to create Tax Culture With the 2nd Tax Culture Fair in La Paz, the National Tax Service (INS) initiated a calendar of fairs nationwide oriented to children, students and general public to generate interest about the importance of complying with tax obligations.

The Executive President of the INS, Roberto Ugarte Q., informed that at the Saturdays fair, officials of the Tax Administration transmitted to the audience, mostly children and young people, a set of values, attitudes and practices conducive to the fulfillment of duties and exercise of civil and tax rights.

Juana Patricia Jiménez Correspondent

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Brazil - Wikijur is a new RFB knowledge collaboration and dissemination tool The newest tool for collaboration and dissemination of knowledge of the Federal Revenue Secretariat of Brazil-RFB was launched in the national videoconference on May 14. The Wikijur allows the annotation, the inclusion of comments and discussion on tax regulations and other activities within the RFB competence.

Set on the Wiki platform, recognized as one of the most appropriate technologies for democratic contribution on a web page contents, Wikijur creates a new dynamic in the technical discussions within the RFB. The new application seeks to associate closer the legislative direction from its practical application.

The main innovation of Wikijur is that it brings the possibility of a participative construction of the acts, which can be annotated, commented and discussed by any of the RFB servers.

Therefore, the Wikijur aims to contribute the tax and customs policy elaboration, streamlining the resolution of conflicts and the tax rules inconsistencies, the recognition and appraisal of the officers within a culture favoring integration and change.

“The importance of the new tool is considered as one of the RFB strategic objectives. It should contribute effectively to the continuous updating of the regulations, the solution of consultations, the publication of revised and updated normative opinions, and the repeal of the old opinions,” said the RFB Secretary, Mr. Carlos Alberto Barreto, last Monday, May 14, during the Wikijur launching.

Flávio Antonio Araujo Correspondent

Nilton Tadeu Nogueira Dirin/Corin/RFB

Costa Rica – Ministry of Finance launches “Digital Treasure” Digital Treasure is the name of the new online service that the Ministry of Finance has made available to public entities that have funds deposited in the State Single Cash Account.

This system will be accessed via Internet, use security measures, such as digital signatures and allow the use of resources more efficiently. Through it, the institutions will process their payments, verify the movement of funds in their single cash accounts and will avoid returns for errors which may be detected before they are sent, all in real time, directly and without having to send files via e-mail.

Maribel Zuñiga Correspondent

Nicaragua - DGI, INSS and Managua Mayor´s Office will sign an agreement for the creation of the single taxpayer registry document of the general regime In order to facilitate the registration of taxpayers in one act and in one place, the General Department of Revenue (DGI), the Nicaraguan Social Security Institute (INSS) and the Mayor´s Office of Managua (ALMA), will sign an Inter-institutional Agreement, for the creation of the Single Taxpayer Registry Document of the General Regime (DUR).

Elías Álvarez Correspondent

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Paraguay – The implementation of MECIP progresses in the Ministry of Finance In the Ministry of Finance the implementations plan of the Standard Internal Control Model of Paraguay (MECIP) progresses, since to date there have been 44 workshops, attended by 1,300 staff, where operational manuals and Codes of Ethics and Good Governance have been shared.

In this regard, they have worked together with the support of the Umbral Program and the MECIP Processes Team in developing Operational Manuals of 5 Sub-Processes selected by the Institution: One Mission for “Alimony for seniors living in poverty” and four for Support “Tenders”, “Maintenance”, “Connecting the Personal (Contests)” and “Institutional Budget.”

Elizabeth Fernández de Corrales Correspondent

Events International Taxation Course Madrid, Spain July, 9-13

The Latin American International Taxation course, organized by the Law Faculty of the Complutense University of Madrid, with the collaboration of IFA-LATAM, has as purpose to provide the participants with a complete and updated program of the Latin American international Taxation.

The internationalization and globalization process of the economy and the important role of the international taxation compel us to answer the demand for analysis and debates. Not only multinational companies, but also small and medium companies and professionals must face daily the increasing complexity of the market. The ever-growing international transactions between Latin American and European countries show a great multitude of tax questions in their economic relations.

IBFD News International Bureau of Fiscal Documentation (IBFD) Cooperation-CIAT – IBFD

This section includes a selection of the IBFD news about aspects of tax policies and tax administration. This information is available on the CIAT website and in Fridays Tax News alert.

Training Enrolment open for the Specialized Program on Tax Law and Tax Administration The Externado University of Colombia and CIAT within their cooperation agreement are inviting all Tax Administrations officials of the CIAT member countries, as well as the general public, to participate in the Specialized Program on Tax Law and Tax Administration.

In order to participate, a registration form must be filled out and send to capacitacion@ciat.org indicating the name of the specialized program and the rest of the requirements. We will receive until June 13 your registration forms for the second group which will start on July 2, 2012.....Tax Law and Tax Administration

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CIAT Courses registration call Given the importance of offering a permanent training that keeps the tax professionals up to date with the issues of tax administration, customs and transfer pricing, we announced that we have opened the registration for the following courses: • Course on Tax Ethics and Tax Citizenship 2nd edition.

• Course on Transfer Pricing 5th edition.

To participate, please fill the inscription form and send it to capacitación@ciat.org indicating the name of the course with the other requirements.

Post of the Month Monday, May 28, 2012

When you have only 10 minutes Written by Raúl Zambrano

When Socorro Velazquez, our Planning Director, invited to me to address the topic of tax administrations computerization today, he also told me that it would be for only ten minutes. I remembered Rubén Blades and his “song of the end of the world”.

Thursday, May 24, 2012

Automatic interchange of Information between Tax Administrations Written by Vinicius Pimentel de Freitas

Automatic interchange of information between tax administrations (TA) of different countries is a challenge that faces many obstacles, of legal nature as well as the internal resistance of some of us working in this field.

Tuesday, May 22, 2012

CIAT - A glance to the 50!

Written by Márcio F. Verdi

Last week I had the honor and the satisfaction to participate in the 27º conference of the CREDAF - Tax Studies Center of the French-speaking Countries, occasion in which that Center has commemorated 30 years of its constitution.

May 22, 2012

Cooperation and coordination Written by Cremades Ugarte

The cooperation as it is defined in the dictionary of the Spanish language is “To build together with a same goal” whereas to coordinate it is defined as “Arranging means, efforts, etc… for a common goal”. If we analyze these terms in the reality of the Latin American Tax Administrations throughout the last decades we can affirm that we have cooperated a lot but coordinated little from different instances.

Monday, May 21, 2012

Towards which Welfare State do we want to go?

Written by María Goenaga Ruiz de Zuazu

The reason why we pay taxes in days of economic crisis Although taxes sound as a burden, technical and remote, to the majority…, no matter if we like it or not, they are in fact part of our daily life.

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New in the Web Bibliographic News May, 2012

This document provides for reference purposes, the most recent documents produced by CIAT and other editorials in the month of April; either articles or other periodic publications, research works and studies of interest. Â

Ours Document Essay Contest In the framework of the Technical Cooperation Agreement signed between CIAT, the Spanish State Agency of Tax Administration and the Institute of Fiscal Studies, CIAT annually calls an Essay Contest, created as a dynamic and practical mechanism to motivate tax officials from member countries to analyze and research tax topics bearing direct relationship with their daily work.

Other Documents Eliminating Barriers: Financing SMEs in Latin America Carlo Ferraro (compilador) ECLAC

The evolution of financing systems for SMEs in the region is the topic of this document, published by the Economic Commission for Latin America and the Caribbean (ECLAC) with the support of the Spanish Agency of International Cooperation for Development (AECID).

The study focuses in the dynamics of the institutions and financial instruments in countries like Argentina, Colombia and Mexico and emphasizes the main changes and innovating initiatives that yield good results. Also included is a work on the configuration of the financial system, where areas and policy proposals oriented to the access of SMEs to credit and financing are identified. Â

Walking Hand in Hand: Fiscal Policy and Growth in Advanced Economies Carlo Cottarelli and Laura Jaramillo International Monetary Fund May 2012

Implementation of fiscal consolidation by advanced economies in coming years needs to take into account the short and long-run interactions between economic growth and fiscal policy. Many countries must reduce high public debt to GDP ratios that penalize longterm growth. However, fiscal adjustment is likely to hurt growth in the short run, delaying improvements in fiscal indicators, including deficits, debt, and financing costs.