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ISSN 1684-9833 • Year 3 / No.18 /September 28, 2012

The Executive Secretariat Informs The 3rd CIAT Tax Studies and Research Areas Network Meeting was successfully completed The Executive Secretariat Informs The 3rd CIAT Tax Studies and Research Areas Network Meeting was successfully completed Tax administration officials met to discuss issues related to tax collection procedures The Tax Administrations Inform Argentina - Becomes the first South American country to become a Party to the Multilateral Convention

The 3rd CIAT Tax Studies and Research Areas Network Meeting was held from September 17 to 19, 2012 in the city of Santo Domingo, Dominican Republic with a central topic “Estimating the effective tax burden on investment”.

The meeting brought together delegates from 17 countries in the region and was also attended by representatives of ECLAC, the OECD and the Ministry of Finance and Public Administrations from the Kingdom of Spain.

Costa Rica – Yearly collected income keeps upward trend El Salvador - Ministry of Finance updates 2010-2014 Institutional Strategic Plan Honduras - DEI Supervisory Commission presents action plan to improve tax collection Honduras – DEI procedures without leaving your office Jamaica - TAJ Rolls Out Island Wide Education Programme Paraguay - Continued increase in affidavits filed by taxpayers Peru - SUNAT guarantees revenue projections for 2013 budget financing

Main table: Mr. Magin Diaz, Tax Policy Deputy Minister for the Dominican Republic Finance Ministry; Mr. Guarocuya Felix, General Director for the Dominican Republic DGII; Mr. Márcio F. Verdi, CIAT Executive Secretary and Mr. Javier Cassanovas from the European Union Delegation in Dominican Republic.

From left to right: Mr. Guarocuya Félix, General Director of the DGII of the Dominican Republic and Mr. Márcio F. Verdi, Executive Secretary of the (CIAT).

Peru - SUNAT approves new sanctions for failure to submit payment vouchers St. Maarten - Appointment of CIAT Representative Bolivarian Republic of Venezuela: SENIAT appoints new CIAT correspondent IBFD News Post of the Month Training New in the Web Other Documents Official photo of the event.

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Tax administration officials met to discuss issues related to tax collection procedures A Seminar on “Tax Collection Procedures in the Administrative and Judicial Fields” sponsored

by CAPTAC-DR and CIAT was held last September 17 and 18, 2012, in the City of Antigua, Guatemala

Le invitamos a CIATalk, el espacio que le brinda el CIAT. Lea los post, opine y participe activamente.

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 rendering of specialized technical assistance.

Executive Council Executive Secretariat

As a result of the CAPTACIn the panel, from left to right: María Laura Rayes-AFIP, DR and CIAT partnership, Argentina; Carlos Rubinstein AGIP Argentina; Oscar the seminar on collection Vásquez CAPTAC RD; Gonzalo Arias CIAT; Gabriela procedures held in the Rodríguez – DGI Uruguay City of Antigua had the participation of tax administrations from various Central American countries (Honduras, Nicaragua, El Salvador, Costa Rica and Guatemala) and the Dominican Republic.

The event was coordinated and moderated by CAPTAC-DR (Oscar Vazquez) and had the participation of speakers from AFIP, Argentina (Maria Laura Reyes); DGI, Uruguay (Gabriela Rodriguez Lopez); AGIP, Buenos Aires, Argentina (Carlos Rubinstein); and CIAT (Gonzalo Arias).

During the two days activities, legislative, jurisdictional, procedural, structural, organizational and international aspects of collection have been discussed and a round table was coordinated in order to know the experiences of all present countries.

As mentioned by Mr. Oscar Vazquez (CAPTAC-DR) and Mr. Gonzalo Arias (CIAT) in their opening remarks, it is necessary to promote the exchange and discussion between tax administration officials from collection areas because these are critical procedures to achieve collection goals and because of the low collection level on the existing portfolio of outstanding debtors in the region.

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

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It was concluded that, even if many international efforts are made in the field, they are not sufficient to cover the needs of many tax administrations in Latin America and the Caribbean. That is why a fluid and energetic exchange between participants and experts was created, which has led to the unanimous conclusion on the need to hold in the future more support actions in the field, and to generate awareness among the tax administrations authorities on the importance of strengthening these processes: both from the of legal and/or administrative points of view.

The Tax Administrations Inform Argentina - Becomes the first South American country to become a Party to the Multilateral Convention Argentina has deposited its instrument of ratification moving Argentina one step closer to benefiting from cross border tax co-operation and information sharing and demonstrates Argentina’s commitment to tax transparency and exchange of tax information.

The Multilateral Convention on Mutual Administrative Assistance in Tax Matters, which is open to all countries, provides governments with a valuable tool for strengthening international tax co-operation in the fight against offshore tax evasion and avoidance. It provides a multilateral basis for a wide variety of administrative assistance, including information exchange on request, automatic exchange of information and simultaneous tax examinations.

Argentina is the first South American country to become a Party to the Multilateral Convention which will enter into force for Argentina 1 January 2013.

Souece: Sitio en la internet de la OECD Carlos Alberto Sánchez Correspondent

Costa Rica – Yearly collected income keeps upward trend Tax revenues in the first eight months of 2012 show more dynamic trend than last year. In August of this year, the relative growth compared to 2011 was 10.4%, higher than the 9.1% growth registered in August last year.

“So far this year, sales tax and income tax, with cumulative growths of 12.2% and 13.2% respectively, have generated current Government revenue increase by more than 10%, which certainly is good news, “said Edgar Ayales, Minister of Finance.

Maribel Zúñiga Cambronero Correspondent

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El Salvador - Ministry of Finance updates 2010-2014 Institutional Strategic Plan In order to promote institutional development of the Ministry of Finance for the coming years, the Re-launch Institutional Strategic Plan 2010-2014 workshop was held.

During the event was presented the updated version of the Strategic Plan as a result of the input received from the Management Team and Heads of Organizational Units of the Ministry of Finance as well as feedback from the previous workshop.

Ramón Pérez Gómez Correspondent

Honduras - DEI Supervisory Commission presents action plan to improve tax collection Mr. Jorge Yllescas Oliva stated this during a ceremony held at the Presidential Palace, where he presented measures to be implemented which include the implementation of operations at four strategic points in the country, in coordination with the National Special Investigative Services (DNSEI), known as the Border Police.

The presentation was attended by the appointed Minister of the Presidency, María Antonieta Guillén, the Finance Minister, Wilfredo Cerrato and members of the DEI Supervisory Commission, Reinaldo Rodríguez and Roberto Jerez.

Grace de La Paz Saravia Correspondent

Honduras – DEI procedures without leaving your office DEI online is a modern website specially designed to facilitate the taxpayers’ compliance with their tax obligations, maximizing the benefits that technology offers today.

From the comfort of your home, seven days a week, 24 hours a day you can interact with DEI online and benefit from the available services.

Grace de La Paz Saravia Correspondent

Jamaica - TAJ Rolls Out Island Wide Education Programme Tax Administration Jamaica (TAJ) has embarked on an increased drive to educate the public about the wide range of services it offers and new tax measures introduced. This effort forms part of the administration’s National Compliance Programme, which focuses in part, on engaging taxpayers through a series of customer service activities, all geared towards sensitizing and maintaining contact with customers.

Meris Haughton Correspondent

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Paraguay - Continued increase in affidavits filed by taxpayers The filing of affidavits by taxpayers to the Sub-secretariat of State Taxation (SET) of the Ministry of Finance continues to show a steady increase. In that sense, during the present year there were 3,581,322 affidavits, registering an average of nearly 450,000 returns per month.

From January to August 2,832,584 returns were introduced through Authorized Collection Agencies (ERA) consisting of: banks, finance companies and companies engaged in collection; 722,898 online, 1,019 via Marangatu’i software, in addition to 24,821 that were submitted to the Large Taxpayers General Directorate.

Elizabeth FernĂĄndez de Corrales Correspondent

Peru - SUNAT guarantees revenue projections for 2013 budget financing Central government tax revenue would total S /. 91,500 million during the next year, which would represent an 8.0% increase compared to the results obtained at the end of 2012, reported the National Superintendent of Customs and Tax Administration, Tania Quispe Mansilla. This way, the budget 2013 financing will be assured.

During her presentation at the Congressional Budget Committee, where she reported on projected tax revenues to be obtained in 2013, Quispe Mansilla said that these estimates are based on the economy prospects, both national and international, on management measures by the collection agency and on tax policies promoted by the state.

Clara Urteaga Correspondent

Peru - SUNAT approves new sanctions for failure to submit payment vouchers In order to promote higher tax compliance levels of business activities, SUNAT amended the gradual regime of sanctions related to offenses committed by non-emitting and / or non-providing payment vouchers.

The Superintendence Resolution No. 195-2012/SUNAT states that they will gradually increase the closure days from 3, 6 and 10 days for the first, second, third and other infringement occurrences. Only infringements detected after July 6th will be counted.

Clara Urteaga Correspondent

St. Maarten - Appointment of CIAT Representative Mr. Roland S. Tuitt, Minister of Finance from St. Maarten has informed that Ms. Maria Bass, Head of the St. Maarten Ministry of Finance, Tax Control Department has been appointed as the new CIAT representative. Similarly, Mr. Janio Chayadi, Acting Director from the Fiscal Affairs Department at the Ministry of Finance from Sint Maarten has been appointed as the CIAT correspondent.

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Bolivarian Republic of Venezuela: SENIAT appoints new CIAT correspondent The Superintendent of the National Integrated Custom and Tax Administration Service (SENIAT), Mr. José David Cabello Rondon has appointed Mr. Pablo Pinto Chavez - Head (E) of the Office for Public Policy and Internal Management as the new Bolivarian Republic of Venezuela correspondent to CIAT.

IBFD News 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...Go to news

Post of the Month September 13

Somehow boring, but yet...

Written by: Raúl Zambrano In that 10 minutes post, on the third point, I spoke about XBRL and I think it’s time to dig in a little bit. On August 7, the IFRS Foundation published in Spanish the IFRS or NIIF labels based on XBRL. The “Project Summary” in which the 2012 taxonomy was displayed presented in March tells us that this is the XBRL representation of IFRS, both the complete set and the Midsize Business.

Training Announcement of Course Given the importance we attribute to continued training in order that tax professionals may be fully updated on tax administration, customs and human resources issues we are announcing the following course: • • •

Course on Human Resources Management 2nd.

Tax Audit Fundamentals 5st.

Tax Ethics Course 3rd.

If you are interested in participating, please fill out the registration form and send it to capacitacion@ciat.org, along with the rest of the requirements.

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New in the Web Bibliographic News September, 2012

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

Other Documents “Reformas Promulgadas al Código Tributario: Objetivos y Principales Componentes” Reforms to the tax code: Objectives and Main Components Gerardo Durán Director de Fiscalización Ministerio de Hacienda Costa Rica

The modern tax management involves two main aspects. The first, related to the group of taxpayers who meet their tax obligations includes the design and implementation of services to facilitate compliance. The second relates to the entire administrative control device, necessary to restore fiscal discipline in cases where such duties are breached (Available in Spanish).

The World of Forking Paths: Latin America and the Caribbean Facing Global Economic Risks Andrew Powell Inter-American Development Bank March 2012

This report details the divergent paths that the world economy may take and their potential effects on Latin America and the Caribbean. Scenarios are constructed employing a modeling exercise that captures the trade, financial and other linkages between the region and the rest of the world. While vulnerabilities remain and external shocks have been and remain critical, the region enjoys many strengths and has developed a growing arsenal of policy tools. What is the balance of vulnerabilities versus strengths? How can countries address the existing vulnerabilities? How can they perfect their policy tools and minimize the effect of external crises?.

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Global Financial Stability Report

Restoring Confidence and Progressing on Reforms World Economic and Financial Surveys International Monetary Fund October 2012 Chapter 3 of the October 2012 Global Financial Stability Report examines whether the regulatory reforms designed to make the financial system safer are moving the system in the correct direction, using a benchmark set of features that include financial institutions and markets that are more transparent, less complex, and less leveraged. The analysis suggests that progress has been limited so far, in part because many of the reforms are still in the early stages of implementation. Chapter 4 evaluates how aspects of current changes to financial structure, including those elicited from regulatory reforms, may be associated with economic outcomes. Both chapters stress that the success of measures to produce a safer financial system depend on effective implementation of reforms and strong supervision.