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ISSN 1684-9833 • Year 3 / No.19 /October 12, 2012

The Executive Secretariat Informs CIAT Technical Conference - 2012 The Executive Secretariat Informs CIAT Technical Conference - 2012 CIAT-SRI Ecuador International Seminar “Tax Control to the Metal Mining Sector” was successfully concluded CIAT participated in the 2012 V Tax Conference of the General Directorate of Taxation (DGI) of Uruguay Working Group Meeting for Preparation of the CIAT 2013-2017 Strategic Plan Proposal The Tax Administrations Inform Argentina - The September revenue collection grew 20.2 percent on interannual basis Bolivia - National Taxes collects Bs 29,193 million in the third quarter of 2012 Brazil - The Federal Revenue is Finalist for “100 + innovative in the use of IT” Award Brazil - Federal Revenue invites taxpayers to self-regularization Costa Rica - Taxation visit San Jose’s businesses to verify compliance with tax obligations Honduras - DEI receives donation valued at two million lempiras Panama - DGI collects – B/. 4,320 million up to September Peru - Requirements for companies to qualify as Authorized Economic Operator are approved IBFD News Post of the Month Other Documents

The 2012 CIAT Technical Conference will take place in Amsterdam, The Netherlands next October 15 to 18.

The event is co-sponsored by the Tax and Customs Administration of The Netherlands and its main topic is “Smart Cooperation”.

CIAT-SRI Ecuador International Seminar “Tax Control to the Metal Mining Sector” was successfully concluded The Internal Revenue Service (SRI) of Ecuador together with the InterAmerican Center of Tax Administrations carried out in the city of Quito last October 03, 04 and 05 an international seminar which main topic was: “Tax Control for the Metal Mining Sector “.

The event was opened with the words of the International Cooperation Coordinator of Inter-American Center of Tax Administrations (CIAT), the Director of Fiscal Studies Center of Ecuador, and the National Director of the SRI Tax Management who stressed the importance that the metal mining has for the region and the important role played by CIAT and SRI to generate environments for discussion of best practices and experiences between Tax Administrations of member countries.

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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.

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The seminar was attended by 120 participants from the Tax Administrations of Argentina, Colombia, Kenya, Guatemala, Nicaragua, Peru and Dominican Republic and most of the Internal Revenue Service of Ecuador and other national government agencies related to the subject, delegates from ministries, prosecutors, regulatory agencies and control mining.

The seminar included distinguished international panelists from the National Customs and Tax Administration of Peru, María del Pilar Miranda; the Tax and Customs DIAN of Colombia, Mr. Marco Antonio Gonzalez Roa; Mrs. Ann Irungu Nyaguthii of Kenya Revenue Authority; and Mr. Luis Enrique Libby, Directorate General of Revenue, Nicaragua.

It also had the distinguished participation via videoconference of Diana Maria Guterman and Julián María Coronel from the Public Revenues Federal Administration of Argentina. The outstanding speeches of Dr. Elisa Moran from the Ministry of Non-Renewable Natural Resources of Ecuador, Eng. Colon Velasquez from the National Institute for Geological Metallurgical Mining Research (INIGEMM), and Dr. Antonio Trujillo Institute of Accountants of Ecuador were also noteworthy.

The event addressed key issues such as the mining legislation, exemptions in the sector, major risks, control procedures and results of tax audits, tax treatment of mining investments, implementation of agreements to avoid double taxation for the mining sector; applying transfer pricing, content control procedures and other refined products, international taxation risks, financial instruments, among others.

This seminar was characterized as a high-level academic event, overcoming expectations, so the Internal Revenue Service and the InterAmerican Center of Tax Administrations appreciate the commitment of participants, speakers and invited delegations.

CIAT participated in the 2012 V Tax Conference of the General Directorate of Taxation (DGI) of Uruguay The 2012 V Tax Conference of the DGI was held on September 27 and 28, in the Main Hall of the School of Economic Sciences and Administration, of the University of the Republic of Uruguay.

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

Some of the topics discussed in this event were: the statute of limitations, business succession, the concept of actual beneficiary in agreements to avoid double taxation, public finance issues, among others.

The CIAT Director of Tax Studies and Research, Economist Miguel Pecho, presented a study on “Estimation of Tax Noncompliance in Latin America: 2000-2010”.

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The study indicates a reduction in VAT and Corporate Tax noncompliance in the Latin American countries in 2000-2010. The estimated productivity coefficients show a 21.3% and 17.6% reduction in VAT and Corporate Tax collection inefficiency, respectively, between the first and second quinquennium.

Likewise, in the case of corporate tax, calculations obtained from other studies as well as the one in the current study, according to the theoretical potential method with the use of National Accounts, show a noncompliance reduction between the first and second quinquenniums, of 11.6% in average for the first one and 19.7%, in average for the second one.

The best results for 2006-2010 are further confirmed with estimates obtained in the last section of the study based on management data from the tax administrations.

From left to right: Mr. Pablo Ferreri, General Director of the DGI; Mr. Miguel Pecho, CIAT Tax Studies Director, Mr. Carlos Walter, from the Governmental Administration of Public Revenues (AGIP) of the Government of the Autonomous City of Buenos Aires and Mr. David Eibe.

The Minister of Economy and Finance, Fernando Lorenzo, participated in the closing session.

Working Group Meeting for Preparation of the CIAT 2013-2017 Strategic Plan Proposal In compliance with the CIAT Executive Council’s decision made at its meeting of April 22, 2012, in Santiago de Chile, the Working Group organized for preparing the 2013-2017 CIAT Strategic Plan proposal met at the CIAT Executive Secretariat headquarters on September 10-13.

The working agenda included the review and analysis of the 2010-2013 Strategic Plan, the Annual Operational Plan – A.O.P. (its relationship and importance); Reports submitted by the E.S., as well as contributions received from the CIAT member countries which served as basis for preparing the 2013-2017 Strategic Plan.

Participants of the Working Group Meeting for Preparation of the CIAT 2013-2017 Strategic Plan Proposal

The members of the Working Group were specialists from Barbados, Mr. Martin Cox; Ecuador, Mr. Bernard Gambarrotti; United States of America, Mr. Raúl Pertierra; France, Mrs. Isabelle Gaetan; Italy, Mr. Stefano Gesuelli and Kenya, Mr. Joseline Ogai.

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The CIAT 2013-2017 Strategic Plan Proposal prepared by the Working Group will be presented to the Executive Council at the CIAT Technical Conference in Amsterdam, by the CIAT Director of Planning and Institutional Development, Mr. Socorro Velazquez.

The Tax Administrations Inform Argentina - The September revenue collection grew 20.2 percent on interannual basis In September 2012 were collected 9,645 million pesos more than in the same month of 2011. The total collected was $ 57,375 million.

Carlos Alberto Sánchez Correspondent

Bolivia - National Taxes collects Bs 29,193 million in the third quarter of 2012 The sustained growth of domestic taxes, the operational control, massive awareness campaigns and recently implemented technological applications ensured that the National Tax Service (SIN) achieved revenue of 29,193.2 million bolivianos, amount which represent a percentage growth of 30% compared to the same period of 2011.

Executive President of the INS, Roberto Ugarte Q., reported that this represents additional revenues of 6,669.5 million Bolivianos more than last year when tax revenues amounted to 22,523.6 million Bolivianos.

Juana Patricia Jiménez Correspondent

Brazil - The Federal Revenue is Finalist for “100 + innovative in the use of IT” Award Federal Revenue was among the three finalists for the “100 + innovators in the use of IT” Award, on 09/13, in São Paulo.

This award, sponsored by IT Media, is the most important hallmark in the application of technology for business innovation, pointing to companies which perceive the Information Technology (IT) as a strategic tool and defend this investment.

The 12th edition of the study was renovated. Until 2011, the focus was on the process of innovation adopted by the participating companies, this year the methodology was updated and had three pillars: strategy, process, and innovation.

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Being among the finalists of this award is recognition of the ongoing work carried out by the institution, in the search for technological solutions and innovations aimed at the optimization of RFB internal processes, to make life easier for citizens and bring benefits to society. The innovations that RFB present are found primarily in the areas of technology infrastructure application in trying to reduce the procedure time, reducing bureaucracy and reduce the so-called “Cost of Brazil”.

Flávio Antonio Araújo Correspondent

Brazil - Federal Revenue invites taxpayers to self-regularization Federal Revenue launched the Alert Program, which consists of self-regularization for taxpayers to have the opportunity to correct errors in returns and in the assessment of taxes, prior to the formal control.

Revenue will notify companies to alert them about problems found in the payment of taxes. Inconsistencies resulting from a cross between the data reported by the taxpayer and the existing RFB computer systems will be reported to the taxpayer, who will be able to correct them before the monitoring procedure starts.

Identified inconsistencies are preliminary and do not prove the existence of tax laws violations. They signal discrepancies between data reported by the taxpayer and those obtained by third parties or through special Tax Control Systems.

With this initiative, the Federal Revenue aims to guide taxpayers to verify the data they transmit to the Treasury and, pointing at errors, promote spontaneous self-regularization.

The Alert Program comes from the experience of similar programs under the Personal Income Tax. Annually, about 500,000 individual taxpayers benefit from the self-regularization mechanism and this will prevent thousands of tax control measures and discussions in administrative and judicial fields.

Flávio Antonio Araújo Correspondent

Costa Rica - Taxation visit San Jose’s businesses to verify compliance with tax obligations The General Directorate of Taxation (DGT) of the Ministry of Finance launched a broad plan of visits to businesses that are or should be registered as tax filers in this Unit.

This plan will run until the end of the year, it has several stages; the first of which is the visit by tax auditors duly identified to all businesses located downtown San Jose and shopping districts to verify their registration and compliance with their tax obligations.

Maribel Zúñiga Cambronero Corresponsal

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Honduras - DEI receives donation valued at two million lempiras Authorities of Executive Directorate for Revenue (DEI) received a major donation valued at more than two million lempiras in order to fight money laundering and terrorism crimes.

The donation consists in the delivery of various computers, scanner devices, printers and other technological devices which will be distributed to all the country customs to support the work of customs officers, managers and administrators.

Grace de La Paz Saravia Correspondent

Panama - DGI collects – B/. 4,320 million up to September Current revenues accrued through September totaling B /. 4,320.3 million representing a growth of B/. 723.5 millions (20%) compared to the same period last year and a surplus of B/. 239.7 million (5.9%) compared to the budget said the General Directorate of Revenue of the Ministry of Economy and Finance.

From January to September 2012, B/. 3,541 million in tax revenues were collected which represents 82% of total current revenues. This figure shows a cumulative growth of B/.752 million (27%) compared to the same period last year. It should be noted that tax collections through September exceeded this year’s budget by B/.

309.8 million (9.6%).

Peru - Requirements for companies to qualify as Authorized Economic Operator are approved To have a satisfactory track record of compliance with customs regulations, accounting records and adequate logistics, financial solvency, proven assets and safety measures are the main requirements that an operator must have to qualify as Authorized Economic Operator (OEA in Spanish).

The OEA regulation (Supreme Decree No. 186-2012-EF) published in the Official Gazette states that to access such certification by the National Customs and Tax Administration (SUNAT) the users should have a RUC, have no customs or tax debts, not be involved in legal proceedings, among others.

Clara Urteaga Correspondent

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.Post of the Month

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Post of the Month Two new services

October 10, 2012 Written by: Raul Zambrano

A couple of developments in the form of electronic services come with our Technical Conference that begins next October 15 in the city of Amsterdam. On one hand, on the Conference internet site http://conference2012. ciat.org the daily schedule of activities can be accessed online.

Other Documents More than Revenue: Main Challenges for Taxation in Latin America and the Caribbean Teresa Ter-Minassian Inter-American Development Bank Department of Research and Economy September 2012

This paper analyzes the region’s taxation in regard to revenue adequacy, efficiency, vertical and horizontal equity, ease of administration and compliance, and degree of fiscal decentralization, concluding that there is significant scope for reforms that would result in simultaneous improvement on several of these fronts.

A New Tax Policy for a Good Life Internal Revenue Service - Ecuador 2012

Under the sponsorship of the German Agency for Technical Cooperation GIZ, the Internal Revenue Service from Ecuador presented the book “A new Tax Policy for a good life. Equity as support to the fiscal pact”.

This work arises from the reflection and practice of tax policy. It proposes a new concept of taxes as instruments for the construction of a more equitable and fair society.

Premissas de Direito Econômico

2ª edição - Atualizada conforme a Lei nº 12.529, de 30.11.2011 Assumptions on Economic Law 2nd Edition - Updated according to Law No. 12.529, 11.30.2011 Sérgio Augusto G. Pereira de Souza

Assumptions on Economic Law is a work intended for the creation of basic assumptions of this branch of law which serve to those who initiate contact with the subject at graduation, or can serve as a reference for those studies in the preparatory field for public tenders, a way to remember the relevant issues and deepen them.