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ISSN 1684-9833 • Year 3 / No.23 /December 14, 2012
The Executive Secretariat Informs CIAT delegation visits the Tax Administration of Venezuela
The Executive Secretariat Informs CIAT delegation visits the Tax Administration of Venezuela Seminar on “Evasion and Income Tax in Latin America” AFIP, GIZ and CIAT coordinate regional technical exchange on transfer pricing
On December 6, a delegation led by Mr. Marcio Verdi, CIAT Executive Secretary, with Mr. Miguel Pecho, Tax Studies and Research Director, Mr. Raul Zambrano, Director of Technical Assistance and Mr. Gonzalo Arias, Director of Cooperation and International Taxation, met in Caracas with the SENIAT authorities in order to present the CIAT works and discuss joint activities. On this visit, a seminar was held on December 7, where the CIAT delegation presented the diagnosis of tax administrations, the study of legal and administrative aspects in the control of the abusive manipulation of transfer pricing and key issues for the implementation of electronic invoicing.
The Tax Administrations Inform Bolivia - The SIN presented technological tools for the benefit of taxpayers Chile - Tax revenues grow 5.3% in October 2012 Dominican Republic - Guarocuya Felix presents DGII-2013 anti-evasion plan guidelines El Salvador – Finance Ministry completes the updating process of the Institutional Strategic Plan Peru - SUNAT and business associations will analyze simplification measures and improvements of tax processes Peru - Gradual regime of customs penalties is now enforced South African - SARS Enforcement and Customs Operations for November 2012 IBFD News Post of the Month Training Events Other Documents
From left to right: Isaác Gonzalo Arias Esteban, Cooperation and International Tax Director (CIAT); Miguel Eduardo Pecho, Tax Studies and Research Director (CIAT); Mario Pires (Adviser); Fanny Márquez (SENIAT Internal Tax Director); Márcio F. Verdi, Executive Secretary (CIAT); Raúl Zambrano, Technical Assistance and Information (CIAT).
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Seminar on “Evasion and Income Tax in Latin America” From 22–23 November, the UN Economic Commission for Latin America and the Caribbean (UN ECLAC) joined forces with the International Tax Compact (ITC), the Inter American Center for Tax Administrations (CIAT), the Internal Revenue Service of Uruguay (DGI) and the Center for Fiscal Studies (CEF) in order to realize the regional exchange seminar “Evasion and Income Tax in Latin America” in Montevideo. The event brought together 47 participants, representing Ministries of Finance, Internal Revenue Services and Academia from 9 countries in the region including Argentina, Chile, Ecuador, El Salvador, Guatemala, Mexico, Peru, Dominican Republic and Uruguay. Moreover, the event was attended by experts from the IMF and the OECD. The seminar opened a space for the experts and political authorities for exchanging different country experiences and best practices regarding the measurement of income tax evasion. Participants stressed the high relevance of improving existing methods as more accurate estimations and analysis are crucial for improving fiscal policies in the region for increasing domestic revenues and reducing social inequality.
CIAT is a public international organization which groups the tax administrations of 39 countries, (31 Amarican countries, 5 European countries, 2 African countries and 1 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 The e-CIAT Newsletter is published and distributed electronically biweekly.
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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
In close cooperation the ITC, CIAT and UN ECLAC will continue to strengthen capacities of Latin American tax administrations with regard to measuring and effectively reducing tax evasion.
AFIP, GIZ and CIAT coordinate regional technical exchange on transfer pricing A multilateral technical exchange event on transfer pricing and other related international tax aspects was held at the Federal Administration of Public Revenue of Argentina’s offices (AFIP), on November27 to 29, 2012. As a result of the existing collaboration between GIZ of Germany, AFIP of Argentina and CIAT, a technical exchange was held in the City of Buenos Aires, which main purpose was to share with Latin American countries the experience that AFIP has capitalized throughout the years. This technical collaboration was directed to six tax administrations of countries which are currently in the process of building or strengthening their capacities to control abusive transfer pricing manipulation: Chile, Costa Rica, Ecuador, Guatemala, Paraguay and Uruguay. At the working sessions, coordinated by the AFIP International Taxation Director, Ms. Diana Guterman, were discussed key issues for the participating tax administrations, such as the method on the sixth paragraph article of the Argentinian Corporate Profit Tax Law regulating transfer pricing, collection, internal use of information, international tax information exchange, risk identification, phases of the audit process, and intra-group services, among others.
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As a result of the exchange, the importance of this type of assistance for the tax administrations was highlighted, as well as the need for further progress in technical exchanges on specific and priority issues.
Participants of the event.
The Tax Administrations Inform Bolivia - The SIN presented technological tools for the benefit of taxpayers The National Tax Service (SIN) has proved to be a pioneer in the application of innovative technology solutions that facilitate taxpayer compliance with tax obligations, in their event called “Innovation and Tax Administration Empowerment” “We apply the Business Process Management (BPM) methodology, to simplify and automate all tax processes, which allows to obtain greater efficiency, productivity and institutional transparency,” said the SIN Executive President, Roberto Ugarte Q., at the opening of this event, held today in a hotel in the City, attended by officials from the Ministry of Economy and Public Finance and special guests from public and private sectors, as well as universities, taxpayers, among others. He added that, to improve the service to taxpayers, the INS is developing systems such as the Virtual Office, the Digital Biometric Census, and the Payment Arrangement System, the Virtual Invoicing System, the Binding Consultation, the Mobile Office and others. Juana Patricia Jiménez Soto Correpondent
Chile - Tax revenues grow 5.3% in October 2012I Cumulative net tax revenues to October 2012 reached a total of 19 billion and 258,183,000 pesos, representing a real increase of 5.3% for the same period of 2011, said the Internal Revenue Service (IRS). Similarly, the registered growth in October versus the same month last year, reached 20.4%. This evolution of tax revenues is mainly due to the behavior of the Value Added Tax (VAT) which accounts for 63.1% of the growth. Bernardita Moraga Correspondent
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Dominican Republic - Guarocuya Felix presents DGII-2013 anti-evasion plan guidelines El Salvador held the XXX Meeting of Finance Ministers from Central America, Panama and the Dominican Republic (COSEFIN), in which they discussed issues related to the key priorities of the 2013 COSEFIN agenda. During the meeting they discussed the mechanisms and financing alternatives, investment and social spending, as well as other more specific issues regarding tax and customs policy. Ramón Pérez Gómez Correspondent
El Salvador – Finance Ministry completes the updating process of the Institutional Strategic Plan El Salvador held the XXX Meeting of Finance Ministers from Central America, Panama and the Dominican Republic (COSEFIN), in which they discussed issues related to the key priorities of the 2013 COSEFIN agenda. During the meeting they discussed the mechanisms and financing alternatives, investment and social spending, as well as other more specific issues regarding tax and customs policy. Ramón Pérez Gómez Correspondent
Peru - SUNAT and business associations will analyze simplification measures and improvements of tax processes In order to strengthen the dialogue mechanisms to exchange views on the actions being carried out by SUNAT, related to the simplification and improvement of tax procedures, recently the Internal Revenue Working Group has held a meeting, integrated by the main business associations. Thus, communication channels with taxpayers are expected to improve and their needs and expectations will be better known, which will help to implement improvements regarding taxation. At the meeting the National Superintendent of Customs and Tax Administration, Tania Quispe Mansilla, stressed the importance of working in partnership with the private sector and pledged to promote the simplification of procedures for returns and tax payments as well as to encourage the registration of businesses and fight tax evasion. Clara Urteaga Correpondent
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Peru - Gradual regime of customs penalties is now enforced On Nov. 8 the Gradual Regime Regulation applicable to customs infringements punishable by fines became effective, approved by the National Customs and Tax Administration (SUNAT) on 17 October, by the Superintendency Resolution No. 473-2012-SUNAT / A . The regulation, which is part of the actions to facilitate tax and customs obligations, graduates the fines for improper customs declarations, incorrect data submission in refunds requests, and keeping customs books and customs records incomplete or outdated Through this Gradual Regime, foreign trade operators will be able to regulate or correct customs duties infringements with the benefit of a reduction in customs penalties, which percentage ranges from 95% to 50% of the fines total amount, depending on when they request this benefit. Clara Urteaga Correpondent
South African - SARS Enforcement and Customs Operations for November 2012 OThe South African Revenue Service (SARS) is providing its second update to the media and the public on its operations to combat crimes such as smuggling, fraud and abuse of the tax system. The aim is to inform the public about the work SARS’ Customs and Enforcement teams do on a daily basis, to provide an indication of the prevalence of tax and customs-related offences in South Africa, and to illustrate the support SARS provides to other law enforcement agencies. Interventions to combat Fraud and Corruption A total of 5.66 million tax returns were submitted for the 2012 Tax Season by the deadline on 23 November. Varsha Singh 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.
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Post of the Month 06 December 2012
Un nuevo paradigma tributario en América Latina? A new tax paradigm in Latin America? Written by Fernando Herrero Dominican Republic has recently approved a tax reform that will provide additional revenue by 1.5% of gross domestic product (plus 0.3% from improvements in management). These resources are particularly urgent, given the deficit of more than 8% for the nonfinancial public sector in 2012, and the objectives of the new government, including a substantial increase in education spending.
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.
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.
Events Ernst Mach grant – worldwide
The Institute for Austrian and International Tax Law October 1 – September 30 Which is awarded by the Austrian agency for international mobility and cooperation in education, science and research (OeAD-GmbH) and the Centre for International Cooperation & Mobility (ICM) on behalf of and financed by the Austrian Federal Ministry of Science and Research (BMWF). The Ernst Mach grant enables graduates from all countries to apply for a research period (one to nine months) in Austria supported by a grant. The grant benefit paid is a monthly rate of Euro 940 (for graduates). More details can be found in the information sheet .In order to be able to apply for the Ernst Mach grant the consent of an Austrian supervisor is needed. The Institute for Austrian and International Tax Law would be very happy to support the application of promising candidates who are doing research in International Tax Law
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Other Document II Seminar on ethics, rights and duties in the Public Service and Tax Administration Tax General Directorate November 27 - 28 2012
This seminar was organized by the Internal Audit of the Tax General Directorate (DGI) with the purpose of completing and updating sessions on ethics, disciplinary proceedings and sanctions in the public service, from a vision of recognition and protection of human rights.
Philanthropy Sowing
ChangeFinance & Developmen tInternational Monetary Fund December 2012 This issue of F&D looks at the world of targeted giving and social entrepreneurship.“Philanthropy’s role is to get things started,” says Microsoft co-founder Bill Gates, who is the world’s most generous giver.“We used foundation funds to set up a system to make market forces work in favor of the poor.” He says that catalytic philanthropy can make a big difference. “Good ideas need evangelists. Forgotten communities need advocates.
What drives tax morale?
Christian Daude, Hamlet Gutiérrez and Ángel Melguizo OECD Development Centre Working Paper No. 315 Noviembre 2012 This paper reviews the literature and contributes with some evidence based on the World Values Survey on the drivers of tax morale around the world, with an emphasis on developing countries. It shows that socio-economic factors such as age, religion, gender, employment status and educational attainment have a significant impact on people’s levels of tax morale. In terms of institutional determinants, it finds that the satisfaction with democracy, trust in government and the satisfaction with the quality of public services plays an important role in increasing tax morale. The paper also discusses future directions for research and policy action in this area.