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eCIAT

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ISSN 1684-9833 • Year 3 / No.4 / March 2, 2012

The Executive Secretariat Informs SII (Chile) publishes Official Web Site for the 2012 - 46th CIAT General Assembly In this Web site you will not only find the program for the Assembly which main topic is titled “Improving the Performance of the Tax Administration: Evasion Control and Taxpayer Assistance”, it also provides key information about the host country, the city and information to all the attendants and their companions.

The Executive Secretariat Informs SII (Chile) publishes Official Web Site for the 2012 - 46th CIAT General Assembly GIZ Officials Visit CIAT CIAT Executive Secretary Visits Kenya The Tax Administrations Inform Brazil - The Unified Tax Regime - RTU (in Spanish) is launched in Brazil/Foz do Iguaçu Brazil - The Secretariat of the Federal Revenue of Brazil – RFB delivers presentations to the Nigerian Delegation Bolivia - The National Internal Revenue Service of Bolivia designated new CIAT Correspondent

The challenge of this activity which will take place next April 23-26, in the City of Santiago, capital of Chile in which the annual progresses and the best practices of each tax administration will be exposed, will be to analyze and generate alternatives to fight tax evasion and to improve the assistance to the taxpayer in the sense to continue promoting the voluntary compliance, as well as the execution of more effective, innovating and specialized controls.

See the official web page for the 2012 - 46th CIAT General Assembly: www.sii.cl/ ciat/es/index_esp.html

GIZ Officials Visit CIAT

Costa Rica – Out of the French List of Non-Cooperative Countries Dominican Republic: Internal Revenue holds a Magisterial Conference on “Ethics in Organizations” El Salvador - The Minister of Finance informs the progress of the Income Tax via Internet Honduras - The Treasure Department of the United States promotes the NICSP Implementation in the Honduran Public Sector Paraguay - Since March, a new Taxpayer Group becomes Withholding Agents The Directorate General of Internal Revenue opened the Ethics Training Program for employees of the institution with the magisterial conference, “Ethics in Organizations,” presented by the international expert Mark Urarte...read more IBFD News Events Information Post of the Month Training Our documents Other Documents

From left to right: Mr Hans Fuchs and Dr. Hyun-Ju Koh, GIZ Representatives; Irene Carrizo, DGI Panama Plans and Program Coordinator; Raul Zambrano, CIAT Technical Assistance and Information Technology and Communication Director; Decio Carretta, CIAT Consultant and Jorge Cosulich Ayala, Panama Project Manager.

During the week of February 13th, Dr. Hyun-Ju Koh and Mr. Hans Fuchs from the German Ministry of Cooperation and Development (GIZ) visited the CIAT Secretariat and met with Secretariat officials.

They were interested in better understanding the CIAT mission and how it interacts with its members and other stakeholders. The GIZ has been a long time supporter of CIAT and through CIAT has provided valuable assistance to the tax administrations of CIAT member countries.

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During their visit GIZ officials visited the CIAT technical assistance project office at the Panamanian Tax Department. At that meeting they received information on how technical assistance is determined and delivered by the CIAT project team.

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 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

The fact-finding mission will assist GIZ in determining how it can improve its support of CIAT in delivering technical assistance to member countries in Latin America and the Caribbean.

CIAT Executive Secretary Visits Kenya The Executive Secretary of CIAT Mr. Márcio F. Verdi visited Kenya from 30st January to Wednesday the 1st of February. Welcoming the Executive Secretary, the Commissioner General of Kenya Revenue Authority Mr. M.G.Waweru appreciated the immense benefit Kenya has derived from its CIAT membership.

Kenya is represented in CIAT’s Permanent Committee on Ethics. KRA staff have also benefited from various areas of training including transfer pricing. The Integrated Tax Management System that KRA ‘s Domestic Taxes Department adopted borrowed significantly from a similar system used in Chile. Kenya is due to host next year’s CIAT Technical Conference.

During the visit Mr.Verdi made presentations on electronic invoicing to Kenya Revenue Authority’s top management and senior Treasury officials led by the Permanent Secretary Mr. Joseph Kinyua. He said for Kenya the issue is not whether to adopt electronic invoicing but when to do so. Kenya is expected to be among the first African countries to adopt electronic invoicing. Mr. Verdi also had an informal chat with the newly appointed Minister for Finance Hon. Njeru Githae and his assistant Dr. Oburu Oginga.

The Executive Secretary also had an opportunity to visit Nairobi. He was seen off at the Times Tower by the Commissioner of Domestic Taxes-LTO Mr. John Njiraini who is also Kenya’s CIAT Correspondent.

The Tax Administrations Inform Brazil - The Unified Tax Regime - RTU (in Spanish) is launched in Brazil/Foz do Iguaçu On Wednesday, February 8th, was held in Foz do Iguaçu/PR the launching ceremony of the RTU which counted with the participation of the Secretary of the Federal Revenue of Brazil, Carlos Alberto Barreto and other authorities of Brazil and Paraguay.

In his speech, the Secretary of the RFB emphasized that the objective is to facilitate the border trade between Brazil and Paraguay, whose trade relations are significant within a wider project, of the Mercosur.

The Secretary also emphasized that the RTU seeks to create the opportunity for the lawful exercise of foreign trade for the Brazilian and Paraguayan micro entrepreneurs which favors the formalization of trade in the border region of Foz do Iguaçu/Ciudad del Este.

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The RTU allows the import of certain goods from Paraguay by land, bordering Ciudad del Este/Foz do Iguacu by the unified payment of federal tax under the single rate of 25% in addition to the ICMS with the simplified customs clearance. The list of products allowed in the RTU regime includes goods of the electronic industry - computer science, telecommunications and electronic material.

The only ones to qualify for imports under the RTU terms are he micro-enterprise (company with annual gross income up to R$ 360,000,00) and the individual micro – entrepreneur - MEI (with annual gross income of R$ 60,000,00), who have chosen for “Simples National”.

Flávio Antonio Araújo Correspondent Nilton Tadeu Nogueira Dirin/Corin/RFB

Participants of the RTU Launching Ceremony

The International Friendship Bridge

Brazil - The Secretariat of the Federal Revenue of Brazil – RFB delivers presentations to the Nigerian Delegation At the invitation of the Ministry of Foreign Affairs - MRE, RFB delivers presentations to the Delegation of the Fiscal Commission of Nigeria, on a official visit to Brazil.

On January 30th, themes related to collection of taxes administered by the RFB were presented by Marcus Vinícius Martins Quaresma, the Coordinator of Collection and Genilmar Fontenelle, Head of the Division of Natural Person Collection, Rural Property and Civil Construction, both form the General Coordination of Revenue and Collection - Codac.

On February 1st, Roberto Name Ribeiro, Coordinator of Economic and Tax Studies from the General Coordination of Studies, Forecast and Analysis, held a presentation on the Brazilian Tax System.

The presentations, held at the Itamaraty Palace, were accompanied by Donizetti Victor Rodrigues and Nilton Tadeu Nogueira, from the General Coordination of International Relations - Corin.

The members of the delegation thanked the participation of the RFB, stressing that the subjects of the presentations will be of great value to the improvement of the process of the Fiscal Commission in their country.

Flávio Antonio Araújo Correspondent Nilton Tadeu Nogueira Dirin/Corin/RFB

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Bolivia - The National Internal Revenue Service of Bolivia designated new CIAT Correspondent Juana Patricia Jiménez Soto has been designated as CIAT Correspondent of Bolivia. Mrs. Jiménez Soto has a Master´s degree in Economic Development; she is the former Vice-minister of Treasure and Public Credit (temporary), and she is currently adviser of the Tax National Service Executive Presidency.

Costa Rica – Out of the French List of Non-Cooperative Countries The decision favors the investment climate in the country. New treaties of exchange of information will be signed in the next days.

Source: Ministerio de Hacienda. Dirección General de Tributación Maribel Zuñiga Correspondent

Dominican Republic: Internal Revenue holds a Magisterial Conference on “Ethics in Organizations” The Directorate General of Internal Revenue opened the Ethics Training Program for employees of the institution with the magisterial conference, “Ethics in Organizations,” presented by the international expert Mark Urarte.

The meeting was held at the headquarters of the Internal Revenue and was headed by the Director General, Juan Hernandez, and had the presence of main officials of the institution and external collaborators of the Delphi Group, in partnership with the company Conética.

Source: Web Site Nieves Vargas Collado Corresponent

El Salvador - The Minister of Finance informs the progress of the Income Tax via Internet The Minister of Finance, Carlos Caceres reported that to February 26th, a total of 211 thousand 107 income tax return have been registered of which more than 64 thousands have been via Internet.

The new thing about the suggested returns program is the automatic calculation that provides to the taxpayer how much has been withheld in tax during the year; specifying the amount that corresponds to the concept of tax refund and/or indicates the tax to be paid.

Source: Web site Ramón Peréz Gómez Correspondent

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Honduras - The Treasure Department of the United States promotes the NICSP Implementation in the Honduran Public Sector The Treasure Department of the United States conducted a training course to Honduran officials on the process of adoption and implementation of the International Accounting Standards of the Public Sector (NICSP in Spanish).

Lory B. Fleming, Adviser to the Technical Assistance Office of the American Treasury in her speech pointed out that the objective of the standards is to establish the requirements for the financial information on income arising from transactions without compensation.

Grace de La Paz Saravia Correspondent

Paraguay - Since March, a new Taxpayer Group becomes Withholding Agents From March 1, a new group of taxpayers becomes withholding and information agents of the Value Added Tax (VAT).

They were designated by the General Resolution No. 69/12, issued by the Sub-secretariat of the State of Taxation of the Ministry of Finance and thus being expanded the list of taxpayers in Annex II of the General Resolution No. 7/2008.

Taxpayers designated, in addition to its obligation to withhold and pay the withholding tax, shall be under an obligation to issue a respective voucher and submit the affidavit for withholding the corresponding VAT (Form 122) on a monthly basis, whether or not there was movement to be declared and the amount of the withholding, if any.

Source: Web site Elizabeth FernĂĄndez de Corrales 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.

Events Antonio Uckmar Award 2012

The 2012 Uckmar visiting Research Scholarship in the International Tax Law The institute for Austrian and International Tax Law at WU is one of the world´s leading institute for research and teaching in the field of tax law. Each year we select ouststanding doctoral students and, to a minor extent, postgraduate research fellows from other distinguished universities who wish to visit the institute for periods from one month to the year as visiting research scholars.

The deadline for the application for the Uckmar visiting Research Scholarship in the International tax law is October 15, 2012.

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Information Economics and Business Letters (EBL) Economics and Business Letters (EBL) is a new online quarterly peer-reviewed international journal published by University of Oviedo Press. Both theoretical and empirical short papers in all the fields of Economics and Business are welcome. The journal’s first issue is expected to be published in May 2012.

Post of the Month February 29, 2012

Y otras cosas no clasificadas en otra parte: Written by: Raúl Zambrano

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. Registration forms will be received until May 4th, 2012.

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 Control of Institutions and Financial Operations 6ed.

Basic course on Human Resources 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.

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Our documents Bibliographic News February, 2012

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

Other Documents The Correct Fiscal Domicile Francisco Villalobos Brenes Director General of Taxation Costa Rica

It is a common belief to consider that the accountants, advisers or lawyers domicile can be used as the tax domicile of a person or company.

Financing High-Growth Firms.

The Role of Angel Investors Organisation for Economic Co-operation and Development (OECD) January 2012 This document addresses the most relevant aspects for the financial markets in the OECD countries and other selected non-member: the financing of high growth companies, with a special focus on angel investments. To do so, the work points out what is this type of investments and how they have evolved in both the OECD area and outside of it, and in what way the financial markets can find them attractive.