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ISSN 1684-9833 • Year 4 / No.10 /Juen 14, 2013
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Conferencia Técnica – 2013
The Executive Secretariat Informs CIAT Executive Secretary participated in the FEBRAFITE IX National and IV International Congress CIAT Technical Conference 2013, in Nairobi, Kenya, September 9 to 12 - Final arrangements for the event CIAT Officials Participate at UN Events The Executive Secretariat participates in the CREDAF General Assembly CIAT and CREDAF sign a Cooperation Agreement Virtual Master’s Program in International Taxation, Foreign Trade and Customs Has Been Approved
The Executive Secretariat Informs CIAT Executive Secretary participated in the FEBRAFITE IX National and IV International Congress By invitation of the Brazilian Federation of Associations of State Tax Examiners – FEBRAFITE- , Mr. Marcio F. Verdi, CIAT Executive Secretary, participated in the IX National and IV International Congress held in João Pessoa, Brazil. Some 600 participants, among tax auditors from all over the country, representatives of FEBRAFITE affiliated associations and special guests were present in this event, where Mr. Verdi presented a paper on “Diagnosis of Performance of Latin American Tax Administrations – 2006/2010”. Within the framework of this event Mr. Verdi was presented the “FEBRAFITE /State-District Treasury Order of Merit award for his significant contribution to the Brazilian Tax Administration. The FEBRAFITE Congress traditionally presents this award every two years. Mr. Marcio dedicated this recognition to his father, Victor Raimundo Verdi, who devoted most of his professional career to the Brazilian Tax Administration, which he joined in 1965 as Income Tax Examiner.
The Tax Administrations Inform Bolivarian Republic of Venezuela - the SENIAT increased its May collection goals by 136,88 per cent Costa Rica and Ecuador sign a Tax Information Exchange Agreement Honduras –The National Fiscal Education Program (PNEF) completes The VII Fiscal Education diploma Mexico - SAT will send 400 thousand letters to regularize the 2011 income tax Panama - National Assembly ratifies Luis Cucalón as Administrator of the ANIP Paraguay - Taxation collected an additional 11.4% in May
Mr. Verdi during his presentation of the “Diagnosis of Performance of Latin American Tax Administrations – 2006/2010”
View of head table.
Spain - Protocol between Spain and Switzerland which amends the Convention to avoid double taxation The Netherlands - New tax treaty signed with China Events IBFD News Post of the Month New on Web Our documents Other Documents
Mr. Verdi receiving the “Comenda da Orden do Mérito FEBRAFITE/ Fisco Estadual –Distrital” award.
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CIAT Technical Conference 2013, in Nairobi, Kenya, September 9 to 12 Final arrangements for the event The CIAT Executive Secretariat completed a mission to Nairobi for coordinating final details regarding the organization of the Technical Conference this year. Based on these meetings, the Organization Committee of Revenue Authority of Kenya established the final support services contracts for the event.
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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.
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The technical sessions will be held in the Assembly Hall and other facilities of the United Nations Headquarters in Nairobi.
Photo: The KRA Organization Committee and Francisco J. Beiner together in Nairobi.
Photo: United Nations Assembly Hall in Nairobi, the Technical Conference headquarters.
CIAT Officials Participate at UN Events During the week of May 28th, CIAT Directors Miguel Pecho and Socorro Velazquez participated in several meetings organized and hosted by the United Nations. On May 28th there was a meeting of the “Expert Group on Extractive Industries Taxation.” This one-day session organized by the Financing for Development Office (FfDO) of UN-DESA focused on issues that developing countries face when designing and administering an extractive industries fiscal regime. The view was toward ensuring that the UN tax cooperation work can further support developing countries in this important area of development. This session was followed by a one-day ECOSOC “Special Meeting on International Cooperation in Tax Matters.” During the morning session, there were two panel discussions on the themes of: (1)“International tax cooperation: Capacity development”; and, (2) “Current issues in countering international tax avoidance and tax evasion.” The afternoon session featured the launch of the “United Nations Transfer Pricing Practical Manual for Developing Countries.” For additional information on this particular event and the “United Nations Transfer Pricing Practical Manual for Developing Countries,” please see: additional information and Manual. On Thursday and Friday, May 30 and 31st, the Financing for Development Office (FfDO) of UN-DESA and the International Tax Compact (ITC) hosted a technical meeting on a joint project aimed at strengthening the capacity
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of Ministries of Finance and National Tax Authorities in developing countries to effectively identify and assess their needs in the area of tax treaty negotiation and administration. The ultimate goal of this project is to support the development of a comprehensive set of capacity building tools to be used in developing countries. As a basis, reference was made to the current UN Model Double Taxation Convention. The fore-mentioned project was initially launched at a Rome meeting on 28-29 January 2013. A total of 25 national participants attended that meeting whose primary objectives were to: (1) identifying the needs of developing countries in the area of tax treaty negotiation and administration and taking stock of the available capacity development tools at the disposal of developing countries; and, (2) determine the actual skills gaps and challenges faced by developing countries in negotiating and administering their tax treaties. The events were highly informative and provided significant comparative information on the UN position regarding transfer pricing and double taxation conventions of other international organizations.
Socorro Velรกzquez, CIAT Director of Institutional Planning and Development; and Miguel Eduardo Chest, Director of Tax Studies and Research (CIAT), with delegates from Ecuador, Chile, Colombia, Peru and Uruguay.
Overview of the participants
The Executive Secretariat participates in the CREDAF General Assembly The CIAT Executive Secretariat participated in the technical sessions at the CREDAF General Assembly held in Brazzaville, Congo, from May 27 to 30, in response to the special invitation from the CREDAF General Secretary Mr. Gilles Berteau, to present the conclusions of the CIAT General Assembly on International Taxation, held in Buenos Aires in April 2013. The heads of tax administrations from the 28 CREDAF member countries participated in this important event. This organization includes the Francophone countries from Europe, Africa, America and the Caribbean. Tax specialists from international and regional organizations such as UNDP, IMF, OECD, IBFD, ADETEF, ATAF and CIAT also participated.
Photo: Main table of the CREDAF General Assembly, held in Brazzaville, Congo, from May 27 to 30, 2013.
Francisco J. Beiner, CIAT Director of Institutional Management and Operations, represented the CIAT Executive Secretariat.
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CIAT and CREDAF sign a Cooperation Agreement CIAT and the CREDAF have signed a Cooperation Agreement for strengthening their inter-institutional relations. This agreement is part of the necessary and important cooperation between CIAT and CREDAF on the international taxation field, the exchange of information, projects, studies and joint international activities between both organizations for the benefit of Tax Administrations of their member countries.
Photo, left to right: Antoine Ngakosso, Director of Taxation in Congo and President of CREDAF; F. J. Beiner, CIAT Director of Institutional Management and Operations; and Gilles Berteau, CREDAF General Secretary, in Brazzaville on May 27.
Caption, from left to right: Antoine Ngakosso and Francisco J. Beiner, at the moment of signing the Cooperation Agreement between the CIAT and the CREDAF.
Virtual Master’s Program in International Taxation, Foreign Trade and Customs Has Been Approved Through Resolution No. 6053, of May 20, 2013, the Ministry of National Education of Colombia has granted the Qualified Register for a 7-year period to the Virtual Master’s Program in International Taxation, Foreign Trade and Customs of Universidad Externado de Colombia and CIAT. The master’s program seeks to provide officials of the tax administrations of the Latin American countries members of CIAT, as well as private sector professionals who are in permanent contact with the pertinent government entities, an in-depth academic training in the subject matters to be considered. The master’s program will pursue the following specific objectives: 1. Train qualified professionals in public and civic ethics. 2. Provide students the necessary tools to understand and apply juridical fundamentals, the concepts, the institutions and practical aspects that are characteristic of international taxation, foreign trade and customs. 3. Train creative and proactive civil servants in the definition, execution and evaluation of tax and customs policies, as well as in the new functions originating from examination, as a result of the internationalization of the economy and applicable rules. 4. Strengthen the students’ professional expertise and their multidisciplinary skills toward an integral vision of the world of taxation that may allow them to understand the public-private dimension of the subject, through an adequate combination of juridical theory, case analysis and exchange of experiences. 5. Provide the students public management and negotiation instruments to train them as professionals with managerial skills and leaders in their profession in a changing, global and multidisciplinary tax environment.
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The main characteristics of the program are: • • • •
Accreditation: Those fulfilling the requisites provided in the Studies Plan will be granted the official academic degree of MASTER in International Taxation, Foreign Trade and Customs. Number of academic credits: 57. Estimated duration: two years. Methodology: At a distance – virtual and three face-to-face visits in Latin American countries.
Additional information requests may be addressed to: capacitacion@ciat.orgThis e-mail address is being protected from spambots. You need JavaScript enabled to view it .
The Tax Administrations Inform Bolivarian Republic of Venezuela - the SENIAT increased its May collection goals by 136,88 per cent At the end of the month of May, the national integrated service of Customs and Tax Administration (SENIAT), reported that it has reached 136,88 percent of the monthly collecting goal. In the breakdown of revenues, the Agency showed that the three main collection sources, such as Income Tax (income) Value Added Tax (VAT) and Customs Duties, maintained a sustained growth according to the goals established by the Popular Power Finance Ministry. Pablo Pinto Chávez Correspondent
Costa Rica and Ecuador sign a Tax Information Exchange Agreement Costa Rica and Ecuador signed an information exchange agreement on tax matters; this helps the country to continue complying with one of the 2009 commitments to the Organization for Cooperation and Economic Development (OECD) The event took place at the Minister of Foreign Affairs Office, Mr. Enrique Castillo, on the visit of the Foreign Affairs Minister of Ecuador, Mr. Ricardo Patiño Aroca, who also reviewed their bilateral, regional and international agenda. Maribel Zúñiga Cambronero Correspondent
Honduras –The National Fiscal Education Program (PNEF) completes The VII Fiscal Education diploma More than 60 employees from different DEI areas participated in the Professionalization program which aim was to promote social responsibility through an active participation and to make them consider tax evasion as a serious social crime. The PNEF aims to promote fiscal education understood as the pedagogical teaching approach to interpret the financial aspects of revenue and public expenditure, stimulating the citizen to understand their duty to contribute in solidarity for the benefit of the whole society. Grace de La Paz Saravia Correspondent
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Mexico - SAT will send 400 thousand letters to regularize the 2011 income tax The Federation’s official journal published on Friday May 31 the second Resolution with the amendment to the 2013 Fiscal Miscellaneous resolution and its annex 3. It reported that individuals, who have obtained income during the 2011 fiscal year and have not declared it, can pay the corresponding income tax in up to 6 monthly and successive installments. To do so, tax authorities sent them a letter with the proposal of the payable amount calculated from the information delivered to the SAT by the institutions of the financial system; It also inform taxpayers that they can make their payments at the authorized financial institution or through their banking website. Adrian Guarneros Correspondent
Panama - National Assembly ratifies Luis Cucalón as Administrator of the ANIP With 39 votes in favor, 8 against and 1 abstention, the plenary session of the National Assembly has ratified the appointment of Mr. Luis Cucalón as administrator of the National Public Revenue Authority (ANIP). During his address, the Administrator of the new Revenue Authority said he expects a more difficult task than during the last four years at the (DGI), but, as Government Tax collector, he will work for the country and not for a party. Cucalón emphasized that he will seek stability in tax collection, in order to complete the projects needed by the country.
Paraguay - Taxation collected an additional 11.4% in May} In May 2013, the State Sub-Secretary of taxation (SET) collected around 949 billion guaranies, which implies an increase of 97 billion guaranies (11.4% more) than what was collected by the SET in May of 2012. So far this year (January to May 2013), the SET has collected a total amount of 3 trillion 200 billion guaranies. This implies an increase of 339 billion guaranies with respect to what was collected by the SET in the first five months of the year 2012, which collected the total amount of 2 billion 861 billion guaranies. Elizabeth Fernández de Corrales Correspondent
Spain - Protocol between Spain and Switzerland which amends the Convention to avoid double taxation The Convention to avoid double taxation regarding income taxes and taxes on property as well as its Protocol was amended. The present Protocol shall enter into force on August 24, 2013. Protocol between the Kingdom of Spain and the Switzerland Confederation amending the Convention to avoid double taxation regarding taxes on income and on the heritage signed in Berne on April 26, 1966, and its Protocol, amended by the Protocol signed in Madrid on June29, 2006, done in Madrid on July 27, 2011. Enrique Sánchez-Blanco Codorniu Correspondent
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The Netherlands - New tax treaty signed with China On Friday, 31 May 2013, Mr Weekers, State Secretary of Finance of the Kingdom of The Netherlands, and Mr Wang Li, People’s Republic of China, signed the new tax treaty with China in Beijing. The treaty replaces the current treaty of 1987 and has been updated and improved in a number of items. For instance, the new treaty includes a modern provision about the exchange of information and offers the opportunity to pay a so-called intercompany dividend for a 5% rate to the parent company in the other country. Marian Bette Correspondent
Events III LAC Forum on Fiscal Policy
Ministry of Economy and Finance and the General Revenue Directorate of Uruguay. Organized jointly by CIAT, ECLAC, IDB and OECD July 4-5, 2013 The III LAC Forum on Fiscal Policy will be held on July 4 and 5, 2013, in Montevideo, in the frame of the LAC Fiscal Initiative (Latin America and the Caribbean) of the OECD. Its main purpose is to promote the exchange of experiences between Tax policymakers in LAC countries, experts from the Fiscal Affairs Committee and from the Development Centre of the OECD, and regional organizations, regarding public policies to address the fiscal challenges faced by these countries, both at regional and national levels. This third meeting of the LAC Forum is organized jointly by CIAT, ECLAC, IDB and OECD and will be hosted by the Ministry of Economy and Finance and the General Revenue Directorate of Uruguay.
The National Fiscal Education Award - 2013 FEBRAFITE, Escola de Administração Fazendária (ESAF), Programa Nacional de Educación Fiscal (PNEF)
Promoting actions involving specific subjects related to Fiscal education in schools and organizations, to have the opportunity to discuss about the importance of paying taxes and about the quality of public spending in Brazil, are some of the objectives of the 20013 National Fiscal Education Award organized by FEBRAFITE, in collaboration with the Financial Administration School (ESAF) and the National Fiscal Education Program (PNEF). The registration period will last until June 28, 2013.
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 3 June 2013
Bank Secrecy in Europe Written by Andre Georges Dumoulin The specific objectives were to provide a common training to tax officials from all EU States regarding the regulations in force, and to ensure that all officials will know how to communicate with their counterparts from other countries and with compatible computer programs.
New on Web “La Tributación de las Rentas del Capital en América Latina” Capital Income Taxation in Latin America Domingo Carbajo Vasco Sponsor: ITC - GIZ; Author: CIAT
This study shows the regulatory treatment of different capital incomes, whichever their classification is: yields, gains or losses of capital, royalties, etc., in Latin America or in some nations of Latin America and the Caribbean (hereinafter, AL and C). This document focuses, on one hand, on the policy aspects of these revenues, which implies not to analyze in detail the effective implementation of such rules and, on the other hand, it focusses its role on the income tax(hereinafter IT), when it acknowledges that the capital income tax and its effects cannot be included without exposing their impact on these indirect tax income, property taxes and, in general, all the tax systems (including those linked to local entities) and of course to the one from the implementation of the aforementioned system (Available in spanish).
Our documents Bibliographic News May, 2013
This document provides for reference purposes, the most recent documents produced by CIAT and other editorials in the month of May; either articles or other periodic publications, research works and studies of interest.
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Other Documents Ideology and Taxation in Latin America Ernesto Stein; Lorena Caro IDB working paper series, No. IDB-WP-407 Inter-American Development Bank May 2013
This paper examines the impact of ideology on tax revenues in Latin America, using a panel of 17 countries from 1990 to 2010. As a first approach, a fixed- effects model is used to identify the impact of ideology on taxation.
“Análisis del impuesto a las transacciones financieras en América Latina” Analysis of the Financial Transaction Tax in Latin American González Pérez - México, María Lourdes López López Revista de Estudios Interdisciplinarios en Ciencias Sociales Universidad Rafael Belloso Chacín
The purpose of this article is to analyze the implementation of the Financial Transaction Tax in Latin America, which has become a sensitive topic because it can generate an increase in revenue of public finances in times of crisis. One of the purposes of this tax is to fight against informal sector economy and increase tax revenues through information obtained from the financial system; it is sustained by authors such as Gonzalez (2009), Leon (2006), Serra and Alfonso (2007), Shome (2000) among others. Through a qualitative documentary methodology, law, regulations, and referenced documents are studied to analyze the implementation of this tax in various countries of Latin America ( available in spanish).
Fiscal federalism and its impact on economic activity, public investment and the performance of educational systems Hansjörg Blöchliger, Balázs Égert, Kaja Bonesmo Fredriksen OECD Economics Department Working Papers No. 1051 May, 2013
Intergovernmental fiscal frameworks usually reflect fundamental societal choices and history and are not foremost geared towards achieving economic policy objectives. Yet, like most institutional arrangements, fiscal relations affect the behaviour of firms, households and governments and thereby economic activity.