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ISSN 1684-9833 • Year 4 / No.4 /March 1, 2013

The Executive Secretariat Informs Tax Transaction Costs Measurement Workshop As part of the program by the Inter-American Center of Tax Administration and the United Nations Department of Economic and Social Affairs (UN-DESA) to strengthen the institutional capacities of national tax administrations, the tax transaction costs measurement workshop within small and medium companies has been launched on Wednesday February 27.

The 3-day event is taking place in Panama City, Republic of Panama, at the Le Meridian Hotel, with the participation of delegates from 10 Latin American countries tax administrations.

Tax Transactions costs are the tax compliance costs faced by taxpayers to comply with their tax obligations and also the administrative costs of the tax authority to enforce the tax system.

Seminar - workshop “Transfer pricing”

During the workshop, participants are reviewing the methodology developed by the Executive Secretariat team to identify, to measure and to reduce the main components of the tax transactions costs.

The participants also discuss the best alternatives for a more effective implementation of the measurement by countries.

Experts on Tax Information Exchange visit Costa Rica

In the following months this methodology will be applied as pilot projects in Costa Rica and Uruguay. Recently, Brazil has joined this initiative.

The Tax Administrations Inform

The CIAT / UN-DESA project is coordinated by the CIAT Directorate of Tax Studies and Research.

The Executive Secretariat Informs Tax Transaction Costs Measurement Workshop

Bolivia - Tax returns can now be submitted from a cell phone El Salvador - Ministry of Finance presents the Single Customs Operations Manual Kenya - KRA Hosts Global Forum on Exchange of Information Paraguay - Pilot project for invoicing and stamp duties Peru - Peruvian companies begin issuing electronic invoices Peru - SUNAT slips draw consolidated among the population IBFD News Training Post of the Month New in the web Other Documents

Photo of the participants- Workshop on the Measurement of Tax Transactions Costs in Small and Medium Enterprises

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Experts on Tax Information Exchange visit Costa Rica From Monday 18th of the present month, experts in Tax Information Exchange are in Costa Rica, offering lectures and technical assistance to officials of the Directorate General of Taxation.

We invite you to CIATalks, the space provided by CIAT. Read the posts, give your opinion and actively participate

In the framework of the International Tax Compact (ITC) initiative, conducted by the CIAT Executive Secretariat with the GIZ of Germany, a federal agency which assists the Federal Republic of Germany Government to achieve its objectives in international cooperation for sustainable development; and the Ministry of Finance of Costa Rica, the training of more than one hundred DGT control areas officials has been held. This event took place at the Auditorium of Professionals in Economic Sciences.

The first speaker was: Mrs. Jenny Jimenez, Director of International Taxation and Tax Technique, with the topic “Costa Rica’s experience in the field of tax information exchange”

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

Subsequently, Mr. Gonzalo Arias, Director of Cooperation and International Taxation, participated with the topic “Relationship between the exchange of information and tax audit offices.”

Some experts participated during the lecture: Mrs. Flor Nieto, Mr. Gonzalo Arias and Mr. Stefano Gesuelli, Chief of the Italian Mission at CIAT, who clarified doubts from the audience and shared their experiences on the exchange of international information on tax matters.

The event was also attended by Mr. Michele Cusato, Official attaché of the Guardia di Finanza of Italy at the Italian Embassy in Costa Rica, along with officials from Customs Intelligence of the Ministry of Finances.

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

On the picture, from left to right: Mr. Gonzalo Arias, Director of International Cooperation and Taxation, Mrs. Flor Nieto, Sub-Director of Information Exchange SAT-Mexico, Mrs. Jenny Jimenez, Director of International Taxation and Tax Technique, Mr. Rufino de la Rosa, Head of the Central Information Team from the AEAT of Spain and Mr. Stefano Gesuelli, Head of the Italian Mission to the CIAT Executive Secretariat.

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Seminar - workshop “Transfer pricing” In order to contribute to the process for the effective implementation of the legislation to regulate transfer pricing in Guatemala, the Tax Administration Superintendence in partnership with the German Cooperation Agency, through the Fiscal policy support ptrojectGIZ-, inter-American Center of tax administrations - CIAT - and the Spanish Agency of international cooperation for development AECID -, organized the seminar-workshop “transfer pricing”, from Monday, February 25th.to Friday, March 1, 2013 in the city of Antigua Guatemala, which consists of five modules.

The opening ceremony was conducted by Miguel Gutiérrez, Superintendent of tax administration, Hans Fucth, Coordinator of the Fiscal policy support project of the German cooperation Agency, Jesús Oyamburu, Director of the training center of Spanish cooperation Agency and Salvador Giovanni Garrido Valdez, Mayor Supervisor of the tax administration Superintendence. The opening lecture “Transfer pricing in Latin America: progresses and main barriers” was given by Márcio Ferreira Verdi, CIAT Executive Secretary.

Opening ceremony, from left to right: Hans Fucth, Coordinator of the Tax Policy Support Project from the German Cooperation; Miguel Gutierrez, Superintendent of the Guatemalan Tax Administration; Jesus Oyamburu, Director of the Spanish Cooperation Training Center; Marcio Ferreira Verdi, CIAT Executive Secretary, who gave the opening lecture “On Transfer Pricing in Latin America: Progresses and Main Barriers” and Salvador Giovanni Garrido Valdez, Control Intendant of the Tax Administration Superintendence.

This workshop is aimed at professionals of the control, collection, customs, Legal Affairs, and all operational managements at national level Intendances, with the participation of control and resolutions professionals, They will discuss various issues and will develop case studies and specific aspects about transfer pricing, which will be under the direction of well-known experts from Latin America, including: Adriana García (Venezuela), Jairo Godoy (Ecuador), Oscar Ramos (Argentina) and Edgar Mendoza (Guatemala). It will also have the support of SAT professional collaborators.

Among the topics to be discussed are: traditional transfer pricing valuation methods, non-traditional methods and the sixth method, applicable to imports and exports of goods (commodities), and anticipated price agreements (APAs).

It is important to mention that “Valuation standards between related parties”, known as transfer pricing standards, are regulated in chapter VI of book I of the updated Fiscal law, Decree number 10-2012 of the Congress of the Republic of Guatemala.

From left to right:Miguel Gutierrez, Superintendent of the Guatemalan Tax Administration and Marcio Ferreira Verdi, CIAT Executive Secretary.

The transfer pricing regulations serves as a legal instrument that provides SAT with powers and capabilities to reduce multinational companies risk to manipulate transfer pricing as a mechanism to avoid or evade paying taxes.

With this seminar the tax administration superintendence makes an important step in the implementation of international standards in the fight against evasion and tax avoidance.

Official event photo

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The Tax Administrations Inform Bolivia - Tax returns can now be submitted from a cell phone In its permanent effort to facilitate compliance with tax obligations, modernize services and use modern technology, the National Tax Service (SIN) has implemented a new system that will allow taxpayers from the General Regime to submit their tax returns without moving and also perform other procedures via a smart phone connected to Internet.

This decision, endorsed by the Normative Directorate Resolution RND No. 10-0004-13, approves the Mobile Office application and will allow taxpayers to save time and money with their procedures at the SIN. In addition, the Normative Resolution No. 10-0003-13 RND authorizes taxpayers, from March first, to submit their tax returns from the comfort of their homes or offices via computer through the Internet.

Juana Patricia Jiménez Soto Correspondent

El Salvador - Ministry of Finance presents the Single Customs Operations Manual The Single Operations Manual of the Directorate General of Customs (DGA) was presented; it will be available to the public on the website of the Ministry of Finance www.mh.gob.sv At the event, Customs authorities reported that from this date, the companies’ teams in charge of imports, exports and all stakeholders in foreign trade can already use this information platform and view its content available on the website of this State Agency.

Ramón Pérez Gómez Correspondent

Kenya - KRA Hosts Global Forum on Exchange of Information The seminar, conducted by Renata Fontana from the Global Forum Secretariat, was co-sponsored by KRA and World Bank and DfID through a pilot project geared towards providing Kenya with technical capacity in preparation for the Global Forum Peer Review process in February 2013. This was as a follow up to the first seminar by the Global Forum/World Bank team in April 2012.

Pancrasius Nyaga Correspondent

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Paraguay - Pilot project for invoicing and stamp duties The State Sub-secretary of Taxation has launched a pilot plan to implement the invoicing and stamp duty Module in the Marangatu Tax Management System in order to keep innovating and provide better service to taxpayers.

The invoicing and stamp duty module will be implemented through the pilot program in the Marangatu system, in which the processes of authorizing printing companies, managing authorization requests and stamping of preprinted documents from taxpayers will be held, in order to verify the correct operation of the computer systems’ applications of the SET. Elizabeth Fernández de Corrales Correspondent

Peru - Peruvian companies begin issuing electronic invoices The National Superintendent of customs and tax administration (SUNAT), Tania Quispe Mansilla met today with the executives of the companies that are part of the pilot project “Electronic invoice for large issuers”, in order to inform the progress of this important program that facilitates compliance with tax obligations, eliminating printing and storage costs.

The SUNAT Superintendent reported that currently there are three enterprises enabled to issue electronic invoices: Supermercados Peruanos, Transport of Confidential Information (TCI) and Yellow Line.

Clara Urteaga Correspondent

Peru - SUNAT slips draw consolidated among the population Each year, the national draw of payment invoices slips is capturing the attention of a large number of citizens across the country. Proof of this, is that the last (third) draw carried out by the Tax Administration National Superintendence (SUNAT), corresponding to the 2012 period, more than 32 tons of envelopes have been deposited nationwide.

This result represents an 81% increase in relation to the amount of envelopes sent to third draw of payment invoices in 2011. It should be noted that the countryside concentrates the greatest amount of invoices deposited in the boxes enabled by the collection entity.

Clara Urteaga Correspondent

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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.

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 Ethics Course 3rd.

If you are interested in participating, please fill out the registration form.

The courses will be offered in Spanish.

Post of the Month 8 February 2013

Crime and Punishment Raul Zambrano There are times when, despite deep ignorance about something, things just seem to make sense. That was just how an article, to which a Russian author could have given a name, invited me to share with you the present ramblings..

New in the web CIAT Thematic Bibliographic Tax Morale No.8, January 2013

This thematic series presents in its Edition No. 8 the topic of “Tax Morale”. The references compiled in this series are studies developed by technical agents either as presentations on the occasion of general assemblies or technical conferences.

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Bibliographic News February, 2013

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 Review “Impuestos Al Dia” The National Tax Service (SIN) Bolivia

The National Tax Service (SIN) officially presented on Monday its Tax Review “Impuestos Al Dia” with a thorough and comprehensive overview of the 2012 management most important aspects, highlighting a special report on the 100 companies that have paid most taxes in Bolivia.

The content of the SIN tax review first issue include special reports on the 2012 historical collection record, the new regulations issued during these months, the institutional developments in services and transparency, building new infrastructure in several regions of the country and the report on the 100 companies that contributed most in taxes. (available in spanish)

Electronic Sales Suppression: A threat to Tax Revenues Organisation for Economic Co-operation and Development (OECD) February 2013

This report describes the functions of point of sales systems and the specific areas of risk to tax administrations. It sets out in detail the electronic sales suppression techniques that have been uncovered, in particular “Phantomware” and “Zappers”, and shows how such methods can be detected by tax auditors and investigators.

Addressing Base Erosion and Profit Shifting

Organisation for Economic Co-operation and Development (OECD) 2013 Global solutions are needed to ensure that tax systems do not unduly favour multinational enterprises, leaving citizens and small businesses with bigger tax bills. Base erosion constitutes a serious risk to tax revenues, tax sovereignity and tax fairness for OECD member countries and non-members alike.