ISSN 1684-9833 • Year 4 / No. 6 /April 5, 2013 ISSN 1684-9833 • Year 4 / No. 7 /April 26, 2013
The Executive Secretariat Informs New CIAT Executive Council is elected The General Assembly elected the 2013-2014 Executive Council which is formed as follows: President:
Councilors: Carlos Barreto - Brazil Brian McCauley – Canada Julio Pereira Gandarillas - Chile
The Executive Secretariat Informs • New CIAT Executive Council is elected • OECD-Korea Delegation visits CIAT • Seminar on electronic invoicing in Panama • Call for contributions of articles for the CIAT/ AEAT/IEF Tax Administration Review - 35th Edition - Deadline on April 30, 2013. The Tax Administrations Inform • Argentina – March collection increased by 24.6% • Argentina – Nigeria signed a customs agreement for the prevention, investigation and the fight against illicit customs activities. • Brazil - The Federal Revenue exports Tax Education technology • Bolivia - Tax revenues grow 19% in the first quarter and reach almost Bs 10 thousand million • Canada - Minister Shea highlights new initiatives to crack down on International Tax Evasion • Colombia - OAS regional strategy is consolidated • Costa Rica - Pilot country for the project “Reducing Tax Transaction Costs” • Costa Rica - move forward in the strengthening of tax transparency • Paraguay - Total tax revenue for the first quarter reached G. 2, 983 billion • Peru - Tax revenues of the central Government totaled s /. 7 490 million in March • Bolivarian Republic of Venezuela – The SENIAT achieves a global collection in 131.4 % for the first quarter Interview • Tax Administrations in Latin America: A Challenge to Eliminate Social Inequality IBFD News Training Post of the Month New on Web Other documents CIAT Other Documents
Yolanda Álvarez de la Torre – Cuba Carlos Alfredo Cativo Sandoval - El Salvador Peter Veld – Netherlands Tania Quispe – Peru Pablo Ferreri - Uruguay Ricardo Echegaray -Argentina
OECD-Korea Delegation visits CIAT On April 16, the CIAT Executive Secretary, Mr. Márcio F. Verdi, welcomed the delegation from the Organization for Economic Cooperation and Development-OECD-Korea. The purpose of the meeting was to share the CIAT Executive Secretariat’s experience in its 46 year-long history; in particular, those aspects dealing with its organizational structure, strategic and operational plans, programs, activities, meetings and projects. The agenda developed by the CIAT Executive Secretariat’s staff, headed by the Executive Secretary allowed for a productive session with Messrs. Kyu Bum CHO, Director General, Tax Programme, OECD/Korea Policy Centre; Jung Hong KIM, Director, Tax Programme, OECD/Korea Policy Centre and Ms. Young Park, Communications Officer. Both organizations expressed their interest in further strengthening their relationships through mutual cooperation.
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Seminar on electronic invoicing in Panama Within the framework of the collaboration program between CIAT and the Initiative International Tax Compact (ITC) for strengthening the Tax Administrations in Latin American and the Caribbean, a seminar on electronic invoicing was held from 3-5 April in Panama with the main purpose of presenting and discussing the prototype of an electronic invoicing system to be used in the international commerce among the CIAT member countries. This prototype is the product of the efforts of the CIAT working group created in 2008 with the aim of dealing with the issue of electronic invoicing in more depth and the later support of the European Commission from 2012. These have enabled the development of a standard for the exchange of electronic invoices among the administrations.
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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 seminar was inaugurated by the Executive Secretary of CIAT, Mr. Marcio Verdi, who addressed the opening words and also read the message of the Director of the ITC Initiative, Mr. Roland von Frankenhorst, who could not be present at the seminar. The representative of the European Commission in Panama, Mr. Eric Dejoie, also welcomed the participants to the workshop. Officials from the tax administrations from Argentina, Brazil, Chile, Colombia, Costa Rica, Ecuador, Guatemala, Mexico, Panama, Peru and the Dominican Republic as well as representatives from the Inter-American Development Bank (IDB) and the Central America, Panama, Dominican Republic Regional Technical Assistance Centre (CAPTAC-DR) attended the workshop. Besides the presentation of the study on a model of international electronic invoicing, the web services operation at the central node prototype and the advantages of a centralized system for messaging purposes, this workshop also offered a space to the countries involved in the CIAT working group to show the latest developments and progresses made in their respective administrations in the area of electronic invoicing. Furthermore, the Colombian National Tax and Customs Directorate (DIAN) presented its plan of implementation of electronic invoicing, which they expect to launch in the shortterm and the Tax Directorate General of Costa Rica showed the most important issues for implementing it this year. The development of the centralized system and the implementation of the web services generated the greatest interest among the participants. This raised the question of an optimization through the collaboration with three countries, which would participate in the pilot project of this development. The Tax Administrations also stressed their interest in collaborating with the development of the international electronic invoicing model. As a result, a web site for the exchange of information on international electronic invoicing has been created for the group (http://ieis.ciat.org).
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
Participants to the Electronic Invoicing Workshop.
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Mr. Marcio F. Verdi, CIAT Executive Secretary, welcomes the participants.
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Mr. Marcio F. Verdi, CIAT Executive Secretary is next to Mr. Eric Dejoie, Representative of the European Union Office in Panama, who is addressing the participants during the opening session.
Call for contributions of articles for the CIAT/AEAT/IEF Tax Administration Review - 35th Edition - Deadline on April 30, 2013. As you may know the CIAT, jointly with the State Agency for Tax Administration and the Institute for Fiscal Studies, both from Spain, semiannually publishes the CIAT/AEAT/IEF Tax Administration Review, in order to serves as mean of expression of the different tax approaches in Latin America and Europe. We are pleased to invite all MyCiat community to send contributions of articles for the 35th Edition. We are looking for articles to generate an opportunity for dialogue, not only with the readers, but also through discussions with the Editorial Board and specialists to whom the proposals are submitted for review. The acceptance of articles for publication shall be based on their technical quality, originality and relevance to the actions for tax administrations and policy formulation. We want to also promote articles that are a result of cooperation among tax administrators with other organizations and countries. In equal conditions, preference will be given to articles related to the institutional development of tax administrations, the identification of practices that could be emulated in other administrations, the information technologies role and strategies to strengthen the service to users. The delivery deadline expires on April 30, 2013. For more details about this call see: Request for contributions to the N° 35 Tax Administration Review
The Tax Administrations Inform Argentina – March collection increased by 24.6% The head of the AFIP Ricardo Echegaray, informed that March collection reached 60.278 million pesos which means an increase of 24.6% compared with the same month last year. The federal administrator also explained that if these stocks were exported entirely as soy bean – at a price of 543 dollars per ton-it would mean an income of 2.639 billion dollars to the country. “At the same time, the Treasury would collect around 4.627 million pesos, in concept of export duties”, concluded Echegaray. Carlos Alberto Sánchez Correspondent
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Argentina – Nigeria signed a customs agreement for the prevention, investigation and the fight against illicit customs activities. The agreement signed with Nigeria will allow among other advantages, to exchange information on the value of goods traded between the two countries and determine the correct tax payment. Argentina, through the Federal Administration of Public Revenue (AFIP), signed an agreement for the exchange of customs information with the Federal Republic of Nigeria. The head of the AFIP, Ricardo Echegaray, received the General Comptroller of customs Abdullahi Dikko, for signing the Mutual Cooperation and Assistance Agreement between their customs administrations, which aims to fight illicit customs activities affecting the economic, fiscal and commercial interests of both countries. “We firmly hope that this agreement with Nigeria will be very productive,” said Echegaray, explaining that this agreement will allow to “exchange information that will help us to achieve transparent trade”. Carlos Alberto Sánchez Correspondent
Brazil - The Federal Revenue exports Tax Education technology Coaef and ALF/BSB perform a special edition of the “Federal revenue invites: know our Customs” project for foreign delegations and representatives of the EUROsociAL. The general coordination of Tax and Customs Services and Education –Coaef and the Brasilia International Airport Customs -ALF/ BSB received, on April 15, educational areas representatives from the tax administrations of Mexico, Chile, Uruguay, Paraguay, Peru, Ecuador, Bolivia, Costa Rica, El Salvador, Guatemala and Honduras, as well as the EUROSocial representative Borja Díaz Riviilas, within the framework of the European Union’s Program for social cohesion Project led by Spain’s FIIAPP. The general direction of the Esaf, leaders of the RFB and guests were also present. The foreign participants asked the Federal Revenue Service of Brazil the possibility to know the project “the Federal Revenue invites: know our Customs”, coordinated by the Coaef, with the aim to adapt the initiative and implement it in their countries. The Federal Revenue Secretary, Carlos Alberto Barreto, opened the event, welcomed guests and emphasized the importance of Tax Education as an instrument for Tax Moral development. Barreto highlighted the 12 thousand tax education events throughout the country organized in 2012 by the Federal revenue, as proof of the Treasury’s great effort to get closer to the taxpayer. Flávio Antonio Araújo Correspondent
Bolivia - Tax revenues grow 19% in the first quarter and reach almost Bs 10 thousand million The National Tax Service (SIN) increased by 19% the tax collection for the first quarter of 2013, which reached 9,624.5 million Bolivians, reported its Executive Chairman, Roberto Ugarte Quispaya. Taxes paid within the first quarter of 2013 are higher in 1.529,2 billion to those obtained for the same period in 2012. Juana Patricia Jiménez Soto Correspondent
Canada - Minister Shea highlights new initiatives to crack down on International Tax Evasion The Honourable Gail Shea, Minister of National Revenue, highlighted important new initiatives introduced by the Harper Government in Economic Action Plan 2013 to strengthen the capacity of the Canada Revenue Agency (CRA) to crack down on international tax avoidance and evasion.
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“Our Government has long recognized that international tax evasion is a serious problem,” said Minister Shea. “As announced in Economic Action Plan 2013, our Government is taking strong action to tackle tax evasion. We are committed to cracking down on individuals who avoid paying their fair share of taxes.” Maria Pica Correspondent
Colombia - OAS regional strategy is consolidated The Director General of the DIAN, Juan Ricardo Ortega, presented to customs leaders of Asia the progress made by the American and the Caribbean region through the consolidation of the Regional Strategy of the authorized economic operator, OAS, which strives for the facilitation and security of the international trade. The authorized economic operator program is led by the World Customs Organization and currently, the countries that are implementing it in Latin America are Argentina, Colombia, Costa Rica, Guatemala, Mexico, Dominican Republic and Peru. Patricia Parada Castro Correspondent
Costa Rica - Pilot country for the project “Reducing Tax Transaction Costs” In the city of San Jose, with the support of the Inter-American Center for Tax Administrations CIAT and financed by the United Nations, was launched the project called “reducing tax transaction costs” which objective is to strengthen the operational capacity of the tax administration by improving its capacity for analysis, measurement and simplification of the tax system processes in order to reduce the tax transaction costs for the SMEs and small businesses, which will allow to maximize the tax revenues. Among the specific objectives of this project are the identification, building and development of a set of tax Transaction Costs key indicators for SMEs as part of a methodological measurement system allowing national tax authorities to evaluate the progress of the TTC-reduction strategies. Maribel Zúñiga Cambronero Correspondent
Costa Rica - move forward in the strengthening of tax transparency Costa Rica was the first Central American country to ratify the Mutual Administrative Assistance Convention in tax matters, available from 2011 to all countries by the Organization for cooperation and economic development (OECD). This ratification is one more evidence of the commitment on tax matters acquired by Costa Rica with the OECD. This is an important multilateral agreement on tax cooperation and information exchange, it aims to complement the progresses achieved in the national tax legislation, and to cooperate on topics of great relevance such as cross-border tax evasion and avoidance, as well as the essential rights and guarantees of taxpayers. Maribel Zúñiga Cambronero Correspondent
Paraguay - Total tax revenue for the first quarter reached G. 2, 983 billion From January to March 2013, the total tax revenue obtained by Sub-Secretary of State for Taxation (SET) and the National Directorate of Customs (DNA) were 2.983 billion of Guarani, reaching an increase of around 5% over the same period of 2012, which was of G. 2.846 Trillion… Read more Similarly, the total tax revenues (SET + DNA) in March 2013 reached G. 954 billion, representing a decrease of 4% compared to the same month in 2012, which was G. 989 billion. It is to note that while the SET registered an increase of 5%, the DNA decreased by 10%. Elizabeth Fernández de Corrales Correspondent
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Peru - Tax revenues of the central Government totaled s /. 7 490 million in March Tax revenues from the Central Government totaled S /. 7 490 million in March, the amount was lower in S /. 21 million (2.8% in real terms) compared to the same month last year. Excluding the 2012 income tax regularization, the tax revenues of the Central Government recorded an increase of 9.5 % in March. This result is based on the economic activity dynamism and the increase in the domestic demand. Clara Urteaga Correspondent
Bolivarian Republic of Venezuela – The SENIAT achieves a global collection in 131.4 % for the first quarter The National Customs and Tax Superintendent, Jose David Cabello Rondón, reported that the National Service of Integrated Tax and Customs Administration (SENIAT), achieved a total revenue of 58.2 billion bolivars for the first quarter of this year, which represents a compliance of 131.4 percent, compared to the established target of 44.3 billion bolivars. The maximum tax authority specified that the results during the first quarter of the year include a customs collection of 10.4 billion bolivars compared to the estimate of 7.6 billion, representing a performance of 137 percent. Pablo Pinto Chávez Correspondent
Interview Tax Administrations in Latin America: A Challenge to Eliminate Social Inequality Interview to Mr. Márcio Verdi Newspaper: Granma April 2013 Havana, Cuba
The CIAT Executive Secretary, Mr. Marcio Verdi, with a delegation from this organization, visited the Tax Administration of Cuba with the purpose of engaging a dialogue with the high tax authorities. They met with specialists from the Ministry of Finances and Pricing, and with the National Tax Administration Office (ONAT).
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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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: • Tax Ethics Course 3rd. • Course on Information Exchange. • Course on General Principles of Public Finances and Tax System. • Accreditation – Diploma in Taxation. If you are interested in participating, please fill out the registration form.
Post of the Month Thursday, 11 April 2013
Documents and Electronic Transactions (v) Raul Zambrano
Two years ago, when publishing the previous note of this series, we expressed the view that tax administration would more frequently use electronic documents. Today, after the International Electronic Invoice Seminar for CIAT member countries, we can only confirm this trend.
New on Web State of the Tax Administration in Latin America: 2006-2010 IDB - CAPTAC-RD – CIAT 2013
This document constitutes a collaboration initiative between the Inter-American Center of Tax Administrations (CIAT), the InterAmerican Development Bank (IDB), the International Monetary Fund’s Central America, Panama and the Dominican Republic Technical Assistance Center (CAPTAC-DR). It was prepared on the basis of information compiled through a questionnaire which the CIAT Executive Secretariat sent to the Tax Administrations of the Latin American countries in early 2011. The questionnaire included 327 questions in different formats and likewise framed within such areas as: institutional aspects, human resources, juridical tax framework, tax procedures, international taxation, large taxpayers, information and communication technologies, planning and study, relationships with society and trends and future challenges.
Transfer pricing manipulation Control in Latin America and the Caribbean ITC- GIZ-CIAT 2013
This study shows the main legal legislative and administrative principles on transfer pricing fields in Latin American countries and in a selected group of Caribbean countries. This is addressed to tax administrations and specialists interested in analyzing similarities, differences and new domestic developments in tax policy; as well as in best practices, organizational and administrative aspects in general. This work has been possible thanks to the support of GIZ from Germany within the framework of the “International Tax Compact”, and information provided by twenty tax administrations of countries in America: AFIP of Argentina, SIN of Bolivia, SRF of Brazil, SII of Chile, DIAN of Colombia, DGT of Costa Rica, SRI of Ecuador, DGII of El Salvador, SAT of Guatemala, DEI of Honduras, TAJ of Jamaica, SAT of Mexico, DGI of Nicaragua, DGI of Panama, SET of Paraguay, SUNAT of Peru, DGII of Dominican Republic, IRD of Trinidad and Tobago, DGI of Uruguay and SENIAT of Venezuela.
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Other documents CIAT Bibliographic News March, 2013
This document provides for reference purposes, the most recent documents produced by CIAT and other editorials in the month of March; either articles or other periodic publications, research works and studies of interest.
Other Documents Digital Economy for Structural Change and Equality Economic Commission for Latin America ECLAC 2013
This book states that in many countries within the economic growth and poverty reduction context, the region must address the challenge of articulating and consolidating their digital economy, understood as the area formed by the telecommunications infrastructure, the ICT industries and the economic and social activities network provided by Internet, cloud computing and mobile, social and remote sensing networks. The digital economy is part of the new vision for development proposed by ECLAC, acting as a driving force for structural change and equality.
World Economic and Financial Surveys Fiscal Monitor Fiscal Adjustment in an Uncertain World IMF April 2013
Continued progress in reducing advanced economy deficits and a gradually improving external environment have lowered shortterm fiscal risks, according to this issue, but global prospects nevertheless remain subdued, and many advanced economies face a lengthy, difficult, and uncertain path to fiscal sustainability. Though many advanced economies are now close to achieving primary surpluses that will allow them to stabilize their debt ratios, this is only a first step, as merely stabilizing advanced economy debt at current levels would be detrimental to medium- and longer-term economic prospects.