Y5n19

eCIAT

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ISSN 1684-9833 • Year 5 / No. 20 /November 1, 2013

The Executive Secretariat Informs The Executive Secretariat Informs Results of Applying the CIAT Methodology for Measuring the Tax Transaction Costs in Member Countries CIAT/PROFISCO-TO Agreement is submitted to the Sefaz Organization Exchange of experiences between the SAT of Mexico and the AGIP of Argentina The Tax Administrations Inform Chile - SII has developed a strong international cooperation agenda Colombia - DIAN launches “treat-mewell” strategy Dominican Republic - Felix Guarocuya is committed to an efficient public administration Honduras - Executive Revenue Management and Deloitte developed a seminar on “Transfer pricing” for large taxpayers and tax intelligence officials.

Paraguay - Taxation seeks to enhance human resources Peru - Tax revenues register their highest annual growth rate in September Spain –Environmental Taxation Regulation and other Tax and Financial Measures IBFD News Training Events Post of the Month New in the web Other Documents of interest

Results of Applying the CIAT Methodology for Measuring the Tax Transaction Costs in Member Countries The CIAT Executive Secretariat is pleased to make available to the My CIAT community the results of recent technical assistance carried out in countries in the region to measure tax transaction costs in small and medium enterprises and analyze possible causes for the social acceptance of tax non-compliance.

Thanks to the sponsorship of other international organizations and cooperating entities, from the year 2013 CIAT has been able to include as part of their Studies Program the development of researches based on the use of microdata. The use of microdata strengthens the causal analysis that can be carried out on the topics under investigation.

In particular, those collected through surveys are useful to capture social perceptions. For the tax authorities, this information is certainly valuable to better target their efforts.

The CIAT Executive Secretariat will continue promoting the use of surveys to measure aspects such as the taxpayer satisfaction with the services provided by the tax administration or the costs of tax compliance, and to capture social insights that allow understanding the possible causes for the social acceptance of tax non-compliance in Latin America.

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CIAT/PROFISCO-TO Agreement is submitted to the Sefaz Organization The top level authorities of the Secretariat of Finance, including consultants, coordinators and directors, participated on Wednesday October 23rd, at the Egefaz Auditorium in the presentation of the terms of the agreement between SEFAZ-TO and the Inter-American Center of Tax Administrations - CIAT, for the execution of the PMATTO Modernization project of the Tocantins Tax Administration.

The Executive Secretary, Ramon Garcia Queiroz, who represented the Secretary of Finance, Marcelo Olímpio, at the event, said it was a great to the satisfaction have signed the Agreement which will drive forward the PROFISCO/TO. “Today we are concerned about the shortcomings of the financial and tax systems, but with CIAT´s, presence and everyone´s participation in the process we will move forward to improve our services”, Ramon said.

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Márcio Ferreira Verdi, CIAT Executive Secretary, said that the purpose is to promote cooperation and best practices, through technical assistance and training in the tax area. “Our spirit is collaboration. We do not have ready - made projects ready and what we will do here is work together as partners in the tax area,” Verdi said.

The CIAT Director of Technical Assistance and Information Technology, Raúl Zambrano, presented the main points of the agreement with Sefaz. He said that the first step is to diagnose the SIAT - Integrated Tax Administration System and begin the strategic planning of the Secretariat. “We have to develop the culture of planning to then improve management”, Zambrano said.

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

Representing the IDB - Inter-American Development Bank, the expert Maria Cristina Macdowell, praised the initiative of presenting the Agreement to the employees and also praised the work done by the UCP – Project Coordination Unit of Sefaz. “Several important steps have been taken in less than a year of Profisco´s existence. The most important was the signing of the agreement with CIAT which can only contribute to the modernization if everyone is involved “, Macdowell concluded.

CIAT is a public international organization which groups the tax administrations of 38 countries, (31 Amarican countries, 5 European countries, 1 African countries and 1 Asian country. India is an associate members), 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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Exchange of experiences between the SAT of Mexico and the AGIP of Argentina From September 17 to 20, the Tax Administration Service (SAT) of Mexico and the Governmental Management of Public Revenues of the city of Buenos Aires (AGIP) met with the aim of exchanging experiences between the two agencies. The event was held at the SAT headquarters, located in Mexico City, Mexico.

Dr. Teresa of Jesus Medina Mora Icaza, Advisor for Foreign Affair issues to the SAT, and Carlos Walter, head of the AGIP, conducted a brief explanation of the structure of each organization.

Officials of the host country showed special interest in the developments related to some of the strategic pillars of the Governmental Management of Public Revenue (AGIP) such as the cultural change, the technological leap and the direct and online communication (web site). The knowledge and experience of the SAT, which has a more mature self-management experience than the AGIP, made it possible to generate synergies that clearly allowed detecting potential improvements and a consolidation in the relation and interaction with the residents/taxpayers.

On the other hand, AGIP officials visited different SAT centers such as the Taxpayer´s Services Local Administration Center, the National Center of inquiry (CNC) and the Kidzania. These tours allowed them to learn about the RFC registration process, the electronic signature application procedure and about the activities that children can do at the SAT Module in Kidzania, Cuicuilco.

Official photo of the event

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Las Administraciones Tributarias Informan

Chile - SII has developed a strong international cooperation agenda The Internal Tax Service (SII) has positioned itself as a model for the tax administrations around the world; this is why it constantly receives visits and requirements from foreign delegations seeking to learn from different institutional activities. In this sense, during the year 2013, the service has been visited by delegations from Indonesia, El Salvador, Mexico, South Korea, Vietnam and Guatemala; in November, Uganda and Bolivia will join them.

These visits are mainly sponsored by the Inter-American Center of tax administrations (CIAT), the Agency for international cooperation of the Federal Republic of Germany (GIZ), the Regional technical cooperation Program of the European Commission for social cohesion in Latin America (EUROsociAL) and institutions such as the World Bank, among other organizations, which consider the SII as a reference for the tax administrations of other countries.

Bernardita Moraga Correspondent

Colombia - DIAN launches “treat-me-well” strategy The strategy aims at consolidating relations between DIAN and the Customs and foreign trade unions to allow optimizing systems and streamlining procedures to provide a better service.

On October 10 the Customs section of Cartagena, launched the strategy called “DIAN treat-me-well” with the aim of strengthening relations between DIAN and customs and foreign trade guilds, allowing optimizing systems and streamlining procedures to provide a better service.

Within the strategy it plans to have in one year, 6 working groups led by the Customs District Directorate, with the participation of the major unions, where different points on the issue are discussed, involving the proper interpretation and understanding of the rules.

Rubén Darío Pineda Correspondent

Dominican Republic - Felix Guarocuya is committed to an efficient public administration The Director General of Internal Taxes (Tax Administration), Guarocuya Felix, presented a new approach of the tax administration function, expressing the view that the DGII is not collecting taxes, but rather gathering the contributions of citizens to build a better country with a better level of social cohesion.

The official made the remark when heading in Santiago the second regional meeting on the Charter of Rights of Taxpayers that the Tax Administration recently adopted as part of the strategy to approach citizens.

Nieves Vargas Collado Correspondent

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Honduras - Executive Revenue Management and Deloitte developed a seminar on “Transfer pricing” for large taxpayers and tax intelligence officials DEI officials receive training in order to work together and to better understand aspects of the new tax law.

The seminar was interactive, with questions and answers from participants; they explained not only this law but also established some problems that could occur around it.

The Honduran attorney Rita Silva, along with several speakers from El Salvador, was responsible for presenting the international standards.

The law is intended to regulate commercial and financial operations carried out between related or linked companies, valued in accordance with the arm´s length principle facilitating to the tax administration (DEI) control of such transactions, reducing compliance costs for both the Treasury and the taxpayer.

Grace de La Paz Saravia Correspondent

Paraguay - Taxation seeks to enhance human resources The evaluations have specific objectives which include adjusting the work to the potential of each employee.

The new administration of the State Sub-secretariat of Taxation performs constant evaluation of officials from different departments, in order to enhance the human resources available at the institution.

The Deputy Minister of taxation, Dr. Marta González Ayala said in the event prior to the evaluation of supervisors and controllers that “we will constantly be evaluating as part of our work. The target is multiple: the human talent assessment, adaptation of work capacity, etc.”

Elizabeth Fernández de Corrales Correspondent

Peru - Tax revenues register their highest annual growth rate in September In September, the tax revenue of the Central Government increased by 9.3%, in real terms, compared to last year similar period and reaching the highest monthly growth rate so far this year.

The important increase is due, mainly, to the higher revenue generated from non-primary sectors (manufacture of food, beverages, tobacco, textile leather, footwear, paper industry, chemicals, rubber, etc.) to the dynamism of the GDP and the internal demand, as well as the SUNAT management.

Clara Urteaga Correspondent

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Spain –Environmental Taxation Regulation and other Tax and Financial Measures Law 16/2013 of October 29, establishing regulations on environmental taxation and adopting other tax and financial dispositions.

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 As part of our commitment to support the human talent development within the TAs, we have started the registration process for the courses that begin in the first half of 2014, please find here the general information for each of the available programss.

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Events Multilateralism and the Shift Towards Global Tax Governance and Fiscal Transparency

Academy of Global Governance and the WU Global Tax Policy Center at the Institute for Austrian and International Tax Law, WU. 11-13 December 2013 The Academy of Global Governance and the WU Vienna University of Economics and Business have created an on-going programme on global tax governance and fiscal transparency, and this year’s executive-training seminar brings together top speakers from academia, international institutions, business, and civil society to discuss the changing role of multi-lateral and regional organisations; the changing role of business and civil society; the recent EU proposals on tax and governance; improving international co-operation to counter offshore non-compliance; the protection of the taxpayer in a more transparent environment.

Post of the Month October 20, 2013

A millon Written by: RaĂşl Zambrano On September 26, in Quito, I presented a paper on the vision of the future use of information technology in the tax administration. At the end of my presentation, I insisted on the need for administrations, particularly for information services, to work on making the information highly visible.

New in the web Bibliographic News Octuber, 2013

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

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Other Documents of interest “La Economía Naranja: Una Oportunidad Infinita” The Orange Economy: an Infinite Opportunity Buitrago Restrepo, Pedro Felipe; Duque Márquez, Iván Inter-American Development Bank Octubre 2013

This manual has been designed and written in order to show the key concepts of a debate generally unknown. A debate about an important economic and social development element that Latin America and the Caribbean cannot afford to lose. The creative economy, called here the Orange Economy, represents an enormous potential wealth based on talent, intellectual property, connectivity and of course, on our region’s cultural heritage.

Latin American Economic Perspectives 2014. Logistics and Competition for Development OECD October 2013

This is the annual Review of the OECD Development Centre on economic developments in Latin America.

The report is a joint publication of the Development Centre of the OECD, the Economic Commission for Latin America and the Caribbean (ECLAC) and the CAF, development bank of Latin America. Each issue includes a macroeconomic analysis of the region as well as a focus on the influence of the global context in the economy of the region. The report also analyzes issues related to the development of the region, taking into account future challenges and opportunities.

Dynamic climate policy with both strategic and non-strategic agents : taxes versus quantities World Bank Karp, Larry; Siddiqui, Sauleh; Strand, Jon October 2013

This paper studies a dynamic game where each of two large blocs, of fossil fuel importers and exporters respectively, sets either taxes or quotas to exercise power in fossil-fuel markets. The main novel feature is the inclusion of a “fringe” of non- strategic (emerging and developing) countries which both consume and produce fossil fuels. Cumulated emissions over time from global fossil fuel consumption create climate damages which are considered by both the strategic importer and the non-strategic countries..