Y6n12

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eCIAT ISSN 1684-9833 • Year 6 / No. 12 / July 18, 2014

The Executive Secretariat Informs The Executive Secretariat Informs Signature of the new Cooperation Agreement between Spain and CIAT Closing Workshop of The International Master in Tax Administration and Public Finance, 10th Edition SAT of Guatemala receives specialized assistance on the implementation of the electronic invoicing in the framework of the collaborative program CIAT - EUROsociAL II SAT Guatemala receives specialized counseling from Guardia di Finanza of Italy within the Framework of the EUROsociAL II Program CIAT participates in First International Tax Conference The Tax Administrations Inform Argentina - Agreement on the exchange of tax information between Argentina and Armenia Brazil - Electronic return simplifies work regularization, according to the Federal Revenue of Brazil

Signature of the new Cooperation Agreement between Spain and CIAT Since 1982, Spain has maintained a Permanent Mission, as a result of the Technical Cooperation Agreement between the Inter-American Center of Tax Administrations (CIAT) and the State Finance Secretariat, the State Agency of Tax Administration (AEAT) and the Tax Studies Institute (IEF). The previous Agreement, signed in Madrid on June 9, 2010 for four years, was in force until last June.

The Cooperation Agreement establishes the lines and terms of cooperation between the parties and specifies the operation of the Spanish Permanent Mission to CIAT. In this line of action and cooperation, Spain has always been a model partner, mainly through the State Tax Administration Agency (AEAT), in the scope of the General Assemblies and Technical Conferences, International Forums, Seminars, courses, Workgroups, Permanent Committees, Publications, and particularly in the International Master in Public Finances and Tax Administration. Coordination activities are also highlighted, such as the bi-annual programs of “Research Scholarship” and “Essay contest” which are sponsored by the AEAT, IEF and CIAT, as well as the “CIAT Review”.

The new Agreement was signed by Mr. Miguel Ferre, State Secretary of Finances; Mr. José Antonio Martínez, Director of the Tax Studies Institute; and Mr. Márcio F. Verdi, CIAT Executive Secretary. The signature act was attended by Mr. Santiago Menéndez, General Director of the State Tax Administration (AEAT), and Mr. Luis Cremades, Head of the Permanent Mission of Spain to the CIAT.

Bolivia - El SIN recaudó Bs 25.305 millones en el primer semestre de 2014, destacan el IVA y Facilidades de Pago Spain - Convention between the Kingdom of Spain and the Dominican Republic to avoid double taxation and to prevent tax evasion Bruno Parent, the new Director General of the DGFiP Directorate General of Revenue of Nicaragua appoints new correspondent to CIAT

Photo caption, left to right: Mr. Marcio F. Verdi, CIAT Executive Secretary;Mr. Miguel Ferre, State Secretary of Finances and Mr. Jose Antonio Martinez, Director of the Tax Studies Institute, at the moment of signing the Cooperation Agreement between Spain and the CIAT.

Paraguay - Tax revenue increased by 42.9% in June Dominican Republic - DGII and CAPGEFI sign agreement to develop programs and training to MSMEs Training IBFD News Post of the Month

Photo caption, left to right: Mr. Santiago Menéndez, General Director of the State Tax Administration (AEAT); Mr. Márcio F. Verdi, CIAT Executive Secretary; Mr. Miguel Ferre, State Secretary of Finances; Mr. José Antonio Martínez, Director of the Tax Studies Institute, and Mr. Luis Cremades, Head of the Permanent Mission of Spain to CIAT

Vistas de la Sesión inaugural de la 48 Asamblea General del CIAT.

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Closing Workshop of The International Master in Tax Administration and Public Finance, 10th Edition The opening session of the seminar’s closing the 10th edition of the International Master in Tax Administration and Public Finance was held on June 25, 2014 in Madrid, Spain at the headquarters of the Institute for Fiscal Studies.

The session was opened with a welcoming words by Mr. Manuel Díaz Corral, Director of the School of Public Finance and Member of the Executive Board for the Masters followed by a presentations of Mr. José Manuel Guirola López, Professor of Applied Economy at UNED and Academic Director of Master Programs; Mr. Mariano Rojo Pérez in representation of the State General Intervention; Mr. Ricardo Cospedal García, Adjunct Director of the CEDDET Foundation and Mr. Márcio F.Verdi Executive Secretary of CIAT.

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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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They were followed with a lecture delivered by the CIAT Executive Secretary on “The main services offered by the CIAT to the Tax Administrations of Latin America”.

Mr. Ricardo Cospedal García Adjunct Director of the CEDDET Foundation; Mr. Márcio F. Verdi, Executive Secretary of CIAT; Mr. Manuel Díaz Corral, Director of the School of Public Finance Member of the Executive Board for the Masters; Mr. José Manuel Guirola López, Professor of Applied Economy at UNED Academic Director of Master Programs and Mr. Mariano Rojo Pérez in representation of the State General Intervention.

SAT of Guatemala receives specialized assistance on the implementation of the electronic invoicing in the framework of the collaborative program CIAT - EUROsociAL II In the framework of the EUROsociAL II program, from June 30 to July 4, 2014 the Superintendency of Tax Administration of Guatemala (SAT) received at its headquarters the Brazilian experts Mr Jesus Eudaldo Almeida and Newton Oller, from the Finance Secretaries of the States of Bahia and São Paulo, respectively, in order to provide a specialized assessment on the topic of electronic invoicing for the Collection and Management Directorate of the SAT. During the week, the experts presented the experience of Brazil in the implementation and deployment of the electronic invoice, the best practices as well as some negative aspects that were overcome in the process of experimentation of this mechanism.

Among many topics were discussed the legal and regulatory aspects governing the electronic invoice and the tools used in the massive control process. At the conclusion of the assistance, the experts presented the recommendations to the authorities of the SAT, who seek to implement the electronic invoicing to improve the quality of information systems and use the electronic invoicing as information source for developing massive control programs, and thus increase the perception of risk by taxpayers; reduce non-compliance with tax and customs; facilitate and promote voluntary compliance with tax obligations; and modernize the system through people, processes, and technologies.

This specialized technical assistance has been developed as a result of the request presented by Guatemala to the EUROsociAL II program, in the framework of the

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Action “Compliance with the tax obligations” of the “Public Finance” Area, coordinated by the FIIAPP, with AEAT of Spain, IEF of Spain and CIAT as operating partners. In the future, the CIAT will follow, along with the EUROsociAL II program partners, the advances, requests and interests derived from this specialized assistance, in order to progress with new support activities to voluntary compliance.

Opening remarks, by Mr. Omar Franco, Director of Collection and management.

Participants of the Specialized Assistance in Electronic Invoicing. Front: Newton Oller and Eudaldo Almeida, accompanied by Ariel Guerra, Control Director and Omar Franco, Collection and Management Director.

Overview of the meeting with the participants.

SAT Guatemala receives specialized counseling from Guardia di Finanza of Italy within the Framework of the EUROsociAL II Program On June 16-20, 2014, the expert in fiscal intelligence, Lieutenant-Colonel Stefano Gesuelli, of the Guardia di Finanza of Italy and Head of the Italian Mission at CIAT, visited the Superintendency of Tax Administration (SAT) of Guatemala to provide specialized counseling and support for the creation of the Fiscal Intelligence Unit of said Tax Administration.

On said occasion, the SAT team presented the operational model and scheme for carrying out the Fiscal Intelligence activities,as well as the functions that would be assigned to said Unit. On his part, Mr. Gesuelli described the operation of the intelligence cycle within a tax administration, as well as the role attributed to each administrative unit, the functional structure of the Unit, and the profiles of the staff involved therein. In addition, he made a series of recommendations, such as the need for training all the staff, with a view to developing an intelligence culture that may result in better decisionmaking by the authorities, including the improvement of internal processes and eventual proposals for tax law reforms.

In closing this activity Mr. Stefano Gesuelli held a working meeting with

Mr. Carlos Muñoz, SAT Superintendent, Mr. Mario Riveiro, Planning and Development Manager and Engineer Marvin Anzueto, SAT Deputy Manager of Planning to inform them about the results of the Technical Assistance.

This specialized counseling was provided in response to a request from Guatemala to the EUROsociAL II Program, within the framework of the “Compliance with

Tax Obligations” Action of the “Public Finance”Area, which is coordinated by FIIAPP and whose operational partners are the AEAT of Spain, IEF of Spain and CIAT. From now on, CIAT, together with the partners of the EUROsociAL II Program will follow up the progress, requests and interest arising from this activity and thus continue to move forward with new activities to promote voluntary compliance.

Mr. Stefano Gesuelli

Working Group.

Speaking: Mr. Stefano Gesuelli, Head of the Italian Mission to CIAT. Back: Mrs. Victoria Villegas, from the SAT Planning Office

Presentation of the Technical Assistance event by Santiago Urbizo from the Planning Office of the SAT.

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CIAT participates in First International Tax Conference In presence of authorities of the Inter-American Center of Tax Administration(CIAT), the first International Tax Conference in Guatemala was held on June 18 and 19, 2014, on the occasion of the 16th anniversary of the Tax Administration Superintendence (SAT). The purpose of this event was to divulgate the trends and best practices of taxation in the international field, so the SAT could adopt and implement them to improve tax management and increase efficiency, in tax collection as well as in attention to the taxpayer. The sessions were attended by renowned national and international speakers, such as the German Cooperation (GIZ), the Tax Administration from Mexico (SAT), and the SAT of Guatemala, which dedication was reflected by the success of the event. The CIAT delegation was formed by the Executive Secretary, Marcio F. Verdi; Raul Zambrano, Director of ICT and Technical Assistance, and Stefano Gesuelli, head of the Permanent Mission of Italy to the CIAT. At the closing ceremony of this first International Tax Conference, Mr. Marcio F. Verdi gave a presentation on “Best Practices in Tax Expenditure Measurement”.

Recognition to Mr. Márcio Verdi for his keynote address, given by Mr. Omar Franco, SAT Collection Intendant.

Opening of the International Tax Sessions by Carlos Muñoz, SAT Superintendent.

Opening ceremony of the International Tax Sessions. From left to right: Carlos Pinzón, Human Resources Manager; Ariel Guerra, Intendant of Control; Mr. Marcio Verdi, CIAT Executive Secretary; Carlos Muñoz, SAT Superintendent; Omar Franco, Intendant for Collection; Mr. Hans Fuchs, PROFI-GIZ Coordinator; and Mario Riveiro, Planning Manager.

Mr. Raúl Zambrano, CIAT official, giving his conference.

Mr. Stefano Gesuelli, lecturer on Risk Management, Head of the Italian Mission at CIAT.

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The Tax Administrations Inform Argentina - Agreement on the exchange of tax information between Argentina and Armenia This document adds to the customs agreement between the two countries signed in 2012, which in force and fully operational.

The agreement helps to create a secure and transparent platform for business between the two countries to enhance the flow of trade, finance, and services. It is also a tool in the fight against tax evasion.

María Luisa Carbonell Correspondent

Brazil - Electronic return simplifies work regularization, Bolivia - El SIN recaudó Bs 25.305 millones en el primer according to the Federal Revenue of Brazil semestre de 2014, destacan From July 4, individuals and legal entities of one document (the occupation permit) el IVA y Facilidades de that need to regularize their work projects will be required.

Pago with the Federal Revenue may file their return and information on projects (Diso in Portuguese) via Internet.

The implementation of DISO internet will significantly expedite de regularization, reducing the service time, reducing the amount of documents to be submitted to the agency, which also reduces the number of taxpayers in the Units.

Individuals and legal entities will use the system to start the regularization of the work projects, declare data regarding the respective project, which is similar to the personal income tax system.

The regularization of civil construction is essential to make an appraisal of a property so it can be used as collateral for financing. The regularization to the Internal Revenue Service is required to issue the Debt Certificate (CND) on the project, allowing the entry in to the real estate records.

The system will allow the taxpayer not having any delay (GFIP or GPS) during the execution of the project, calculating the amount by Internet, with the issuance of the assessment project notification (ARO) and payment guide (GPS).In this case, the only document to be issued by the unit is the CND. Simplifications of procedures will significantly reduce the amount of documents required by the Federal Reserve to regularize the construction project, because, as a general rule, only the presentation

Even in situations where the issuance of ARO by GPS, and their respective CND, is carried out in the units, there is no more analysis or any other document to be presented for purposes of regularization, since they will not be allowed to modify any information provided by the taxpayer in the system via the Internet, minimizing the impact of regularization services to the Internal Revenue Service Units.

The Diso on the Internet has the following advantages: • simplifies the reception procedures. The Diso is digitally submitted by the taxpayer who is the owner of the information; • streamlines the taxpayer´s assistance, reducing the average time for customer services, and the number of taxpayers in the units; • Reduces the number of documents to be submitted; • Possibility for issuing ARO and GPS via the Internet, when applicable.

However, it is important to note that in case some irregularities are found in the returns, the Internal Revenue Service can carry out an audit of the construction project, in which case penalties will apply. If fraud is detected in the return, the person responsible could be criminally responsible.

In the first half of this year, the National Tax Service (SIN) collected Bs 25,305,000; these revenues are up 7% compared to the same period of the previous year. During this period, tax revenues from the Internal Market- excluding IDH and IEHDrose by 10%, highlighting the 18% sustained increase in Value Added Tax (VAT), and 78% increase in Payment Facilities, said the Executive Chairman, Mr. Erik Ariñez Bazan.

Juana Patricia Jiménez Soto Correspondent

Spain - Convention between the Kingdom of Spain and the Dominican Republic to avoid double taxation and to prevent tax evasion The Convention between the Kingdom of Spain and the Dominican Republic for the avoidance of double taxation and prevention of tax evasion with respect to taxes on income, and its Protocol, were signed in Madrid on November 16, 2011, to take effect July 25, 2014.

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Bruno Parent, the new Director Directorate General of Revenue General of the DGFiP of Nicaragua appoints new correspondent to CIAT Mr. Bruno Parent, Inspector General of Finance, 61, was appointed on Wednesday June 18, 2014as Director General of Public Finance of France from July 1, 2014.

Among other positions, Mr. Bruno Parent has been Director General for Competition, Consumption and Repression of Fraud (2007-2009) and was Director General of Taxation from 2003 to 2007.

The General Director of Income in Nicaragua, Mr. Martín Rivas Ruiz, has appointed MSc. Aniuska Fabiane Abea Gomez as a CIAT new correspondent.

MSc. Abea Gomez currently works at the International Advisory Legal Office.

She holds a Bachelor Degree in Law and Master in International Law.

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 second half of 2014, please find here the general information for each of the available programs.

IBFD News International Bureau of Fiscal Documentation (IBFD) Cooperation - CIAT - IBF

Mr. Bruno Parent

Msc. Aniuska Fabiane Abea Gómez

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.

Paraguay - Tax revenue increased by 42.9% in June In June 2014, the Secretariat of State Taxation (SET) has collected around 784 billion Guarani, which means an increase of 235 billion Guarani compared to the revenue collected by SET in June 2013.

Post of the Month

So far this year (January to June 2014), the SET collected a total of 4 trillion 765 billion of Guarani, representing US $ 1,063 million, which represents an increase of 27.1%

Thursday, 17 July 2014 By: Miguel Pecho

Alba Servín Correspondent

Dominican Republic - DGII and CAPGEFI sign agreement to develop programs and training to MSMEs The Directorate General of Internal Taxes (DGII) and the Training Center in Tax Management and Policy (CAPGEFI) signed an agreement in which both entities commit to coordinate and develop activities, training programs and guidance aimed at micro, small and medium enterprises (MSMEs), taxpayers, individuals and the general public.

At the inaugural act held at the premises of CAPGEFI, Director General of Internal Revenue Guarocuya Felix and the Director of CAPGEFI Mariano Escoto Saba stressed the importance of the agreement for the training of the sectors involved and the strengthening of their institutions.

Nieves Vargas Collado Correspondent

Tax incentives, once more A few days ago, at the OECD Multilateral Tax Center in Mexico, I had the chance to lead a workshop on tax expenditures and incentives, with colleagues from Belgium, Mexico, Spain and the IFC.