Y7n13 by CIAT

ISSN 1684-9833 • Year 7 / No. 13 / September 18, 2015

New Structures, structures A picture, a thousand words This post will be short. It is a kind of extension of a conversation I had a couple of weeks ago. I was in the office of a Manager and we were talking on the structure of the organization and the complexities surrounding the process of reforming it and how, sometimes, informal structures, the specific task forces and the consultancies end up significantly distorting the original design. What is the best criterion for organizing the structure? It was an almost mandatory question in the air. By tax, functional, by taxpayer segmentation, regional. On the other hand, should we use mixed criteria? In our conversation came up the topic of structure based on processes. There is literature that highlights the benefits that such structures would have over a more traditional. The functional structures can be, according to those articles, deficient from the perspective of the user, since the processes that add value go through various units of the Organization, but the report is always vertical. This may contribute to generating isolated chambers for both knowledge management and information systems and the vision from the perspective of the taxpayer would reach only the top of the hierarchy….

News from the Executive Secretariat UN-‐CIAT Course on Transfer Pricing

Presentations during the event.

In line with the continued efforts initiated by the United Nations in strengthening capacity of developing countries in the area of transfer pricing, the Financing for Development Office (FfDO) in collaboration with the Inter-American Center of tax administrations (CIAT) have organized the United Nations Course on Transfer Pricing, based on the UN Practical Manual on Transfer Pricing for Developing Countries. This course was offered for the benefit of tax officials from countries of Latin America and the Caribbean working in this field, introducing them to the fundamentals of transfer pricing. The course was held in Panama City, from 24 to 28 August 2015. The participants included 37 officials from 19 countries members of CIAT. The UN was represented by Mr. Harry Tonino, and Mrs. Irving Ojeda; and Mr. Márcio F. Verdi and Mr. Alejandro Juárez participated for the CIAT. This course aims to introduce the principles and methodologies of transfer pricing

and presents the main practical aspects faced by developing countries in implementing these principles and methodologies. Some of the topics discussed during these five days were: the business framework and legal environment; the arm’s length principle; the analysis of comparability; transfer pricing methods; documentation; risk assessment; disputes prevention and settlement; and capacity building for the enforcement of transfer pricing in developing countries. In addition, several examples were developed and two practical cases allowed participants to put into practice the knowledge acquired during the course. The course was presented by Mr. Joseph Andrus, Mr. Giammarco Cottani, Ms. Monique van Herksen and Mr. José Madariaga. This activity was the result of a fruitful partnership between UN and CIAT, which in recent years has allowed both institutions to develop training in the field of treaties to avoid double taxation and transfer pricing. Officials from the Trinidad and Tobago Tax Administration visit the Tax Administration Service of Mexico within the framework of the CIAT-GIZ Cooperation Agreement

Photo caption: Officials from the tax administration of Trinidad & Tobago together with their counterparts from the SAT of Mexico.

In the framework of the collaboration agreement between the Inter-American Center of tax administrations (CIAT) and the German cooperation (GIZ), two officials from the tax administration of Trinidad visited the service of tax administration (SAT) of Mexico, on August 26 to 28, to learn about this tax administration’s experience at this time that Trinidad and Tobago is involved in a process of developing a regime of transfer pricing. The visitors had the opportunity to meet the best practices of the SAT in the application of different methods of transfer pricing, the concepts and criteria for the definition of related parties, the application of advance-pricing agreements, as well as the management of information systems with internal and external databases.

Photo caption: Group picture

This exchange has allowed defining and identifying the steps to be followed for the creation of the unit of transfer prices with well-defined goals and targets, as well as important aspects to consider in the legislation in order to implement the Transfer Pricing regime. Call for contributions of articles for the– 40th Edition CIAT/AEAT/IEF Tax Administration Review The CIAT, jointly with the State Agency for Tax Administration and the Institute for Fiscal Studies of Spain, semiannually publishes the CIAT/AEAT/IEF Tax Administration Review. In this sense, we are pleased to invite you to present contributions of articles for the 40th 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 for the tax administrations actions and policy formulation. The delivery deadline expires on November 30, 2015. For more details about this call see: Bases Tax Administration Review CIAT/AEAT/IEF N° 40

Our Members Countries Rosalía Cristina Muñoz Li, new correspondent of Peru before the CIAT Mrs. Rosalía Cristina Muñoz Li has the charge of Institutional Secretary, has a Master Degree in Finances from ESAN University and a Bachelor in Business Administration from the University Garcilaso de la Vega. She developed her professional experience in the operational and normative area of debt control and collection, has experience in normative analysis and process definition, definitions for developing computer applications, and in SUNAT projects. Inscripciones Abiertas!!

Member countries news Bolivia - The SIN collected 34.954,5 million up to August, highlighting VAT and IT National tax service (SIN) collected Bs 34.954,5 million through August 2015. In regard to the collection of domestic taxes - excluding the direct tax to the hydrocarbons (IDH) - growth was 6.1%, said its Executive Chairman, Erik Arinez Bazan. Patricia Jiménez Soto Correspondent

Bolivarian Republic of Venezuela – The SENIAT collected 104.1 billion bolivares in August In order to continue fortifying the socialist economy of the revolutionary fatherland, the National Integrated Service of Tax and Customs Administration (SENIAT) collected 104.1 billion bolivares during the month of August, which represents a compliance of 228, 41% in relation to the goal of 45.5 billion bolivares set for this period. Hatzen Carolina Mendoza López Correspondent

Costa Rica - Finance Ministry presents new ATV system for tax return From October 4, tax returns, which until today are submitted by “Tributacion Direct @”, will be made using the ATV (Virtual tax administration) online system. In this first stage, the returns presented by Digital Taxation are not included. Maribel Zúñiga Cambronero Correspondent Dominican Republic - DGII celebrates a “Tax guidance day” for taxpayers nationwide These activities form part of the DGII Strategic Plan and in compliance with its goal of being "a tax administration available to the taxpayer”, having the information offered at the right time to the taxpayer and citizen as the basis for a modern tax administration. Nieves Vargas Correspondent Dominican Republic - DGII announces immediate delivery of taxpayers registration certificates This new service is part of the improvement plan developed by the DGII as part of the actions of the institutional Strategic Plan 2014-2017 towards a "tax administration within the reach of the taxpayer", providing excellence in service conditions. Nieves Vargas Collado Correspondent Ecuador - SRI prepares a study to simplify the payment of taxes in the business sector The event will be held by the Service of Internal Revenue (SRI), in order to facilitate the compliance with tax obligations, "Building tax efficiency, smart ideas for an efficient service". The tax administration creates this encounter event with entrepreneurs and accounting professionals to contribute to business productivity. Juan Miguel Avilés Murillo Correspondent Peru - Sales tax collection (IGV) grew 4.4% in August Between January and August of 2015 the Sales tax collection (IGV) recorded a growth of S /. 1 244 million, which represented a change in real terms of 3.1%, compared to the same period in 2014.

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