Y7n9 by CIAT

ISSN 1684-9833 • Year 7 / No. 9 / July 17, 2015

Call Seventh edition of the CIAT-AEAT-IEF Research Scholarship

The Institute for Fiscal Studies of Spain (IEF), under the current Technical Cooperation Agreement between the Inter-American Center of Tax Administrations (CIAT), the State Secretariat of Finance and the State Tax Administration Agency (AEAT) and the IEF, announce the seventh edition of the Research Scholarship CIAT AEAT - IEF, which is a flexible and practical mechanism to motivate tax officials from member countries to analyze and research tax topics directly related to their daily management. In this edition the selected topics are: i) Legal and operational regulations to reduce tax litigation: comparative analysis and proposals; and ii) challenges in the application of the anti-abuse provisions by the tax administrations. The deadline for submitting applications is July 30, 2015.

News from the Executive Secretariat CIAT participates in the seminar organized by the national Office of Cuba Administration (ONAT) From July 7 to 8, 2015, the seminar "Experiences in development of the Spanish AEAT" and best practices in the process of modernization of tax administrations was held in Havana, Cuba. The seminar is part of the programme of exchange of experts Cuba European Union, managed by the International Foundation and for Ibero-America of the Administration and Public Policies (FIIAPP), funded by the European Commission. This international cooperation project has the purpose of assisting Cuba in its socio-economic modernization process. This event counted with the participation of Mrs Meissis Bolaños Weiss, Vice Minister of the Ministry of finance and prices of Cuba, the Director of the State Agency for tax administration of Spain and member of the Board of Directors of the CIAT, don Santiago Menéndez, and the co-Director of the project by the FIIAPP, Mariano Guillén. At this meeting Mr. Márcio F. Verdi, Executive Secretary of the CIAT, presented "experiences in development and best practices in the modernization process of tax administrations in Latin America". Through this activity, the participants learned about the Spanish tax agency activities, as well as the main actions taken by the AEAT to implement effectively its action plans and the continuous improvement of the processes of work and projects, which contributes to the achievement of the objectives and institutional mission.

Visit of the State Agency of Tax Administration of Spain to Cuba

Mrs. Meissis Bolaños Weiss, Vice Minister of the Finances and Prices Ministry of Cuba

The CIAT Executive Secretariat participated in the IOTA General Assembly The 16th General Assembly of the Intra-European Organization of Tax Administrations – IOTA, organized by the Tax and Customs Administration of the Netherlands, which chaired IOTA during the past year, was held on July 2 and 3, 2015 in Rotterdam, The Netherlands. The main theme of the event was: Self-service for Tax Compliance”. IOTA invited CIAT, which was represented by Mr. Francisco J. Beiner, to moderate the inaugural technical session jointly with the Tax and Customs Commissioner of Ireland, Mr. Gerard Harrahill.

The CIAT Executive Secretary took part in the sixth World Conference of the International Tax Dialogue (ITD) The sixth World Conference of the International Dialogue (ITD) on Taxation and Environment was held from July 1 to 3, 2015 in the Conferences Center of the OECD in Paris, France, with the participation of the CIAT Executive Secretary, Mr Marcio F. Verdi. The international tax dialogue (ITD) is a joint initiative of the European Commission (EC), the Inter-American Bank of development (IDB), the International Monetary Fund (IMF), the Organization for Cooperation and Economic Development (OECD), the World Bank Group and the Inter-American Center of tax administrations (CIAT). To identify practical ways to use the power of taxation as an instrument of environmental policy, 300 tax and environmental authorities of high level, administrators and experts from more than 90 countries met in Paris and participated in the conference. The objectives of environmental policy, in particular decreasing in the estimated costs of climate change, reducing the damage to health caused by pollution and improving the quality of the environment, are now priority on political agendas. The Conference of the international dialogue on taxation (ITD) analyzed how to improve the practical application of taxation in the field of environment and how environmental taxl policy can be integrated into the overall tax policy. The meeting addressed issues relating to tax administration, and how to overcome obstacles related to distributional effects and competitiveness, taking into account the similarities and differences between advanced economies and developing economies. Several independent sessions were dedicated to the sectors that present many opportunities for the application

of environmental taxation, such as energy, natural resources, urban development, transportation, agriculture and electricity. The scope and limitations of taxation, as well as alternative or complementary ways to focus policies were analyzed. The discussions at the Conference confirmed that these concerns are important, but noted that, in general, they should not block progress. On the other hand, carefully designed tax can help achieve the environmental goals, establish tax systems to support more growth and employment and minimizing their negative effects. Photo Galery

National Tax Administration of Cuba (ONAT) visits SRI of Ecuador under the Partnership Program CIAT - GIZ Under the Partnership Program that CIAT maintains with the German Cooperation Agency (GIZ), this July 1 to 3, two officials of the National Tax Administration Office of Cuba (ONAT in Spanish) has visited the Internal Revenue Service of Ecuador (SRI). The objective of this technical visit was to examine the experience and best practices of the SRI in web site design and implementation, since the ONAT is currently designing its tax website in order to provide services, improve assistance to taxpayers, and promote the tax culture.

Center: Belkis Pino Hernández and María Elena Allegue, CIAT officers, meeting a group of SRI experts.

CIAT participated in the International Conference for Development and Growth On June 4 -5, Mr Raul Zambrano, CIAT Director of Technical Assistance and ICT, participated in the International Conference for Development and Growth, sponsored by the World Bank Group and the Development Forum of Korea, with a presentation on “Strengthening Regional Collaboration on Tax Matters: CIAT Approach and Experience”.

View of Participants

Executive Secretary’s visit to the Guardia di Finanza of Italy On June 25, the CIAT Executive Secretary met in Rome with the Commander-in-Chief of the Guardia di Finanza of Italy, General Saverio Capolupo, and thanked him for the organization of the next CIAT Technical Conference which will be held on September 28-October 1st, 2015. He also thanked him for holding the workshop on Techniques for Combatting International Tax Evasion, organized by the Guardia di Finanza for officials from the CIAT member countries last April 9-29 and its eventual projection within medium term.

Mr. Márcio F. Verdi, CIAT Executive Secretary and the Commander-‐ in-‐Chief of the Guardia di Finanza of Italy, General Saverio Capolupo

The Executive Secretary participated in the International Tax Administration Master’s Program – XI Edition The CIAT Executive Secretary gave a lecture in Madrid, on June 24, at the face-to-face Seminar of the International Tax Administration Master’s Program. During his visit to the Director of the State Agency of Tax Administration of Spain and CIAT Executive Council member, Mr. Santiago Menéndez Menéndez, they discussed the new design of the International Master’ Program which involves a qualitative change as a first-rate training instrument intended for the Latin American countries.

The CIAT Executive Secretary, Mr. Márcio F. Verdi and Mr. Santiago Menéndez Menéndez, Director of the AEAT of Spain.

Main table of the International Tax Administration Master’s Program, XI Edition.

DGI of Uruguay receives expert advice from SAT Mexico in the framework of the EUROsociAL II Program From June 22 to 26, 2015, the CIAT coordinated a specialized assistance on enforced collection for the General Tax Directorate of Uruguay (DGI) framed in the Collaboration Program EUROsociAL II funded by the European Union. The assistance was provided by the Tax Administration Service (SAT) of Mexico. During those days, the expert Mr. Obed Jesse Lujan Caracas, Manager of the Operations Support Coordination in Collection of SAT, met a large group of officials from the Division of Revenue and Extensive Controls, led by their Director, Cr. Michael Palumbo. They discussed and analyzed issues related to collections management and skills, such as aspects to consider for the design of an effective collection and recovery system; risk analysis techniques for debt collection; structural and organizational aspects for the implementation of administrative collection systems, among others. The DGI is in a reform process of its enforced collection and recovery area. This advisory aims to benefit from the Mexican experience with a view to defining a plan of negotiations in coercive collections. This would allow obtaining greater efficiency in the collection, better results in recovery, and reducing legal action for the recovery of debts by giving priority to enforced collection. Likewise, the DGI aims to draft a manual of persuasive techniques for collection that will reduce the portfolio managed in courts, optimizing human resources and focusing on the recovery of debts by administrative action. This activity is framed within the voluntary compliance with tax obligations action of the Public Finance area of the EUROsociAL II Program, financed by the European Union, coordinated by FIIAPP and wherein the State Agency of Tax Administration of Spain (AEAT) and the Inter-American Center of Tax Administrations (CIAT) act as operational partners.

Left: Expert Mr. Obed Jesse Lujan Caracas, Administrator of the Operational Coordination Support in Collection, Tax Administration Service (SAT) of Mexico; next to Cr. Michael Palumbo, Director of Revenue and extensive Controls Division, addressing a group of officials of the DGI.

Left: Mr. Obed Jesse Lujan Caracas of the SAT Mexico. Right: Cr Michael Palumbo, from the DGI of Uruguay.

The Internal Revenue Service of Chile (SII) supports the SRI of Ecuador under the CIAT-ITC Collaboration Program In the framework of the collaboration program between CIAT and the International Tax Compact (ITC) initiative, the Internal Revenue Service (SII) of Chile provided technical assistance to the Internal Revenue Service (SRI) of Ecuador, on the topic of income tax on capital gains. from June 16 to 18, 2015. This assistance comes from a first support on the issue, offered last April, also framed in the CIAT-ITC program, in which the need for a second technical visit arose in order to assist in the design of additional regulation relating to the taxation of capital gains, and to deepen inherent issues discussed in the first visit. The conclusion of this comprehensive analysis of the recently reformed rules will allow the SRI to start a new phase in the control of capital gains.

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Our Members Countries Superintendent of the SAT of Guatemala Mr. Francisco Rivera Escobar was appointed as the new Superintendent of Tax Administration on an interim basis by the Directorate of the SAT of Guatemala from July 10, 2015.

Rose Jarawan, new Canadian correspondent to the CIAT Since July 1, 2015, Ms. Rose Jarawan has been appointed as the new CIAT correspondent for Canada, replacing Ms. Maria Pica.

University Master's

First Edition 20152016

Member countries news Argentina - Tax administrations of Argentina and Colombia strengthen their cooperation ties... The AFIP provided training on electronics monitoring at the National Tax and Customs Directorate of Colombia (DIAN), in the framework of the the EUROsociAL Program for Social Cohesion in Latin America. María Luisa Carbonell Correspondent

Bolivarian Republic of Venezuela - SENIAT collected 438.83 billion Bolivares in the first semester... In order to continue strengthening the socialist economy of the Revolutionary Fatherland, the National Integrated Customs and Tax Administration Service (SENIAT) collected 438.83 billion Bolivares during the first six months of the year, which represented a 190.33 per cent compliance in relation to the goal established for this period of 230.57 billion Bolivares. It is worth mentioning that the collecting entity obtained 255.5 billion more during the first semester of this year as compared to 2014 Hatzen Carolina Mendoza López Correspondent

Bolivia - The SIN collected Bs 25812.4 million in the first half of the year, highlights IT, VAT and CIT... The National Tax Service (SIN) collected Bs 25812.4 million in the first half of 2015, up 2% compared to the same period of the previous administration. With regard to the internal tax collection, without including the Direct Tax on Hydrocarbons (IDH) and the Special Tax on Hydrocarbons and Derivatives (IEHD) - the growth was 11%, its CEO said Mr. Erik Ariñez Bazan, SIN Executive President. Juana Patricia Jiménez Soto Correspondent

Dominican Republic - The DGII publishes the Charter of Taxpayer Duties... The General Directorate of Internal Taxes (DGII) published the “Charter of Taxpayer Duties”, which is intended to facilitate timely compliance with the tax obligations by being aware of their main duties toward the Tax Administration, in accordance with the law. Nieves Vargas Collado Correspondent

Honduras - Combatting tax evasion with intelligent tools... The application of the new business intelligence tool is part of the new strategies being used at the DEI in order to count on a speedy and transparent system for organizing data. The Technology Management Office of the Executive Directorate of Revenues has implemented the Business Intelligence system for accessing and duly analyzing the data generated in the institution’s systems as well as those from other sources which maintain information crosschecks with the institution. Gabriel Perdomo Correspondent

Jamaica - TAJ publishes its National Compliance Plan... TAJ for the first time has published its National Compliance Plan (NCP) on its website, to allow the public to be informed about the administration’s compliance focus for the year. This approach has been adopted in an effort to improve voluntary compliance and promote transparency. Meris Haughton Correspondent

Paraguay - Tax collection had increased 8.5% by June... Until June 2015, (from January to June), SET had collected the total amount of 5.17 billion Guaraníes, some 1.008 million Dollars, which implies an increase of 403 billion Guaranies more than the entire amount collected during the first six months of 2014. Alba Servín Correspondent

Additional information Bibliographic News June, 2015 Offers for your reference the latest documents from CIAT and other publishers, including Journal articles and other regular publications, research papers and studies.