Transcript Auditing SMEs
Organisation for Economic Co-operation and Development
Risk Management and Taxpayer Service
1. Opening/Overview/Introduction OECD
Kampala, 17 – 21 May 2010
Centre for Tax Policy and Administration
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Your presenters and helpers
Matthijs Alink ( OECD Centre for Tax Policy and Administration)
Objectives for the seminar
To increase understanding of international practices and developments in the areas of risk management and taxpayer service To promote discussion among officials.
To identify new ideas for improving Tax Administration To encourage officials to consider improvements to their administration based on their assessment of international practices and tax administration’s needs.
3 To answer specific issues raised by participants.
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Our approach to your interests and concerns
*** During the course of the seminar, we will aim to answer any questions raised by participants.
*** Language differences/ translation may complicate your understanding of what is being presented or we don ’t fully cover issues of interest to you –
please to ask questions!!!!
*** Practices from country to country vary significantly due to political, legal, historical, cultural and economic factors.
Structure of course (1)
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Introduction
OECD Work on Taxation
General Introduction on Tax Administration
Organizational Structure and Management
Compliance Risk Management
Risk Identification, Risk Analysis, and Risk Assessment
Risk Treatment and Evaluation
Structure of Course (2)
Mission, vision and goals of Taxpayer Service, Assistance and Education
Taxpayers Rights and Taxpayer Service Standards
Organization and Management of Taxpayer Service, Market Segmentation, Channel Strategies, the Use of Modern Technology and Communication Strategies
Evaluation of Taxpayer Services
Performance measurement
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Course review, questions and summary
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Structure of course(3)
Lectures Workshops Discussions
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Tax Administration 1. OECD Work on Taxation
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OECD Work on Taxation
OECD work on taxation is directed by the Committee on Fiscal Affairs (CFA), supported by the Centre for Tax Policy and Administration (CTPA).
The CFA sets standards and exchanges views in the tax area on international and domestic policy and administration issues.
Activities to promote its standards and views include its Global relations Program delivered for non-members.
Its role is to promote an environment supporting effective fiscal sovereignty of countries over the design and implementation of tax systems, which reflect each country’s social, economic, & political preferences.
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Our Mission
To maintain our position as the organisation of first choice for countries - OECD and non-OECD – to work together to develop international tax standards and identify ways to improve the design and operation of tax systems.
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Tax Systems Operate in a Rapidly Changing Environment
Financial liberalisation, increased regional integration and new communication technologies have enabled taxpayers to plan and operate on a global basis. Capital, labour and consumption have become much more mobile.
Competitive pressures have encouraged enterprises to restructure their business to minimise costs, including tax costs.
Economic activity is shifting away from manufacturing to services.
The OECD Tax World: The Structure and Work of the Committee on Fiscal Affairs (CFA)
The focal point for the OECD’s tax work is the CFA, serviced by the Centre for Tax Policy and Administration (CTPA).
• • • • • • •
Tax treaty issues and related questions Tax policy analysis and for statistical work Taxation of multinational enterprises International tax evasion & avoidance, & the tax-related aspects of bribery Consumption taxes The Forum on Harmful Tax Practices The Forum on Tax Administration
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What does the CFA do?
• • •
Sets international tax standards for the global economy; monitor their implementation; provide mechanisms to resolve tax disputes.
Provides the analytical and statistical basis for good tax policy Identifies best practices and relevant comparative data for revenue bodies.
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Delivers large program of Global Relations events.
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OECD has proven that it is well placed to help governments respond to these challenges
Providing the analytical & statistical underpinnings for tax reforms. Adapting international tax arrangements to the new global environment. Counteracting the spread of tax havens.
Examining the impacts of taxes on competitiveness & growth.
Linking the Tax and Aid Development Agenda.
Providing guidance & comparative information for tax administrations.
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Engaging Non OECD Economies (NOE’s) is Central to our Mission
Extending observer ship (current observers: Argentina, China, India, Russian Federation, & South Africa).
Enlargement (new member Chile, accession candidates: Estonia, Israel, Russia, and Slovenia) Enhanced relationship candidates: China, Brazil, India, Indonesia, and South Africa Developing partnerships with key countries in each region.
Creating a global network of multilateral tax centers (e.g.
Ankara, Budapest, Korea, Mexico and Vienna).
Developing joint initiatives (e.g. ITD) with other international organizations.
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International Tax Dialogue
The International Tax Dialogue (ITD) is a collaborative arrangement involving the EU, DFID, IDB, IMF, OECD, and World Bank to encourage and facilitate discussion of tax matters among national tax officials, international organisations, and a range of other key stakeholders.
increase cooperation share good practice, knowledge and experience improve tax policies and administration
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International Tax Dialogue
Activities have focussed on creating dialogue opportunities through: Online resources Conferences and forums Shared technical assistance information
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Online resources
www.itdweb.org is a free, multilingual, multinational internet site
operated by the ITD. The site provides a mechanism for countries and organisations to share knowledge and experience with each other, quickly, easily and globally
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www.itdweb.org
A broad range of both
administration
and
policy
are covered: topics Tax policy Personal & corporate income tax VAT/GST & sales tax Other taxes Domestic tax avoidance &evasion
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www.itdweb.org
A broad range of both
administration
and
policy
are covered: topics Taxation of multinationals Treaties Other international issues Tax procedure Organisation and management of tax administration Service delivery & community relationships
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www.itdweb.org
Information is available in 8 languages: English, Dutch, French, German, Japanese, Norwegian, Spanish and Russian. Online translation facilities are provided.
Over
3000 documents
from a range countries and organisations are currently available with more added everyday Documents can be accessed through a tax topic structure, by keyword, country, date, language, etc Other resources include: news, events calendar, extensive range of links and contact information for more than 100 countries
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www.itdweb.org
Success lies in the knowledge and experience national tax organisations share with one another
All countries are encouraged to share their own information using the site
Adding documents is very quick and easy and can be done from anywhere in the world
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ITD Conferences and forums
The first global conference was held in March 2005, in Rome, on Value Added Tax (VAT) topics The second conference was held in October 2007 in Buenos Aires considering Taxation of Small and Medium Sized Enterprises. The third conference was held in October 2009 in Beijing, on Financial Institutions and Instruments – Tax Challenges and Solutions
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Tax Administration: Key Areas of Work
Organisational risk management (incl. note on ‘state of the art’ compliance measurement indicators & methodologies).
Selected key issues in tax debt collection.
Approaches to large taxpayers’ compliance management.
VAT abuses: update on countermeasures and their impacts.
Developments with pre-filled tax return systems.
Developments with ‘joined up/whole of government’ service delivery and use of technology in service delivery.
Comparative information series (3 rd edition
).
Comparative Information Series
25 A unique series of tax administration related information on 45 countries, including: -
organizational design features (incl. office networks)
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taxes collected and non-tax functions; service delivery standards tax return and payment system features; use of tax withholding; service delivery standards; relative tax burden data; audit and debt collection performance information; staffing and relative costs of administration; progress with electronic service delivery; TIN system features; and key administrative powers and sanctions.
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Seoul Declaration September 2006
Further developing a directory of aggressive taxplanning schemes Examining the role of tax intermediaries in relation to non compliance Greater attention to the linkage between tax and corporate governance Improving the training of tax officials on international tax issues, including the secondment of staff from one administration to another
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Cape Town Communiqué January 2008
Follow up Seoul Declaration: Achieving an enhanced relationship Focus on the role of tax intermediaries in aggressive tax planning has evolved by broadening its focus into a wider review of the tripartite relationship between tax administrations, taxpayers and intermediaries.
Report focused on large corporate taxpayers and those providing them with tax advice.
Enhanced relationship Main conclusions report (1)
28 Tax intermediaries play a vital role by helping taxpayers understand and comply with their tax obligations However some are also designers and promoters of aggressive tax planning Taxpayers are the ones who decide whether to adopt particular planning opportunities Risk management is an essential tool for tax administrations Relationship between tax administrations and taxpayers would be based upon early disclosure of potential tax issues and transparency
Enhanced relationship Main conclusions report (2)
29 Tax Administrations should base their relationship with taxpayers and intermediaries upon 5 fundamental attributes: Understanding based on commercial awareness Impartiality Proportionality Openness Responsiveness Large corporate taxpayers would then be more likely to engage in a relationship with tax administrations based on cooperation and trust
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Paris declaration May 2009
(1) To continue to work together to improve tax administration, taxpayer services and tax compliance – both nationally and internationally.
(2) To continue to promote strong corporate governance in the area of tax.
(3) To continue to support tax administrations in developing economies.
Building transparent tax compliance by banks and Engaging with
HNWIs on tax compliance
– Common themes
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Improved understanding
– The need for business awareness by tax administrations, in relation to both business and HNWIs and, conversely, the need for taxpayers and their advisers to understand the objectives of tax administration and policy.
Greater transparency
- The need for greater transparency on tax issues by taxpayers, tax intermediaries and tax administrations.
Working co-operatively
– The importance of global co-operation among tax administrations in sharing experiences and information on abusive arrangements, particularly of aggressive tax planning.
Tailored responses
– The need for tax administrations to achieve a balance between targeted intervention driven by effective tax risk management and the growth of trust with business, HNWIs and tax intermediaries which can create mutual interest in improving compliance
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