Organisation for Economic Co-operation and Development
Risk Management and
1. Opening/Overview/Introduction OECD
Kampala, 17 – 21 May 2010
Centre for Tax Policy and Administration
Your presenters and helpers
Matthijs Alink ( OECD Centre for Tax Policy and
Objectives for the seminar
To increase understanding of international practices and
developments in the areas of risk management and
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.
To answer specific issues raised by participants.
Our approach to your interests and
*** 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
Structure of course (1)
OECD Work on Taxation
General Introduction on Tax Administration
Organizational Structure and Management
Compliance Risk Management
Risk Identification, Risk Analysis, and Risk
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
Evaluation of Taxpayer Services
Course review, questions and summary
Structure of course(3)
1. OECD Work on Taxation
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.
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.
Tax Systems Operate in a Rapidly Changing
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).
Seven Subsidiary Bodies:
• 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
• Consumption taxes
• The Forum on Harmful Tax Practices
• The Forum on Tax Administration
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
12 •Delivers large program of Global Relations events.
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.
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
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
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.
share good practice, knowledge and experience
improve tax policies and administration
International Tax Dialogue
Activities have focussed on creating dialogue opportunities
Conferences and forums
Shared technical assistance information
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
A broad range of both administration and policy topics
Personal & corporate income tax
VAT/GST & sales tax
Domestic tax avoidance &evasion
A broad range of both administration and policy topics
Taxation of multinationals
Other international issues
Organisation and management of tax administration
Service delivery & community relationships
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
Information is available in 8 languages: English, Dutch, French,
German, Japanese, Norwegian, Spanish and Russian. Online
translation facilities are provided.
Other resources include: news, events calendar, extensive
range of links and contact information for more than 100
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
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
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 (3rd edition).
Comparative Information Series
A unique series of tax administration related information on 45
- organizational design features (incl. office networks)
- 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.
Seoul Declaration September 2006
Further developing a directory of aggressive taxplanning
Examining the role of tax intermediaries in relation to
Greater attention to the linkage between tax and
Improving the training of tax officials on international tax
issues, including the secondment of staff from one
administration to another
Cape Town Communiqué January 2008
Follow up Seoul Declaration: Achieving an enhanced
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.
Main conclusions report (1)
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
Relationship between tax administrations and taxpayers
would be based upon early disclosure of potential tax
issues and transparency
Main conclusions report (2)
Tax Administrations should base their relationship with
taxpayers and intermediaries upon 5 fundamental
Understanding based on commercial awareness
Large corporate taxpayers would then be more likely to
engage in a relationship with tax administrations based
on cooperation and trust
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
Building transparent tax compliance by banks and Engaging with
HNWIs on tax compliance – Common themes
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