Recovery of Duties
4. March 2011
Content
1) Administrative Position of Tax Collection Authorities
2) Relevant Acquis
3) Icelandic Legislation
4) International Conventions
5) Gap Analysis
Separation of Tax Assessment and
Collection
Tax assessment
• Internal Revenue
Authority
Collection
• Directorate of
Customs in the
District of Reykjavík
• 23 District
Commissioners
Administrative Position of Tax
Collection Authorities
• Tax Collection Authorities are subsidiary to the Ministry of
Finance
• Administrative Complaints for tax collection issues
• Special Role of Directorate of Customs regarding tax
collection:
• The Directorate of Customs has been given the role to
supervise and guide other Tax Collectors (23 District
Commissioners). The Directorate of Customs has issued
written instructions regarding Tax Collection Procedure.
Relevant Acquis
•Council Directive 2008/55/EC
•In force untill 31.12.2011
•Council Directive 2010/24/EU of 16 March 2010 (OJ
L84, 31.3.2010, p.1)
•In force from 01.01.2012
•This presentation is based on the new Directive
Icelandic Legislation
•Act no 90/2003 on Income Tax
•XIII. chapter
•Act no 90/1989 ( General laws regarding
enforcement/distraint)
•Act no 90/1991 (Forced sale)
•Act no 21/1991 on Bankruptcy, etc.
•Administrative Procedures Act no 37/1993
Icelandic Legislation
•2 par. 119. art. of the Income Tax Act
•The government is […]allowed to negotiate with
other countries on the mutual exchange of
information and concerning the collection of public
dues.
International Conventions
•Nordic Convention on Mutual Administrative Assistance
in Custom Matters (Act no 94/1980)
•OECD Convention on Mutual Administrative Assistance
in Tax Matters (Act no 74/1996)
•MOU with the U.K. concerning assistance in the
collection of taxes under articles 11-16 of the
Convention
International Conventions
•Nordic Convention on Mutual Administrative Assistance
in Tax Matters from 1990 (Act no 46/1990)
•MOU with the Nordic nations concerning
assistance in the collection of taxes under the
Convention. (Stj.tíð. B, nr. 462/1991)
Nordic Convention
•Scope
•All tax types except custom charges and
administrative penalties (art 2 of the convention
and MOU)
•Interest and cost
•Forms of assistance
•Request for information
•Request for notification
•Request for recovery
•Requested authority applies national provisions
applying to the recovery of similar claims.
Nordic Convention
• Use of standard forms:
•For the instrument
permitting enforcement
•For information exchange
Statistics
Requests for Recovery
350
300
250
200
Requests recieved
Requests sent
150
100
50
0
2005
2006
2007
2008
2009
2010
Gap Analysis
• Directive 2010/24/EU must be transposed into national
legislation.
•Point 11, para. 1, art. 1. of Act no 90/1989
•International agreement
•Bound in Icelandic law
Thank you