Examinations and Collection
Abroad
Marian Bette
CIAT correspondent
Netherlands Tax and Customs Administration
Buenos Aires, 24 april 2013
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Content of presentation
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International cooperation between tax administrations
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International Tax Audits
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International Tax Collection
International Cooperation
Statutory framework for international cooperation
- national legislation
- bilateral treaties and TIEAs
- multilateral regulations
Organizing international cooperation
- 1 central liaison office: competent authority for exchange of
information on taxes and collection
- 1 Expert Group International Tax Auditing
- Expert EoI contactpoints in tax offices
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International tax audits
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Statutory building blocks
Assistance in person/presence of officials abroad
Simultaneous tax audits
International Frameworks
Bilateral agreements with Belgium and Germany
Multilateral Controls in EU
Joint audits
Bilateral agreements Belgium & Germany
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Intensify cooperation with neighbouring countries
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CA-mandated officials
Multilateral Controls (EU)
Key elements
- Memberstates agree
- coordinated financial control
- of one or more related taxable persons
- control has complementary or common interest
Organization framework
- MLC coordinator in each Member state
- audits carried out by local auditors in conjunction with CA
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MLC: Steps
Key steps
- initiative
- start up meeting: strategy -> intra community control plan
- execution of the audit
- concluding meeting -> joint report
Key goals
- ensure correct tax (EU and national legislation)
- MLC is part of standard audit activity
- share knowledge about audit practices
- test and improve MLC procedures
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MLC: Facts and Figures
NL participates in 20 new MLCs annually (65% initiative of NL)
2011 topics: internet services, alcoholic beverages, carrousel fraud,
real estate, migrant labour and second hand cars
2011 revenue: 583 million euro in tax & 18 million euro in penalties
Revenue for Netherlands: 68 million
5 cases no Dutch assessments but valuable EoI
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H M Revenue &
Customs
Federale
Overheidsdien
FINANCIEN
Finanzamt für
Großbetriebsprü
ung
MLC: Lessons learnt from practice
Taxes
VAT
Income Tax
Behavioural effects
Decrease in use of avoidance schemes
Structural contacts between Tax Auditors
Other effects
Direct line of communication improves quality of exchanged info
450 requests for information with average reply in 3 weeks
280 spontaneous exchanges of information & guaranteed use
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Taking simultaneous audits outside Europe
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Joint audits (FTA)
Key elements
- two or more countries joining: single audit team
- examine crossborder transactions/issues
- joint presentations to & shares information with countries
- CA on the team
Main objectives
- added value
- common or complementary interest
- domestic audit not sufficient: obtain a complete picture
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Joint audit: Steps
Key steps
- preparation process
- selection process
- planning meeting
- auditing process
- joint information requests
- examinations
- meetings with taxpayer
- final stages : concluding meeting and joint report
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International tax audits - recap
• Completing the puzzle
• Linking CA and Auditor expertise
• Agreement on procedural steps
• Awareness legalities
• Communication, communication, communication!
Collection abroad
Policy
Policy: incorporate broad mutual assistance provisions on the
collection of taxes in all relevant international instruments &
apply them in practice
Framework
• Broad
tax collection assistance under the EU Directive
2010/24/EU (as of 1-7-2013: 28 EU members)
• Non EU countries: 25 DTC’s with tax collection provision
• Multilateral convention (reservations on tax collection)
Effective cooperation in collection
Considerations: workload and reciprocity
Solution:
- step by step approach
- direct approach
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Dutch farmers abroad with tax debts
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Case in brief
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Work with treaty partner: agreement on permission to
directly contact tax debtors
Extra measure: contact with banks and help for tax debtors
And in the Netherlands: passport alert and threat of
imprisonment
Results
- More than 90% of the farmers paid their taxes
- Regarding the others, further assistance from treaty partner
- Finally, with some exceptions, all have paid
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Lesson learnt : be creative and innovative
Benefit: not over-burden treaty partner
This approach may be viable if
 there is a huge imbalance in factual reciprocity
 it is about a high number of tax payers with substantial debts
 it is not possible for the treaty partner to collect by applying
less burdensome collection measures
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GRACIAS!