helping to create effective and efficient tax systems policy and business practices Commission on Taxation Tax Charters: helping to create effective and efficient tax systems Georg Geberth, Attorney at Law, Director Global Tax Policy, Siemens Ian Young, International Tax Manager, ICAEW 14 May 2018 | New York City, USA

a tax charter: what is it? “The taxpayers’ charter is an attempt to summarise and explain in plain language a taxpayers’ rights and obligations in relation to their tax affairs, making such information much more widely accessible and understandable.” (OECD – Taxpayers’ Rights and Obligations – Practice Note (2003)) “A short accessible statement of the basic rights and [obligations] of taxpayers in dealing with the tax authorities” Philip Baker QC

Create a more efficient and effective tax system A tax charter: why? Create a more efficient and effective tax system Improve tax compliance A balanced approach: Tax administration and taxpayer Build trust between tax administrations and taxpayers Enhance certainty for taxpayers

Balanced approach to rights/obligations Recognition of the rights and obligations of both taxpayers and tax administrations Generally recognised/respected principles Standards that provide for effective administration Builds mutual trust and respect and helps compliant tax payers

Importance and Benefits Allows open, understandable and transparent approach Accounts for circumstances and behaviour in being professional, responsive and fair Facilitates cooperation between administrations and taxpayers Reduces burden on society of uncompliant taxpayers Ensures fair treatment for local businesses as well as MNEs

Tax charters: how? (1) Kenya Audits, investigations, inspections Payment arrangements and enforcement Processing of returns, refunds, and bonds Enquiries, complaints and objections Accuracy of filing and disclosure Cooperation Tanzania Registration Permits and licenses Tax assessment Tax incentive and exemptions Tax collections Remission of revenue to the government Tax refunds Tax investigation Debt management Taxpayer education Customs clearance Provision of trade statistical data Training

Tax charters: how? (2) Ghana Revenue Authority Balanced responsibilities/commitments for tax payers/tax administrations Tax administration Efficient processing Enabling environment for compliance Education on rights and obligations Penalties and interest for non-compliance Refund for overpayments Issue tax clearance certificates Provide fair assessments for indirect tax purposes   Tax payer Compliance with legal obligations Keep accurate and update-to-date records Respect staff at revenue authority Be truth and honest in furnishing information Adhere to procedures, regulations and laws File returns and pay all taxes by due date Demand written communication for queries/objections

Tax Charters: A GLOBAL PHENOMENON European Commission – A Model of a European Taxpayers’ Code OECD – Taxpayers’ Rights and Obligations – Practice Note (2003) OECD – Tax Administration 2017 publication – 55 countries covered (see Table A.124) CFE Tax Advisers Europe – Model Taxpayer Charter IFA/IBFD Practical protection of taxpayer rights ICC Tax Charter provides a common international approach to Tax Charters for individual countries

ICC Tax Charter Taxpayer Fairness eg. Fulfill tax responsibilities in good faith, and in a professional and timely manner Non-discrimination Rule of law eg. Meet all relevant legal obligations Reasonable compliance burden eg. Provide information promptly and efficiently Privacy eg. Respect tax administration’s rights to hold, disclose and withhold information where permitted by law Efficiency eg. Cooperate fully in dealings with tax administrations Representation eg. Be aware of the information and payments a representative sends to tax administrations

ICC Tax Charter Tax Administration Fairness eg. Ensure that the tax system is administered fairly, honestly and with integrity Non-discrimination eg. Act neutrally, free from any inappropriate influence, and without bias or preference Certainty Ensure that the tax system is administered to provide, as far as possible, certainty and clarity and avoid instances of double taxation Rule of law eg. Ensure consistent interpretation and application of relevant double taxation conventions Reasonable compliance burden eg. Provide a helpful, efficient and effective service and keep compliance costs to a minimum Privacy eg. Protect information obtained or held, establish standardised procedures to mitigate potential privacy risks and share information with third parties only as permitted by law Efficiency eg. Provide accurate, clear and timely information to enable taxpayers to fulfill their tax obligations Representation eg. Allow taxpayers to be represented by a person of their choosing

ICC is cognizant of business’ role in the system and in society ICC tax charter: process & next steps ICC is cognizant of business’ role in the system and in society ICC encourages a mutual relationship of trust, respect and responsibility between tax payers and tax authorities Final ICC Tax Charter expected for distribution by 1st of June Future ICC engagement with UN Tax Committee for the October meeting in Geneva

Q&A Any questions?

Thank you For further information, contact: Raelene Martin Policy Manager Commission on Taxation International Chamber of Commerce (ICC) E-mail: raelene.martin@iccwbo.org Include contact information?