nov 20 and 211 Study visit Inland Revenue Service of Chili Amsterdam 20 & 21 november 2007 Hans Rouw Tom Quelle Dutch Tax and Customs Administration Belastingdienst Amsterdam BIENVENUDOS

nov 20 and 212 Dutch Tax and Customs Administration = Belastingdienst

nov 20 and 213 Welcome in Amsterdam 20 & 21 november 2007

nov 20 and 214 More than 200 year experience with taxation Advantages but also disadvantages Constantly changing environment: so a constantly changing organisation Laws that are political instruments Entering the “E-world”

nov 20 and All kind of public information on the web site. In the future everyone a “personal status site”

nov 20 and 216 The Netherlands Economic activities Clogs, Tulips and Windmills

nov 20 and 217 Europe - European Union. Old members New mebers Potential members Waiting-room

nov 20 and 218 The Netherlands Over 16 million inhabitants enterprises (MKB) large organisations (MGO) very large organisations (ZGO) 25 global players (ZGO) import/export country (small) financial center in Europe large continental shelf many taxes and tax-treaties

nov 20 and 219 Summary of Taxes in The Netherlands Taxes on income, profits and net wealth Taxes and duties on goods and services Social security contributions

nov 20 and 2110 Dutch Taxation Income, profit, net wealth Income tax Corporate tax Dividend tax Inheritance tax Salaries tax Tax on games and chance Goods and services VAT Import duty Insurance tax Motor vihicle tax Environmental tax Regulatory energy tax

nov 20 and 2111 Difference between commercial annual report and fiscal report. Commercial annual report on basis of international financial reporting standards (IFRS) or Dutch accountanting/auditing standards. Annual fiscal report on basis of fiscal legislation and fiscal rules. Requirements SEC (US-GAAP) AFM

nov 20 and 2112 Accounting, Auditing and Tax- advisor Every enterprise in the Netherlands has its own tax-advisor. Bookkeeping and accounting mostly “in house” or with the support of specialist. External auditing only in large companies.

nov 20 and 2113 The government in The Hague

nov 20 and 2114 Dutch National Bank

nov 20 and 2115 Ministery of Finance

nov 20 and 2116 The Top Minister of financeState-secretary for tax and customs mr. W. Bos mr. K-J. de Jager mrs. Thunnissen Director general Belastingdienst

nov 20 and 2117 The Dutch Treat Tax and Customs Administration of The Netherlands Belastingdienst / Amsterdam

nov 20 and 2118 Integrated Tax and Customs organisation 4 regional customs-offices 13 regional tax-offices

nov 20 and 2119 Dutch Tax and Customs Org.

nov 20 and 2120 Belastingdienst / Regions Tax organisation of The Netherlands 1. Noord 2. Oost 3. Randmeren 4. Rivierenland 5. Utrecht-Gooi 6. Amsterdam 7. Holland Noord 8. Haaglanden 9. Holland Midden 10. Rijnmond 11. Zuidwest 12. Oost-Brabant 13. Limburg

nov 20 and 2121 Two main offices for very large organisations Amsterdam Rotterdam

nov 20 and WEST 2. ROTTERDAM 3. North 4. South Belastingdienst/Regions of customs

nov 20 and 2123 General policy statements Dutch Tax and Customs Administration promotion of compliance communication with and service to taxpayers from D-service to E-service uphold (tax-)laws unity in performance

nov 20 and 2124 Compliance policy Investigation & monitoring (intelligence) Co-ordination Maintaining Compliance Content of legislation Agreements Communication Actions an themes Specific investigations Fraud investigations Administrative supervision Interactive Wanted effect: compliance

nov 20 and 2125 Pyramid of supervision ‘Opsporing’ High risk intensive supervision mass supervision information service CRM Low risk

nov 20 and 2126 Difference in treatment between individuals and companies Treatment of individuals is highly automated (internet) Treatment of small companies will be automated in the next 5 years. Complicated fiscal legislation for companies Administrative obligations for companies Roll of tax advisor and tax auditor

nov 20 and 2127 Dutch Global Players Royal Dutch Shell Ahold Akzo Nobel KPN Telecom Unilever ING ABNAMRO Philips Heineken Air France KLM Corus Dutch State Mines Sara Lee

nov 20 and 2128 Cash cow >50% of the total Dutch tax revenue is generated by very large taxpayers

nov 20 and 2129 Special treatment Very large companies Bank companies Insurance companies Stockexchange service Energy companies Oil & gas companies Football organisations Advance rulings

nov 20 and 2130 Tax Rulings History 1989 local ruling taxinspector 1990 concentration rulingtaxinspectors in Rotterdam 1997 EU Harmfull taxcompetitionreport 2001 APA/ ATR practice

nov 20 and 2131 APA/ATR practice APA = advance pricing agreement ATR= advance tax ruling Concentration in Rotterdam Important role for knowledge group (CGVP) Codification of the “arm’s length priciple” Obligation for transparant documentation Some new legislation Study of substance rules in tax havens Taylor made agreements

nov 20 and 2132 Knowledge groups Fiscal-law knowledge groups “Combat groups” against (tax avoidance/evasion) Co-ordination of actions against fraud Knowledgegroup for very large organisations

nov 20 and experts handling very large organisations Tax inspectors Tax auditors Tax collectors Client co-ordinators Managers Administrative support

nov 20 and levels in education 1. University (external) 2. Intermediate (internal) 3. Lower (internal)

nov 20 and 2135 Process of selection: orientation in 2 directions Mass production –only special risks & selected risks for small companies and individuals Tailor-made production –complex companies & very large companies

nov 20 and 2136 Tailor-made production very large enterprises Central role of the accountmanager / client co-ordinator Try to make a convenant Tailor-made risk finding Support bij an information system (ATK) Plan of handling

nov 20 and 2137 Selection process “tailor-made” Two steps: Co-ordinator (spider) –analyses the risks of his/her clients Selection team –negotiating about risks that have to be handled –deviation of risks between specialists Role of the “ATK “ (information)system

nov 20 and 2138 Audit-plan large enterprises Based on the plan of handling Tax control framework Risk oriented approach Partial or full audit EDP assisted

nov 20 and 2139 Role of the co-ordinator Initiator Match-maker between specialists and company Negotiator Specialist in own discipline ( b.e. transferpricingaudits) Communication problem solver “The one everyone can blame if something goes wrong”

nov 20 and 2140 Preliminary consultations Special rules and instructions for tax rulings. European demension

nov 20 and 2141 New developments Convenants with very large organisations

nov 20 and 2142 The End