1. 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 | New York City, USA

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

12. Q&A
Any questions?

13. Thank you For further information, contact: Raelene Martin
Policy Manager
Commission on Taxation
International Chamber of Commerce (ICC)
Include contact information?