Tax Morale: LAC Roundtable - OECD
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Tax Morale: LAC Roundtable
18,19, 20 May 2020
Background
Tax morale is generally defined as the intrinsic motivation to pay taxes. A better understanding of what
motivates taxpayers to participate in, and comply with, a tax system is valuable for all countries and stakeholders
particularly as they try to meet the challenges of both raising revenue and supporting growth in response to the
COVID-19 pandemic. Tax administrations can benefit from increased compliance and higher revenues,
taxpayers (both businesses and individuals) are better served by tax systems that understand and are responsive
to their needs, while increased data and discussion can help researchers deepen their understanding. In addition,
such understanding can help organisations, such as civil society groups, improve communication on taxation,
and development partners to maximise the impact of development assistance.
As part of its broader work on tax morale, the OECD has recently carried out a perception survey on more than
1,240 officials working in Tax Administrations in 139 countries (most of them tax auditors). The survey aimed
to capture the perceptions that tax officials have on the tax behavior of large/multinational companies, and on the
four major accounting firms. The sample includes 325 responses from 30 countries in the Latin America and the
Caribbean (LAC) region. For some LAC countries there is a larger sample size, which would allow a more
detailed analysis at the country level (for example, in the case of Colombia or Honduras).
The survey was based on responsible tax principles and voluntary codes of conduct adopted by businesses, more
specifically, on the Business at OECD Statement of Tax Best Practices for Engaging with Tax Authorities in
Developing Countries and on the Codes of Conduct for Responsible Tax Practice for each of the four major
accounting firms.
The results of this survey complement a prior OECD study on the drivers of tax morale in businesses and
individuals conducted in 2019, which served to understand how businesses perceive the tax climate in LAC and
other regions. The study showed that the relationship between tax authorities and businesses is at the heart of
most sources of tax uncertainty.
Goal of the roundtable
To facilitate a dialogue aimed at building tax morale, through improving cooperation and mutual trust between
MNEs and tax authorities. The discussions will focus on identifying key issues for both MNEs and Tax
Authorities, and potential tools and approaches to use going forward. Drawing on the findings of empirical
surveys conducted by the OECD, some of the priorities for the region include: improving interactions between
MNEs and authorities; directing interactions towards formal channels; improving guidelines and guidance; and
preventing disputes and early resolution of disagreements.
Target audience
The seminar is open to tax policymakers and administrators from tax administrations in the LAC region, MNEs
operating in the region, as well as tax professionals, and relevant business associations.
In the case of Administrations, we ask you to register a maximum of 3 participants per country, by selecting
officials who deal directly with the taxation of large companies and officials involved in decision-making
processes on public policies and implementation of procedures to deal with large companies. We recommend the
selection of participants who are familiar with the topics to be discussed (relationships with large taxpayers,
voluntary compliance, taxation and auditing of large taxpayers, dispute resolution ...).
Organisation of the Seminar
The seminar consists of a mix of presentations, panel discussions and moderated brainstorming sessions.
Participants are encouraged to consult the key documents (see next section) prior to the event.Key Documents
The following documents will be useful background for this roundtable discussion:
• Tax Morale: What Drives People and Businesses to Pay Tax
• The Business at OECD Statement of Tax Best Practices for Engaging with Tax Authorities in
Developing Countries
• Declaration of the 45 CIAT General Assembly on Tax Morale and featured documents.
• A concept note with the main findings of the latest perceptions survey will be circulated among those
registered
Registration
Please register in advance for this meeting in the following link
https://ciat-org.zoom.us/webinar/register/WN_Z60kAVWcS3WvEfKMbvETmg.
Contact
For all enquiries, please contact CTP.GlobalRelations@oecd.org and Maureen Pérez mperez@ciat.orgDRAFT AGENDA
18 May Day 1 – SESSION WITH BUSINESSES (15H30-17H00 PARIS TIME)
Session 1 Presenting the findings – latest OECD research on business tax morale and business behaviour in
LAC
In this session, the OECD and CIAT will present recent research from the OECD on the perceptions
that tax authority officials have of large business and Big 4 behaviour, and the specific findings of
this research for the LAC region. Business at OECD will provide a reflection from the business
viewpoint, and outline the business perspective on tax morale.
15:30 – 16:00
All times are
Central Moderator: TBD
Eastern Time
(GMT +2) • Joe Stead, Senior Tax Adviser, CTPA, OECD
• Gonzalo Arias, Cooperation and International Tax Director, CIAT
• Alejandro Juárez, Director of Training and Human Talent, CIAT
• Alan McLean, Vice Chair, Business at OECD Tax Committee
Session 2 Open discussion – what hinders voluntary compliance in the LAC region?
Based on the findings of the OECD surveys, business representatives will be invited to share their
experiences and reflections. Representatives will have the opportunity to discuss any obstacles
experienced when trying to comply with tax regulations in the region, as well as good practices
identified in cooperative compliance programmes and other approaches taken by tax
administrations to strengthen relationships with businesses.
Moderator: TBD
Key points to consider for discussion may include:
• The survey suggests that the relationship between business and tax authorities is
especially challenging in the LAC region – is that perception shared by business?
16:00 – 17:00
• Tax incentives appear to be a particular concern in LAC – MNEs view them as important
for investment, while authorities see a significant misuse. Are there countries in LAC
getting tax incentives right? If so, how?
• There is some evidence showing that corruption is a challenge in LAC. What are MNEs
doing to limit corruption in the region? What government policies are helping in reducing
corruption?
• LAC is the region where disputes between authorities and companies arise most
frequently during audits, what are the main causes of disputes, are there any incentives
to try to avoid disputes?
• Internal barriers: are there any difficulties in compliance due to lack of communication
between subsidiaries and headquarters?19 May, Day 2 - SESSION WITH TAX ADMINISTRATIONS (15H00-17H45 PARIS TIME)
Session 1 Presenting the findings – latest OECD research on business tax morale and business behaviour in
LAC
In this session, the OECD and CIAT will present recent research from the OECD on the perceptions
that tax authority officials have of large business and Big 4 behaviour, and the specific findings of
this research for the LAC region.
15:00 – 15:30
All times are Moderator: TBD
Central
Eastern Time • René Orozco, CTPA, OECD
(GMT +2) • Gonzalo Arias, Cooperation and International Tax Director, CIAT
• Alejandro Juárez, Director of Training and Human Talent, CIAT – to contextualize the
findings of the survey according to their experience with the particularities of countries
in the LAC region and based on OECD findings
Session 2 Open discussion – how to improve voluntary compliance in LAC?
Based on the findings of the OECD surveys and the presentations made by Tax Administrations,
delegates will be invited to share their views and reactions. Delegates will have the opportunity to
discuss practical experiences about what worked well and less well when trying to build a positive
relationship with large taxpayers, as well as any other obstacles and good practices identified to
encourage voluntary compliance. This discussion will help the moderators prepare for the round-
table discussions with tax administrations. Participants are free to raise any issues, but key points
to consider may include:
Moderator: TBD
• Tax incentives appear to be a particular concern in LAC – MNEs view them as important
for investment, while authorities see a significant misuse. Are there examples of how
15:30 – 16:30 MNEs are misusing tax incentives and/or approaches to limit this?
• How far is building voluntary compliance prioritised within the administration? How does
this compare with the prioritisation of enforcement?
• There is some perception that corruption is a challenge in LAC, what policies are working
well to reduce corruption?
• How easy/difficult is communication with large businesses, what policies/processes
make it easier/more difficult?
• LAC is the region where disputes between authorities and companies arise most
frequently during audits, what are the main causes of disputes, what are the main causes
of disputes, are there any incentives to try to avoid disputes?
• Internal barriers: have you detected areas in which your administration could improve its
assistance to large taxpayers (guidelines, digitalisation of processes…)? Which difficulties
have you noticed that taxpayers experience when they try to cooperate?
16:30 – 16:45 Break – return to plenary
Session 3 Encouraging compliance in LAC
Representatives from selected Tax Administrations from the region will share their experiences in
using co-operative compliance programmes, in using communication tools addressed to large
taxpayers, and in the use of other mechanisms and programmes to strengthen their relationship
16:45 – 17:45 with businesses and encourage compliance.
Moderator: Santiago Diaz, Tax Studies and Research Director, CIAT
• Presentations by selected Tax Administrations from the LAC region20 May, Day 3 – JOINT SESSION WITH BUSINESSES AND TAX ADMINISTRATIONS
(15H00-18H15 PARIS TIME)
Session 1 Opening
15:00 – 15:15 Welcome remarks
All times are
Central • Grace Pérez-Navarro, Deputy Director, CTPA, OECD
Eastern Time • Marcio Verdi, Executive Secretary, CIAT
(GMT +2)
Session 2 Diving into perceptions: how MNEs and Tax Authorities see each other
In this session, the OECD will provide a brief recap of the most relevant findings of the
aforementioned OECD survey on tax morale in business, with a focus on the reactions that it
generated in businesses and Administrations. Reactions and insights will be presented in a general
and anonymised manner, followed by presentations from selected tax administrations and
businesses that will discuss the realities they face. This will provide a reference point for the rest
15:15 – 16:00 of the roundtable, through identifying areas of concern from both the MNE and Tax Authority
perspective, and possible areas where there may be mutual interest in action.
Moderator: TBD
• OECD briefing of previous days and main findings of the research
• Presentations by tax administration, business representative and representative from the
Big 4
Session 3 Open discussion – way forward: what tools and practical approaches can be used?
The OECD’s analysis of the perceptions surveys shows that conversations about tax morale tend to
centre around certain themes: communication; trust; transparency; integrity; and timeliness.
Focussing on these themes, along with others that have come from the previous discussions, this
session will seek to identify some potential tools and/or approaches that may help to improve the
MNE – tax authority relationship in the LAC region.
16:00 – 17:15
In this session, participants will be placed in mixed breakout rooms where representatives from
Administrations and Businesses will be able to exchange with each other their experiences and
ideas on practical tools to improve their cooperation.
This session will take place in parallel breakout rooms. Moderators: OECD /CIAT
17:15 – 17:30 Break – return to plenary
Session 4 Way forward: what tools and practical approaches can be used?
17:30 – 18:00 Debrief from each breakout group and open discussion
Session 5 Closing Remarks
• OECD, Grace Pérez-Navarro, Deputy Director, CTPA, OECD
18:00 – 18:15 • Marcio Verdi, Executive Secretary, CIATYou can also read
