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Fiscal Revenue

Fiscal revenue such as taxes, fees, products and exploitation, are revenue collected by the State to finance the activities of the public sector. From these, taxes constitute the majority of fiscal resources available for the State to finance its expenditures. Taxes can directly levy income, wealth or property (direct taxation) or they can levy consumption (indirect taxation). While taxes are intended to fund services provided by the public sector and serve as an instrument of fiscal policy, they can also have extra-fiscal purposes like the correction of market failures.

Below are studies that analyze some of the most relevant aspects related to fiscal revenue in Latin America.

Taxes
Lipsum

The economics of income taxes. A manual of tax estimations. -- August 2009 Ver

Martín F.

  • The objective of this manual is to contribute to the Offices of Tax Estimations in Latin America, a conceptual organization according to the importance of the subjects studied and a group of techniques and work methods in line with the national structure. This manual can be consulted to improve or reshape existing work procedures, to use new approaches to old tasks or, better yet, to change the organization of the office from a global overview of the issues inherent to it.

Lipsum

Unorthodox tax policy in Latin America countries -- January 2009 Ver

González D.

  • This study analyzes the implementation of taxes and special heterodox regimens in Latin American Tax Systems, such as taxes on financial transactions, taxes on corporate assets, presumptive income tax, flat rate business tax, special regimens of the rent from the agricultural sector, simplified regimens for small taxpayers.

Lipsum

Property tax in Latin America -- May 2008 Ver

De Cesare C. y J. Lazo

  • This study is a preliminary report on enforcement of patrimony taxes in Latin America, which takes into account institutional, management and fiscal policy issues. This type of taxes comprises a big number of alternatives, being the property taxes the option adopted by almost the totality of Latin-American countries. Although the diversity of patrimony taxes established in the region, their performance as an income source is insignificant, representing in average 0.94% of GDP (4.94% of tax burden). In contrast, OECD countries collect almost double in terms of GDP, and there is less dispersion among countries. The study tries to understand the differences among countries through the analysis of the relation between the performance of the tax as a source of income and a series of social and economic indicators. It is noted that in Latin America taxes on patrimony are minimal in most countries with a higher concentration of rent. Besides, in general, collection is lower in those countries with higher levels of poverty and low HDI and GDP. However, the results do not support the hypothesis that these taxes necessarily generate significant income when it comes to rich countries in relative terms.

Direct taxes in Latin America and the challenges to the income tax -- December 2007 Ver

Lipsum

Cetrángolo O. y J.C. Gómez-Sabaini

  • This document gives a preliminary characterization of the impact on equity of the tax systems in Latin America, with the objective of creating a framework for future case studies. In order to accomplish this, several subjects are introduced, grouped in two parts. The first part is dedicated to the introduction some considerations about levels of tax burden and tax structure, stressing the importance of the taxation called "direct" and the distributive of taxation in Latin America. The second, more specific, is concentrated on income taxation, its characteristics, main factors limiting its collection in the region, recent reforms and the studies on evasion. The type of approach proposed here requires further development traverse a variety of topics to help organize the analysis of different tax systems. The organization proposed in this paper admits a segmented lecture where the specialized reader can focus in the sections of most interest for him.

Lipsum

Income tax in the Central American Isthmus: comparative analysis and reform agenda -- July 2005 Ver

Gómez-Sabaini J.C.

  • The field of direct income tax is possibly the least analyzed in Latin America, and in particular in Central-American countries, possibly because the level of collection, as well as its evolution through this last decade have not been significant, on the contrary to what has happened with the VAT, whose generalization and growth have seen an unprecedented evolution. Nevertheless these circumstances, it is very useful for the countries in the region to know more deeply the elements affecting its behavior (of what? VAT o direct income tax?), and also the future policy options available to strengthen the role of taxes (which?). It is evident that a good taxation system requires an adequate balance of the different pieces integrating it. In this respect, it could be said that there are two opposite visions about the direction direct taxation should take in developing countries with small governments, namely, with weak tax administrations.

Lipsum

Tax reforms and fiscal stabilisation in Latin American countries -- Junio 2004 Ver

Martner R., V. Tromben

  • The fiscal burden in OECD (Organisation for Economic Co-operation and Development) countries more than doubles the overall taxation level in Latin American countries. In terms of revenue composition, OECD countries collect a larger share from direct taxes; there is also a greater component from social contributions.

    During the nineties, the revival of economic growth and the design of better tax systems enabled fiscal revenues to recover strongly, reaching an increase of 3 points of GDP (Gross Domestic Product). However, this effort has not been sufficient, considering the dynamics of public debt in an environment of high interest rates and low growth.

    In this paper, the main trends of tax burden and composition of tax revenues in Latin American countries are described, and then the short-term tax-gap, as OECD has defined it, are calculated for 18 countries. The reversal of economic cycle makes impossible to fill this gap in the short term without significant macroeconomic costs. Some room of manoeuvre, namely a cyclical safety margin, has to be considered.

    The magnitude of this cyclical safety margin is very significant, because of the volatility of output and the high value of tax elasticities, despite the relatively minor size of public sector when compared to OECD standards. If fiscal policy is more efficient when letting operate automatic stabilisers, then "second generation" macro fiscal rules will have to address on the issue of the pronounced pro-cyclical bias that defined fiscal policies in the nineties in many Latin American countries.

Lipsum

El Debido Proceso Administrativo para la Aplicación de los Tributos en República Dominicana. Tesis No. 4 -- March 2013 Ver

CIAT

  • Este documento pretende evaluar el procedimiento administrativo tributario de República Dominicana establecido en el Código Tributario y compararlo con el debido proceso determinado según la doctrina del derecho tributario y las buenas prácticas.

Lipsum

Thematic Bibliography: "Tax Morale" (No. 8) -- January 2013 Ver

CIAT

  • This issue of the bibliography contains the following: Tax morale, Tax awareness, Tax citizenship, Ethic and Other bibliographic references.

Lipsum

Aplicación de las Normas Internacionales de Información Financiera (NIIF) y su impacto en el ámbito de la Administración Tributaria -- December 2012 Ver

CIAT

  • A través de este trabajo, elaborado por la Secretaría Ejecutiva del CIAT, se dan a conocer los principales aspectos legislativos y administrativos suscitados en el campo de los precios de transferencia en los países de América Latina y una selección de países del Caribe. El mismo va dirigido a administraciones y especialistas tributarios interesados en analizar similitudes, diferencias y nuevos desarrollos domésticos en el ámbito de la política tributaria; como así también buenas prácticas y aspectos organizativos y administrativos en general.

Lipsum

El control de la manipulación de los precios de transferencia en América Latina y el Caribe ITC-GIZ-CIAT -- December 2012 Ver

CIAT

  • Este documento comprende las ponencias presentadas durante la conferencia técnica del CIAT, realizada en Lisboa, Portugal del 24 al 27 de octubre de 2011. El tema central se desarrolla alrededor de 3 subtemas: Las facultades de cobro de las AATT: la cobranza administrativa vs la cobranza judicial. Mecanismos eficaces de recuperación de los adeudos: medidas cautelares, facilidades o acuerdos de pago y remate de bienes. Herramientas de apoyo para la recuperación de los adeudos.

Lipsum

Estimación del Incumplimiento Tributario en América Latina: 2000-2010 -- Septiembre 2012 Ver

Pecho M., F. Pélaez y J. Sánchez

Lipsum

Regímenes Simplificados de Tributación para Pequeños Contribuyentes en América Latina -- Julio 2012 Ver

Pecho M.

Lipsum

La Doble Imposición y los Convenios Tributarios. Una especial referencia a la Red de Convenios de Panamá -- Junio 2012 Ver

Chiri I.

Lipsum

Administrative collection process as effective mechanism for increasing Revenues (CIAT Technical Conference. Lisbon, Portugal) -- June 2012 Ver

CIAT

  • This book includes the papers that were presented at the CIAT Technical Conference held in Lisbon, Portugal, on October 24-27, 2011. Topics: 1.The collection powers of the Tax Administrations: administrative collection process vs. statutory enforcement for collection. 2. Effective mechanisms for collecting debts: precautionary measures, payment facilities or agreements and auction of goods. 3. Support tools for the recovery of debts.

Lipsum

Thematic Tax Series - Collection (Year 2/No.4/September 2009) Ver

CIAT

  • Electronic publication which is a compilation, classification, selection and systematization by topics of documents presented in CIAT Assemblies and Conferences, essays, research work, tax administration review and studies and research carried out by the Center.

  • Table of contents:

    * Potential tax collection as a tax administration goal.
    * Defining and estimating potential collection. Analysis of the economic-tax potential and limitations thereto.
    * Strategies for Internal Revenue Collection: Approaches and Challenges. Key questions.
    * The strategies for achieving potential collection.
    * Potential collection as goal of the tax administration.
    * The collection function (filing and payment) through Internet.

Lipsum

The personalized VAT increasing the collection and compensating the poorest -- February 2011 Ver

Barreix A., M. Bès y J. Roca

  • This document examines the role played by the VAT in a modern tax system and analyzes different alternatives to increase the collection mitigating the regressive impact of this tax. A proposal is made regards the generalization of the tax base compensated with a transference to the poorest deciles of the population. To implement this proposal the authors propose adopting the methodologies for the identification of beneficiaries and delivery of benefits that are used in conditional cash transference programs successfully applied in most countries in Latin America. Estimates are examined for eight Latin American countries in order to identify the conditions under which the proposal is viable. The last section summarizes the main conclusions. This article is part of a broader work being carried out by the authors on fiscal policy and equity.

Lipsum

Taxation of income from Latin American trusts when the beneficiaries are residents in Spain -- September 2010 Ver

Á. Urquizu

  • The trust is a financial instrument used in most of the countries in Latin America. Spain is the main foreign investor in many of these countries and is increasing its participation in projects related to trust business. This paper discusses the tax treatment of income from American trusts in Spain, if the recipient of such income is resident in Spain.

Lipsum

Corporate restructuring clauses to avoid double taxation in the agreements signed by Spain with Mexico, USA and France. -- September 2010 Ver

A. Martínez Mier

  • The analysis made in this paper aims to determine the scope of implementation of the corporate reorganization clauses of agreements to avoid international double taxation (IDT) signed by Spain and Mexico, the U.S. and France.

    As a general proposition, these clauses aim to the elimination of taxation in the source country in relation to capital gains derived from the reorganization or restructuring of companies, developed through transactions such as mergers, stock swaps or non-monetary assets contributions and rights of corporate capital.

Lipsum

A brief history of income tax -- June 2010 Ver

Barreix A. y J. Roca

  • The income tax?really, the tax system that taxes income? has changed in its structure like no other, adapting to changes in trade and international finance, the different levels of economic and institutional development, the political-cultural conditions and the technological advances in administration, as well as different models of fiscal policy. This complex flexibility has allowed this tax to be the biggest collector of history during the period of greatest growth in the collection, the twentieth century. The income tax was the result of war and social tension, unlike the value-added tax (VAT), an instrument of efficient and fair trade that was driven by an early European Community (mainland) that thought economic integration would bring peace after a millennium of conflict..

Lipsum

Comparative study of tax systems in Latin America -- 2010 Ver

Alonso D, Á. Del Blanco, C. García-Herrera y L. Torrejón

  • This work gives a complete and organized view of the tax systems of eleven Latin-American countries (Argentina, Brazil, Chile, Colombia, Ecuador, Guatemala, Mexico, Peru, Dominican Republic, Uruguay and Venezuela) through the design in 2010 of their most representative taxes:

    - Personal income tax;

    - Corporate income tax;

    - Property tax;

    - Value Added Tax (VAT);

    - Special taxes.

    The objective of this work is to contribute to a better knowledge of the different tax models existing in the region and -thanks to the systematicity of the information presented? to a better comparison of those models. With works like this one, the Institute of Fiscal Studies consolidates its line of investigation in compared tax policy and expands it to the Latin-American region, in line with its vocation of becoming a benchmark for studies of international public finance.

Lipsum

The Brazilian "tax war": The case of value-added tax competition among the states. -- Febrero 2007

De Mello L.

  • This paper tests for horizontal tax competition in the VAT for a sample of Brazilian states in the period 1985-2001. The states have considerable autonomy to set their VAT rates and bases, often using this tax as an industrial policy tool. The empirical findings, based on the estimation of a tax reaction function in an error-correction set-up, confirm the hypothesis of horizontal tax competition: the states react strongly to changes in their neighbours? VAT code, especially those that belong to the same geo-economic region. Also, there appears to be a Stackelberg leader among the states, with the remaining jurisdictions responding strongly to its policy moves. There is no co-occupancy of tax bases between different levels of government and hence limited scope for vertical externalities in tax setting. But the fact that the federal government shares with the states part of the revenue of its more elastic taxes, such as the income tax, appears to affect the opportunity cost of horizontal tax competition.

    More information Ver

Lipsum

The rates and revenue of bank transaction taxes.-- Junio 2006

Baca-Campodónico J, L. De Mello y A. Kirilenko

  • This paper provides cross-country empirical evidence on the productivity of bank transaction taxes (BTTs). Our data set comprises six Latin American countries that have levied BTTs since the late 1980s: Argentina, Brazil, Colombia, Ecuador, Peru and Venezuela. We find that, for a given tax rate, revenue declines over time. Therefore, in order to meet a fixed revenue target in real terms, the tax rate needs to be raised repeatedly. However, we also find that successive increases in the tax rate erode the tax base by more than they raise revenue yield and that the higher the increase in the tax rate, the more and faster the tax base is eroded. We conclude that BTTs do not provide a reliable source of revenue, especially over the medium term.

    More information Ver

Lipsum

The tax system in Mexico - a need for strengthening the revenue-raising capacity. -- Febrero 2000

Dalsgaard T.

  • The Mexican tax system encompasses a number of commendable features and disincentives to work, save and invest appear less severe than in most other OECD countries. However, the system also contains major deficiencies, which hampers the efficiency and equity of the system and contribute to the fact that Mexico has by far the lowest level of tax revenues in relation to GDP among the OECD countries. The main priorities for reform should be base broadening measures such as eliminating the tax preferences for agriculture, fisheries, publishing and land transportation; substantially reducing the vast number of zero-rated and exempted goods and services in the VAT system; and broadening the income base of individuals by taxing fringe benefits and eliminate the fiscal subsidy. Furthermore, increased taxation of property, in particular real estate, would be warranted from both a revenue-raising and distributional point of view. Finally, administration could be further improved through a ...

    More information Ver

Fiscal Evasion
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Case studies on evasion of the income tax: -- November 2008

CEPAL

    Chile Jorratt M.Ver
    Ecuador Roca J.Ver
    El Salvador Cabrera M. y V. GúzmanVer
    Guatemala Cabrera M.Ver
    Mexico Álvarez D.Ver
    Perú Arias L. A.Ver
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The Chilean Experience in the Fight Against Tax Evasion -- April 1999

CEPAL - ILPES

  • More information Ver

Lipsum

El control de la evasión tributaria en Francia. -- March 1999

CEPAL - ILPES

  • More informationVer

Lipsum

Serie Tesis: Economic Globalization and Tax Evasion (No. 3, mayo 2012)

CIAT

  • This thesis brings together considerations of Economic Law, International Law and Tax Law in order to establish connections that explain facets of the current process of globalization, especially regarding economic fundamentals of this process, its effects on taxable capacity of the countries involved and on the Competition Law of the same. The guide line of all these connections will be the concept of international tax evasion and, from the notions that are established in this work, we will conclude with proposals addressed to countries, especially Brazil, and international organizations involved in the process of Globalization.

    Download Ver

Lipsum

Thematic Bibliographic: Tax Evasion (No. 7, April 2012) Ver

CIAT

    Contents

  • Strategies for Combating Evasion

    Informal Economy

    Measurement of Tax Evasion

    Measures for Combating Tax Evasion

    Prevention Plan

    Other bibliographic references

Lipsum

Thematic Tax Series - Tax Evasion (Year 3/No.7/January 2011) Ver

CIAT

    Contents

  • Measurement

    -Measurement of evasion: the Uruguayan case. González G.

    -Instruments and techniques for measuring evasion. Marx C.

    -The use of the results of the measurement of the tax gap for the composition of the risk map and the design of control plans. Pisani S.

    Strategies and mechanisms against evasion

    -Strategies to combat harmful tax planning. O'Donnell D.

    -Exchange information and administrative assistance for the collections as effective control mechanisms of fraud, evasion and avoidance. Pérez-Navarro G.

    -Exchange information and administrative assistance for the collections as effective control mechanisms of fraud, evasion and avoidance: Transparency in foreign trade operations. Use of countries with fiscal opacity. Sánchez C.

Lipsum

Thematic Tax Series - Tax compliance (Year 3/No.6/December 2010) Ver

CIAT

    Contents

  • Strategies

    -Strategies to improve voluntary compliance and the collection of taxes. Toninelli Á.

    -Strategies for tax compliance control. Ricard L.

    -Strategies for faciliting tax compliance. Pedroche L.

    Compliance control

    -The control of compliance. Pedroche L.

    -The control of compliance. Hernández H.

    -Present challenges for control compliance: the Ecuadorian experience. Avilés M.

    -Present challenges for control compliance. Huisman A.

Lipsum

Thematic Tax Series - Tax evasion (Year 1/No. 2 / November 2008) Ver

CIAT

    Contents

  • Strategies for fighting tax evasion

    -Integral strategies for control and prevention. Escobar R.

    -The Importance of Legislative Changes to Reduce Tax Evasion and Avoidance. Deher J. A.

    -The Importance of Legislative Changes to Reduce Tax Evasion and Avoidance Costa M.

    Prevention plan

    -Present framework of the Spanish tax system: the fiscal reform and the prevention plan for fiscal fraud. Pedroche L.

    -Standards and mechanisms for fighting tax evasion: Zero evasion plan. González N.

    Tools to control and combat evasion

    -The measurement and control of the erosion of tax bases: tax expenditures and tax evasion. Escobar R.

    -The use of information in the fight against tax evasion. Paruk I.

Lipsum

Assumptions and transfer price. Study on the constitutionality of the transfer pricing methods in the articles 18 to 24 of the Law No. 9430/96, Brazil -- September 2010 Ver

Haret F.

  • As presumptive methodology to set values in the internal relations of interdependent firms, transfer pricing requirements of Law No. 9430/96 is presented as an anti avoidance technique or the standard of tax control. Despite the axiological charge could be substantiated in the form of ratio legis, the transfer pricing methods are subject, like all types of taxes, rights and constitutional guarantees such as the legality, the ability to pay, the confiscation and due process.

Lipsum

Process of elimination of tax havens. -- September 2010 Ver

García A. y G. Santamaría

  • This work is aimed at analyzing the current positioning of countries and international organizations in the search for a system of elimination of tax havens based on maintaining the fiscal sovereignty of countries, the correction of harmful rules and the generalization of the systems for the exchange of information with tax relevance and its effectiveness.

Lipsum

The information exchange agreements -- September 2010 Ver

Martín B.

  • Since the outbreak of the financial crisis which has affected to a greater or lesser extent, all economies in the world, the authorities of the countries agree on the need to increase the fight against tax havens. In the current circumstances, there is an international consensus that defends the need to significantly increase levels of transparency and exchange of information between countries, to address some of the deficiencies that have shown with the first great economic crisis of the century. The fight against tax evasion and tax havens is currently a priority shared internationally. The Organization for Economic Cooperation and Development (OECD) is the international reference in the field of international taxation that has been developing specific work in this area and periodically analyzes possible ways to strengthen this struggle. This paper is focuses on the study of the Information Exchange Agreement, the instrument that provides the channel for the exchange of information. IEAs are agreements between two countries or territories, by which they undertake the provision of assistance in the exchange of tax information between their respective tax administrations.

Tax Expenditures
Lipsum

Investment, fiscal incentives and tax expenditures in Latin America -- March 2009 Ver

Jiménez J. P. y A. Podestá

  • Despite the recuperation during years 2003-2008, the level of investment of the countries of the region is still insufficient to ensure sustainable growth. Hence the importance to analyze the different forms public policy has to encourage a higher investment, which implies to assess the cost and effectiveness of these policies.

Environmental Taxes
Lipsum

Reforma Fiscal Verde para Sudamérica CIAT/AEAT/IEF -- Marzo 2013 Ver

Yacolca, D.

  • Esta investigación busca impulsar la reflexión ambiental y la protección tributaria del medioambiente, mediante el estudio del modelo de reforma fiscal verde y su aplicación en Sudamérica, tomando como referencia los trabajos muy valiosos que han sido realizados durante todos estos años sobre el tema. Sobre todo reconociendo la gran complejidad que encierra el objetivo global de reducir la contaminación ambiental mediante la utilización de métodos regulatorios, mientras que mediante el uso de instrumentos económicos se tiene mejores resultados, según la evidencia empírica en los países del norte de Europa.

Lipsum

Environmental criteria in Brazilian local taxation: a reference to Urban Building and Land Tax (IPTU) -- June 2011 Ver

Borba P., D. Godoy, A. Rodríguez

  • One of the main concerns of EU leaders is to protect the environment. To achieve this objective, the EU uses among other actions, legislative measures among which are those of a tax nature. Meanwhile, in Spain the concern about these issues is increasing. Derived from this environmental awareness we can see various tax measures adopted by national and regional parliaments affecting almost all the tax figures. In regard to local taxation, we can see more and more of tax incentives aimed at encouraging citizens to conduct their activities in a more environmentally friendly manner. In turn, it must be remembered that most of the environmental criteria included in local taxes are included in the taxation of transport. However, we see how these tax incentives for environmental protection are also included in the taxation of property wealth even in a shy way and with little importance. To this we must add in recent years the existence of several publications that support the introduction of environmental tax measures in the Property Tax.

    Within this background, it should be borne in mind the trend of other countries that, more and more, are including environmental incentives to protect the environment in their local tax regulations. An example of this is Brazil, where they are passing laws with the aim of greening local taxes and, in particular, those who fall on property wealth.

Lipsum

Environmental taxation, macroeconomics and environment in Latin America: conceptual aspects and the case of Brazil. -- December 2001 Ver

Seroa R.

  • This document presents the theoretical and conceptual basis of environmental taxation. First, it examines the relations between macroeconomic management and environmental control. The ambiguity of these relations determines the need for microeconomic interventions according to prices and environmental costs. Fiscal policy is a key instrument to translate the concerns of a macro to a micro level.