The Federal Tax Service of Russia
Published: 04.11.2022 16:00
The first research report on the best tax practices of the BRICS countries was adopted at the meeting of the Tax Commissioners from Brazil, Russia, India, China, and South Africa. This document is to be published following the annual meetings of commissioners and experts of BRICS tax administrations on their official websites.
The first report includes China's projects on tax and customs pricing coordination for imported goods, income tax reconciliation, and increasing public tax awareness. In addition, the document contains information on the Cooperative Compliance Program (CONFIA) implemented by the Federal Revenue Service of Brazil, the Compliance Evaluation and Monitoring Information System (CEMIS) developed by the South African Revenue Service, and the experience of the Department of Revenue, Ministry of Finance of India, on the contactless tax administration of personal income taxes and pre-filing of tax returns.
Russia presented two practices on tax debt management and the effective use of data obtained within the framework of the international automatic exchange of financial information.
The "Tax Debt Restructuring Platform (Debt Restructuring Unit)" pilot project was developed by the Federal Tax Service of Russia in cooperation with the public associations’ representatives. The platform is established for negotiations between the debtor and creditors. With the digital analytical capabilities of the Federal Tax Service of Russia and in agreement with the debtor, its activities are transparent for creditors.
A debt restructuring option is offered based on the performance ratings. In 2022, due to the settlement agreements, debts to the budget were settled by 70% more than the previous year.
Through the Integrated Debt Management and Administration System (IDMAS), possible scenarios (scripts) are being determined, including cases of non-repayment of debt. IDMAS tracks the debtor's activities on 125 markers for insolvency. If the debtor does not seek to repay the debt and hides its repayment sources, one or more triggers will work. A trigger runs a user task for the inspector.
As Julia Shepeleva, Deputy Commissioner of the Federal Tax Service of Russia, noted, a detailed study of the best tax practices will become a powerful tool for exchanging experience and strengthening the capacity of tax administrations around the world.
At the meeting, BRICS Tax Commissioners also addressed the issue of raising the profile of the BRICS tax community in the international arena.
"International organizations can contribute to this process in many ways. Their engagement will make tax cooperation within BRICS more transparent and inclusive," Julia Shepeleva mentioned.
Professor Santiago Díaz de Sarralde from the Inter-American Center for Tax Administrations (CIAT) proposed to hold joint seminars and workshops with BRICS tax administrations on a regular basis in order to share experience and best practices.
The discussions were attended by representatives of the United Nations, the International Monetary Fund, and CIAT. They expressed interest in cooperation with BRICS tax administrations, which is going to be organized as joint seminars and training events.
The next meeting of the BRICS Tax Commissioners is scheduled for 2023 in South Africa.