4.6. International Relations
The International Relations Coordination Unit (UCRI) was created by Resolution of December 26, 2004 of the President of the Tax Agency with the purpose of providing the latter with a specific organic unit that would ensure the coordination of the different international activities in which it participates. At the organizational level, this Unit was integrated in 2011 into the Office of the Director General and is responsible for developing and coordinating the Agency's relations with foreign bodies and institutions and international organizations that are not specifically assigned to other bodies.
Furthermore, it must be taken into account that the customs area is, by definition, intrinsically international. The concept of “customs” is not understood except in an international context, given that its function is the facilitation and control of international trade in goods. The Agency's Customs and Excise Department carries out intense international activity, which is channelled through the General Subdirectorate of International Relations in close collaboration with the UCRI.
In 2022, the Agency's international presence has been a true reflection of the new way of working after the pandemic. This year there has been a significant increase in face-to-face meetings, which have been supplemented by videoconferences and hybrid activities with the various international institutions and organisations, the provision of virtual technical assistance and the holding of online courses and seminars.
The Tax Agency participates, among others, in the following international organizations through different instruments, whether working groups, forums, seminars or other projects:
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Spanish Presidency of the Council of the European Union.
In 2022, the work started in 2021 has continued to prepare for the next presidency of the Council of the European Union in the second half of 2023. To centralise collaboration between the various bodies, a working group was created, made up of representatives from the Tax Agency, the General Directorate of Taxes, the State Secretariat for Finance and the Permanent Representation in Brussels, which has continued to work throughout 2022.
In 2022, the working teams for tax files have begun to be formed, which will be led by the General Directorate of Taxes, but have a mixed DGT-Tax Agency composition. To facilitate coordination work, a common workspace has been created that is maintained and updated by the Tax Agency.
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The European Union (Fiscalis, Customs)
The most important projects that have been developed as part of the Fiscalis Program have been carried out at the express direction of TADEUS, made up of the 27 Directors of the Tax Administrations of the EU member countries. At the plenary session held in 2022, the TADEUS multiannual work programme (MAP) was updated and redesigned, establishing as priority projects for 2022-2023 the use of artificial intelligence for tax purposes, digital security and the use of DAC data, especially DAC 7 and DAC 8.
The meeting also presented the progress of the projects underway on Measuring the Tax Gap (Tax Gap in Personal Income Tax; Companies, Electronic Commerce and VAT fraud) and the multinational cooperative compliance pilot program (ETACA). Other important works have been those dedicated to the implementation of the e-commerce VAT package and the preparation of a new VAT package in the digital era, the virtual assistant guide, the launch of the CESOP, the implementation of article 10 of Directive 2017/1852 on dispute resolution mechanisms, the data protection project in European IT Systems and country visits to improve the implementation of successive DACs.
As a result of the TADEUS initiative, the Commission hosted on the DGTAXUD website the result of one of the first projects promoted by TADEUS: the (voluntary) guide for all Tax Administrations wishing to increase trust between all parties involved in related procedures and activities: https://trustandcompliance.com/
The participation of Tax Agency officials in all Fiscalis projects is reflected in more than 70 reports that have been uploaded to the Tax Agency's International Relations Database. In addition, in 2022 the Tax Agency has collaborated in the translation into Spanish of several online courses that DG TAXUD offers on its training portal ( https://customs-taxation.learning.europa.eu ).
With regard to Customs and Excise Taxes, Spain has participated in 43 meetings of Working Groups (mainly, Customs Union Group and Law Enforcement Group - Customs) of the Preparatory Bodies of the Council of the EU, in 34 meetings of Committees for control by Member States of the adoption of implementing acts by the Commission, in 79 meetings of Groups of Experts of the Customs Code and similar to support the Commission, and in 165 meetings of project groups (said program had scheduled to end in November 2021, but was extended until December 31, 2023, due to the fact that many meetings continue to be virtual, with the budget savings that this entails).
Furthermore, due to its role in supporting the Commission in the definition of the strategy and customs policy, it is worth highlighting the participation of Spain, together with the customs authorities of the rest of the EU member countries, in the meetings of the Customs Policy Group. chaired by the European Commission. The group also assists the Commission in establishing the general framework for cooperation between the Commission, the Member States and other stakeholders in the operational aspects of the customs union and in the implementation of customs legislation, programmes and policies. The group holds two annual meetings.
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The OECD (Organization for Economic Cooperation and Development)
The OECD's work on tax matters is carried out mainly through the Committee on Tax Affairs (CFA). In 2022, the CFA's work has been linked to the G20 agenda and, above all, to the challenges of the Digital Economy and its work programme in order to develop a consensual solution to address the tax challenges resulting from the digitalisation of the economy (development of pillars 1 and 2), within the BEPS (Base Erosion and Profit Shifting) programme and the work on Tax Certainty in all its Working Groups.
In January 2022, the Instrument of Ratification of the Multilateral Convention to implement measures related to tax treaties aimed at preventing base erosion and profit shifting (BEPS), which had been signed by Spain on June 7, 2017, entered into force. This instrument could mean the modification of 88 of the 94 Double Taxation Agreements signed by Spain when all the countries that have committed themselves finally ratify this Multilateral Agreement, thus becoming up to date with the latest international developments in the fight against tax avoidance.
In relation to the work of the OECD in the Forum on Tax Administration (FTA), the active participation of the Tax Agency through the Central Delegation of Large Taxpayers in the ICAP-Tax Certainty compliance program for large companies open to all countries that want to participate and in the CoRA (Comparative Risk Assessment) project related to BEPS/CbC and risk indicators in the use of data obtained in the exchange.
Also noteworthy is the work of the Digital Transformation group “Tax Administration 3.0”, to develop the recommendations included in the document of the same name published in 2020. In 2022, the work and conclusions of the six main groups were published, with the active participation of the Tax Agency in all of them, especially in the project on digital invoicing, which Spain chaired, and in the project on digital identity.
Finally, it should be noted that, as part of the Tax Agency's continuous training plan, several courses on taxation and international standards prepared by the OECD Global Relations Program were offered, with the participation of 684 Agency officials. which gives an idea of the maximum interest that international activity arouses.
In September 2022, the tenth edition of the FTA Tax Administration series was published. On this occasion, several projects launched by the Tax Agency appear as good practices, such as the use of behavioural studies in income campaign messages, the new features of the use of NRC (Complete Reference Number) in tax collection or the analysis and subsequent use of the results of verification procedures.
The Tax Agency continues to participate in various projects of the JITSIC Network, which aims to exchange information and cooperate on matters of common interest. It is currently made up of 42 countries. In 2022, the Tax Agency is involved in the following projects: Certificates of Residence (CoR), the Wealthy Population Expert group (WPEG), as well as the Exchange of Information (EOI) expert group, and the Data Leaks group, which is analysing the impact of the so-called Pandora Papers.
The Tax Agency also participates in the TIWB (Tax Inspectors Without Borders) program, which is a joint initiative of the OECD and UNPD officially launched in July 2015 after an 18-month pilot phase. Its objective is to facilitate the implementation of specific tax audit assistance programmes in developing countries around the world. Under this project, tax audit experts will work directly with officials from local tax administrations in developing countries. In 2021, a cooperation project with El Salvador was officially launched and implemented, involving ONFI experts. The project ended in May 2022 and was developed entirely virtually.
Finally, it should be noted that, as part of the Tax Agency's continuous training plan, several courses on taxation and international standards prepared by the OECD Global Relations Program were offered, with the participation of almost 700 Agency officials. , which gives an idea of the maximum interest that international activity arouses.
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IOTA (Intra-European Organisation of Tax Administrations)
In 2022, face-to-face activities began to resume, combined with digital activities and in a hybrid format. In total, 18 events were held, some jointly with other organizations, 8 of them entirely online, 2 exclusively in person, and the remaining 8 in hybrid format. As a result, 77 officials have participated in IOTA activities.
In addition, the Tax Agency has collaborated in the development of a procedure manual for IOTA technical assistance.
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CIAT (Inter-American Center of Tax Administrations)
CIAT's international cooperation activities include the participation of experts from the Tax Agency in virtual seminars of the Electronic Invoicing Network, the International Taxation Network, in training courses on Transfer Pricing, as well as the contribution of information for the Public Information Availability (PIA) tool.
The 2022 Technical Conference was held in Granada at the beginning of October, in person, and with the participation of a large number of representatives from CIAT member countries, as well as from other International Organizations.
During 2022, the Tax Agency has provided specific technical assistance, with the mediation of CIAT, to Latin American countries, such as Argentina, Ecuador and Panama.
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The WCO (World Customs Organization)
The WCO is the only international organisation with jurisdiction over customs matters, to which more than 180 nations belong, managing 98% of world trade globally. Spain has participated in 15 meetings of its governing bodies, preparatory committees and working groups. Spain has also participated in various activities related to international technical assistance.
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The Multilateral Agreement on Cooperation and Mutual Assistance between the National Customs Directorates of Latin America, Spain and Portugal (COMALEP).
The Convention, signed in Mexico on September 11, 1981 and subsequently modified by the Protocol approved in Cancun (Quintana Roo), Mexico, on October 29, 1999, constitutes an instrument to strengthen mutual assistance in the fight against fraud and cooperation, as well as the increase and development of trade between the Parties.
The Council of National Customs Directors, a collegiate body responsible for its management and administration, meets once a year.
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The CCLEC (Caribbean Customs Law Enforcement Council), in Spanish CCALA (Caribbean Council for the Application of Customs Laws), was created in the early 1970s as an informal association of Caribbean customs administrations, with headquarters in Saint Lucia and with the participation of 37 countries, in addition to Spain.
The CCLEC was initially established as an informal framework for information exchange focused on combating drug trafficking, but has evolved to cover broader mutual assistance and cooperation, albeit on the basis of a Memorandum of Understanding.
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Technical assistance.
In the international activity of the Tax Agency, the technical assistance provided to other countries by our experts is of great importance. Thanks to the possibility of carrying out these activities remotely, the number of attendees during 2022 has been considerable.
Among the assistance provided in 2022, it is worth highlighting those carried out in collaboration with the Ibero-American Development Bank in support of the Tax Administration of Peru and in collaboration with the Institute of Fiscal Studies in support of that of Brazil.
In addition to those indicated in the previous point, it is worth highlighting the short-term assistance provided in collaboration with the International Monetary Fund (IMF), the World Bank (WB), TAIEX, or the Ibero-American Development Bank (IDB) in support of the Tax Administrations of Ecuador, Turkey, Brazil, Honduras, Colombia, Costa Rica, the Dominican Republic, and Argentina. The topics discussed in these sessions have included, among others, the following:
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Corporate governance and voluntary compliance agreements
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Risk profile methodologies
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Measures of repression and apprehension
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Planning and collaboration with territories
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Technical support at the School of Taxes and Customs
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Draft Regulation on Digital Services of Foreign Providers
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Planning management
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Effective implementation of the Common Reporting Standard (CRS)
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Technical and methodological instruments for the fight against tax fraud
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