SECOND MEETING OF THE OECD GLOBAL FORUM ON VAT 17-18 April / - PowerPoint PPT Presentation

SECOND MEETING OF THE OECD GLOBAL FORUM ON VAT 17-18 April / Tokyo, Japan Session 5 – Tackling VAT fraud The role of Business Andrea Laing – Shell Australia

• Key messages: – VAT fraud is a global issue affecting competition - legitimate businesses want a level playing field – Measures to combat fraud should not penalise legitimate taxpayers – Need to understand & address root causes – Legitimate businesses can help identify likely fraud areas – Cooperation between businesses & authorities - exchange of information to quickly identify potential fraudulent activities & players – Cooperative compliance frees up resources to target fraud 2

Efforts to combat VAT fraud should not penalise legitimate • taxpayers – Blanket measures impose complexity and administrative burdens across all businesses, eg complex payment structures, refund delays, sudden law changes - need time for system changes – Use technology effectively – data analytics, real time transaction monitoring, modern administrations – Address root causes not symptoms – inherent complexities in legislation and rules increase risk of fraud, eg exemptions, special rules, lack of cross-border harmonisation • “Know your taxpayers” – work with businesses to understand how markets and companies operate to identify key risk areas & target • Recognise good governance & robust procedures – Accreditation, information, education 3

• How can Business actively help? – Share understanding of how markets operate, workshop where vulnerable to fraud – Early referral of suspicious trading patterns & new market players – Exchanges of information (via industry associations?) where counterparties are suspected of fraud to allow quick action before legitimate businesses are exposed – Recommend legislative and administrative improvements – Active cooperative compliance 4

• Cooperative compliance • Transparency, cooperation and trust between companies and revenue authorities 2-way - timely & comprehensive information in return for • open, impartial treatment grounded in commercial understanding • Gaining momentum - examples in Netherlands, Singapore, UK, Indonesia, South Korea, Australia etc. Businesses are keen to explore opportunities • Frees up authority time & resources by removing the need for lengthy and expensive audits – allows focus to target fraud effectively • Key to overcoming fraud in increasingly complex global environment 5