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

• f information to quickly identify potential fraudulent

activities & players – Cooperative compliance frees up resources to target fraud

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• 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

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• 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

• f fraud to allow quick action before legitimate

businesses are exposed – Recommend legislative and administrative improvements – Active cooperative compliance

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• Cooperative compliance
• Transparency, cooperation and trust between companies

and revenue authorities

• 2-way - timely & comprehensive information in return for
• pen, 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

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