1. Speech by Dr. Marcus Desax, President of IFA - International ...

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highly deserving IFA members are like large trees in a forest: while they provide for shade and protection against rain, storm and snow, they do not allow new trees to grow underneath. After YIN, the first priority of my Presidency, let me address the second one: the relationship of tax authorities, taxpayers and tax advisers. In July 2009, your Secretary General and President were invited by the Intra-European Organisation of Tax Administrations to its 13th General Assembly. IOTA is a non-profit intergovernmental organization, which provides a forum to assist its 43 members in Europe to improve tax administration. At this occasion, IFA and IOTA signed a memorandum of understanding for the future cooperation of our two organisations. At this meeting, the Swedish Tax Agency gave a presentation on the relationship between the tax gap, on the one hand, and the perception of the tax officials by taxpayers, on the other hand. The tax gap is the difference between the amount of tax that would have been levied if all those liable to the tax reported all their activities and transactions correctly and the amount of tax actually paid. The Swedish Tax Agency had undertaken two studies: the one on the tax gap in Sweden and another one on the way Swedish citizens and businesses perceive the attitude that the tax officials have towards them. The Tax Agency wrote: We use risk models, exchange of data, selections systems to target taxpayers for audit activities; but it’s not enough: we need more knowledge about what affects behaviour and what increases voluntary compliance. According to the Swedish Tax Agency, one of the reasons for which people pay their taxes and refrain from evasion is the trust in the tax officials. In their study, one of the questions was: “Would you evade tax if you had the possibility?” Out of the people who said that they trusted the Tax Agency, 12% answered yes, they would evade the tax, if they had the possibility. In contrast, in the group of people who said that they did not have trust in the Tax Agency, 27% said that they would take the opportunity and avoid the tax if they only could. The trust in the Swedish Tax Agency was found to be based on the way the tax officials treat their taxpayer: If the attitude is: helpful, listening and cooperative, and based on the assumption that most people are honest, the impact of the trust in the Tax Agency is positive. However, the impact on the trust is negative, if the position of the tax official is: indifferent, serious, going by the rules, insensitive, superior, exercising power and accusatory, or even worse, if it is based on the belief that most people are dishonest. The Swedish Tax Agency is not the first one to claim that the relationship between tax authorities, taxpayers and tax advisers should be improved. In January 2008, the OECD published its “Study into the Role of Tax Intermediaries”, in May 2009 “Building Transparent Tax Compliance by Banks” and “Engaging with High Net Worth Individuals on Tax Compliance”. The OECD proposed to build on an “enhanced relationship” between all
players in the tax field. Our Executive Committee has also discussed the matter. While determined to stay away from political discussions, it is of the opinion that the focus should be on existing legislations and on the right to plan one’s tax affairs within the local system. IFA considers launching the debate which could centre on the following basic principles: No tax without a law! Taxes prescribed by law should be levied and paid. The law should be clear; if it is unclear, taxpayers should receive guidance: Taxpayers may rely in good faith on the law – which means limited scope for retroactive effect and, except in cases of abuse, sufficient lead time for policy changes and legal amendments). The right to plan one’s tax affairs within the scope of the law should be recognized. Taxpayers should honestly disclose their tax affairs. Tax authorities should have the right to check compliance. The audit behaviour should be proportionate to the levels of good faith and disclosure by the taxpayer. A differing treatment may be afforded to fully disclosing taxpayer, normal taxpayers or bad-faith taxpayers. Tax matters should be resolved within a reasonable time frame It is obvious, while these principles can, and in my opinion should, be discussed at the international level, the concretisation and the implementation must be done nationally. I therefore invite the IFA Branches to set the matter on their agendas. Who is better qualified for this endeavour than IFA with its diverse membership of tax officials, tax advisers,academics, judges and corporate tax people? Our Association continues its scientific works in many different areas. At this Congress, besides the two main Subjects, we have a total of fourteen seminars, which is a new record. It is not possible to go into the details of the discussions. Let me just thank the many, many people who have been instrumental in setting up the scientific part of the Congress. I would also like to thank the organisers of this Congress. While they had the advantage of hosting a Congress in one the of the World’s most beautiful cities, the economic crisis and the swine flu could have been a serious threat. Nonetheless, ____ participants and ____ accompanying persons have registered – a tribute to the organisers led by Albert Baker and Robert Raizenne. During my Presidency, we replaced the Secretary General, the Chair of the Permanent Scientific Committee, the General Treasurer and the Manager of the General Secretariat. If, in a company, all senior managers leave except the CEO, there is usually something wrong with the latter. But, please believe me, they all had their objective reasons. I would like to mention here how much I liked to work with the Secretaries General Maarten Ellis and Han Kogels, the Chairs of the PSC Jean-Pierre Le Gall and Robert Couzin and with the General Treasurers Jan van der Bijl and Jos Beerepoot. I appreciated the assistance and kindness of the managers of the General Secretariat Nel Slingerland and Thea van Dijk and the continuous support from the ladies at the Secretariat General, Nathalie Spruit, Anja van Zwietering, Marga Vink and Margareth Barten. Thank you for your support, your good cheers and your friendship.
Page 1: Opening Ceremony 63 rd IFA Congress

1. Speech by Dr. Marcus Desax, President of IFA - International ...

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