Combating Tax Fraud and Evasion

Workshop: October 16 – 18, 2018ILjubljana, SloveniaITax Policy and Administration

With this workshop, we supported our constituency’s efforts to increase the standards with respect to effectively combating tax fraud and evasion, and empower them through international and regional peer-to-peer exchange of good practice. The workshop looked into the use of data analytics for tax fraud detection, cross-border e-commerce, Eurofisc and other tools, schemes, trends and solutions for counteractions, collection of information, and challenges for tax administrations in fighting tax fraud in the context of liberalization of world trade.

How will you benefit

A fair tax system is key to building a fairer society. From individuals to the largest companies, everyone must pay their fair share towards our vital public services. We discussed why tax crimes not only deprive governments of revenue, but also undermine trust in the fairness of tax system. In order to facilitate legitimate trade, we explored the ways how to further enhance the cooperation between customs, tax agencies, law enforcement bodies and other stakeholders.

We discussed whether the challenges range from taxpayer errors, or failing to take reasonable care to differences in how to interpret legislation, organized criminality, evasion and avoidance. They also vary by customer group with contributions to the tax gap coming from small and medium sized businesses, large businesses, criminals and individuals. We explored how the governments continue to build on the steps they have already taken to address these challenges across all parts of the economy. This includes developing new measures to tackle emerging threats, as well as working internationally where multilateral action is needed.

By the end of the workshop, participants:

  • Learned about different strategies used to detect tax fraud and evasion, including the platform on Tax Good Governance
  • Gained a guidance how to effectively address the risks when identifying tax fraud and evasion
  • Discussed how avoidance, evasion and non-compliance can be seen in a wide range of behaviors across different customer groups and taxes. 
  • Understood possible ways of cooperating with the governmental agencies, taxpayers and the public with the aim to build taxpayers’ trust in the tax system

What participants learned

By completing the learning initiative you improved your capacities in the following areas:

  • Guiding principles: proportionality of risk-based prevention procedures, top level commitment, risk assessment,  due diligence, communication, training,  monitoring and review
  • Fighting tax evasion (incorrect deduction of costs / input of VAT, insufficient reported sales / output VAT, failure to pay tax, unlawful registration of fictitious businesses / invoice factories
  • Whole of government approach
  • Detection and investigation of high risks individuals and companies, suppression of organized financial and tax fraud
  • Tax fraud mechanisms in the field of fuel trade

Participants were actively engaged in discussions and group exercises, and encouraged to share their experiences and country practices.

Who attended

The workshop was targeted to mid-to-senior level managers and officials of tax administrations, ministry of finance tax policy departments, judiciary, anti-corruption agency as well as customs administrations and other law enforcement bodies.

Suitable candidates will be approved by the CEF.

No fee was charged for officials working in the public sector. Travel and accommodation costs for up to two participants from tax administrations / ministry of finance tax policy departments from Armenia, Bosnia and Herzegovina, Bulgaria, Croatia, Georgia, Macedonia, Moldova, Mongolia, Montenegro, Romania and Ukraine will be covered by the Ministry of Finance of the Netherlands. Applications of additional self-funded candidates from the SEE region (and beyond) will be considered, as far as space permits. Meals and refreshments will be provided during the event.

Please see General Information on Learning at the CEF.

Faculty

Rumen Milanov, Chief revenue expert, Control Directorate National Revenue Agency of Bulgaria

Rumen is a chief revenue expert, Control Directorate, Special Cases Investigation Department, HQ of NRA. He identifies and analyses cases of tax or social security fraud, including fraud related to supplies under different customs regimes and supplies of goods subject to excise duty. Coordinates audit proceedings carried out in connection with identified cases of tax fraud. Interacts with customs intelligence and investigation authorities to locate fraud cases and implement measures on joint treatment by tax and customs administrations. Interacts with police authorities in the course of planning measures to combat tax fraud.

Galya Yuchormanska, Chief legal advisor, Tax and Social Security Methodology Directorate, Process Methodology and Legal Opinions Department, National Revenue Agency of Bulgaria

Galya participates in discussion and analysis of cases, in application of tax and social security legislation and administrative penal process. Her main tasks are also summarizing and analyzing case law, providing consultation and advice within the legislative process, and assistance to cover expert knowledge needs. In addition she procedural represents the National Revenue Agency and the Minister of Finance before the court.

Marianne Dyba Gansmo, Senior Advisor, Regional department - Methodology section, the Norwegian Tax Administration

Marianne is a senior advisor in the methodology section in the Norwegian Directorate of Taxes. She has been working for the Norwegian Tax Administration and the Norwegian National Authority for Investigation and Prosecution of Economic and Environmental Crime (ØKOKRIM) for the last 29 years. Some of her main tasks have been in the scope of detecting and preventing VAT fraud, tax evasion, shadow economy, labor market crime, money laundering and accordingly fighting these crimes. 

Peter van de Weerd, Tax & Customs Administration of the Netherlands

Peter van de Weerd is a strategic advisor at the Dutch Tax Agency. He specially works for the directorate 'small and medium enterprises'. His work is related to the cooperation between the Tax Administration with Police Departments, Municipalities and other Ministries, such as Ministry of Social Affairs. They work together on several themes with the same purpose: combating fraud.

He studied Dutch Law (criminal/ fiscal) in Nijmegen, The Netherlands and after that he started working for the FIOD, the Fiscal Information and Investigation Service in 1999. In 2013 he started working at a Staff Directorate in The Hague and after that he continued working as an advisor for the Directorate for small and medium enterprises.


 

Reading resources

Partners

This learning initiative was supported by:

Ministry of Finance, the Netherlands Ministry of Finance Slovenia Slovenia's Development Cooperation