WCO 2017 Photo Winner – Kyrgyzstan!

WCO Photo competetion winner 2017

Congratulations to Kyrgyzstan – a worthy winner considering the environmental elements. To view all the other entrants click here!

Source: WCO

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Fighting BEPS in Africa – A Review of Country-By-Country Reporting

Fighting BEPs in Africa

Thanks to Peter Draper and team for this policy briefing and discussion documents on Country-by-Country reporting.

Multinational enterprises (MNEs) can shift profits away from jurisdictions with comparatively high tax rates to jurisdictions with lower to no tax rates, and so avoid paying their fair share of taxes without breaking any single jurisdiction’s laws. This is in part possible owing to the restricted exchange of information between national tax authorities, which limits these authorities’ capacity to conduct accurate MNE audits.

The implementation package on Country-by-Country Reporting for Action 13 of the BEPS project, published on 8 June 2015, foresees that tax authorities will automatically exchange key indicators (such as profits, taxes paid, employees and assets of each entity) of Multinational Enterprise Groups with each other, therewith allowing tax authorities to make risk assessments as to the transfer pricing arrangements and BEPS-related risks, which may then serve as a basis for initiating a tax audit.  OECD Automatic Exchange portal.

By creating standard reporting templates and model legislation to collect MNEs’ relevant business information, Action 13 of the Organisation for Economic Co-operation and Development (OECD)/G20 Base Erosion and Profit Shifting Action Plan – Transfer Pricing Documentation and Country-By-Country Reporting – is seen as part of the solution to addressing MNE tax evasion. While representing a substantial step forward, the proposed set of recommendations has a limited scope and is technically onerous to implement in poor developing countries, where revenue authorities are severely resource-constrained. These issues are reviewed in relation to African resource mobilisation needs, and with an eye to the 2020 review of country-by-country reporting (CbCR) implementation.

To view/download the policy paper click here!

To view/download the discussion paper click here!

Source: Tutwa Consulting Newsletter June 2017

Meeting of the WCO Private Sector Consultative Group (PSCG)

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The WCO Private Sector Consultative Group (PSCG) met for the 41st time at the WCO headquarters on 3 and 4 July 2017. The meeting was chaired by Mr. John Mein from PROCOMEX and attended by representatives from 17 of the 21 PSCG members – AAEI, BMW, CATERPILLAR, E-BAY, FIATA, FONASBA, FONTERRA, GEA, HAIER, HUAWEI, IATA, ICC, IFCBA, MICROSOFT, OPORA, PROCOMEX and SAAFF.

During their two-day meeting, the PSCG discussed a number of very topical matters and developments, including current threats of protectionism to free trade, the state of trade facilitation and the implementation of the WTO TFA agreement and e-commerce. WCO members also attended part of the meeting and presented current WCO work programmes, including the upcoming review of the Revised Kyoto Convention and encouraged PSCG members to take an active role in this review work. The Secretary General, Kunio Mikuriya, also addressed the PSCG on its first day on issues relating to the current state of international trade.

Following the PSCG meeting, a dialogue between Policy Commission and PSCG members including Trade Observers was held to discuss current challenges with regard to free trade and globalization.  During break-out groups representatives from both the Customs administrations and private sector discussed the current problem landscape and what the international Customs community can do in collaboration with the private sector to support economic and social development and growth through the application of trade facilitation principles and measures. Source: WCO

NZ Customs -will need reasonable cause to search laptops and phones at the border

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Currently, New Zealand Customs can stop anyone at the border and demand access to any of their digital devices.

A new law means Customs will no longer be able to demand that people entering the country hand over the passwords to their devices without reasonable cause.

Currently, Customs can stop anyone at the border and demand access to any of their digital devices.

But ACT leader and sole-MP David Seymour has secured a change to this in the new Customs and Excise Bill, which is soon to have its second reading. Officers will need to have “reasonable suspicion” or belief of offending. There will be no appeal process.

Figures obtained by TVNZ showed that more than 1300 have been digitally “strip searched” since 2013.

New Zealanders were the most commonly searched, followed by people from China.

“Unrestricted power to demand people’s passwords and search their files is an affront to civil liberties, and it will inevitably lead to violations of privacy,” Seymour said.

“Customs practices are simply out of touch with modern reality. In the past, people would only pack a suitcase with a few paper documents, but younger generations often travel with all their personal files. Meanwhile, if a genuine criminal is determined to keep incriminating files, they’ll do it on cloud storage, not on their personal device.

“This will prevent countless New Zealanders and visitors from facing intrusive and unjustified searches.

“Customs’ powers to examine and access electronic devices will be restricted through a two-stage search threshold. This means that Customs will only be able to search a device if they have a reasonable suspicion or belief of offending under the Act,” Customs Minister Nicky Wagner said.

“We have addressed concerns raised by the public during consultation around Customs’ powers to search e-devices at the border.

“The new search powers strike a balance between protecting privacy and ensuring that Customs can continue to protect our borders.” Source: Stuff (New Zealand)