The Swiss State Secretariat of Economic Affairs (SECO) and the Inter-American Centre for Tax Administration (CIAT) have created closer ties, mainly with the purpose of strengthening the effective management of tax administrations in Latin America and the Caribbean (LAC). The cooperation program has taken it upon itself to offer support to tax administrations in order to promote the mobilization of additional tax revenues, reduce dependency on official assistance for development (ODA) and allow for a sustainable financing with an aim to diminish the poverty levels.

1. FACTSHEET
Inter-American Centre of Tax
Administrations (CIAT)
Strengthening tax policies and promoting cooperation and
peer learning among tax administrations in Latin America.
CIAT is a non-profit international public organization that provides specialized technical
assistance for the modernization and strengthening of tax administrations. CIAT supports
the efforts of national governments by promoting the evolution, social acceptance and
institutional strengthening of tax administrations, encouraging international cooperation
and the exchange of experiences and best practices. CIAT was founded in 1967, and
currently has 42 member countries.
Rationale
Although global growth and trade were on an upswing in 2017 in Latin America, principally due to
stronger commodity prices, the fiscal situation remain precarious for several countries, particularly in
Central America. This situation has led to the scaling down of several social programs and
infrastructure projects that would be necessary to achieve the Sustainable Development Goals
(SDG’s). Against this background, several countries have launched reforms aimed at strengthening
their tax administration in order to mobilize additional domestic resources. Average tax revenue in
Latin America is 19.5% of GDP, with more than 33 % in OECD countries.
Objectives and activities
This Program aims at providing technical support and capacity building to tax administrations for the
creation of effective and performing tax policy frameworks and well-functioning tax administrations
that ensure proper compliance with tax laws. Indeed, tax authorities need to overcome several
challenges to effectively mobilize additional domestic revenues, among them the high evasion rates,
the importance of the informal sector and the corruption among tax officials. Tax systems in the
region also tend to negatively affect private sector development and capital inflows. The improper
use of tax deductions and exceptions, which reduce tax revenues without generating investment or
improving business climate, constitute an additional challenge for the authorities.
Country/region
Latin America
Executing agency
Centro Inter-
Americano de
Administraciones
Tributarias (CIAT)
Duration
2014-2019 (Phase 1)
Total budget
CHF 3.6 million
SECO contribution
CHF 2.1 million

2. Governance Structure
The program is managed and implemented by the CIAT Executive Secretariat, which reports and
provides updates on progress to the Executive Council and to the General Assembly, as well as to
SECO. Within the Executive Secretariat, the project is managed and coordinated by the International
Taxation and Cooperation Directorate, whose Director acts as Program Manager. Depending on the
topic, the activities are implemented by the various Directorates of the CIAT Executive Secretariat
under the supervision of the Program Manager
Results so far
In Nicaragua, the Program helped to implement a taxpayer management system that improves
customer services and fosters voluntary compliance. In El Salvador, the Program provided support to
introduce risk-based tax auditing to combat domestic tax evasion in VAT. It also provided
recommendations for the creation of an exchange of information unit within the tax administration.
In Guatemala, the Program accompanied the authorities in the introduction of the Electronic Invoice,
which included the preparation of the invoice templates. In Honduras, the Program focused on
intelligence gathering as well as on securitization of taxpayers’ confidential information. In Bolivia, the
Program helped the authorities to implemented extensive controls using sales and stocks registers as
well as individual analysis selected randomly. In Guyana, the program provided support for the
implementation of transfer pricing regulations based on the model developed by the OECD.
How to get involved
The selection of the beneficiaries is based on specific requests. CIAT assesses the level of priority of
these requests based on the strategy and action plans of recipient tax administrations and after
consultation with the Commissioner General. Recipient tax administrations usually provide a financial
or in-kind contribution of about 20% of the budget.
Further information and contact details
Centro Interamericano de Administraciones Tributarias
Website: www.ciat.org
Email: garias@ciat.org
CIAT Coordinator at SECO:
Tel.: +41 58 464 07 94
Email: wemu.sekretariat@seco.admin.ch