This document contains an agenda for a meeting on compliance and technology in Latin America and the Caribbean. The agenda includes introductions of three speakers, discussions of emerging compliance models and how technology can support compliance goals, and an exchange of ideas on opportunities for technology use. Presentation topics will include emerging compliance frameworks, assessing technology preparedness, e-invoicing, and questions from attendees.

1. Compliance &
Technology
LATAM AND CARIBBEAN

2. 2
Agenda
Introductions 12:30- 12:40
Emerging Models 12:40- 12:50
Technology Preparedness 12:50- 1:15
E-Invoicing 1:15- 1:30
Closing- Q&A 1:30- 1:45
Agenda
Objectives
 Gain understanding of how emerging Compliance Models are
driving need for robust and secure technology
 Consider how Technology can enhance compliance, while reducing
fraud and cyber attacks
 Exchange ideas on potential “take-home” opportunities

3. Compliance & Technology
Introductions and Opening Remarks
Inter-American Development Bank
3

4. JB Hillman
Strategic Initiatives
Tax Technology Solutions
Currently, JB Hillman leads Strategic
Initiatives in a Tax Technology Solutions
function for a global tax software
company. He has been instrumental in
research and is responsible for new
market awareness and constituent
engagement.
In addition to these responsibilities, JB is
the primary liaison to global alliances in
the area of Government technology and
services.
His background is in global technology
delivery solutions and large scale program
management leadership.
His recent tax technology modeling and
solution work in Russia, Estonia, Vienna,
Amsterdam, London, and the African
continent has informed his learning.
JB earned a degree in Business and
Economics from Lafayette College.
Michael Roytman is a leader in Tax Technology and
Enterprise Architecture. He led development of a
web services interface for a transaction tax engine,
architected federal electronic filing system,
advanced planning and analytics solutions. Prior,
Michael was a Chief Architect at an e-commerce
firm, led implementations at pharmaceuticals,
health insurance and transportation industries.
Other expertise include Technical Secretary and
contributor to OASIS Tax XML industry standard.
Currently Michael is focusing on emerging
technologies related to integration, information
architecture, analytics, and agile DevOps.
He has been recognized as a thought leader through
his recent work and speaking engagements in
Russia, Estonia, Amsterdam, London, Quebec, and
across the US.
Michael holds a MBA in Global Management from
the University of Phoenix, Bachelor in Science
degrees in Computer Engineering and Computer
Science from Drexel University, Philadelphia, USA.
Michael Roytman, MBA
Senior Enterprise Architect
Advanced Architecture and Global
Technology
Carlos E. La Costa is a technology business/educational
leadership professional with over 15 years of experience
in the Training/Technical/Financial field. Currently, he
serves as a leader in Latin America Initiatives and
Instructional Design.
Carlos has participated as business liaison in Latin
America for the US State Department between US
government officials and LATAM corporate executives.
He provided Fed-line technical support for the Federal
Reserve Bank of the United States, was the systems
engineer for a large ERP software company in the region
and performed Financial analysis for a large financial
institution also focusing in Latin America.
He is currently leading a pilot in Mexico for an
application supporting the OECD CBCr initiative.
Carlos holds a Masters of Educational Technology
Leadership from The George Washington University, an
MBA with a concentration in Technology Management,
and a Bachelor of Science in Business Administration
from the University of Phoenix. He also participated in
the Latin American Business Relationships program at
Florida International University.
Carlos E. La Costa, MBA
LATAM Initiatives
Educational Technology Leadership
Currently with Vertex, Inc.
Berwyn, PA, USA
Consultant Bios
4

5. 5
Why are we here?
• Tax administrations:
• Under pressure
• Reacting by focusing on digital transformation
• E-invoicing
• Automated tax liability
• Risk assessment and direct debit payment
• BEPS requirements
• Technology can be a force for change

6. Emerging
Models
6

7. Compliance Models
Frameworks for:
◦ Increased compliance
◦ Fraud reduction
◦ Operational effectiveness
◦ Cost reduction/ containment
◦ Risk management
Michael Roytman,
co-Author
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8. Cooperative Compliance Main Principles
8

9. Compliance by Design
• Secured Chain
• Centralized data
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10. Singapore Strategic Compliance Framework
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11. Australia Tax Office Risk Differentiation Framework
11

12. Brazil SPED Model
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13. Technology
Preparedness
and Maturity
13
A Technology Industry and Global Tax Authority Best Practice Viewpoint

14. 14
Business and Architecture Foundation
 Without proper business focus even
the best architected solution will not
deliver proper outcomes
 Adequate legislature and smart
processes are essential pre-
requisites
 Investment in personnel education
and training are equally important
 Ongoing and continuous
improvement and modernization of
user experience

15. Technology Essentials
• Robust technical infrastructure
• Business tax process knowledge
• Strong system configuration knowledge
• Data management and analysis tools and skills
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16. Technology Components
Cloud
• Reduced initial and on-going costs
• Rapid implementation
• Resource re-allocation
• Technology “leapfrog”
Reporting
• Critical for visibility/ trust
• Dashboards
Big Data
• Transform operations
• New analytics capabilities
• Keeping pace with Taxpayers
Security
• Key capability underpinning all others
• Critical for culture of trust
• Avoidance vs. remediation
Interoperability
• Technical and semantic
• Between agencies, between Tax Authorities,
between Tax Authorities and large Taxpayers
• Technology architecture and data management
skills required
16

17. 17
Technology Components: SAT (Mexico)
 Integrated Components
 Cloud services
 Common development environment
 Large scale databases/ datacenters
 Analytics tools
 Benefits**
 Reduce implementation time/ cost
 Handle higher volumes
 Improve tax collection
 More intelligent Data Management
 Positive impact on citizens
 Cost savings
**Microsoft
CASE

18. Technology Essentials: Infrastructure
 Administrations are leveraging-
 Real-time collaboration
 Data analysis tools
 Automate Compliance Process for:
 Risk assessment
 Projections
 Audit planning
 Overall administration support
Technology foundation for
18

19. Technology Essentials: Web Portal for External
Communication and Collaboration
 Secure, role-based, web browser application
 User interface to all system layers and functions
 Accessible on desktop and mobile devices
 Dashboard and notification services
Offers visibility and transparency into
all information management activities
19

20.  Definition, management and execution
of all work activities
 Time and event driven processes
 Integration and linking to information
and documents
 Monitoring and escalation
Technology Essentials:
Process Management and Workflow
Ensures timely and complete transactions through
alert and notification services and work tracking
20

21.  Data format and layout
 Import/Export interface and procedures
 Data storage and maintenance
 Aggregation of structured (transactional) and
unstructured (document) information
Technology Essentials:
Data Collection and Information Exchange
Allows for the validation and verification
of information content
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22. Technology Essentials:
 Compliance and regulatory reporting (CBCR)
 Standard tax calculations
 E-Services
◦ Registration, accounting, filing, payment
 Data capture from 3rd parties, ERPs
Deliver secure and seamless flow of tax information
and payments
22
Tax Reporting and Analytics

23.  Unlimited storage of original, unaltered
information
 Analysis across multiple periods,
taxpayers/ tax domains
 Predictive analytics and simulations
 Risk profiling/scenarios-based calculations
Technology Essentials:
Data Visualization and Insights
Increases ability to understand historical
activity and taxpayer behavior/ risk profile
23

24.  Definition, management and enforcement of roles
and permissions
 User authentication, authorization, provision
 Information encryption and network monitoring
 Incident reporting and response
Technology Essentials:
System Security and Data Protection
Provides the foundation for trust building by
proper stewardship of information
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25. 25
Cyber Attacks Defense
“Whole of Government” Responsibility
Technologies only an Outcome/ Tactic
OUTCOME
Policies, exercises, websites, programmes,
technologies, etc.
LEGISLATION
Legal acts, regulations,
official orders, etc.
COOPERATION
Available formats for
cooperation
UNITS
Existing organisations,
departments, etc.
MEASURABLE ASPECTS OF CYBER SECURITY
Implemented by the central government

26. 26
Cyber Attacks Response
“Whole of Government” Responsibility

27. Big Data
Cognitive Computing
Machine Learning
Blockchain
27
Technology:
Tax Technology Innovations

28. E-Invoicing
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29. Global Presence
LATAM
◦ Mexico (leader)
◦ Chile
◦ Brazil (robust)
◦ Argentina
◦ Colombia, Ecuador,
Guatemala, Peru, others
implementing/ considering
Global
◦ Estonia
◦ China
◦ India
◦ Singapore
◦ Indonesia
◦ Considering- Asia, East Europe
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Mexico
ChileBrazilArgentina

30. Closing/
Q/A
Thank you
Michael, Carlos, JB
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