Compliance & TechnologyLATAM AND CARIBBEAN

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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

Compliance & Technology

Introductions and Opening Remarks

Inter-American Development Bank

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JB HillmanStrategic 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, MBASenior 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, MBALATAM Initiatives

Educational Technology Leadership

Currently with Vertex, Inc.Berwyn, PA, USA

Consultant Bios

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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

Emerging Models

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Compliance Models

Frameworks for:

◦ Increased compliance

◦ Fraud reduction

◦ Operational effectiveness

◦ Cost reduction/ containment

◦ Risk management

Michael Roytman, co-Author

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Cooperative Compliance Main Principles

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Compliance by Design• Secured Chain

• Centralized data

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Singapore Strategic Compliance Framework

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Australia Tax Office Risk Differentiation Framework

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Brazil SPED Model

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Technology Preparedness and Maturity

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A Technology Industry and Global Tax Authority Best Practice Viewpoint

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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

Technology Essentials

• Robust technical infrastructure

• Business tax process knowledge

• Strong system configuration knowledge

• Data management and analysis tools and skills

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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

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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

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

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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

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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

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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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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

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Tax Reporting and Analytics

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

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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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Cyber Attacks Defense

“Whole of Government” Responsibility

Technologies only an Outcome/ Tactic

OUTCOMEPolicies, exercises, websites, programmes,

technologies, etc.

LEGISLATIONLegal acts, regulations,

official orders, etc.

COOPERATIONAvailable formats for

cooperation

UNITSExisting organisations,

departments, etc.

MEASURABLE ASPECTS OF CYBER SECURITYImplemented by the central government

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Cyber Attacks Response

“Whole of Government” Responsibility

Big Data

Cognitive Computing

Machine Learning

Blockchain

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Technology: Tax Technology Innovations

E-Invoicing

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Global PresenceLATAM

◦ 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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MexicoChileBrazilArgentina

Closing/Q/A

Thank youMichael, Carlos, JB

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