Within the framework of the EUROsociAL II Programme, financed by the European Union, Bolivia's National Tax Service (SIN) received expert advising on Information Exchange Agreements from 18th to 20th August 2015.

Bolivia's SIN has recognised the importance of information exchange as a tool for improving its control and auditing capacities, and this is reflected in the 2011-2015 Institutional Strategic Plan, which contemplates “Reduction of tax evasion and delinquency” among its strategic objectives. In this process, the SIN has made a commitment to acting to address three tax concepts linked totally or partially to international taxation: the application of transfer prices, the exchange of tax information with other administrations, and the application of an institutional risk management scheme.

With the aim of supporting the efforts initiated by Bolivia's SIN in the framework of strengthening capacities for control of harmful international tax planning and compliance with the international standard for transparency and information exchange, the EUROsociAL II Programme, through the CIAT Executive Secretariat, provided support for orienting these efforts and laying the necessary groundwork for achieving the SIN's objective.

In particular, the work was focused on the legal and administrative aspects required to achieve effective information exchange for tax purposes, including those related to the SIN's verification and auditing powers, Bolivia's network of international tax instruments, internal administrative procedures and tools for managing information exchange, and confidentiality within the scope of this process. In addition, a training workshop was held to raise awareness among SIN auditors of the importance of information exchange and its utility in the context of tax control.

Some steps have already been solidified by the SIN, and this is the point at which they find themselves in the negotiation of information exchange agreements, specifically with the tax administrations of Ecuador and Peru.  In the internal context, local information exchange agreements have been consolidated with the National Customs Service, Tax Appeal Authority, General Personal Identification Service, National Hydrocarbons Agency, Public Prosecutor's Office-State Attorney General's Office, Authority for Auditing and Social Control of Gambling, and the Financial Investigation Unit. Other agreements at the local level are in the planning stage. Moreover, the SIN has centralised management of information exchange procedures in the Tax Investigation area of the Executive Presidency, which acts as the de-facto Information Exchange Office, and is continuing to train civil servants as experts on regulations and techniques for improving capacities for negotiation and management of the agreements.

This activity is part of the Voluntary Compliance action of the Public Finance area of the EUROsociAL II Programme, which is financed by the European Union and coordinated by the FIIAPP, in which Spain's State Tax Administration Agency (AEAT) and the Inter-American Centre for Tax Administrations (CIAT) are acting as operational partners.