Henares named to UN body on tax matters

MANILA, Philippines - Internal Revenue Commissioner Kim S. Jacinto-Henares is one the three newest members of the United Nations Committee of Experts on International Cooperation in Tax Matters.

The 54-member council is tasked with keeping under review the UN codes on taxation as well as tax treaties between developed and developing countries.

It also provides a framework for dialogue with a view to enhancing and promoting international tax cooperation among national tax authorities and assesses how new and emerging issues could affect this cooperation.

Henares said her appointment to the committee would serve as an opportunity to advance the interest of developing countries in the formulation of tax treaty commentaries and recommendations to various tax issues brought about by increasing globalization and integration of economies.

The BIR, along with other tax agencies from developing countries, face serious challenges in enforcing laws and collecting taxes from cross-border transactions.

Global Financial Integrity reported earlier that the Philippines lost at least $23 billion tax revenues due to trade mis-invoicing since 1990.

“Globalization does not just create opportunities for doing business, it also creates risks for tax evasion and base erosion,” Henares said.

“Unlike advanced countries, we lack the capacity to tackle complicated cross-border tax problems. It is important to have this platform and be part of this body where developing countries are given special attention in dealing with these issues,” Henares said.

Prior to her appointment as member of the UN committee, Henares has been active in international dialogues on Base Erosion and Profit Shifting (BEPS) and exchange of information where she has been very vocal about the challenges by developing countries in implementing global standards on tax transparency and fairness.

Her term runs from October 2014 to June 30, 2017.

The council’s 54 member governments are elected by the general assembly for overlapping three-year terms. Seats on the Council are allotted based on geographical representation with 14 allocated to African states, 11 to Asian states, six to Eastern European states, 10 to Latin American and Caribbean states, and 13 o Western European and other states.

The two others joining the UN committee are Nasser Mohammed al-Khalifa from Qatar and Xiaoyue Wang from China.