BIR chief appointed in UN tax committee

MANILA – United Nations Secretary General Ban Ki Moon has appointed Kim Henares, Commissioner of the Bureau of Internal Revenue, as a member of the UN Committee of Experts on International Cooperation in Tax Matters.

The Committee, consisting of 25 tax experts and senior tax administrators from 10 developed and 15 developing countries and economies in transition, is responsible for exploring ways and means of facilitating the conclusion of tax treaties between developed and developing countries and for promoting international tax cooperation among tax authorities.

Henares, whose sterling performance as tax commissioner in the Philippines has been cited by various groups, thanked the UN Secretary General for appointing her to the Committee  and said it is 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.

Tax agencies, especially from developing countries, like the Philippines, face serious challenges in enforcing laws and collecting taxes from cross-border transactions.

In a 2014 report, Global Financial Integrity estimates that the Philippine government has lost at least US $23 Billion tax revenues since 1990 from trade mis-invoicing.

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

Before being appointed to the UN Committee, Henares has been active in international dialogues on Base Erosion and Profit Shifting 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.

Henares’ term in the Committee begins in October 2014 and ends on June 30, 2017. (Mindanao Examiner)