|
The Minister of Finance Andres Velasco, the SII Commissioner Ricardo Escobar and representatives of five large taxpayer companies at the announcement ceremony for a Corporate Social Responsibility Program. “There is a whole chain of synergies, from the tax administration and the large taxpayers towards small companies, reflected in this initiative, stimulating the latter to improve their tax compliance and quality of management,” Ricardo Escobar stated.
|
The signing of the agreement today affirms a commitment from both the Chilean Tax Service and large taxpayers from the various sectors of the national economy to provide Micro, Small and Medium companies (MIPYME) with the tools that would increase their competitiveness and participation in the economy.
This agreement is a result of the unusual alliance where the tax administration invites the large companies to go beyond simple tax compliance into getting involved with helping small companies, that are typically the large company’s providers of goods and services, to adopt technologies and business practices that favor the smaller companies’ development, as well as generally improve their competitiveness and business management capacity.
The title of this project is Social Business Tax Responsibility Program (RSET). It was launched by the Minister of Finance Andres Velasco, the SII Commissioner Ricardo Escobar along with the representatives of participating companies.
Also present at the launch were representatives of small businesses that provide goods and services to the large companies. An interesting fact: A total number of small businesses involved with the five large companies is 20,000, all of them potential users of electronic invoicing.
|
“This is a project that is of great interest to us. We are convinced that it could be a very valuable tool for accelerating development of competitiveness and efficiency on part of small business. There is a whole chain of synergies, from the tax administration and the large taxpayers towards small companies, reflected in this initiative, stimulating the latter to improve their tax compliance and quality of management,” Ricardo Escobar declared.
Also present at the launch were representatives of small businesses that provide goods and services to the large companies. An interesting fact: A total number of small businesses involved with the five large companies is 20,000, all of them potential users of electronic invoicing.
Moreover, the project is a part of the measures aimed at encouraging “good practices” in compliance and transparency that are promoted by the Organisation for Economic Co-operation and Development (OECD). It is an area where the SII has been an active participant, taking part in various work groups dealing with these issues. “The OECD, which Chile hopes to join shortly as a member, is very interested in the commitment from taxpayers to good practices in taxation, in fluid dialogue with the tax authorities. By initiating this program we are also creating new basis for mutual trust and transparency between the taxpayers and the tax administration,” the SII Commissioner explained.
Commissioner Escobar invited other large national companies to join the project.
Representatives of the CCU, Ricardo Reyes, Administration and Finance manager, and Dirk Leisewitz Timmermann, the director of the company, sign the cooperation agreement with the SII Commissioner Ricardo Escobar. Four other companies – CMPC, Telefonica Chile, Anglo American and BHP Billiton also signed the agreement. Observing the ceremony, the Minister of Finance Andres Velasco.
|
Characteristics of the program
Five companies participated in the launch today: Anglo American, BHP Billiton, United Brewery Company (CCU), Paper and Carton Manufacturing Company (CMPC) and Telefonica CTC Chile.
The program consists of large companies promoting and supporting the training of their providers in the small business sector for adoption of electronic invoicing. Specifically, the signing companies will push for increased use of the Electronic Invoicing system which is free and available through MIPYME tax portal of the SII website. The objective is that this practice gains wide acceptance and becomes the dominant mode of performing the operation for this business sector, given the system’s benefits in terms of efficiency and management.
This group of large companies employs some 20,000 smaller providers, of which approximately 9,000 are considered MIPYME sector businesses, so that the potential for the growth of the project is high. Currently, there are 11,000 MIPYME companies that use electronic invoicing out of a nationwide total of 14,000.
The large corporations could have a significant impact on the improvement of the situation of the Small and Medium companies, through helping them develop and attain their full potential, thus contributing to alleviation of poverty and economic growth. One of the ways that the large companies could help, is by supporting improvements in the business management and abilities of the smaller companies.
Advantages and benefits
The use of electronic invoicing significantly reduces costs associated with tax administration. In terms of management, it allows modernization of the business model, improving the payment chain and cash flow, and at the same time increasing productivity of a MIPYME. Simultaneously, it reduces the delays involved and facilitates the administration of invoicing process. Additionally, the system achieves greater transparency in the relationship between the company and the SII and permits companies to reduce their impact on the environment.
The program’s aim is a 20% or greater increase among the MIPYME providers’ use of the SII MIPYME Electronic Invoicing over a period of a year from the signing date. This will stimulate further use of this technological platform which is currently being used by over ten thousand MIPYME taxpayers.
The training activities will be conducted in Santiago and in the regions, taking into account the geographical location of the productive business activity, and therefore, the providers. It will be the responsibility of the agreement-signing companies to contact their providers and implement the infrastructure needed for the training activities. The SII, in turn, will make specially trained monitors available to teach courses and respond to inquiries of Micro, Small and Medium company entrepreneurs.
|
