Under the CIAT-UN-GIZ cooperation agreement, and in collaboration with the SAT of Mexico, CIAT coordinated short-term technical assistance for the Internal Revenue Service of Ecuador (SRI), with the objective of developing a matrix for the transfer pricing risk management. In consideration of the complexity of the process, this assistance was organized in three phases. From March 1 to 3, 2017, a first session took place, in which experts from the SAT visited the headquarters of SRI in order to make a diagnosis about structure, information and processes of the institution. This stage allowed the collection of data relevant to the development of the risk management model. Likewise, practical cases of success in the detection of evasion in issues of international control, transfer pricing and aggressive evasion schemes were analyzed. Subsequently, from June 26 to 30, SRI officials conducted a study visit to the SAT headquarters, with the objective of presenting the preliminary model of transfer prices from the SRI in Mexico, as well as analyzing the operation scheme and the methodology of construction of the risk models used in the SAT for the management of transfer pricing risks, the tools used for this purpose and the scope and segmentation of the model from the SAT perspective. Finally, a third phase is contemplated in which SAT experts will again visit the SRI headquarters in order to be presented with the definitive model validated by the different areas, which will enable to begin with the training of officials. This will allow the SRI to carry out tax controls in the cases of transfer prices, being able to evaluate and detect the existing cases of risk in this scenario.

SRI officials from the involved areas, with the Mexican experts during their first visit in Ecuador.

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