1. The Database of Controlling Authorities of the Republic of Belarus Risk-Based Inspections Valeryi B. Rumyantsev Ministry of Taxes and Duties of the Republic of Belarus Tbilisi, June 2013

2. The Database of Controlling Authorities of the Republic of Belarus Legal and regulatory framework  Decree No.510 of the President of the Republic of Belarus dated October 16, 2009 “On Improvement of Control/Supervision Activities in the Republic of Belarus”.  Resolution No. 463 of the Council of Ministers of the Republic of Belarus dated March 30, 2010 (on creating the Unified Information Database for 2010-2011).  Resolution No. 74 of the Council of Ministers of the Republic of Belarus dated January 30, 2013 (on procedure of operation of the Unified Information Database)

3. The Database of Controlling Authorities of the Republic of Belarus The Program of the Database creation included:  Allocation of 2,849 million BYR (about 1 million USD in equivalent) from the republican budget within the period from 2010 to 2011 to develop software and to purchase technical means;  Development of the Database on the platform of the State Register of Taxpayers;  Training of professionals. The Database Administrator is the Ministry of Taxes and Duties of the Republic of Belarus

4. The Database of Controlling Authorities of the Republic of Belarus Information contained in the Database 1) Information on businesses:  Payer’s Identification Number;  name of the legal entity or the surname/name/patronymic name of an individual;  place of location or place of residence;  form of ownership;  date and number of decision on state registration;  date of registration with the tax authority;  conducted types of activity, etc. 2) Information on risk groups of businesses:  risk group (high, medium, low),  criteria for classifying businesses into risk groups

5. The Database of Controlling Authorities of the Republic of Belarus Users of the system Republic Oblast Rayon Controlling/ supervision authorities Businesses by the database security means

6. The Database of Controlling Authorities of the Republic of Belarus The procedure of building the Database Republican level Oblast level Rayon level the Single State Register of Taxpayers (and Other Liable Persons) Controlling/supervision authorities (depending on the organizational structure) Information on risks broken down by businesses Once in six months

7. The Database of Controlling Authorities of the Republic of Belarus Stages of data provision by controlling authorities Controlling/supervision authorities Businesses The area of control of each controlling/supervision authority Criteria for classifying audited entities into risk groups to schedule inspections Database 1 stage 2 stage High risk group Classification of businesses into risk groups by risk criteria Classification of businesses Classification of businesses into risk groups 3 stage Low risk group Medium risk group

8. The Database of Controlling Authorities of the Republic of Belarus Frequency of data update Situational updates of the information in the database (liquidation of the business, change of the type of activity, changing of risk group, etc.) Controlling/supervision authorities Republic Oblast Rayon Database According to the classification of businesses into risk groups (under Decree No. 510) According to the changes of performance indicators used to classify businesses into particular risk groups (monthly, or quarterly)

9. The Database of Controlling Authorities of the Republic of Belarus Examples of risk criteria (for tax inspections) High risk group  Failure to ensure financial sustainability, including the presence of sustained losses during the calendar year.  The presence of two or more cases in the calendar year of failure to pay and/or partial payment of taxes, fees/duties for the reporting period. Medium risk group  migration (two or more times) between the tax authorities within three years.  Presenting by the audited entity of the amount of expenditure as close to the amount of the entity’s income earned in a calendar year as possible.

10. Frequency of scheduling and assigning inspections based on classification of businesses into risk groups High risk group Medium risk group Low risk group Not more than once per calendar year. If there are no violations the next scheduled inspection can only be conducted in 2 years Not more than once in 3 years. If there are no violations the next scheduled inspection can only be conducted in 5 years As and when necessary, but not more than once in 5 years. The Database of Controlling Authorities of the Republic of Belarus

11. Interaction with the automated information system of control/supervision authorities of the Republic of Belarus (AIS of Control/Supervision Authorities) and the Uniform State Data Bank on Offences (USDBO) 1. information on violations forming risk criteria 2. information on risk criteria, risk groups for all entities 3. information on violations Database on risk criteria AIS of Control/ Supervision Authorities USDBO 2 2 1 1 3 3

12. The Database of Controlling Authorities of the Republic of Belarus Thank you!