Global Forum on Transparency and Exchange of Information for Tax Purposes

Peer review of the implementation of the international standards for transparency and exchange of information for tax purposes.

PHASE 1QUESTIONNAIRE

[ NAME OF JURISDICTION ]

[ date ]

PHASE1 QUESTIONNAIRE

This questionnaire is the primary means by which the authorities in the jurisdiction being reviewed can provide detailed input to Phase1 of the review process. The information sought relates directly to the essential elements, and the enumerated aspects for those elements, in the Terms of Reference to Monitor and Review Progress Towards Transparency and Exchange of Information For Tax Purposes (ToR).

Responses to the questionnaire should describe the measures that are currently in place. Clear references should be made to relevant provisions in legislation or other legalinstruments. Respondent jurisdictions should also describe those concrete measures or changes which are not yet in place, but which have been developed and will likely be implemented – these measures should be clearly delineated from those that are already in place. Finally, authorities may also set out any additional analysis or commentary that they believe would assist the assessors in carrying out the evaluation e.g. their analysis of the effectiveness of the measures in place.

Respondents are not limited to the space provided for answers.All response boxes are required to be filled. If a question does not apply to your jurisdiction you will need to indicate that this is the case and explain why it does not apply.

All necessary laws, regulations, guidelines (whether at the federal or sub-national level) and other relevant documents should be provided along with the response to the questionnaire. All tax information exchange agreements and relevant articles of double tax conventions should also be provided. Information and documents should be in the language of the evaluation and the original language (unless otherwise agreed with the assessment team), and both these documents and the responses to the questionnaire should be provided in an electronic format.

As outlined in the Global Forum’s Methodology for Peer Reviews, the assessed jurisdiction should provide its responses to the questionnaire (and any additional questions) within a maximum of 4weeks of receipt of the questionnaire. It is essential that the material be provided on time.

The respondent jurisdiction should provide information for each section of the questionnaire set out below.

Introduction

This introductory section is intended to provide assessors with an overview of the jurisdiction’s legal, commercial and economic circumstances in so far as these are relevant to the jurisdiction’s system for the exchange of information for tax purposes. It is intended that respondents provide only brief descriptions sufficient to give assessors an overall context in which to understand the jurisdiction’s responses to the substantive questions that follow.

1.1Please provide general information on the legal system (e.g. the hierarchy of laws, whether the legal system is based on civil or common law or some other legal tradition, whether the legal system relies on a single national law or is divided between federal and sub-national powers) and the taxation system of your jurisdiction.

Response

1.2Please provide an overview of the financial sector and other professionsrelevant to the exchange of information for tax purposes in your jurisdiction(including the types of financial intermediaries and activities provided for under your legislation and how each of such categories is authorized/regulated and/or supervised).

Response

1.3Please provide an overviewof commercial laws governing legal persons and arrangementsrelevant to the exchange of information for tax purposes in your jurisdiction.

Response

1.4Please provide a description of any other relevant factors (such as policies regarding anti-money laundering or securities regulation) that affect the development of the framework for transparency and exchange of information for tax purposes in your jurisdiction.

Response

1.5Please highlight any significant changes relevant to the administration of exchange of informationthat have been recently introduced in your laws in relation to companies, partnerships, trusts, foundations or other relevant entities and arrangements[1] as well as any anticipated amendments (to the extent that these can be made public) over the next twelve months.

Response

PART A (Availability of Information)

This part of the questionnaire is intended to assist in reviewing the availability of ownership, identity and accounting information. It is divided into six sections dealing respectively with the availability of ownership, identity and accounting information in the case of Companies, Partnerships, Trusts, Foundations and other Relevant Entities and Arrangements, and the availability of bank information.

Section A1. Companies

Background

1.1 Types of companies.Does your law provide for the creation of different types of companies? If so, please identify the different types of companies. (ToR A.1.1)

Response

a) Ownership Information

Ownership Information Held by Government Authorities

1.2 Ownership information on domestic companies. Are companies formed under your jurisdiction’s company laws required to be registered or file tax returns under those laws? If so, please indicate with which authority they are required to register or file with and what type of information is required to be disclosed regarding ownership of the company (e.g. is there a requirement to disclose the legal owners of the company or the ultimate owners where there is a chain of ownership), whether changes in ownership are required to be disclosed and what the sanctions are for non-compliance? If your tax or company law does not require disclosure of ownership information or does not require disclosure of changes in ownership information, please indicate whether such information is required to be disclosed to another government authority (e.g.regulatory authority). In addition, if more extensive disclosure (e.g.disclosure of ultimate owners in a chain of ownership) is required to be made to another government authority, please indicate the nature of such disclosure and the circumstances in which such disclosure is required (e.g.ownership above a certain threshold). What are the sanctions for non-compliance? (ToRA1.1)

Comment: If your law provides for the creation of different types of companies and the ownership information reporting requirements differ materially depending on the type of company, please indicate what the requirements are for each type of company.

Response

1.3 Ownership information on foreign companies. Under what conditions, if any, is information on the ownership of companies formed under the laws of another jurisdiction available directly or indirectly to your competent authority?[2] In particular, are companies formed under the laws of another jurisdiction that have a sufficient nexus with your jurisdiction (e.g. that are resident there for tax purposes) required to be registered or file tax returns under your company law? If so, please identify the relevant authority and indicate what, if any, information is required to be disclosed regarding the owners of the company (e.g. is there a requirement to disclose the legal owners of the company or the ultimate individual owners where there is a chain of ownership), whether changes in ownership are required to be disclosed, and what the sanctions are for non-compliance. Is such information required to be disclosed to another government authority (e.g. regulatory authority)? What are the sanctions for non-compliance? (ToR A1.1)

Response

1.4 Special provisions. Please indicate whether your law on ownership information or your laws governing accounting information differ based on whether a company is owned by residents or non-residents or whether or not the company carries on business activities in your jurisdiction. Where such differences exist, please provide details. (ToR A.1.1)

Response

Ownership Information Held by Companies

1.5 Information held by companies. Under what circumstances is information regarding the ownership of a company formed in your jurisdiction required to be held by that company and what information is it required to hold (e.g.is it required to know who the legal owners of its shares are or who the ultimate owners are where there is a chain of ownership): a) in the case of publicly traded companies; and b) all other companies? What are the sanctions for non-compliance? In such circumstances, is information, if any, required to be maintained by the company in a shareholders or members’ register or similar record? (ToR A.1.1)

Comment: If your law provides for the creation of different types of companies and the information requirements differ materially depending on the type of company, please indicate what the requirements are for each type of company. For example, in some jurisdictions owners of public and private companies may be required to notify the company of their interest in the company only if such interest exceeds a certain threshold.

Response

Ownership Information Held by Nominees and Service Providers

1.6Nominee ownership. In the case of nominee ownership, what information, if any, is a nominee required to have under your law regarding the identity of the person on whose behalf the shares are held: a) at the time the nominee first holds the shares; and b) at all times thereafter, including each time the beneficial ownership changes? For example, is the nominee required to know the ultimate individual owner of the shares or merely the next legal owner in the chain of ownership?(ToR A.1.1)

Comment: Nominee shareholdings occur where the legal owner of an interest in a company is not the beneficial owner of the interest.

Response

1.7 Bearer shares. If your law allows for the issuance of bearer shares what, if any, mechanisms are available to your authorities to establish the identity of the owners of such shares for the purpose of responding to a request for exchange of information for tax purposes? (ToR A.1.2 and A.1.6)

Comment: Examples could include bearer shares that are required to be held by designated custodians in your jurisdiction or that can only be issued under limited circumstances. If your jurisdiction’s laws in this respect have changed recently, please also explain how your laws deal with shares issued prior to such changes. In discussing the mechanisms for establishing the identity of owners of bearer shares, please specify whether your government authorities need to go through a judicial process to obtain the information and if so, please describe the process.

Response

1.8 Service providers. Does your jurisdiction have any laws or regulations that require persons providing services to a company to identify the owners of a company (e.g.is there a requirement to know the legal owners of a company or the ultimate individual owners where there is a chain of ownership), and is there a requirement to monitor changes in ownership? If so, please specify what these requirements are and what the sanctions are for non-compliance. (ToR A.1.1)

Comment: Service providers, such as lawyers or auditors or company formation agents, may be subject to anti-money laundering legislation or other regulations that require them to identify owners of client companies.

Response

Ownership Information Held by Directors and Officers

1.9 Information held by directors and officers. Are there any circumstances in which companies formed under the laws of your jurisdiction are required to have one or more resident directors or other officers? If so what, if any, information are they required to have regarding the ownership of the company? (ToR A.1.1)

Response

Ownership Information Held by Other Persons

1.10 Are there any persons other than thegovernment authorities or persons mentioned in questions A.1.2 through A.1.9 above, that under your laws are required to have ownership information on companies? If so, please describe. (ToR A.1.1)

Response

Documentation Retention Requirements

1.11 Retention period. Where there is an obligation on any person or government authority to have ownership information, for how long is such information required to be kept? Please also state whether the document retention period is affected by possible subsequent events (e.g.liquidation of the company or termination of the business relationship).(ToR A.1.1)

Comment: Different types of companies may be subject to different requirements in this regard. Any distinctions between different types of companies should be highlighted. Companies may also be subject to multiple obligations, e.g. one for company law and another for tax law. You may choose to cite some or all of these obligations or you may provide a single response using the maximum period for which ownership information would be available for purposes of exchange of information in tax matters.

Response

1.12 Information held within your jurisdiction. Where ownership information is required to be kept in respect of a company by a person other than a government authority, is the information required to be kept within your jurisdiction? (ToR A.1.1)

Response

b) Accounting Information

Accounting Information Held by Companies

1.13 Obligation to keep accounting records. Is there an obligation on companies formed in your jurisdiction to keep accounting records? If so, please specify whether this obligation arises under your jurisdiction’s company law, tax law or other law.(ToR A.2)

Comment: If your law provides for different types of companies, and record keeping requirements differ materially depending on the type of company, please indicate what the requirements are for each type. If companies are subject to multiple obligations to keep records, for example under company law and tax law, it is sufficient to state only one but you are free to add the others if you so wish.

Response

1.14 Type of accounting records. If accounting records must be kept by companies formed under the laws of your jurisdiction, please explain the nature of the records that are required to be kept. In particular, is there a requirement in all cases that records should:

a) correctly explain the company’s transactions;

b) enable the company’s financial position to be determined with reasonable accuracy at any time;

c) allow financial statements to be prepared;

d) include underlying documentation such as invoices, contracts, etc.? (ToR A.2.1)

Comment: It is sufficient in responding to this question to provide general commentary on your jurisdiction’s record keeping requirements, provided these cover items a) through d) above. Such requirements may arise under your jurisdiction’s company law, tax law or other law, in which case you should identify the relevant legislation. If more onerous requirements are imposed on certain types of regulated companies, such as banks, these do not need to be described. However, if record keeping requirements differ for different types of companiesand the requirements for particular types of companies are more limited than those referred to in a) through d) above, these should be described.

Response

Accounting Documentation Retention Requirements

1.15Retention period. What is the minimum retention period for which accounting records are required to be kept in respect of companies formed under your law? If retention periods vary depending on the nature of the company or its connection with your jurisdiction, please describe. Please also state whether the documentation retention period is affected by possible subsequent events (e.g.liquidation of the company).(ToR A.2.3)

Comment: Different types of companies may be subject to different requirements in this regard. Any distinctions between different types of companies should be highlighted. Companies may also be subject to multiple obligations, e.g. one for company law and another for tax law. You may choose to cite some or all of these obligations or you may provide a single response using the maximum period for which accounting records would be available for purposes of exchange of information in tax matters.

Response

1.16Information kept within your jurisdiction. Where accounting information is required to be kept in respect of a company by a person other than a government authority, is it required to be kept within your jurisdiction?(ToR A.2)

Response

Section A2. Partnerships

Background

2.1 Types of partnerships. Do your laws provide for different types of partnerships? If so, please identify the different types.

Response

a) Ownership Information

Information Held by Government Authorities

2.2 Ownership information on partnerships. What information is required to be maintained by government authorities in respect of partnerships that: (i) have income, deductions or credits for tax purposes in your jurisdiction; (ii) carry on business in your jurisdiction; or (iii) is a limited partnership formed under the laws of your jurisdiction (relevant partnership). For example are they required to be registered or file tax returns under the laws of your jurisdiction? If so, please indicate which authority they are required to register or file tax returns with (e.g.a tax or regulatory authority) and what type of information is required to be disclosed regarding the identity of the partners, including ongoing changes (e.g.is there a requirement to disclose the identity of the partners or, in the case of partners that are companies, the ultimate owners of the companies and if so does the requirement apply only for certain owners such as owners above a certain ownership threshold). What are the sanctions for non-compliance? (ToR A.1.3)

Comment: If your law provides for different types of partnerships or different types of partners (e.g. general or limited) and the information reporting requirements differ materially depending on the type of partnership or partner, please indicate what the requirements are for each type.

Response

Information Held by Service Providers

2.3 Service providers. Are there any laws or regulations that require persons providing services to a relevant partnership to identify the partners, and does such a requirement apply in some or all cases? If so, please specify what these requirements are, the circumstances under which they apply, and the sanctions for non-compliance. (ToR A.1.3)

Comment: For example, some service providers, such as lawyers or auditors, may be subject to anti-money laundering legislation that requires them to identify partners in partnerships.

Response

Information Held by the Partnership or Partners

2.4 Under what circumstances is information regarding the identity of partners in a relevant partnership required to be kept under your laws by the partners or partnership? What information is required to be kept and who is required to keep it (e.g.the partnership, or particular partners, such as a general partner)? Is this information required to be maintained in a register or other similar record? (ToR A.1.3)

Comment: If the requirements differ depending on the type of partnership involved, please describe the requirements in each case.

Response

Information Held by Other Persons

2.5Apart fromthe persons mentioned in questions A.2.2 through A.2.4, above, are there any other persons that under your law are required to have ownership information on relevant partnerships under any circumstances? If so, please identify the persons concerned, describe what information they are required to have and the purposes for which the information is held. (ToR A.1.3)