THE Global
Forum on Transparency and Exchange of Information for Tax Purposes has published
nine new peer review reports, including a Phase 1 Supplementary Report
for Switzerland, demonstrating continuing progress toward implementation
of the international standard for exchange of information on request.
The OECD welcomed Switzerland’s recent moves towards greater tax transparency,
which are sufficient to remove the country from a category of jurisdictions
blocked from moving forward in the peer review process. Switzerland will now
be assessed on its effective implementation of exchange of information on request;
that report is due in the second half of 2016.
The Global Forum also reviewed exchange of information practices through Phase
2 peer review reports in six jurisdictions. It allocated ratings for compliance
with the individual elements of the international standard, as well as an overall
rating for each jurisdiction. Five jurisdictions – Aruba, Cook Islands, Hungary,
Portugal and Uruguay - received an overall rating of “Largely Compliant.” Curaçao
was rated “Partially Compliant.”
Switzerland’s supplementary report assesses the improvements it has made to
its legal framework and exchange of tax information mechanisms since the adoption
of the Phase 1 report in 2011. Switzerland has introduced a new law on international
administrative assistance, which specifically states that it is applicable
to all EOI mechanisms. Switzerland has also updated its treaty network, by
signing new bilateral agreements and the Convention on Mutual Assistance in
Tax Matters. Switzerland currently has exchange of information mechanisms with
127 jurisdictions. 92 of these meet the international standard, and of these,
42 are currently in force. Switzerland qualifies for a Phase 2 review, which
will be launched in the second half of 2015.
With the release of the latest batch of reviews, the Global Forum has now completed
183 peer reviews and assigned compliance ratings to 76 jurisdictions that have
undergone Phase 2 reviews. Four jurisdictions are rated as Non-Compliant, while
ten are now rated Partially Compliant. There are still 11 jurisdictions which
remain blocked from moving to a Phase 2 review, due to insufficiencies in the
legal and regulatory framework. A supplementary review of Marshall Islands
has been launched in February 2015, to assess changes to its legal framework
since a 2012 Phase 1 review, in order to comply with the international standard.
Global Forum members are working together to design a new process for monitoring
and reviewing the implementation of the new international standard for the
automatic exchange of tax information. The Global Forum is also working on
revision of its Terms of Reference, in preparation for a new round of reviews
on exchange of information on request, in particular to include new transparency
requirements on beneficial ownership of legal entities.
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