Gibraltar

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Overall Phase 2 Rating is Largely Compliant

Table of Determinations and Ratings of the Phase 2 Review

Jurisdictions should ensure that ownership and identity information for all relevant entities and arrangements is available to their competent authorities. (ToR A.1)
Determination Factors Recommendations
The element is in place.      
Phase 2 Rating Factors Recommendations
Compliant.     
Jurisdictions should ensure that reliable accounting records are kept for all relevant entities and arrangements. (ToR A.2)
Determination Factors Recommendations
The element is in place.   Partnerships are required to maintain accounting records in accordance with the standard; however, there is no penalty applicable for breach of this obligation.  Gibraltar should introduce appropriate sanctions for non-compliance with the obligation for partnerships to maintain full accounting records. 
Phase 2 Rating Factors Recommendations
Largely Compliant.  While accounting information was generally provided, the obligations to maintain accounting records in accordance with the standard only came into force in 2013 and so their effectiveness could not be fully assessed.  Gibraltar should monitor the practical implementation of the new laws to ensure that all relevant entities and arrangements keep accounting records and underlying documentation in accordance with the standard. 
Partnerships are not subject to systematic oversight of compliance with their accounting obligations.  Gibraltar should ensure that a regular system of oversight and monitoring of partnerships’ obligations to maintain accounting records. 
Banking information should be available for all account-holders. (ToR A.3)
Determination Factors Recommendations
The element is in place.      
Phase 2 Rating Factors Recommendations
Compliant.     
Competent authorities should have the power to obtain and provide information that is the subject of a request under an exchange of information arrangement from any person within their territorial jurisdiction who is in possession or control of such information (irrespective of any legal obligation on such person to maintain the secrecy of the information). (ToR B.1)
Determination Factors Recommendations
The element is in place.      
Phase 2 Rating Factors Recommendations
Compliant.     
The rights and safeguards (e.g. notification, appeal rights) that apply to persons in the requested jurisdiction should be compatible with effective exchange of information. (ToR B.2)
Determination Factors Recommendations
The element is in place.   The prior notification procedure in civil tax matters only allows for an exception when the whereabouts of the taxpayer are not known to the competent authority or when the taxpayer does not reside in Gibraltar.  It is recommended that wider exceptions from prior notification be permitted in civil tax matters (e.g. in cases in which the information request is of a very urgent nature or the notification is likely to undermine the chance of the success of the investigation conducted by the requesting jurisdiction). 
Phase 2 Rating Factors Recommendations
Compliant.     
Exchange of information mechanisms should provide for effective exchange of information. (ToR C.1)
Determination Factors Recommendations
The element is in place.      
Phase 2 Rating Factors Recommendations
Compliant.     
The jurisdictions' network of information exchange mechanisms should cover all relevant partners. (ToR C.2)
Determination Factors Recommendations
The element is in place.     Gibraltar should continue to develop its exchange of information network with all relevant partners. 
Phase 2 Rating Factors Recommendations
Compliant.     
The jurisdictions' mechanisms for exchange of information should have adequate provisions to ensure the confidentiality of information received. (ToR C.3)
Determination Factors Recommendations
The element is in place.      
Phase 2 Rating Factors Recommendations
Largely Compliant.  The systematic disclosure to third parties of the identity of the person or entity specified in the EOI request, including in cases where this is not necessary for gathering the requested information, is not in accordance with the standard.  Gibraltar should not disclose to third parties information that is not needed to obtain the information requested. 
The exchange of information mechanisms should respect the rights and safeguards of taxpayers and third parties. (ToR C.4)
Determination Factors Recommendations
The element is in place.      
Phase 2 Rating Factors Recommendations
Compliant.     
The jurisdiction should provide information under its network of agreements in a timely manner. (ToR C.5)
Determination Factors Recommendations
The assessment team is not in a position to evaluate whether this element is in place, as it involves issues of practice that are dealt with in the Phase 2 review.      
Phase 2 Rating Factors Recommendations
Largely Compliant.  The Commissioner’s relationship with an important exchange of information partner has suffered from a lack of communication which has led to the issuing of notices that could have been better formulated and delays in validating requests.   Gibraltar should work with this partner to improve communication and ensure effective exchange of information. 
Although Gibraltar has recently established new procedures to provide status updates to its treaty partners, they should monitor that its competent authorities’ sends status updates to its treaty partners in all cases.  Gibraltar should monitor that status updates are sent to its treaty partners in all cases. 
It is recommended that the Commissioner improves and utilises his existing guidelines and manuals to ensure that EOI requests are dealt with effectively and efficiently.  Gibraltar should improve its systems to ensure that EOI requests are dealt with effectively and efficiently, in all cases. 

Earlier self-assessment based annual reports entitled Tax Co-operation 2010: Towards a Level Playing Field are also available.