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The Exchange of Tax Information Portal is an initiative of the Global Forum on Transparency and Exchange of Information for Tax Purposes. The Global Forum conducts peer reviews of its member jurisdictions' ability to co-operate with other tax administrations in accordance with the internationally agreed standard. The standard provides for exchange of information on request where it is foreseeably relevant to the administration and enforcement of the domestic tax laws of the requesting jurisdiction. Effective exchange of information requires that jurisdictions ensure information is available, that it can be obtained by the tax authorities and that there are mechanisms in place allowing for the exchange of that information. The Global Forum's peer review process examines both the legal and regulatory aspects of exchange (Phase 1 reviews) and the exchange of information in practice (Phase 2). The EOI Portal will track the development of these peer reviews, including changes that jurisdictions make in response to the Global Forum's recommendations.

Peer Review: Supplementary Report to Phase 1 Review - Monaco

This report for Monaco has been published on 26 Oct 2011. You can browse it online below.

Skip directly to the Executive Summary. You may also want to view the tables of determinations and ratings.


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Determinations and Recommendations

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, but certain aspects of the legal implementation of the element need improvement.   In Monaco there is no requirement and no legal mechanism for keeping information available and up to date with regard to the shareholders of SAMs and SCAs. Monegasque legislation allows companies traded on a foreign stock exchange to issue bearer shares but contains no mechanism that would ensure the availability of ownership information. There are, however, only two companies in this situation.  Monaco must ensure that its competent authorities have continuous access to information on the shareholders of trading companies, irrespective of the type of company in question. 
While Monegasque legislation authorises the creation in or transfer to Monaco of foreign trusts, the record-keeping requirements of the law on the fight against money laundering do not ensure that information on the settlors and beneficiaries of trusts is available in all circumstances.  Monaco should ensure that trustees are required to hold identity information on settlors and beneficiaries of express trusts in all circumstances. 
Phase 2 Rating Factors Recommendations
     
Jurisdictions should ensure that reliable accounting records are kept for all relevant entities and arrangements. (ToR A.2)
Determination Factors Recommendations
The element is not in place.   No accounting obligation is imposed under Monegasque legislation on non-trading partnerships or companies that are not deemed traders under the Commercial Code. And yet 80% of Monegasque partnerships fall into this category. Monegasque legislation imposes no bookkeeping or record-keeping obligations on foreign-law trusts established in or transferred to Monaco. Monegasque legislation imposes no requirements as to form and makes no reference to an international accounting standard in respect of the accounting records to be kept and supplied by foundations.  Monaco should ensure that reliable accounting records be kept for all relevant entities and arrangements that may be created in Monaco, among which, inter alia, are trusts, foundations and non-trading partnerships, and these records should be accessible for at least five years, in compliance with the terms of reference. 
Phase 2 Rating Factors Recommendations
     
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
     
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
     
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, but certain aspects of the legal implementation of the element need improvement.   The prior notification procedure does not allow for any exception and therefore applies to any incoming requests sent by Monaco’s partners, with the exception of the ones sent by France.  Monaco should examine the conditions under which the new notification procedure that applies in Monaco is compatible with an effective exchange of information. 
Phase 2 Rating Factors Recommendations
     
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
     
The jurisdictions' network of information exchange mechanisms should cover all relevant partners. (ToR C.2)
Determination Factors Recommendations
The element is in place, but certain aspects of the legal implementation of the element need improvement.   The network of treaties containing provisions regarding the exchange of information does not currently cover all of those jurisdictions who have indicated that they would like to enter into such a relationship with the Principality.  Monaco should enter into agreements for exchange of information (regardless of their form) with all relevant partners, meaning those partners who are interested in entering into an information exchange arrangement with it, including in particular with Italy. 
No priority has been given in Monaco’s negotiating policy to the rapid signing of information exchange agreements with these partners.  Monaco must ensure that its negotiating policy and the priorities set internally are such that it can obtain, as rapidly as possible, a network of information exchange mechanisms which covers all relevant partners. 
Phase 2 Rating Factors Recommendations
     
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
     
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
     
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