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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: Peer Review Report Phase 1 Legal and Regulatory Framework - Turks and Caicos

This report for Turks and Caicos Islands has been published on 12 Sep 2011. You can buy this report, or 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.   It is not clear that the obligation to maintain a register of shareholders applies to all relevant foreign companies that are effectively managed and have a permanent establishment in the Turks and Caicos Islands.  The Turks and Caicos Islands should amend its legislation to clarify that the obligation to maintain a register of members also applies all relevant foreign companies that are effectively managed and have a permanent establishment in the Turks and Caicos Islands. 
Professional trustees that meet the conditions for licensing exemption do not have clear obligations to maintain the identity of the settlors and beneficiaries of the trusts for whom they act as trustee. They are only subject to common law requirements and it is not clear that such requirements ensure identity information on the settlors and beneficiaries is available to the competent authorities.  The Turks and Caicos Islands should ensure that all professional trustees know the identity of the settlors and beneficiaries of the trusts for whom they provide services to. 
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.   Companies are not obliged to keep accounting records for at least five years, nor are they required to maintain underlying documentation.  The Turks and Caicos Islands should ensure that companies maintain relevant underlying documentation, and keep such documentation as well as accounting records for at least five years. 
There is no consistent obligation for partnerships and trusts to keep reliable accounting records for at least five years.  The Turks and Caicos Islands should ensure that partnerships and trusts are required to keep reliable accounting records in line with the international standard in all cases for at least five years. 
Banking information should be available for all account-holders. (ToR A.3)
Determination Factors Recommendations
The element is in place.      
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 not in place.   The powers of the Turks and Caicos Islands competent authorities to obtain and exchange information under an information exchange agreement apply only to (a) information held by a bank or other financial institution, or any person acting in an agency or fiduciary capacity, including a nominee or trustee, or (b) information that relates to the beneficial ownership of a company, partnership or other person.  The Turks and Caicos Islands should ensure that its competent authority has the power, for the purposes of tax information exchange, to obtain information from any person that may be possession or control of information that is foreseeably relevant to the administration and enforcement of the domestic tax laws of the requesting jurisdiction. 
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.      
Exchange of information mechanisms should provide for effective exchange of information. (ToR C.1)
Determination Factors Recommendations
The element is not in place.   The Turks and Caicos Islands’ arrangements providing for international exchange of information have not been given full effect through domestic law as there are limitations on the authorities’ powers to obtain necessary information for the purpose of international information exchange.  The Turks and Caicos Islands should amend its domestic legislation so that it can give full effect to the terms of its EOI agreements. 
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 Turks and Caicos Islands has a network of EOI arrangements with relevant partners but they have not been given full effect through domestic law.  The Turks and Caicos Islands should ensure it gives full effect to the terms of its EOI arrangements in order to allow for full exchange of information to the standard with all its relevant partners. 
  The Turks and Caicos Islands should continue to develop its EOI network with all relevant partners. 
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.      
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.      
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.