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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: Saint Lucia Supplementary Phase 2 report

This report for Saint Lucia has been published on 26 Jul 2016. 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.      
Phase 2 Rating Factors Recommendations
Largely Compliant.   A comprehensive system of oversight was implemented by both the regulator and by the Company Registrars over the review period. However as both of these processes have been recently implemented, they could not be sufficiently tested in practice by the assessment team over the review period. Additionally, for tax purposes, the IRD did not have a comprehensive system of oversight in place. Furthermore, penalties for failure to comply with ownership information requirements and tax filing requirements have not been imposed in practice.  Saint Lucia should continue to monitor its recently implemented system of oversight of the legal obligations to maintain ownership information and should ensure that its enforcement powers are sufficiently exercised in practice to ensure the availability of ownership and identity information in all cases. 
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.      
Phase 2 Rating Factors Recommendations
Partially Compliant.   In August 2015 and May 2016, Saint Lucia enacted new laws to ensure the keeping of accounting information and underlying documentation by all relevant entities in line with the international standard. Although an oversight program to monitor compliance with accounting record requirements has been implemented by the Regulator and the Internal Revenue Department, as these amendments are recent and were enacted after the review period, they have not been tested in practice.  Saint Lucia should monitor its newly implemented system of oversight to ensure that all entities are maintaining accounting information in line with the international standard and that its enforcement powers are sufficiently exercised in practice. 
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
Largely Compliant.   The competent authority has not yet used its access powers under the ITC Act to gather information. Over the period, only one request was received by the competent authority and the request was able to be satisfied using information already in the possession of the competent authority. Therefore, the access powers granted to the competent authority under the ITC Act have not been tested in practice over the review period.  It is recommended that Saint Lucia monitors Its access powers to gather information for EOI purposes to make sure that they are effective in all cases. 
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.      
Phase 2 Rating Factors Recommendations
Compliant.   Saint Lucia has amended the ITC Act to allow the competent authority to exercise discretion in extending the retention period where an objection is raised and legal recourse is sought. In exercising this discretion, the competent authority should first discuss the matter with the requesting jurisdiction and take into account factors such as the nature and urgency of the request. The amendment should further enhance the effectiveness of Saint Lucia’s ability to exchange information in a timely manner, but has not yet been tested in practice.  Saint Lucia is recommended to monitor the manner in which the competent authority exercises this discretion to ensure that the holding period does not pose an impediment to effective EOI in practice. 
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.     Saint Lucia 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
Compliant.      
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.   In January 2013, Saint Lucia put in place a comprehensive organisational process, including a formal EOI Unit and EOI manual that appear to be adequate for dealing with incoming EOI requests. However, as of May 2016, the new procedures of the EOI unit still have not been sufficiently tested in practice.  Saint Lucia should continue to monitor the practical implementation of the organisational processes of the EOI unit to ensure that they are sufficient for effective and timely EOI in practice.