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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 - Chile

This report for Chile has been published on 5 Apr 2012. 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.   There is no provision requiring all foreign companies with sufficient nexus with Chile to maintain ownership information.   Chile should ensure the availability of ownership information of all foreign companies with sufficient nexus to Chile. 
Ownership and identity information on the settlor and beneficiaries of a foreign trust may not be available in Chile.  Chile should take measures to ensure that information is available that identifies the settlor and beneficiaries of foreign trusts. 
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.      
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 in place, but certain aspects of the legal implementation of the element need improvement.   Chile’s ability to access bank information prior to 1 January 2010 is not complete under its domestic legislation, as information covered by bank secrecy on deposits and current accounts activity and balances prior to 1 January 2010 is not accessible for civil purposes, even where the information relates to taxable periods or events after that date.   Chile should ensure that all relevant bank information, which relates to a taxable period after 2010, may be accessed for exchange of information purposes, to ensure that they can fully exchange information to the standard.  
The scope of professional privilege in tax matters is not clear in Chile and may extend beyond that provided for in the international standards.  Chile should clarify the scope of professional privilege to ensure that it is consistent with the international standard on exchange of information in tax matters; in particular to ensure that the privilege may act as a bar to exchange of information when lawyers act in their capacity as attorneys or legal representatives. 
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 Chilean competent authority must inform the bank of who is the requesting authority and of the basis for the EOI request. No exception exists to this requirement or anti-tipping off provision.  Chile should ensure that appropriate exceptions exist to informing the person who is asked to produce information which foreign tax authority had requested the information (e.g. in cases in which informing that person is likely to undermine the chance of the success of the investigation conducted by the requesting jurisdiction). 
When a specific accountholder has not given a general authorisation to the bank to disclose any information to the tax authorities, the Tax Code requires the prior notification of the person concerned when there is a request for bank information and this prior notification procedure does not allow for any exception.  It is recommended that certain exceptions from prior notification be permitted, e.g. in cases in which the information requested 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. 
Exchange of information mechanisms should provide for effective exchange of information. (ToR C.1)
Determination Factors Recommendations
The element is in place.      
The jurisdictions' network of information exchange mechanisms should cover all relevant partners. (ToR C.2)
Determination Factors Recommendations
The element is in place.     Chile should continue to develop its network of EOI mechanisms 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.