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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 - Andorra

This report for Andorra 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.   With the exception of obligations to maintain some information under AML law and accounting law, Andorra does not provide sanctions for non-compliance by companies, partnerships or foundations with obligations to maintain ownership information or to submit such information to government authorities.  In so far as they are not currently provided, effective sanctions should be introduced for legal and natural persons which fail to comply with requirements to maintain and file information on their owners. 
There is no obligation requiring identification of beneficiaries with less than a 25% interest in those foreign trusts which have Andorran trustees or which are administered in Andorra.  Andorra should establish clear provisions in its laws to ensure availability of information on all beneficiaries of foreign trusts which are administered in Andorra or have an Andorran trustee. 
Issuance of bearer shares was prohibited in 1983 and action is in progress to ensure the availability of full ownership information for the 18 remaining companies with bearer shares.  Andorra should progress its action to ensure availability of full ownership information for these 18 companies as quickly as possible. 
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, but certain aspects of the legal implementation of the element need improvement.   Andorran legislation does not ensure that reliable accounting records or underlying documentation are kept for foreign trusts with an Andorran-resident administrator or trustee.  All administrators and trustees of foreign trusts should be required to maintain reliable accounting records for the trusts including underlying documentation. These records should be kept for a minimum of 5 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 in place, but certain aspects of the legal implementation of the element need improvement.   While the competent authority can obtain information on the ownership of relevant entities from other government authorities, Andorran legislation does not provide the competent authority with powers to access ownership information held by third parties or by the entities themselves, except from banks and other financial institutions.  The competent authority should be granted the well- defined powers to obtain all relevant information in the possession or control of all persons within Andorra’s territorial jurisdiction for the purpose of exchange of information. 
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.   To require in all cases that prior notification be given to the affected parties of the international request for information may unduly prevent or delay the effective exchange of information in urgent cases.  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, but certain aspects of the legal implementation of the element need improvement.   Andorra’s arrangements providing for international exchange of information have not been given full effect through domestic law as there are some limitations on the authorities’ powers to obtain necessary information for the purpose of international information exchange.  Andorra should ensure that its domestic laws allow for effective exchange of information. 
One of Andorra’s 18 signed agreements does not provide for exchange of information to the international standard.  It is recommended that Andorra bring this arrangement up to the international standard. 
The jurisdictions' network of information exchange mechanisms should cover all relevant partners. (ToR C.2)
Determination Factors Recommendations
The element is in place.     Andorra 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 absence of exceptions to the requirement in the TIEAs with Liechtenstein to notify taxpayers has the potential to prevent or delay the exchange of information by Andorra.  It is recommended that the TIEA with Liechtenstein be updated to allow exceptions to the requirement to notify taxpayers. 
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.