Peer Review: Peer Review Report Phase 1 Legal and Regulatory Framework - Macao, China
This report for Macao, China has been published on 26 Oct 2011. You can buy this report, or browse it online below.
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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)
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Determination | Factors | Recommendations |
The element is in place, but certain aspects of the legal implementation of the element need improvement. | Macao’s laws do not clearly identify that all foreign companies with a sufficient nexus to Macao are required to keep ownership and identity information. | Macao should ensure that ownership and identity information is kept with respect to all foreign companies with a sufficient nexus to Macao. |
It is open to public companies to issue bearer shares. While such shares may not be in circulation currently there are insufficient mechanisms in place to ensure the availability of ownership information in all circumstances. | Macao should ensure that robust mechanisms are in place to identify the owners of bearer shares or should abolish bearer shares. | |
Jurisdictions should ensure that reliable accounting records are kept for all relevant entities and arrangements. (ToR A.2)
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Determination | Factors | Recommendations |
The element is in place, but certain aspects of the legal implementation of the element need improvement. | Macao’s laws do not require all foreign companies with a sufficient nexus to Macao to keep accounting records, including underlying documentation. Foundations that are not public interest entities are not expressly required to keep accounting records. | Macao should ensure that comprehensive, reliable accounting information is kept for all relevant entities, including foundations and foreign companies with a sufficient nexus to Macao, for a minimum of five years. |
For all relevant entities, record keeping requirements do not clearly cover the full range of underlying documentation. | Macao should ensure that comprehensive underlying documentation is kept for all entities for a minimum of five years. | |
Banking information should be available for all account-holders. (ToR A.3)
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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)
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Determination | Factors | Recommendations |
The element is in place. | ||
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)
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Determination | Factors | Recommendations |
The element is in place. | ||
Exchange of information mechanisms should provide for effective exchange of information. (ToR C.1)
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Determination | Factors | Recommendations |
The element is in place. | One of Macao’s DTCs contains additional language which restricts the exchange of bank information. | Macao’s authorities should commence negotiations to amend the agreement with Cape Verde to bring it to the standard. |
The jurisdictions' network of information exchange mechanisms should cover all relevant partners. (ToR C.2)
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Determination | Factors | Recommendations |
The element is in place, but certain aspects of the legal implementation of the element need improvement. | Currently, 3 of Macao’s 13 signed agreements are in force and they do not cover some of its main trading partners. | Macao should establish agreements to the standard with all its relevant partners and bring them into force expeditiously. |
The jurisdictions' mechanisms for exchange of information should have adequate provisions to ensure the confidentiality of information received. (ToR C.3)
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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)
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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)
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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. |