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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 - Curaçao

This report for Curaçao 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.   Companies incorporated outside of Curaçao but having their place of effective management therein are not required to maintain identity information concerning their controlling shareholders. The availability of such information will generally depend on the law of the jurisdiction in which the company is incorporated and so may not be available in all cases.  In such cases, Curaçao should ensure that ownership and identity information concerning their controlling shareholders is available. 
Limited partnerships (CVs) are not systematically required to keep a register of identity information concerning limited partners.  An obligation should be established for limited partnerships (CVs) to keep identity information concerning limited partners. 
Foundations are not systematically required to keep a register of identity information concerning their beneficiaries and holders of certificates of participation.  An obligation should be established for foundations to keep identity information concerning beneficiaries and holders of certificates of participation. 
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.   The scope of the professional secrecy safeguards appears to be broader than the professional secrecy protected under the international standard, insofar as it covers notaries and accountants.  Curaçao should make it clear that the scope of its professional secrecy rules in the case of lawyers, notaries and accountants apply only to the extent that they act in their capacity as attorneys or other 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 appeal rights available under Curaçaoan law may delay the effective exchange of information.  Curaçao is encouraged to proceed with the intended change of the judicial procedural to allow an appeal to the judge in administrative law. 
The power of the Curaçaoan tax authorities to promptly provide information for exchange purposes is subject to interpretation issues (namely, the minimum two-month waiting period, no definition of urgent reasons and no express exceptions when prior notification is likely to undermine the chance of success of the investigation conducted by the requesting jurisdiction) that could prevent effective exchange of information within reasonable time.  Curacao should clarify the conditions, including exceptions to prior notification, and timelines in which information can be provided in response to a request for information. 
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.   The interpretation given by Item I of the Protocol to the Curaçao-Cayman Islands TIEA to the term “pursued all means available in its own territory” under Article 5(5)(g) may impose disproportionate difficulties on the requesting party.  Curaçao is encouraged to propose a modification of this provision to bring it into conformity with the international standard. 
Although 25 EOI agreements have been concluded by Curaçao, to date only 11 have been ratified and entered into force. Out of the other 14 EOI agreements, all the steps for the ratification of 5 have been taken by Curaçao and 9 are currently pending with Curaçao.  Curaçao should ensure that its EOI agreements are ratified and brought into force as quickly as possible. 
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.   Although 25 EOI agreements have been concluded by Curaçao, to date only 11 have been ratified and entered into force. Curaçao is actively negotiating new EOI agreements with relevant partners.  Curaçao 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.