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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 - Barbados

This report for Barbados has been published on 27 Jan 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.   Nominees that are not financial institutions for anti-money laundering purposes are not required to maintain ownership and identity information in respect of all persons for whom they act as legal owners.  An obligation should be established for all nominees to maintain relevant ownership information where they act as the legal owners on behalf of any other person. 
Identity and ownership information may not be consistently available in respect of all express trusts, particularly as regards the beneficiaries and all trustees of offshore trusts. The requirements in the case of domestic trusts are unclear.  An obligation should be established for all trustees resident in Barbados to maintain information on the settlor, trustees and beneficiaries of their trusts.  
There are currently no penalties for non-compliance with obligations to maintain up to date share registers in the case of limited companies and SRLs.   In so far as penalties are not currently provided, effective sanctions should be introduced against companies and SRLs that fail to comply with requirements to maintain share registers.  
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.   Barbados legislation does not ensure that reliable accounting records or underlying documentation are kept for all partnerships and trusts.   All relevant entities and arrangements should be required to maintain reliable accounting records including underlying documentation 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, but certain aspects of the legal implementation of the element need improvement.   Under the anti-money laundering law, transactional information is required to be maintained in Barbados banks only in relation with transactions above a certain threshold and the requirements to maintain records under banking legislation is unclear.  Barbados should ensure that banking information is available for all transactions, whatever their amount. 
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.   Trustees of international trusts and registered unit trusts are prohibited to disclose to any other person the name of the settlor or any beneficiary, or any information relating to or forming part of the accounts of an international trust.   The competent authority should have power to access confidential information covered by the International Trust Act and the Mutual Funds Act.  
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.      
Exchange of information mechanisms should provide for effective exchange of information. (ToR C.1)
Determination Factors Recommendations
The element is not in place.   Some DTCs limit exchange of information (i) to information for carrying out the provisions of the Convention, or (ii) by failing to provide for exchange of bank information.  Barbados should revise its existing treaties in line with the international standard where they do not currently meet that standard. 
In certain cases Barbados does not exchange information in respect of entities (IBCs, offshore banks, etc.), which are not covered by the treaty.   Barbados should remove any impediments to exchange of information on Barbadian entities that are not covered by its treaties. 
The jurisdictions' network of information exchange mechanisms should cover all relevant partners. (ToR C.2)
Determination Factors Recommendations
The element is not in place.   Some DTCs with major relevant partners do not meet the international standard (see C.1).   Barbados should revise its existing treaties in line with the international standard where they do not currently meet that standard. 
Barbados has been approached by a number of jurisdictions to negotiate TIEAs but has not done so.  Barbados should enter into agreements for exchange of information (whether DTCs, TIEAs or multilateral instruments) with all other relevant partners, meaning those partners who are interested in entering into an information exchange arrangement with it. 
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.