x

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 - Uruguay

This report for Uruguay has been published on 26 Oct 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.


loading...


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 not in place.   Foreign-incorporated companies carrying on business in Uruguay are not subject to an express requirement to keep ownership information. Availability of such information will generally depend on the law of the jurisdiction in which the company is formed, and therefore may not be available in all relevant cases.  Uruguay should ensure that ownership and identity information is required to be maintained in respect of all foreign companies with a sufficient nexus with Uruguay. 
There is no requirement for nominees to have, or make available, information about the person on whose behalf shares are registered.  Where shares or securities are registered in the name of a person, Uruguay should ensure that person is required to keep a record of the person on whose behalf the shares are registered. 
Bearer shares may be issued by corporations and joint-stock companies and there are no mechanisms to ensure that the owners of such shares can be identified.  Uruguay should take necessary measures to ensure that appropriate mechanisms are in place to identify the owners of bearer shares. 
While there are effective enforcement provisions in support of the relevant ownership and identity information requirements for corporations, the enforcement measures available with respect to other types of companies and partnerships are not clear.  Uruguay should establish effective enforcement provisions to support the requirements to keep relevant ownership and identity information for all types of companies and partnerships. 
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.   The requirement to maintain underlying documentation is not clearly established for relevant companies and partnerships to the extent they are not liable to tax under Uruguayan law  Uruguay should include a specific requirement for all relevant companies and partnerships, regardless of their liability to tax in Uruguay, to maintain underlying documentation for at least 5 years. 
There is no express obligation under the Trust Law to keep reliable accounting records, including underlying documents, for any minimum period of time. Where a trust is not subject to tax in Uruguay or is not a “taxpayer” (i.e. a guarantee trust), there are no applicable obligations to keep reliable accounting records, including underlying documents, for any minimum period of time.  Uruguay should include a specific requirement for all trusts, regardless of their liability to tax in Uruguay, to maintain reliable accounting records, including underlying documentation for at least 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.   Information held by a trustee which relates to a trust is protected by a confidentiality provision. Where the trust is not subject to tax in Uruguay but the trustee is located in Uruguay, there is no clear mechanism by which the confidentiality duty can be lifted to access the information for EOI purposes.  Uruguay should take steps to ensure that it can access trust information held by a trustee, regardless whether the trust is subject to tax in Uruguay. 
Uruguay’s ability to access bank information prior to 2 January 2011 is limited under its domestic legislation.  Uruguay should ensure that all relevant bank information may be accessed for EOI purposes, regardless of the period to which the information relates, to ensure they can give full effect to their EOI agreements. 
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.   Under the court process for accessing bank information, certain information must be provided to the Uruguayan court to which the relevant account-holder (often the taxpayer) will have access. There are no exceptions to this notification of the account-holder prior to exchange of information, for example for cases where the information requested is of a very urgent nature, or where prior notification is likely to undermined the chance of success of the investigation in the requesting jurisdiction.  Uruguay should ensure that disclosure of information relating to an EOI request in the course of the court process to access bank information includes appropriate exceptions to notification prior to exchange of the 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.   Confidentiality duties in Uruguay’s domestic law limits access to information held by trustees in some instances. This inhibits Uruguay’s ability to give full effect to its EOI agreements, notwithstanding the inclusion in 9 of its signed EOI agreements of a provision requiring it not to decline to supply such information.  Uruguay should take all necessary steps to ensure that it can give full effect to the terms of its EOI agreements with regard to accessing information held by trustees in all instances. 
Uruguay has signed six DTCs (one signed in 2009, three signed in 2010 and two signed in 2011) which it has not yet taken all steps necessary, for its part, to bring into force.  Uruguay should take all steps necessary for its part, to bring each of its signed EOI agreements 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 not in place.   To date Uruguay has no EOI agreements with its major trading partners. Further, whilst Uruguay has signed agreements to the standard with its 10 EOI partners, it has not yet taken all necessary steps to bring six of its signed agreements into force.  Uruguay should rapidly expand its network of EOI arrangements, and ensure that priority is given to concluding and bringing into force agreements with its major trading partners, in particular Argentina and Brazil. 
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, but certain aspects of the legal implementation of the element need improvement.   The scope of professional secrecy as it applies to legal professionals in Uruguay is unclear.  Uruguay should clarify the scope of legal privilege under its law and ensure that it is compatible with the international standard. 
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.