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: Portugal Phase 1 Review

This report for Portugal has been published on 11 Apr 2013. 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 in place, but certain aspects of the legal implementation of the element need improvement.   Although tax filing obligations are in place for the reporting of ownership information in relation to bearer shares, these reporting mechanisms may not sufficiently ensure that the owners of such shares can be identified within the stipulated timeframes under the tax filing obligation regime.  Portugal should legally ensure that appropriate reporting mechanisms are in place to effectively ensure that owners of bearer shares can be identified in a timely manner in all cases. 
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.   There are some uncertainties as to whether the professional secrecy applicable to lawyers and solicitors may unduly restrict the access to information by the competent authorities.  Portugal should ensure that the professional secrecy law applicable to lawyers and solicitors conforms with the standard and does not unduly restrict the access to information by the competent authorities. 
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.   No exception is provided under Portuguese laws (i.e. Articles 63(7) and 63B(5) of the LGT) to waive or suspend the statutory obligation of the Director-General of Tax and Customs Authority to give prior notification to a family member or a person(s) otherwise related to a taxpayer when banking information of such person is requested.  Portugal should ensure that its laws allow for exceptions to the prior notification rules under Articles 63(7) and 63B(5) of the LGT, especially in cases where the information request is of a very urgent nature or the notification is likely to undermine the chance of 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.   A significant number of agreements for the exchange of information signed over the past 30 months are not yet in force and have not been ratified by Portugal.  Portugal should ensure that its exchange of information mechanisms are brought into force expeditiously. 
The jurisdictions' network of information exchange mechanisms should cover all relevant partners. (ToR C.2)
Determination Factors Recommendations
The element is in place.     Portugal should continue to develop its exchange of information network with all relevant partners and take all steps necessary to bring concluded agreements into effect expeditiously.  
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.   There are some uncertainties as to whether the professional secrecy applicable to lawyers and solicitors may unduly limit the access to information.  Portugal should clarify the scope of the professional secrecy applicable to lawyers and solicitors to ensure consistency with the 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.