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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: Niue Phase 2 Peer Review Report

This report for Niue has been published on 14 Mar 2016. 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.   Identity and ownership information may not consistently be available in respect of (i) domestic trusts and (ii) foreign trusts with a Niuean trustee. Although the number of domestic and foreign trusts with a Niuean trustee is not known, the number of professionals in private practice in Niue who could act as trustees by way of business is very small, consisting of one lawyer and one accountancy firm.  Niue should ensure the availability of ownership and identity information in respect of settlors and beneficiaries of domestic and foreign trusts in all cases. 
Phase 2 Rating Factors Recommendations
Largely Compliant.   During the review period, Niue did not have a regular oversight programme in place to monitor the compliance by professionals that could act as nominees and trustees with the obligation to perform customer due diligence pursuant with Niue’s AML/CFT framework. It is noted that the number of companies registered in Niue is very small and that the number of professionals in private practice in Niue who could act as trustees or nominees by way of business is extremely small, consisting of one lawyer and one accountancy firm.  Niue should establish a regular oversight programme to monitor the compliance of professionals that act as nominees and trustees with the obligation to perform customer due diligence pursuant with Niue’s AML/CFT framework. 
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.   Niuean law does not ensure that reliable accounting records and underlying documentation are kept under certain circumstances for all (i) limited liability partnerships and special partnerships that do not carry on a business in Niue, do not have Niuean partners and do not receive Niuean sourced income; and (ii) trusts which are administered in Niue or in respect of which a trustee is resident in Niue in all circumstances. On 7 December 2015, there were no special partnerships and no limited liability partnerships in Niue. The number of trusts is not known but the number of professionals in private practice in Niue is very small, consisting of one lawyer and one accountancy firm.  Niue should establish obligations for the maintenance of reliable accounting records, including underlying documentation, for all (i) limited liability partnerships and special partnerships that do not carry on a business in Niue, do not have Niuean partners and do not receive Niuean sourced income; and (ii) trusts which are administered in Niue or in respect of which a trustee is resident in Niue in all circumstances. 
Entities and arrangements other than domestic companies are not required to retain accounting records and underlying documentation for a minimum 5 year period except when they carry on a business in Niue or receive Niuean sourced income. On 7 December 2015, there was only one overseas company, no special partnerships and no limited liability partnerships in Niue. The number of trusts is not known but the number of professionals in private practice in Niue is very small, consisting of one lawyer and one accountancy firm.  Niue should ensure that its laws require that accounting records and underlying documentation are kept for all relevant entities and arrangements for a minimum of 5 years. 
Phase 2 Rating Factors Recommendations
Largely Compliant.   During the review period, a very small cohort of companies that were registered in Niue but did not carry on business there were not subject to oversight by the tax authorities, including on whether they maintained adequate accounting records and underlying documentation.  Niue should ensure that there is sufficient oversight over the compliance with the obligations to maintain accounting records and underlying documentation by companies registered in Niue, including when these companies do not carry on business in Niue and do not receive Niuean sourced income. Niue should also ensure that penalties are enforced where appropriate. 
   
Banking information should be available for all account-holders. (ToR A.3)
Determination Factors Recommendations
The element is in place.      
Phase 2 Rating Factors Recommendations
Compliant.      
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.      
Phase 2 Rating Factors Recommendations
Compliant.      
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.      
Phase 2 Rating Factors Recommendations
Compliant.      
Exchange of information mechanisms should provide for effective exchange of information. (ToR C.1)
Determination Factors Recommendations
The element is in place.      
Phase 2 Rating Factors Recommendations
Compliant.      
The jurisdictions' network of information exchange mechanisms should cover all relevant partners. (ToR C.2)
Determination Factors Recommendations
The element is in place.     Niue should continue to develop its exchange of information network with all relevant partners. 
Phase 2 Rating Factors Recommendations
Compliant.      
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.      
Phase 2 Rating Factors Recommendations
Compliant.      
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.      
Phase 2 Rating Factors Recommendations
Compliant.      
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.      
Phase 2 Rating Factors Recommendations
Largely Compliant.   Niue has committed resources and has in place organisational processes for exchange of information that appear to be adequate for dealing with incoming EOI requests. Niue did not process any EOI requests during the three-year period under review. Consequently, the organisational processes have not been tested in practice.  Niue is recommended to monitor the practical implementation of the organisational processes of the competent authority as well as the level of resources committed to EOI purposes to ensure that both the processes and level of resources are adequate for effective EOI in practice.