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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: Turks and Caicos Islands Phase 2 Peer Review

This report for Turks and Caicos Islands has been published on 22 Nov 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.


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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.      
Phase 2 Rating Factors Recommendations
Compliant.   In situations where deficiencies in complying with AML obligations are detected by the FSC, the person concerned is asked to address the situation. If these deficiencies are addressed in the timeframe granted by the FSC, even where the breaches are significant, sanctions are not applied.   When significant breaches of AML obligations are discovered, even if the gaps are addressed by the person concerned, the FSC should consider applying sanctions. 
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.   There is no consistent obligation for trusts to keep reliable accounting records for at least five years.  The Turks and Caicos Islands should ensure that trusts are required to keep reliable accounting records in all cases for at least five years. 
Phase 2 Rating Factors Recommendations
Largely Compliant.   Record keeping requirements for exempted companies and limited partnerships have been recently introduced and availability of accounting records pertaining to these entities may not be assured in all instances.   In addition to its programme of raising awareness of registered agents, the Turks and Caicos Islands should put in place arrangements to ensure the keeping of accounting records by companies, general and limited partnerships. 
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.   In situations where deficiencies in complying with AML obligations are detected by the FSC, the financial institution concerned is asked to address the situation. If these deficiencies are addressed in the timeframe granted by the FSC, and even when these breaches are significant, this financial situation will not be sanctioned.   When significant breaches of AML obligations are noticed, even if they are addressed by the financial institution concerned, the FSC should consider applying sanctions.  
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.     The Turks and Caicos Islands should continue to develop its EOI 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.   A number of peers have been unable to contact the Turks and Caicos’ competent authority and to successfully direct the requests for information.  The Turks and Caicos Islands, on the basis of practices now implemented, should continue to ensure a good level of communication with its treaty partners and make sure that its competent authority can be reached in all instances 
For the period under review, the Turks and Caicos Islands has only received four requests for information and its experience in handling these matters remains limited.   It is recommended that the Turks and Caicos Islands continue to monitor the handling of incoming requests to ensure that comprehensive replies are provided in a timely fashion to its partners.