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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: Seychelles Phase 2 Peer Review

This report for Seychelles 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
Non-Compliant.  There are currently no effective sanctions in the event that ownership information in relation to IBCs is not available.  The Seychelles should have effective enforcement provisions to ensure that up-to-date ownership information in relation to IBCs is available to its authorities in all instances. 
When a copy of the share register is not kept at the office of the CSP but at another place in the Seychelles, there is no monitoring system in place to make sure that ownership information is available.   The Seychelles should monitor the availability of ownership information irrespective of the place where such records are kept.  
Although legal requirements have been introduced for the reporting of ownership information in relation to bearer shares, in practice there are situations where transfers of bearer shares are not notified to the company’s registered agent.  The Seychelles should ensure that information on the owners of bearer shares is available within the Seychelles 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.      
Phase 2 Rating Factors Recommendations
Non-Compliant.  No system of monitoring compliance with accounting record keeping requirements is in place, which may result in the legal obligation to keep accounting records not being enforced. In addition, a number of accounting record keeping obligations have only been implemented since 1 January 2013 and are therefore untested in practice for EOI purposes.   The Seychelles’ authorities should make sure that reliable accounting records for all relevant entities are available at all times.  
There are no effective sanctions where IBCs do not keep accounting records and existing sanctions have never been applied in practice.   The Seychelles should put in place and exercise effective sanctions that ensure records for IBCs are available. 
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 access to information powers granted by the Revenue Administration Act have only been tested in one instance for EOI purposes in the period under review.  It is recommended that Seychelles continue to monitor access to information for EOI purposes to make sure that it is effective in all cases. 
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, but certain aspects of the legal implementation of the element need improvement.   Three of the treaties signed by the Seychelles since 2010 contain wording inconsistent with the international standard.  The Seychelles should renegotiate the three recently signed treaties that are not consistent with the international standard. 
Phase 2 Rating Factors Recommendations
Partially Compliant.     
The jurisdictions' network of information exchange mechanisms should cover all relevant partners. (ToR C.2)
Determination Factors Recommendations
The element is in place, but certain aspects of the legal implementation of the element need improvement.   The Seychelles has been approached by three jurisdictions to negotiate a TIEA and has not successfully progressed those negotiations.   The Seychelles should enter into agreements for exchange of information (regardless of their form) with all relevant partners, meaning those partners who are interested in entering into an information exchange arrangement with it. 
Phase 2 Rating Factors Recommendations
Partially 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.  The Seychelles has committed resources and has in place organisational processes for exchange of information that appear to be adequate for dealing with incoming EOI requests. For the period under review, the Seychelles received only one request for information. Consequently, the organisational processes have not been sufficiently tested in practice.   The Seychelles should monitor the organisational processes of the competent authority, as well as the level of resources committed to EOI, taking into account any significant changes in the volume of requests, to ensure that both the processes and level of resources are adequate for effective EOI in practice.