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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: Brunei Darussalam Phase 2 report

This report for Brunei Darussalam has been published on 4 Nov 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.      
Phase 2 Rating Factors Recommendations
Largely Compliant.  Brunei had in the recent years implemented several key legislative amendments to ensure that ownership and identity information is available for all entities. Some of the Bruneian authorities (such as the Registry of International Business Companies) are still in the primary stages of implementing an effective system of monitoring and oversight of the entities which they regulate, therefore oversight programs are new and not fully implemented.  Brunei should ensure that all its monitoring and enforcement powers are appropriately exercised in practice to support the legal requirements which ensure the availability of ownership and identity information 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
Largely Compliant.  The new legislation, the Record Keeping (Business) Order 2015, which obliges all relevant entities to maintain accounting records and the underlying documentation for at least 5 years only came into effect on 23 June 2015 (seven days before the end of the review period). The Bruneian authorities have since been focusing their efforts on educational and outreach activities throughout the country to publicise the new record keeping obligations for all relevant entities.  Brunei should monitor the enforcement of the new law to ensure that accounting records and underlying documentation are available in respect of all entities. 
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, but certain aspects of the legal implementation of the element need improvement.   The Registered Agents and Trustees Licensing Order does not provide for exceptions to their secrecy provisions for EOI purposes, and while Brunei authorities advise that information may be obtained through the AMBD, it is not clear the full extent to which the AMBD can exert its discretion and authority to exercise its access powers to obtain information from its supervised entities protected by statutory secrecy obligations, such as in the case of international trusts, and share it with the competent authority for EOI purposes.  Brunei should ensure that its domestic law provisions regarding confidentiality or secrecy duties, in particular regarding access to information on international trusts, do not prevent effective exchange of information for tax purposes. 
Phase 2 Rating Factors Recommendations
Largely Compliant.  The specific amendments made under the Income Tax Act to allow access to information for EOI purposes in accordance with the standard as well as the powers under the Record Keeping (Business) Order to access information on entities that are not subject to tax remain untested.  Brunei is recommended to monitor the application of its access powers provided under the 2012 amendments to the Income Tax Act and the Record Keeping (Business) Order 2015 and ensure they are effective when gathering information for EOI purposes in accordance with the international standard. 
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.     Brunei should continue to develop its EOI network with all relevant partners. 
Phase 2 Rating Factors Recommendations
Largely Compliant.  Brunei did not respond to one request for negotiations to conclude EOI agreement in a timely manner.  Brunei should respond to all requests to negotiate EOI agreements (regardless of their form) in a timely manner. 
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.  Brunei has committed resources and has in place organisational processes for exchange of information that appear to be adequate for dealing with incoming EOI requests. Brunei did not receive any requests during the review period.  Brunei should continue to monitor the practical implementation of the organisational processes of the EOI unit, in particular taking into account any significant changes to the volume of incoming EOI requests, to ensure that they are sufficient for effective EOI in practice.