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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: Nauru Phase 1 Review

This report for Nauru 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.


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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 not in place.   Identity information on the owners of bearer shares and share warrants to bearer may not be available in relation to corporations.  Nauru should take necessary measures to ensure that robust mechanisms are in place to identify the owners of bearer shares and share warrants to bearer in relation to corporations. 
Identity and ownership information may not consistently be available in respect of (i) domestic trusts and (ii) foreign trusts with a Nauruan trustee.  Nauru should ensure the availability of ownership and identity information in respect of settlors and beneficiaries of domestic and foreign trusts 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 not in place.   Nauruan law does not ensure that reliable accounting records and underlying documentation are kept for partnerships carrying on business in Nauru, foreign companies with a sufficient nexus to Nauru or for domestic and foreign trusts with a Nauruan trustee.  Nauru should establish obligations for the maintenance of reliable accounting records, including underlying documentation, for partnerships carrying on business in Nauru, foreign companies with a sufficient nexus to Nauru and domestic and foreign trusts with a Nauruan trustee for a minimum of 5 years. 
Companies are not required to retain underlying documentation in accordance to the international standard. Moreover, companies, other than domestic holding companies, are not required to maintain accounting records for a minimum 5 year period.  Nauru should establish obligations for the maintenance of underlying documentation for all companies. Nauru 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. 
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 not in place.   Nauru’s authorities do not have the power to obtain and provide information that is the subject of a request under an EOI mechanism.  Nauru should enact legislation that would give the government powers to access information pursuant to a request under an EOI mechanism in accordance with the international standards. Nauru should ensure that its access powers are not unduly restricted by secrecy provisions and that effective enforcement provisions are in place to compel the production of information. 
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 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.      
Exchange of information mechanisms should provide for effective exchange of information. (ToR C.1)
Determination Factors Recommendations
The element is not in place.   To date, Nauru has not entered into any instruments providing for exchange of information to the standard.  Nauru should develop its exchange of information network with all relevant partners. 
The jurisdictions' network of information exchange mechanisms should cover all relevant partners. (ToR C.2)
Determination Factors Recommendations
The element is not in place.   In 2008, Nauru was approached by its main trading partner to negotiate a TIEA. To date, this agreement has not been concluded.  Nauru should develop its exchange of information network with all relevant partners. 
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 not in place.   To date, Nauru has not entered into any instruments providing for exchange of information to the standard.  Nauru should develop its exchange of information network with all relevant partners. 
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 not in place.   To date, Nauru has not entered into any instruments providing for exchange of information to the standard.  Nauru should develop its exchange of information network with all relevant partners. 
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.