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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: Luxembourg Second Round 2019

This report for Luxembourg has been published on 18 Mar 2019. You can 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.   Although Luxembourg financial institutions and other professionals subject to the AML/CFT framework must identify beneficial owners of their clients, not all Luxembourg stock companies and partnerships are obliged to maintain a relationship with a Luxembourg AML-obliged person.   Luxembourg should ensure that information about beneficial owners of Luxembourg stock companies and partnerships is available in all cases. 
Phase 2 Rating Factors Recommendations
Largely Compliant.  Since 2011, the AED has been responsible for overseeing certain non-financial professions (accountants, tax advisors, and corporate and trust service providers). Since 2016, the AED has developed an appropriate prevention and supervision plan.   It is recommended that the AED continue the effective implementation of its Non-Financial Professions Supervision Program. 
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
Compliant.     
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, but certain aspects of the legal implementation of the element need improvement.   Since the ECJ Berlioz judgement, at least 37 appeals have been brought before the administrative court to challenge the legality of the injunction decision notified to information holders. As at 19 December 2018, 34 appeals are still pending before the administrative court, generating major delays in the exchange of information in the cases concerned. These appeals cast uncertainties over the consequences of the Berlioz judgement for Luxembourg’s domestic law.  It is recommended that Luxembourg adapt its domestic law to take account of the Berlioz judgement and to ensure that information can be effectively exchanged in practice. 
Phase 2 Rating Factors Recommendations
Largely 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.      
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.  Despite the fact that Luxembourg has increased staff numbers during the peer review period, these resources were not sufficient to cope with the substantial increase in the number of EOI requests received from its partners. The EOI team was organised to provide maximum efficiency, but the timeliness of response was affected by the lack of staff.   It is recommended that Luxembourg continue to improve the timeliness of responses and ensure that adequate resources are allocated to the EOI activities.