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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: Guernsey Second Round Review (2018)

This report for Guernsey has been published on 16 Jul 2018. 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.      
Phase 2 Rating Factors Recommendations
Largely Compliant.  The Beneficial Ownership of Legal Persons (Guernsey) Law, 2017 came into force on 15 August 2017, which requires all legal entities in Guernsey to maintain accurate and up to date beneficial ownership information as per the international standard and report the same to Registry. The beneficial owner central register is fully populated with effect from 28 February 2018; however there has not yet been sufficient implementation to ensure that all provisions will always be implemented in accordance with the standard.  Guernsey is recommended to continue to monitor the implementation of the Beneficial Ownership of Legal Persons (Guernsey) Law, 2017. In particular, Guernsey should ensure Section 10(5) that requires Resident Agents to register an absence of any beneficial owners, is strictly implemented, such that beneficial ownership information is available in all cases in accordance with the standard. 
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.  There are currently at least 9 000 foreign companies being serviced by TCSPs in Guernsey. As per Guernsey Tax Law, all foreign companies doing business in Guernsey have to file tax returns and maintain accounts in compliance with ToR A.2. While about 1600 foreign companies are in the Tax Database and may also be subject to tax audits, there is scope for improvement in respect of monitoring all foreign companies with nexus to Guernsey to ensure compliance with ToR A.2.  Guernsey should monitor that all foreign companies, for which Guernsey is a jurisdiction of nexus, are maintaining accounting records as per the international standard. 
Banking information should be available for all account-holders. (ToR A.3)
Determination Factors Recommendations
The element is in place.   In the case of trusts, the FSB regulations exempt the verification of identity of corporate trustees from some countries.  Guernsey is recommended to take appropriate measures to ensure the availability of accurate beneficial ownership information in all cases of trustees, when they establish relationships with banks. 
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.      
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.      
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.   This element involves issues of practice. Accordingly no determination on the legal and regulatory framework has been made.   
Phase 2 Rating Factors Recommendations
Compliant.  Timeliness of responses by Guernsey as compared to the previous review period and during the three year period under review deteriorated. In addition, Guernsey did not systematically provide status updates of pending requests by 90 days. Organizational redeployments have been implemented by Guernsey to improve the timeliness of responses and to provide status updates in all cases.  It is recommended that Guernsey should continue to monitor its organisational design and processes to ensure compliance with the standards in respect of timeliness as well as providing 90 day status updates in all outstanding cases.