Global forum on transparency and exchange of information for tax purposes peer reviews. Saint Vincent and the Grenadines 2014 : phase 2 : implementation of the standard in practice.

118 Pages·2014·1.75 MB·English

by  OECD

Global Forum on Transparency and Exchange of Information GLOBAL FORUM ON TRANSPARENCY AND EXCHANGE
for Tax Purposes
OF INFORMATION FOR TAX PURPOSES
PEER REVIEWS, PHASE 2: SAINT VINCENT
AND THE GRENADINES
This report contains a “Phase 2: Implementation of the Standards in Practice” review, as well Peer Review Report
as revised version of the “Phase 1: Legal and Regulatory Framework review” already released P
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of information, while Phase 2 reviews look at the practical implementation of that framework. rac
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The ultimate goal is to help jurisdictions to effectively implement the international standards S
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agreed Global Forum reports. C
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ISBN 978-92-64-22312-7
23 2014 42 1 P

Global Forum
on Transparency
and Exchange
of Information for Tax
Purposes Peer Reviews:
Saint Vincent
and the Grenadines 2014
PHASE 2:
IMPLEMENTATION OF THE STANDARD IN PRACTICE
October 2014
(reflecting the legal and regulatory framework
as atAugust 2014)
ThisworkispublishedontheresponsibilityoftheSecretary-GeneraloftheOECD.
Theopinionsexpressedandargumentsemployedhereindonotnecessarilyreflect
theofficialviewsoftheOECDorofthegovernmentsofitsmembercountriesor
thoseoftheGlobalForumonTransparencyandExchangeofInformationforTax
Purposes.
Thisdocumentandanymapincludedhereinarewithoutprejudicetothestatusof
orsovereigntyoveranyterritory,tothedelimitationofinternationalfrontiersand
boundariesandtothenameofanyterritory,cityorarea.
Pleasecitethispublicationas:
OECD(2014),GlobalForumonTransparencyandExchangeofInformationforTaxPurposesPeer
Reviews:SaintVincentandtheGrenadines2014:Phase2:ImplementationoftheStandardin
Practice,OECDPublishing.
http://dx.doi.org/10.1787/9789264223134-en
ISBN978-92-64-22312-7(print)
ISBN978-92-64-22313-4(PDF)
Series:GlobalForumonTransparencyandExchangeofInformationforTaxPurposesPeerReviews
ISSN2219-4681(print)
ISSN2219-469X(online)
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TABLE OF CONTENTS – 3
Table of Contents
About the Global Forum                                             5
Executive Summary                                                 7
Introduction                                                       11
Information and methodology used for the peer review of Saint Vincent and
the Grenadines                                                   11
Overview of Saint Vincent and the Grenadines                          12
Recent developments                                               18
Compliance with the Standards                                       19
A. Availability of Information                                        19
Overview                                                        19
A1 Ownership and identity information                               22
A2 Accounting records                                            52
A3 Banking information                                           59
B. Access to Information                                            65
Overview                                                        65
B1 Competent authority’s ability to obtain and provide information         67
B2 Notification requirements and rights and safeguards                  75
C. Exchanging Information                                          79
Overview                                                        79
C1 Exchange of information mechanisms                              81
C2 Exchange of information mechanisms with all relevant partners         89
C3 Confidentiality                                                90
C4 Rights and safeguards of taxpayers and third parties                  93
C5 Timeliness of responses to requests for information                   95
PEER REVIEW REPORT – PHASE 2 – SAINT VINCENT AND THE GRENADINES © OECD 2014
4 – TABLE OF CONTENTS
Summary of Determinations and Factors Underlying Recommendations   103
Annex 1: Jurisdiction’s response to the review report                   109
Annex 2: List of all exchange-of-information mechanisms                110
Annex 3: List of all laws, regulations and other material received         112
Annex 4: Persons interviewed during on-site visit                      114
PEER REVIEW REPORT – PHASE 2 – SAINT VINCENT AND THE GRENADINES © OECD 2014
ABOUT THE GLOBAL FORUM – 5
About the Global Forum
The Global Forum on Transparency and Exchange of Information for
Tax Purposes is the multilateral framework within which work in the area
of tax transparency and exchange of information is carried out by over
120 jurisdictions, which participate in the Global Forum on an equal footing
The Global Forum is charged with in-depth monitoring and peer
review of the implementation of the international standards of transpar-
ency and exchange of information for tax purposes These standards are
primarily reflected in the 2002 OECD Model Agreement on Exchange of
Information on Tax Matters and its commentary, and in Article 26 of the
OECD Model Tax Convention on Income and on Capital and its commen-
tary as updated in 2004 The standards have also been incorporated into
the UN Model Tax Convention
The standards provide for international exchange on request of fore-
seeably relevant information for the administration or enforcement of the
domestic tax laws of a requesting party Fishing expeditions are not authorised
but all foreseeably relevant information must be provided, including bank
information and information held by fiduciaries, regardless of the existence
of a domestic tax interest or the application of a dual criminality standard
All members of the Global Forum, as well as jurisdictions identified by
the Global Forum as relevant to its work, are being reviewed This process is
undertaken in two phases Phase 1 reviews assess the quality of a jurisdic-
tion’s legal and regulatory framework for the exchange of information, while
Phase 2 reviews look at the practical implementation of that framework Some
Global Forum members are undergoing combined – Phase 1 and Phase 2 –
reviews The Global Forum has also put in place a process for supplementary
reports to follow-up on recommendations, as well as for the ongoing monitor-
ing of jurisdictions following the conclusion of a review The ultimate goal is
to help jurisdictions to effectively implement the international standards of
transparency and exchange of information for tax purposes
All review reports are published once approved by the Global Forum
and they thus represent agreed Global Forum reports
For more information on the work of the Global Forum on Transparency
and Exchange of Information for Tax Purposes, and for copies of the pub-
lished review reports, please refer to wwwoecdorg/tax/transparency and
wwweoi-taxorg
PEER REVIEW REPORT – PHASE 2 – SAINT VINCENT AND THE GRENADINES © OECD 2014

ExECUTIVE SUMMARy – 7
Executive Summary
1 This report summarises the legal and regulatory framework for trans-
parency and exchange of information in Saint Vincent and the Grenadines, as
well as the practical implementation of that framework
2 The international standard which is set out in the Global Forum’s
Terms of Reference to Monitor and Review Progress Towards Transparency
and Exchange of Information, is concerned with the availability of relevant
information within a jurisdiction, the competent authority’s ability to gain
timely access to that information, and whether that information can be effec-
tively exchanged with its exchange of information (EOI) partners
3 Saint Vincent and the Grenadines is an independent island nation
located in the Eastern Caribbean Sea on the boundary with the Atlantic
Ocean Its economy is based primarily on agriculture, tourism, construction,
and to a small extent financial services
4 Saint Vincent and the Grenadines has worked with the OECD in
respect of tax information exchange since 2002 and since 2006 has partici-
pated in all of the Global Forum’s annual assessments In 2009 it became a
member of the Global Forum and renewed its commitment to the inter-
national standard for transparency and exchange of information for tax
purposes Since then it has quickly built up a network of exchange of infor-
mation agreements that includes its key trading partners As at 11 August
2014, it has signed EOI agreements with 31 jurisdictions, of which all have
been brought into force
5 Most of Saint Vincent and the Grenadines’ EOI agreements allow it
to exchange information according to the international standard They con-
tain adequate safeguards to protect the rights of taxpayers and third parties,
and these safeguards are consistent with the international standard The EOI
agreements also ensure the confidentiality of all information exchanged
6 With regard to the authorities’ powers to access information requested
by foreign counterparts, the International Co-operation (Tax Information
Exchange Agreements) Act gives Saint Vincent and the Grenadines’ com-
petent authority broad powers to access all types of information from all
persons for EOI purposes The rights and safeguards that apply to persons in
PEER REVIEW REPORT – PHASE 2 – SAINT VINCENT AND THE GRENADINES © OECD 2014
8 – ExECUTIVE SUMMARy
the requested jurisdiction are compatible with effective exchange of informa-
tion In practice, the competent authority has exercised its powers to access
information in a timely and efficient manner
7 Saint Vincent and the Grenadines’ incorporation and AML laws
ensure that ownership information is available for all relevant legal enti-
ties and arrangements In respect of International Business Companies and
Limited Liability Companies, up to date ownership information was not
always available as their service providers were not obliged in all cases to
maintain information on ownership changes after conducting the initial
customer due diligence measures The new Proceeds of Crime (Anti-Money
Laundering and Terrorist Financing) Regulations 2014, introduced in August
2014 an obligation for service providers to keep up-to-date ownership infor-
mation, when there is a change in the identification information or beneficial
ownership information of a customer Banks are required to maintain infor-
mation on their account holders
8 The main gap in Saint Vincent and the Grenadines legal and regu-
latory framework for exchange of information relates to the availability of
accounting information for International business companies and limited
liability companies, which were until recently not required to maintain ade-
quate accounting records A new obligation on the IBCs and LLCs has been
introduced by the Financial Laws (Miscellaneous Amendments) Act 2014,
with effect from June 2014, but the practical application of this obligation has
not been tested and requires active monitoring
9 The delegated competent authority in charge of exchanging informa-
tion for tax purposes is the Financial Services Authority, except in the case
of exchange of information under the CARICOM Multilateral DTC The
exchange process is very well organised with internal processes in place for
handling EOI requests as well as the unit being well resourced in personnel,
and technical expertise Saint Vincent and the Grenadines received only two
requests during the three-year review period from 1 July 2010 to 30 June
2013 For both requests, the requested information was provided within
90 days The peers were satisfied with the quality and the timeliness of the
responses
10 The two peer inputs received by Saint Vincent and the Grenadine’s
treaty partners are very positive and reflect the efficient EOI process in place
in Saint Vincent and the Grenadines and the appropriate resources devoted
to it
11 A follow up report on the steps undertaken by Saint Vincent and the
Grenadines to answer the recommendations made in this report should be
provided to the PRG within twelve months after the adoption of this report
PEER REVIEW REPORT – PHASE 2 – SAINT VINCENT AND THE GRENADINES © OECD 2014