In June the OECD published its regular report on the ‘State of Play on International Tax Transparency Standards’. The report included the result of the ‘Fast-Track’ peer review of Andorra and a number of other countries that were not considered to have yet to reached the required standard of compliance of international tax transparency.
In the earlier Global Forum rating Andorra was considered to be ‘Partially Compliant’.
The Fast Track peer review of Andorra came as a result of the Principality introducing a number of measures to bring the jurisdiction into line with current international standards. The Fast-Track assessment allows a state to demonstrate the progress it has made in implementing the exchange of information standard and, if successful, it will be allocated a ‘provisional’ rating subject to completion of a full review.
While Fast Track is not a full peer review, it is nonetheless a rigorous examination though abbreviated consideration of the implementation of, among other matters:
the international standard of Exchange Of Information on Request (EOIR);a commitment to the standard of Automatic Exchange Of Information (AEOI) by 2018, to exchange information for the year 2017; and
participation in the Multilateral Convention on Mutual Administrative Assistance on Tax Matters or having an already extensive network of EOIR and AEOI agreement that permit the exchange of tax information.
The report of the peer review was presented to the Global Forum which found Andorra to be largely compliant in these matters. A full peer review will now be completed at an early date and will include a requirement to maintain beneficial ownership details, under the 2016 Terms of Reference.
At the same time thirteen other countries were also upgraded together with Andorra with one other country rated as partially compliant and a second deemed not to have made sufficient progress towards meeting international standards of tax transparency.
The OECD complimented Andorra and a spokesperson commented:
"The provisional ratings reflect the strong progress made by the jurisdictions in implementing the Exchange of Information on Request Standard. A number of critical changes have been introduced by the reviewed jurisdictions, including the elimination of strict bank secrecy and bearer shares, improved access to accounting records, and a more rigorous oversight and enforcement of obligations to maintain information. Further progress has also been achieved on expanding the breadth of the exchange networks including signature of the Multilateral Convention on Mutual Administrative Assistance on Tax Matters."
If you have any queries about Andorra please contact Philippe Ogier at p.ogier@rosemont.ad
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