Saint Kitts and Nevis

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Overall Phase 2 Rating is Largely Compliant

Table of Determinations and Ratings of the Phase 2 Review

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.      
Phase 2 Rating Factors Recommendations
Largely Compliant.  The regulatory authorities conduct on-site inspections of regulated entities based on a risk assessment. However, during the three-year review period the regulatory authorities only monitored a limited proportion of the licensed service providers in St Kitts and Nevis.  St. Kitts and Nevis should ensure that there is effective oversight of the legal obligations imposed on relevant entities to ensure the availability of ownership and identity information 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 in place.      
Phase 2 Rating Factors Recommendations
Largely Compliant.  The amendments made in 2012 to the Tax Administration and Procedures Act, introducing binding requirements on all partnerships that carry on business in the Federation to maintain accounting records, including underlying documents, has not been tested during the period under review.  St. Kitts and Nevis should monitor the practical implementation of the amended legislation to ensure that all partnerships keep appropriate accounting records and underlying documents. 
There are no oversight programs in place to efficiently monitor compliance with the obligation to maintain accounting records for exempt companies, NBCs, LLCs, exempt LPs or trusts in St. Kitts and Nevis.  St. Kitts and Nevis should ensure that there is effective oversight of the legal obligations on exempt companies, NBCs, LLCs, exempt LPs and trusts to ensure the availability of accounting records in all cases. 
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.      
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.     St. Kitts and Nevis should continue to develop its EOI network with all relevant partners. 
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.  St. Kitts and Nevis has committed resources and introduced organisational processes for handling exchange of information requests. St. Kitts and Nevis only received four requests for information during the three-year review period and in two of these cases some delays occurred when processing the requests primarily on account of a difference in interpretation of the TIEAs between it and the requesting jurisdiction. Consequently, the organisational processes have not been sufficiently tested in practice.  St. Kitts and Nevis should continue to monitor the handling of incoming requests to ensure that comprehensive replies are provided in a timely manner to its partners. 

Earlier self-assessment based annual reports entitled Tax Co-operation 2010: Towards a Level Playing Field are also available.