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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: Dominica Phase 1 Review

This report for Dominica has been published on 29 Oct 2012. You can buy this report, or browse it online below.

Skip directly to the Executive Summary. You may also want to view the table of determinations.




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.   External companies (foreign companies) carrying on business in Dominica are not obliged to keep or provide to any authority information on their ownership.  Dominica should ensure that ownership information is available in relation to foreign companies that have a place of management and control in Dominica. 
Availability of identity information of settlors and beneficiaries of international exempt trusts is not fully ensured in all circumstances.  Dominica should ensure that ownership information in relation to international exempt trusts is available in all circumstances. 
Jurisdictions should ensure that reliable accounting records are kept for all relevant entities and arrangements. (ToR A.2)
Determination Factors Recommendations
The element is not in place.   It is not explicitly required that international business companies, foreign trusts and international exempt trusts maintain accounting records which enable the financial position of the entities or arrangements to be determined with reasonable accuracy at any time and allow financial statements to be prepared.  Dominica should introduce consistent obligations for all relevant entities and arrangements to maintain full accounting records in line with the Terms of Reference. 
No obligations exist for international business companies, foreign trusts and international exempt trusts to keep underlying documentation. Further, the keeping of underlying documentation by entities not subject to the provisions of the VAT Act is not fully ensured.  Dominica should ensure that all entities are required to keep full underlying documentation and retain all accounting records for at least five years. 
Banking information should be available for all account-holders. (ToR A.3)
Determination Factors Recommendations
The element is in place.      
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 not in place.   The competent authority cannot access information from international business companies, international exempt trusts and offshore financial institutions as these are not liable to tax and the powers of the Comptroller of Inland Revenue extend only to entities liable to pay tax.  Dominica should explicitly provide that its competent authority has the power to access information held by international business companies, international exempt trusts and offshore financial institutions or any other entity not liable to pay tax. 
Confidentiality provisions in the Acts regulating these offshore entities are not overridden for EOI purposes.  Dominica should ensure that confidentiality provisions in its laws regulating offshore entities are overridden for the purposes of EOI. 
Dominica’s access powers can only be used for agreements which are enacted as schedules to the EOI Act. Currently this allows for exercise of access powers in respect of 27 of Dominica’s 30 EOI partners.  Dominica should ensure that its competent authority has the power to obtain all relevant information with respect to all exchange of information agreements (regardless of their form). 
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.      
Exchange of information mechanisms should provide for effective exchange of information. (ToR C.1)
Determination Factors Recommendations
The element is not in place.   Dominica’s arrangements providing for international exchange of information have not been given full effect through domestic law as its competent authority does not have access to information from entities not liable to pay tax and authorities cannot access information relating to international business companies, offshore financial institutions and international exempt trusts due to confidentiality provisions in its laws.  Dominica should ensure that its competent authority is empowered to obtain and provide information for EOI purposes in all cases notwithstanding that persons are not liable to pay tax or that the entities governing laws contain confidentiality provisions. 
Dominica’s agreement with Switzerland is not fully in line with the international standard and its agreement with some of its CARICOM partners does not in all cases provide for exchange of information to the standard due to impediments to exchange of information.  Dominica should continue its efforts to update its agreements to ensure that they provide for effective exchange of information in all cases. 
The jurisdictions' network of information exchange mechanisms should cover all relevant partners. (ToR C.2)
Determination Factors Recommendations
The element is in place, but certain aspects of the legal implementation of the element need improvement.   Dominica has a network of EOI agreements with relevant partners but none of them have been given full effect through domestic law.  Dominica should give full effect to the terms of its EOI agreements in its domestic law in order to allow for full exchange of information to the standard with all its relevant partners. 
  Dominica should continue to develop its exchange of information network to the standard with all relevant partners. 
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, but certain aspects of the legal implementation of the element need improvement.   Confidentiality provisions in Dominica’s domestic law are not consistent with the standard and information received may be disclosed to persons not authorised by the EOI agreements.  Dominica should ensure that disclosure of information received pursuant to its agreements is consistent with the standard. 
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.      
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.