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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: Uruguay Supplementary Review

This report for Uruguay 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.   Although legal requirements have been introduced for the reporting of ownership information in relation to bearer these reporting mechanisms do not sufficiently ensure that the owners of such shares can be identified within the stipulated timeframes of the reporting regime.  Uruguay should take further steps to effectively ensure that the mechanisms effectively ensure the identification of the owners of bearer shares in all cases. 
There are effective enforcement provisions in support of the relevant ownership and identity information requirements for corporations, bearer shareholdings and relevant foreign companies and also for other types of companies and partnerships in the context of the sale and assignment of ownership in such entities. However the enforcement measures available to ensure the availability of ownership and identity information outside of the context of such transfers, with respect to companies (other than corporations) and partnerships that do not issue bearer form equity, are not clear.  Uruguay should take steps to clarify that effective enforcement provisions exist to support the requirements to keep relevant ownership and identity information for all types of companies and partnerships in all cases. 
Phase 2 Rating Factors Recommendations
     
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
     
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
     
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, but certain aspects of the legal implementation of the element need improvement.   Uruguay’s ability to access bank information prior to 2 January 2011 is limited under its domestic legislation.  Uruguay should ensure that all relevant bank information may be accessed for EOI purposes, regardless of the period to which the information relates, to ensure they can give full effect to their EOI agreements. 
Phase 2 Rating Factors Recommendations
     
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, but certain aspects of the legal implementation of the element need improvement.   Under the court process for accessing bank information, certain information must be provided to the Uruguayan court to which the relevant account-holder (often the taxpayer) will have access. There are no exceptions to this notification of the account-holder prior to exchange of information, for example for cases where the information requested is of a very urgent nature, or where prior notification is likely to undermined the chance of success of the investigation in the requesting jurisdiction.  Uruguay should ensure that disclosure of information relating to an EOI request in the course of the court process to access bank information includes appropriate exceptions to notification prior to exchange of the information. 
Decree no. 313/011 requires the prior notification of the individual concerned prior to the tax authority’s decision on responding to an incoming EOI request. It is not clear that there are appropriate exceptions from this prior notification procedure.  It is recommended that Uruguay clarifies that suitable exceptions from prior notification requirement are permitted to facilitate effective exchange of information (e.g. in cases in which the information requested is of a very urgent nature or the notification is likely to undermine the chance of the success of the investigation conducted by the requesting jurisdiction). 
Phase 2 Rating Factors Recommendations
     
Exchange of information mechanisms should provide for effective exchange of information. (ToR C.1)
Determination Factors Recommendations
The element is in place.   Uruguay has signed four DTCs (all signed in 2011) and six TIEAs (five signed in 2011 and one signed in 2012) which it has not yet taken all steps necessary, for its part, to bring into force.  Uruguay should take all steps necessary for its part, to bring each of its signed EOI agreements into force as quickly as possible. 
Phase 2 Rating Factors Recommendations
     
The jurisdictions' network of information exchange mechanisms should cover all relevant partners. (ToR C.2)
Determination Factors Recommendations
The element is in place.     Uruguay should continue to develop and rapidly expand its network of EOI arrangements with all relevant partners, and take all steps necessary to bring concluded agreements into effect as quickly as possible. 
Phase 2 Rating Factors Recommendations
     
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
     
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
     
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