On November 25, 2021, the Global Forum on Transparency and Exchange of Information for Tax Purposes published a new peer review report on transparency and exchange of information on request (EOIR) for Kenya, and three first-time reviews for Côte d’Ivoire, Moldova and Tanzania.
Côte d’Ivoire’s legal framework is generally in line with the EOIR standard thanks to recent changes. However, the report notes country’s network of international agreements is limited and strongly encourages it to expand its existing treaty network to all relevant interested partners and ensure that all its mechanisms of exchange of information are fully in line with the standard. Côte d’Ivoire should also address the deficiencies identified regarding the availability of information on the owners of bearer shares and on beneficial owners of partnerships and co-operative companies Must Article 20(2)(a) of Directive 2011/16 be interpreted as meaning that where a request for exchange of information formulated by an authority of a requesting Member State designates the taxpayers to which it relates simply by reference to their status as shareholders and beneficial owners of a company, without those taxpayers having been identified by the requesting authority in advance, individually and by name, the request satisfies the identification requirements laid down by that provision?
You can read the report on Côte d’Ivoire here.
Kenya’s legal and regulatory framework for ensuring the availability, access and exchange of all relevant information for tax purposes is generally in accordance with the standard. Since its previous peer review in 2016, Kenya has enhanced its international network of exchange of information relationships with the entry into force of the multilateral Convention on Mutual Administrative Assistance in Tax Matters in 2020. It has also introduced a centralised register for legal and beneficial ownership of companies. There remains, however, scope for improvement in clarifying the range of beneficial owners to be identified for companies, and for ensuring that beneficial ownership information for trusts and partnerships is available in all cases.
You can read the report Kenya here.
Moldova’s legal and regulatory framework generally ensures the availability, access and exchange of relevant information for tax purposes. Key recommendations refer to the alignment of the definition of beneficial owners in the existing law with the international standard, particularly in relation to partnerships and fiducia. Improvements are also required on the availability of accounting information of fiducia (and foreign trusts with resident trustees or administered in Moldova).
You can read the report on Moldova here.
Tanzania has taken important steps to comply with the EOIR standard. While most of the recent legal changes go in the right direction, especially on the availability of beneficial ownership information, improvements are still needed. The report points out that the changes pertain to Tanzania’s mainland only, and recommends similar steps in respect to Zanzibar. The availability of accounting records for entities that cease to exist in line with the retention requirements under the standard also needs attention. Further, the report notes the limitations of the country’s network of international agreements and strongly encourages Tanzania to enter into exchange relationships with all relevant partners.
You can read the report on Tanzania here.
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