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Global Forum on Transparency and Exchange of Information for Tax Purposes Peer Reviews: Ukraine 2016

Phase 1: Legal and Regulatory Framework

In series:Global Forum on Transparency and Exchange of Information for Tax Purposes: Peer Reviewsview more titles

Published on July 26, 2016

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The Global Forum on Transparency and Exchange of Information for Tax Purposes is the multilateral framework within which work in the area of tax transparency and exchange of information is carried out by over 130 jurisdictions which participate in the work of the Global Forum on an equal footing.

The Global Forum is charged with in-depth monitoring and peer review of the implementation of the standards of transparency and exchange of information for tax purposes. These standards are primarily reflected in the 2002 OECD Model Agreement on Exchange of Information on Tax Matters and its commentary, and in Article 26 of the OECD Model Tax Convention on Income and on Capital and its commentary as updated in 2004, which has been incorporated in the UN Model Tax Convention.

The standards provide for international exchange on request of foreseeably relevant information for the administration or enforcement of the domestic tax laws of a requesting party. “Fishing expeditions” are not authorised, but all foreseeably relevant information must be provided, including bank information and information held by fiduciaries, regardless of the existence of a domestic tax interest or the application of a dual criminality standard.

All members of the Global Forum, as well as jurisdictions identified by the Global Forum as relevant to its work, are being reviewed. This process is undertaken in two phases. Phase 1 reviews assess the quality of a jurisdiction’s legal and regulatory framework for the exchange of information, while Phase 2 reviews look at the practical implementation of that framework. Some Global Forum members are undergoing combined – Phase 1 plus Phase 2 – reviews. The ultimate goal is to help jurisdictions to effectively implement the international standards of transparency and exchange of information for tax purposes.

Key Findings

Ukraine’s legal and regulatory framework overall requires availability, access and exchange of all tax relevant information in accordance with the international standard. Nevertheless, certain room for improvement was identified in areas concerning availability of information on foreign companies and foreign partnership, foreign trusts administered in Ukraine, regarding retention period for accounting records and in respect of holders of limited number of bearer shares which are still in circulation. Ukraine is also recommended to clarify its law to ensure full access to banking information in line with the standard in all cases. Ukraine’s response to the recommendations, as well as the application of its legal framework and exchange of information practice will be considered in the next round of peer review of Ukraine which is scheduled to commence in the second half of 2018. To read the full report click here.