Global Forum on Transparency and Exchange of Information for Tax Purposes Peer Reviews:
Phase 1: Legal and Regulatory Framework
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 120 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
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.
Published on October 30, 2015Also available in: French
In series:Global Forum on Transparency and Exchange of Information for Tax Purposes: Peer Reviewsview more titles
The legal and regulatory framework for the availability of information in Senegal is generally in place. However, deficiencies have been identified regarding the availability of ownership information for bearer shares, as in other countries governed by OHADA law on companies. A recent amendment to the legislation requires all securities including bearer shares to be dematerialised, but lacks clarity on the practical arrangements to ensure that the dematerialisation process will be effective for all shares during the transition period. Also, a new law introducing waqfs in Senegalese law is not yet complemented by the necessary regulations. The review recommends changes to address these. The Senegalese tax administration has sufficient powers to gather information for the purpose of exchange with treaty partners; even when Senegal does not have an interest in gathering such information for its own tax purposes. Senegal’s network of treaties will soon be greatly expanded as Senegal in engaged in the process to sign the Multilateral Convention on the Mutual Administrative Assistance in Tax Matters. Senegal’s response to the recommendations made in this review, as well as the application of the legal framework and the implementation of the international standard in practice, will be considered in detail in the immediately upcoming Phase 2 review of Senegal. For further information on the exchange of information practice of Senegal and to read the full report click here.