Harmful Tax Practices – 2024 Peer Review Reports on the Exchange of Information on Tax Rulings

Togo

Togo has met all aspects of the terms of reference (OECD, 2021[1]) (ToR) for the calendar year 2024 (year in review), and no recommendations are made.

In the prior year report, Togo received two recommendations. Togo has resolved all of these issues, related to the information gathering process (ToR I.A) and the exchange of information (ToR II.B). Therefore, these recommendations are now removed.

Togo can legally issue five types of rulings within the scope of the transparency framework.

In practice, Togo issued no rulings within the scope of the transparency framework.

As no exchanges were required to take place, no peer input was received in respect of the exchanges of information on rulings received from Togo.

Information gathering process (ToR I.A)

1. Togo can legally issue the following five types of rulings within the scope of the transparency framework: (i) preferential regimes; (ii) cross-border unilateral APAs and any other cross-border unilateral tax rulings (such as an advance tax ruling) covering transfer pricing or the application of transfer pricing principles; (iii) rulings providing for unilateral downward adjustments; (iv) permanent establishment rulings; and (v) related party conduit rulings.

Past rulings (ToR I.A.1.1, I.A.1.2, I.A.2.1, I.A.2.2)

2. For Togo, past rulings are any tax rulings issued prior to 1 March 2022. However, there is no obligation for Togo to conduct spontaneous exchange information on past rulings.

Future rulings (ToR I.A.1.1, I.A.1.2, I.A.2.1)

3. For Togo, future rulings are any tax rulings within scope that are issued on or after 1 March 2022.

4. In prior year’s peer review report, it was noted that Togo identifies the tax rulings within the five categories of the transparency framework by maintaining a file of the various rulings issued. This file is maintained by the Tax Law and Litigation Directorate. Togo uses registers of beneficial owners and simplified documentation on transfer pricing documentation to identify all jurisdictions for which the tax ruling would be relevant. It was also noted that a central register of beneficial owners was being put in place. During the year in review, this has been done by Togo. As this process is now in place, the prior year’s recommendation is removed.

Review and supervision (ToR I.A.3)

5. Togo has put in place an inter-administration working group to facilitate the collection of information and to strengthen coordination.

Conclusion on section A

6. Togo has met all of the ToR for the information gathering process and no recommendations are made.

Exchange of information (ToR II.B)

Legal basis for spontaneous exchange of information (ToR II.B.1, II.B.2)

7. Togo has the necessary domestic legal basis to exchange information spontaneously. Togo notes that there are no legal or practical impediments that prevent the spontaneous exchange of information on rulings as contemplated in the Action 5 minimum standard.

8. Togo has international agreements permitting spontaneous exchange of information, including being a party to (i) the Multilateral Convention on Mutual Administrative Assistance in Tax Matters: Amended by the 2010 Protocol (OECD/Council of Europe, 2011[2]) (“the Convention”), and (ii) bilateral agreements in force with 14 jurisdictions.1

Completion and exchange of templates (ToR II.B.3, II.B.4, II.B.5, II.B.6, II.B.7)

9. In the prior year’s peer review report, it was noted that all required information is centralised by the Tax Law and Litigation Directorate and transmitted to the Information Exchange Unit. Information relating to rulings is sent by e-mail or post to the Competent Authority. During the year in review, Togo reported that this process is carried out in accordance with the provisions of the applicable tax treaties, and that requests are processed within the timeliness required by the Action 5 transparency framework. As this process is now in place, the prior year’s recommendation is removed.

10. During the year in review, no exchanges were required to take place and no data on the timeliness of exchanges is reported.

Conclusion on section B

11. Togo has the necessary legal basis for spontaneous exchange of information, a process for completing the templates in a timely way and has completed all exchanges. Togo has met all of the ToR for the exchange of information process and no recommendations are made.

Statistics (ToR IV.D)

12. As no rulings were issued, no statistics can be reported.

Matters related to intellectual property regimes (ToR I.A.1.3)

13. Togo does not offer an intellectual property regime for which transparency requirements under the Action 5 Report (OECD, 2015[3]) were imposed.

Summary of recommendations on implementation of the transparency framework

Aspect of implementation of the transparency framework that should be improved	Recommendation for improvement
	No recommendations are made.

Note

← 1.  Participating jurisdictions to the Convention are available here: www.oecd.org/tax/exchange-of-tax-information/convention-on-mutual-administrative-assistance-in-tax-matters.htm. Togo also has a bilateral agreement with France and agreements with Benin, Burkina Faso, Cabo Verde, Gambia, Ghana, Guinea-Bissau, Côte d’Ivoire, Liberia, Mali, Niger, Nigeria, Senegal and Sierra Leone within WAEMU and ECOWAS.