In series:Global Forum on Transparency and Exchange of Information for Tax Purposes: Peer Reviewsview more titles
Published on November 04, 2016
The Phase 2 review rates the Marshall Islands as overall non-compliant with the international standard. The Phase 2 review shows that the Marshall Islands experienced difficulties in obtaining and exchanging information for tax purposes during the three-year review period from 1 July 2012 – 30 June 2015. Although the Marshall Islands’ legal framework requires that ownership information, accounting and banking information is available for most relevant entities, there is a lack of effective monitoring and enforcement programmes in place to ensure that all relevant entities, in particular non-resident domestic entities, maintain and provide ownership and accounting information. In addition, bearer shares may be issued by non-resident domestic corporations in the Marshall Islands and there are no mechanisms in place to identify owners of such shares. The Phase 2 report also identifies deficiencies in the use of the Marshall Islands’ powers to obtain and collect information. This resulted in the Marshall Islands Competent Authority not always obtaining and exchanging all of information requested by its treaty partners. It was also recommended that since the Marshall Islands put in place a new process for responding to EOI requests after the review period, the Marshall Islands should monitor the practical implementation of the organisational processes of its exchange of information unit. Acknowldging the difficulties that arose during the review period the Marshall Islands has indicated that it will move quickly to address them so that it can avail of the Fast Track process that the Global Forum has put in place to facilitate jurisdictions that wish to improve their ratings. It will also sign the multilateral Convention on Mutual. Administrative in Tax Matters.For further information on the Marshall Islands’ exchange of information practices and to read the full report click here.