3 November 2014Accounting & tax analysis

Gibraltar approved by OECD

Gibraltar has been rated as “overall largely compliant” for transparency and exchange of information for tax purposes by the Global Forum of the Organisation for Economic Co-operation and Development (OECD).

The forum’s Phase 2 review on Gibraltar examined ten essential elements of the jurisdiction’s record in exchange of information. Gibraltar was rated “largely compliant” in three areas and “compliant” in seven.

The review noted that Gibraltar has amended its law to address the Phase 1 deficiencies identified but added that small deficiencies remain in relation to lack of penalties in the amendment of the Partnership law and the fact that partnerships are not subject to systematic oversight of compliance with their accounting obligation.

“In addition, the obligations to maintain accounting records in accordance with the standard only came into force in 2013 and so the effectiveness of these amendments could not be fully assessed,” said the forum.

“Further, a gap was identified concerning the systematic disclosure to third parties information that is not needed to obtain information requested. While mechanisms in Gibraltar allow for effective exchange of information to a large extent, the report identifies some deficiencies concerning EOI with one of Gibraltar’s Competent Authorities.”

It is recommended that this competent authority ensures better communication with its main EOI partner and improve its current systems to ensure that EOI is dealt with effectively and efficiently. For further information on Gibraltar’s exchange of information practices click here.