SVG's Tax Transparency Endorsed

by Amanda Banks, Tax-News.com, London

20 April 2012

Saint Vincent and the Grenadines (SVG) has welcomed the adoption of a report by the Organization for Economic Cooperation and Development that confirms the territory has adequate frameworks in place to meet international standards on tax transparency and information exchange.

The report follows the successful completion of the first Phase of the Global Forum's Peer Review Process, which assesses nations' frameworks for exchanging tax information, including agreements signed with other nations to facilitate such exchanges.

Welcoming the announcement, the jurisdiction's Prime Minister and Minister for Finance, Ralph Gonsalves said the adoption of the report recognized the SVG's efforts to strengthen its legal and regulatory framework, to ensure all international standards are met.

As part of efforts to meet the requirements of Phase 1, the government passed the International Co-operation (Tax Information Exchange Agreements) Act, 2011, to ensure effective information exchange. To date, SVG has signed 31 agreements, 10 under double tax agreements, and 21 under dedicated tax information exchange agreements.

The results of the assessment of SVG's tax transparency regime were very positive, the government said, with the findings, in general, recognizing that the territory meets the internationally-agreed standard on tax transparency and effective information exchange. Completion of the first phase will allow SVG to proceed to the second phase, where the Global Forum will assess the territory's framework for the exchange of information in practice. This is scheduled to take place in the second half of 2013.

Gonsalves said regulators and the government aim to achieve an equally successful Phase 2 Review, the final part of the Forum's assessment. Gonsalves said that SVG will continue to work towards strengthening its tax transparency regime so as to maintain and enhance the integrity of its financial sector and its reputation for sound international investment.