On 24 June 2021 the Global Forum published peer review reports on transparency and exchange of information for five more countries. The peer review reports examine the legal and regulatory framework in each country and its compliance with the international standard on transparency and exchange of information on request (EOIR). The countries for which reports have been published are Antigua and Barbuda, Argentina, the Russian Federation, South Africa and Ukraine.
Owing to travel restrictions in the pandemic the reports relate to just the first phase of the assessment. A rating on compliance with each element, and an overall rating, is to be given later, when on-site visits can be done and full reviews completed.
South Africa has in place a legal and regulatory framework that generally ensures the availability and exchange of relevant information relevant to tax as required by the international standard. There is however room for improvement in relation to information on beneficial ownership information, in particular for partnerships and trusts. In the case of companies not domiciled in South Africa accounting information may not always be available, and the report recommends that South Africa should resolve this issue.
The peer review of Ukraine notes that significant improvements have occurred since the previous review, for example the tax authority can now obtain information directly from financial institutions without a court order if it is responding to a request for the exchange of information. The report notes that there are still problems in relation to the availability of legal ownership and accounting information. Also, although there is a centralised register of legal and beneficial ownership information for legal entities and arrangements, the availability of the beneficial ownership information is not always ensured as required in the international standard.
Since the previous peer review the Russian Federation has enhanced its international network of exchange of information relationships, following the entry into force of the multilateral Convention in 2015. The availability of ownership and accounting information of relevant foreign entities needs to be improved.
The legislative and regulatory framework in Argentina covers most of the elements of the international standard. Argentina has greatly expanded its network of exchange of information relationships significantly since the previous review. It still needs to ensure that beneficial ownership information on bank account holders is available in all cases, as this is not completely covered by the new regulations under tax law and commercial law.
The peer review of Antigua and Barbuda found improvements in ensuring that accounting records of international business companies (IBCs) are retained for a minimum of five years. Also, the exchange of information relationships network has expanded considerably. Some flaws in the regulatory framework may hinder the availability of beneficial ownership information for legal entities and arrangements. It is important to ensure that all accounting information is available on IBCs and international limited liability companies that change their domicile to another country.
