The OECD Global Forum is charged with the comprehensive monitoring and peer review of the implementation of the standards of transparency and exchange of information for tax purposes.
All members of the Global Forum are being reviewed and this process is undertaken in two phases. The Phase I Review assesses the quality of a jurisdiction’s legal and regulatory framework for exchange of information, while the Phase II Review looks at the practical implementation of that framework. Saint Lucia successfully completed the Phase I Review.
The FSRA has been integral to the Phase II Review process as it heavily focuses on:
- Monitoring and regulation of entities linked to the International Financial Services Sectors
- The availability of relevant information within the jurisdiction (accounting and ownership information particularly from International Companies)
- Ratification of the US / Saint Lucia TIEA; strategically important for signing of a Model IA Inter- governmental Agreement with the US for FATCA.
Saint Lucia was assigned a rating of partially compliant subsequent to its Phase II Review. In an attempt to improve the partially compliant rating, legislative amendments have been made to facilitate the effective Exchange of Information (EOI) while the Inland Revenue Department continues to monitor the practical implementation of its organisational processes as they relate to the EOI.
In order to comply with international standards several amendments were made to the pieces of legislation listed below.
- Companies Act
- International Tax Cooperation Act
- Income Tax Act
- International Business Companies Act
- International Partnership Act
- International Trusts Act
In addition, the European Bank for Reconstruction and Development and the World Bank have enforced their redomiciliation policy on Saint Lucia. In consequence, on August 8, 2015, Saint Lucia requested that a supplementary review of its Phase II assessment be done. A report titled “Request for Supplementary Review” was submitted to the Global Forum. The Global Forum has then consented to this report and scheduled an onsite visit in January 2016.