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3rd January, 2014

Attorney General’s Chambers

TURKS AND CAICOS ISLANDS TAX INFORMATION EXCHANGE (AMENDMENT) BILL 2014 ARRANGEMENT OF CLAUSES CLAUSE 1. 2. 3. 4. 5. 6. 7.

Short title and commencement Interpretation Section 1 substituted Section 2 amended Section 3 substituted Sections 5A and 5B inserted Section 10 amended

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TURKS AND CAICOS ISLANDS A PROPOSAL FOR A

BILL FOR AN ORDINANCE TO AMEND THE TAX INFORMATION EXCHANGE ORDINANCE AND FOR MATTERS CONNECTED THERETO.

ENACTED by the Legislature of the Turks and Caicos Islands.

Short title and commencement 1. This Ordinance may be cited as the Tax Information Exchange (Amendment) Ordinance 2014 and shall come into operation on publication.

Interpretation 2. In this Ordinance, the “principal Ordinance” means the Tax Information Exchange Ordinance.

Section 1 substituted 3. The principal Ordinance is amended by repealing section 1 and substituting it with—

“Short title 1. This Ordinance may be cited as the Tax Information (Exchange and Mutual Administrative Assistance) Ordinance.”.

Section 2 amended 4. Section 2 of the principal Ordinance is amended— (a) by repealing the definition of “Agreement” and substituting it with ““Agreement” means—

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(a) the Ireland Agreement; (b) any agreement to which this Ordinance applies by virtue of an Order made under section 3 (5);”; and (b) by inserting in its appropriate alphabetical position, the following definition— ““Tax agreement” means any agreement, arrangement or convention relating to exchange of information or mutual assistance in tax matters applicable to or entered into by the Turks and Caicos Islands, and includes a Tax Information Exchange Agreement (TIEA);”; and “Tax Information Exchange Agreement (TIEA)” means the Ireland Agreement and any agreement similar to it;”. Section 3 substituted 5. The principal Ordinance is amended by repealing section 3 and substituting it with— “Implementation of Agreement 3. (1) This Ordinance shall apply for the purposes of giving effect to the terms of the Agreement for the provision of mutual administrative assistance and information in tax matters. (2) Notwithstanding anything contained in this Ordinance or in any Agreement— (a) anything required of the Competent Authority in accordance with an Agreement shall be dealt with in such manner as would be consistent with and satisfy the requirements of the Agreement, and the action taken by the Competent Authority to do such a thing shall be treated as a power the Competent Authority has under this Ordinance; and (b) the date of entry into force of a Tax Information Exchange Agreement (TIEA), shall not be construed to prevent the Competent Authority from requesting or receiving information in relation to criminal tax matters that occurred prior to the coming into force of that Agreement or this Ordinance. (3) An Agreement shall have legal effect in the Islands for such period as is specified in the Agreement. (4) Where the parties amend the Ireland Agreement, the Governor may, by Order, amend the Schedule accordingly. (5) Where the Government becomes a party to a Tax

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agreement, the Governor may, by Order, provide that this Ordinance shall apply to that agreement with such necessary modifications as may be specified in the Order, and the text of that agreement shall be set out in a Schedule to that Order.”. Sections 5A and 5B inserted 6. The principal Ordinance is amended by inserting immediately after section 5, the following sections— “Automatic exchange of information 5A. (1) The Competent Authority may automatically exchange information with another State in accordance with an Agreement. (2) The information to be exchanged in terms of subsection (1), and the procedures to exchange such information shall be set out in an Agreement. “Spontaneous exchange of information 5B. (1) The Competent Authority may, where it has knowledge of any information or any information has come to its attention, which it finds to be relevant for tax purposes and compliance, transmit that information to the competent authority of another State. (2) The procedures to be used to exchange information in terms of subsection (1) shall be set out in an Agreement.”. Section 10 amended 7. Section 10 of the principal Ordinance is amended by inserting immediately after the word “request” where it occurs for the first and third time, the words “or exchange of information on an automatic or spontaneous basis”. ______________

PASSED by the House of Assembly this

………………………… Tracey Parker Clerk to House of Assembly

day of

2014.

………………… Robert Hall Speaker

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3rd January, 2014

Attorney General’s Chambers

EXPLANATORY MEMORANDUM The Tax Information Exchange (Amendment) Bill seeks to amend the principal Ordinance by making provision for the inclusion of others Tax agreements entered into or applicable to the Turks and Caicos Islands for the purposes or providing mutual assistance and exchange of information for tax purposes, such as the Convention on Mutual Administrative Assistance in Tax Matters as amended by its Protocol (“the Convention”) and the UK/TCI IGA. The amendment also seeks to provide that provision of information for purposes of tax information exchange for Tax Information Exchange Agreements (TIEAs) shall apply retrospectively in relation to criminal tax matters, and that information may be requested or received for information available before the coming into force of any Agreement. THE BILL Clauses 1 and 2 provides the short title and commencement and the interpretation for this Ordinance. Clause 3 amends section 1 of the principal Ordinance by substituting the short title to expand it to include the subject matter of the Convention, which covers additional matters than tax information exchange. Clause 4 amends section 2 of the principal Ordinance by repealing the definition of “Agreement” and substituting it with a definition which includes any agreement, arrangement or convention relating to exchange of information or mutual assistance in tax matters applicable to or entered into by the Turks and Caicos Islands. This is meant to cater for other agreements entered into by the TCI which are not similar to the “Ireland Agreement”, but which deal with exchange of information for tax purposes. Clause 5 repeals and substitutes section 3 to expand the subject matter to include other agreements dealing with mutual assistance and exchange of information for Tax purposes. Subsection (2) provides that the Competent Authority has power to do anything required under an Agreement. This entails that the provisions of the principal Ordinance will not hinder anything required to be done under any Agreement. This clause also provides for the giving of information of criminal tax matters before the date of coming into force of any agreement. The clause is also amended to extend the power of the Governor to make an Order for agreements which deal with exchange of information on tax matters, and does not limit it to the Ireland Agreement and similar agreements. Clause 6 inserts sections 5A and 5B which provides for automatic exchange of information and spontaneous exchange of information which are contained in the Convention and the IGAs, and amended to be included in the TIEAs.

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Clause 7 amends section 10 to include information exchanged on an automatic and spontaneous basis to be treated as confidential in terms of that section.

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Tax information exchange (amendment) bill  
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