The Financial Transactions Information Exchange Unit (hereinafter the Unit) was established following the enactment of the Tax Information (Exchange and Mutual Administrative Assistance) Ordinance (hereinafter “the Ordinance”) on 24^th December, 2009. The Ordinance was amended and revised in 2011 and 2014. The purpose of the Ordinance is to give effect to the terms of Tax Information Exchange Agreements (‘TIEA’s) for the provision of information on taxation matters on request from TIEA partners and for the sending of requests for information to TIEA partners.

The Permanent Secretary, Finance in the Ministry of Finance, is the Competent Authority. The Competent Authority is responsible for the effective implementation of the provisions under the Ordinance. The Competent Authority is also responsible for implementing all TIEAs, and other international instruments. The Permanent Secretary, Finance may exercise the functions under the Ordinance and under any TIEA acting alone or through a person designated by her to act on her behalf under section 4 of the Ordinance.

On 19^th November 2012, Mr. Henry Saunders the then Revenue Controller was designated to act on behalf of the Permanent Secretary, Finance as the Competent Authority under this Ordinance. A re-designation in his new title was made on 10 November 2015 when the Exchange of Information Unit (“EOIU”) was established within the Ministry of Finance and Mr. Saunders was appointed as the Director of Exchange of Information Unit (“EOIU Director”). The Director and the EOIU was tasked with overseeing all international agreements for exchange of information for tax purposes and any other related purposes.

The globalization of tax transparency and information exchange means Turks and Caicos Islands must ensure its equal participation in the fight against illicit financial transactions and the prevention of terrorist financing by implementing and complying with the agreed international standards.

Turks and Caicos Islands have is a member of several international bodies and associations including the Global Forum, the mandate of which is to effectively exchange tax information in line with the transparency rules and measures required of the OECD, FATF, CFATF, EU Directives, etc.

The Turks & Caicos Islands is currently committed to exchange tax information under the various regimes and treaty agreements listed below;

• OECD Automatic Exchange of Information – AEOI Platform
• AEOI – CRS Common Reporting Standard
• TIEA’s – Tax Information Exchange Agreements
• FATCA – United States of America & United Kingdom IGA’s
• ES- Economic Substance; and
• CbCR- Country-by-Country Reporting.

G20 Leaders at their meeting in September 2013 fully endorsed the OECD proposal for a truly global model for automatic exchange of information and invited the OECD, working with G20 countries, to develop such a new single standard for automatic exchange of information, including the technical modalities, to better fight tax evasion and ensure tax compliance.

The Standard, developed in response to the G20 request and approved by the OECD Council on 15 July 2014, calls on jurisdictions to obtain information from their financial institutions and automatically exchange that information with other jurisdictions on an annual basis. It sets out the financial account information to be exchanged, the financial institutions required to report, the different types of accounts and taxpayers covered, as well as common due diligence procedures to be followed by financial institutions.

http://www.oecd.org/ctp/exchange-of-tax-information/standard-for-automatic-exchange-of-financial-information-in-tax-matters.htm

The link also provides literature on the CRS handbook, Multilateral Competent Authority Agreement, the convention on Mutual Administrative Assistance in Tax Matters, and several useful sub-links on the methodology of the automatic exchange of Information process.

Turks and Caicos Islands signed two Foreign Account Tax Compliance Acts (FATCA’s); one with the United Kingdom on November 26^th, 2013 and another with the United States of America on December 1^st, 2014.

To effectively exchange tax related information between the Turks and Caicos Islands and its Treaty Partners through a cadre of technical officers in accordance with agreed standards, to combat tax evasion and improve TCI image with our international tax partners and regulatory organizations.

The objectives of the Financial Transactions Information Exchange Unit are as follow:

1. To use effective exchange of information to improve tax audits, collection and debt management.
2. To satisfy our obligations to our Treaty Partners on a timely basis.
3. Develop, establish and maintain operating procedures in accordance with international standards.
4. Facilitate sharing of experiences and best practices to combat tax evasion.