Turks and Caicos: Domestic Taxation
Double Tax Treaties
Not having any taxes other than customs duties and stamp duty, the Turks and Caicos Islands have not entered into any Double Tax treaties with other countries. The Islands have however entered into a mutual legal assistance treaty with the USA; the treaty specifically excludes fiscal matters. The Islands have passed other laws dealing with provision of information internationally in respect of crime, but the authorities habitually do not respond to requests for information regarding fiscal matters or tax evasion.
Nonetheless, the Turks and Caicos Islands have been placed on the OECD ‘white list’ of compliant territories, having signed 16 agreements on tax information exchange, thereby 'substantially implementing' the internationally-agreed standard on transparency and information exchange.
The territory concluded its sixteenth agreement, with Portugal, at a signing in London on December 21, 2010.
Agreements with other countries include the United Kingdom, Ireland, Netherlands, Denmark, France, New Zealand, Germany and Australia.
“Inclusion on the OECD’s ‘white list’ will represent a major endorsement of the Turks and Caicos Islands as a transparent financial center. It will enhance the country’s reputation and confidence in its future with the international business community," said the government at the time. “Work will now continue to build on this milestone to take the country well above the current OECD minimum. [Tax information exchange agreements] have already been agreed with Australia, Canada, Germany and Mexico and these should be signed in the New Year. Negotiations with other jurisdictions are also progressing well.”
On February 25, 2011, the Turks and Caicos Financial Services Commission (TCI FSC) signed a Memorandum of Understanding (MoU) with the Cayman Islands Monetary Authority (CIMA) which provides for the exchange of information and investigative assistance between the two regulators.
The MoU outlines the types of assistance that can be requested and given by CIMA and the TCI FSC. This includes:
- Providing, confirming or verifying information;
- Obtaining specified information and documents from other parties;
- Discussing issues of mutual interest;
- Arranging and/or conducting inspections of financial services providers, and
- Permitting representatives of the requesting authority to participate in enquiries by or on behalf of the requested authority.
The MoU also sets out the procedure each regulator will use for making requests and how requests will be assessed to determine if the required assistance can be given.