Guidelines on the Implementation of the Exchange of Information International Tax Transparency Standards

Tags: Guidelines on the Implementation of the Exchange of Information International Tax Transparency Standards, law, policy, international tax

Background

The Global Forum is the leading international body working on the implementation of the international tax transparency standards. The Global Forum brings together 172 jurisdictions (as at October 2025) dedicated to improving transparency and the exchange of information for tax purposes. It does this through promoting and ensuring the effective implementation of two complementary international standards:

  • The first standard agreed and implemented provides for the international exchange of information on request (EOIR), where a tax authority can request a particular piece of information to progress a tax investigation.
    Under the EOIR Standard, tax authorities can make specific requests to other tax authorities for information that will allow them to progress their tax investigations. The information that could be requested includes beneficial owners, accounting records, bank statements and information on the ownership of assets.

  • The second standard provides for the international automatic exchange of information (AEOI), where a pre-defined set of information on financial accounts held by non-residents is automatically exchanged each year. Currently, 126 jurisdictions (as at 13 March 2025) are committed to exchange under the AEOI standard and further jurisdictions are likely to do so in the future..

Trinidad and Tobago has implemented the two complementary international standards via the following legal instruments:

  • Income Tax Act, Chapter 75:01;
  • Double Taxation Relief Orders made by the President under Section 93(1) of the Income Tax Act, Chapter 75:01. For example, the Double Taxation Relief (Brazil) Order, 2008;
  • The Tax Information Exchange Agreements Act, 2020 (Act 5 of 2020);
  • The Mutual Administrative Assistance in Tax Matters Act, 2020 (Act 7 of 2020) and the Multilateral Competent Authority Agreement;
  • The Miscellaneous Provisions (Trustees, Exchequer and Audit Act, the Minister of Finance (Incorporation) Act, Proceeds of Crime, Income Tax, Companies, Partnerships, Securities, Tax Information Exchange Agreements, the Non-Profit Organisations and Mutual Administrative Assistance in Tax Matters) Act, 2024 (Act 1 of 2024);
  • The Miscellaneous Provisions (Global Forum) Act, 2024 (Act 15of 2024).

The Mutual Administrative Assistance in Tax Matters Act, 2020 (Act 7 of 2020)

The Preamble states:
“An Act to implement the multilateral convention on Mutual Administrative Assistance in Tax Matters which would make provision for the implementation of agreements between Trinidad and Tobago and other States to provide for the exchange of information for the purposes of taxation, and matters incidental thereto.”

Competent Authority and Administration (Section 4)

The Minister to whom responsibility for finance is assigned or his authorised representative is the Competent Authority for the Mutual Administrative Assistance in Tax Matters Act, 2020 (amended by Act 15 of 2024).

Multilateral Competent Authority Agreement (Section 7 and 8)

The Multilateral Competent Authority Agreement, signed in November 2024, was implemented starting April 1, 2025. The Board shall exchange information with competent authorities in applicant states if it is foreseeably relevant for administering the state's domestic tax laws under this act. This information sharing can be carried out upon request, automatically, spontaneously, or simultaneously.

Types of exchanges under the Act

Section 10 – Exchange of Information upon request

Upon receiving a request for information on persons or transactions from a Competent Authority in another State, the Board is obligated to furnish the requested information to that Competent Authority and will take information-gathering measures to provide the required information.

Powers of the Board to gather information requested

Section 117 of the Income Tax Act (ITA) authorises the Board to request, in writing, any financial information or information held on any individual with respect to the request, with the exception of those in a confidential professional relationship.
It is an offence under Section 117(5) of the ITA to fail to provide the Board with information or records in accordance with this section's provisions.

Income Tax Act, Chapter 75:01
Section 117. (1) The Board may for any purpose related to the administration or enforcement of this Act or any other written law over which the Board has oversight require any person, except a person engaged in confidential professional relationship with such person, to give it information in such manner and detail and at such time as the Board may from time to time require by notice in writing with respect to his income or assessment or assets or the income or assessments or assets of any other person or to permit it or any person duly authorised by it in writing to inspect any record of any monies, funds or other assets held by that person on his own behalf or which may be held by him for, or of any monies due by him to, any other person.

Section (5) A person is guilty of an offence who -

  1. fails to give to the Board any information in accordance with the provisions of this section; or
  2. fails to produce for the inspection of the Board or any person duly authorised by it any records which he may be required by the Board or such duly authorised person to produce.

In accordance with Section 117A of the ITA, the Board can request for the submission of any financial data, other information, and the appearance of any Financial Institution or officer before it to provide evidence or be examined under oath. A Financial Institution which fails or whose officer fails to comply with a requirement commits an offence.
Income Tax Act, Chapter 75:01
Section 117A. (1) The Board is authorized to require—

  1. any financial information and other information; and
  2. any Financial Institution or any officer of the Financial Institution to appear before it to give evidence or be examined under oath or otherwise;

any supporting documentation in respect of paragraph (a) or (b), for the purpose of the Tax Information Exchange Agreements (United States of America) Act, 2017, the Mutual Legal Assistance in Tax Matters Act, 2020 and double taxation agreements.

(2) A Financial Institution which fails or whose officer fails to comply with a requirement under subsection (1) commits an offence.”

Section 11 - Automatic Exchange of Information

The Board shall automatically exchange on an annual basis, with the competent authorities of other jurisdictions, the information as per Question 23 “What information is required to be reported under the CRS?” in the Frequently Asked Questions handout.

Section 12 - Requirements of reporting financial institutions

A reporting Financial Institution shall report on, or before 31 May of the year following the calendar year the information to the Board. Thereafter, the Board shall exchange the information within nine months i.e. by 30 September of the year after the end of the calendar year to which the information relates per Section 11(3).

Notification to account holders:
A reporting Financial Institution shall notify an account holder by 31 January in the following calendar year that information relating to that person has been reported to the Board.

Section 13 - Spontaneous Exchange of Information

Even without a specific request, the Board is required to forward any information that gives it reasonable grounds to suspect a loss in tax.

Section 14 - Simultaneous Exchange of Information

Simultaneous tax examination means an arrangement where two or more tax authorities examine simultaneously, each in its own territory, the tax affairs of a person or persons in which they have a common or related interest, with a view to exchanging any relevant information which they so obtain.

Section 15 – Enforcement

Failure to comply with the requirements of the Mutual Administrative Assistance in Tax Matters Act, 2020, or its regulations, constitutes an offense punishable by law. Penalties upon summary conviction include a fine of three hundred thousand dollars and imprisonment for one year; penalties upon conviction on indictment include a fine of six hundred thousand dollars and imprisonment for two years.

Section 15A – Self-certification

An individual that opens an account shall provide a self-certification made in accordance with Regulations made under this Act, which establishes where the individual is resident for tax purposes.

Note that if this self-certification establishes that the account holder is resident for tax purposes in a reportable jurisdiction, then, the reporting Financial Institution shall treat the account as a reportable account.

Section 16 - Compliance

The Board is required to address errors or non-compliance upon receiving notification from a competent authority regarding:

  • Incorrect Reporting: Information reporting that may be incorrect or incomplete due to an error.
  • Systemic Failure: A reporting Financial Institution (FI) failing to meet the applicable reporting and due diligence procedures consistent with the Common Reporting Standard (CRS) Due Diligence Requirements (as outlined in Schedule 1).

When the Board determines that the Financial Institution must correct the error or non-compliance, the FI must comply as soon as possible.

  •  Failure to Comply: If a Financial Institution fails to correct the issue, it will incur an initial penalty of one hundred thousand dollars ($100,000).
  • Continuing Offense: A further fine of ten thousand dollars ($10,000) will be imposed for every day the error or non-compliance remains uncorrected.

All such penalties must be paid to the Comptroller of Accounts.

A Financial Institution maintains the right to appeal any penalty imposed under this section to the Tax Appeal Board.

Additional Reference

Further Information

Please send your inquiries by email to the International Tax Unit:

  • ttcrs@ird.gov.tt