Rwanda has in place a legal framework that ensures the availability of access to and exchange of all relevant information for tax purposes. This was the conclusion of a peer review report released by the Global Forum on Transparency and Exchange of Information for Tax Purposes (The Global Forum). The Global Forum is the multilateral framework within which work in the area of tax transparency and exchange of information is carried out by over 160 jurisdictions that participate in the global Forum. The peer reviews are conducted to promote transparency in the global tax system by ensuring that countries can effectively combat tax avoidance and illicit financial flows by exchanging relevant information. ALSO READ:Rwanda on course to tackle illicit financial flows The report analyses Rwanda’s implementation of the standard of transparency and exchange of information on request (EOIR). EOIR is an essential tool for tax authorities world-wide that enables jurisdictions to access and exchange information upon request for the purposes of administration and enforcement of tax laws. In this first phase of the peer review, Rwanda was assessed on its legal and regulatory framework governing transparency in tax-related information. Rwanda achieved a full compliance rating in 8 out of 9 indicators assessed, including availability of ownership and identity information, availability of accounting information, rights and safeguards, access to information, confidentiality, among others. However, the report indicates that Rwanda needs to improve on the `availability of banking information' indicator, recommending that the country ensures that complete and up-to-date beneficial ownership information is available. Beneficial ownership information (BOI) is identification information about individuals who directly or indirectly own or control a company. The Kigali International Financial Centre (KIFC) highlighted in a statement that the outcomes reinforce Rwanda’s position as a competitive financial hub that promotes international cooperation with foreign tax administrations. Rwanda joined the Global Forum on Transparency and Exchange of Information for Tax Purposes in 2017, committing to comply with international standards regarding Exchange of Information on Request and Automatic Exchange of Information that helps prevent tax evasion.
