Global Forum on Transparency and Exchange of Information for Tax Purposes Peer Reviews: Malaysia 2014

This book contains the 2014 Phase 2 Global Forum Peer Review report for
Malaysia.

The Global Forum on Transparency and Exchange of Information for Tax Purposes
is the multilateral framework within which work in the area of tax
transparency and exchange of information is carried out by 120 jurisdictions,
which participate in the Global Forum on an equal footing.

The Global Forum is charged with in-depth monitoring and peer review of the
implementation of the international standards of transparency and exchange of
information for tax purposes. These standards are primarily reflected in the
2002 OECD Model Agreement on Exchange of Information on Tax Matters and its
commentary, and in Article 26 of the OECD Model Tax Convention on Income and
on Capital and its commentary as updated in 2004. The standards have also been
incorporated into the UN Model Tax Convention.

The standards provide for international exchange on request of foreseeably
relevant information for the administration or enforcement of the domestic tax
laws of a requesting party. Fishing expeditions are not authorised but all
foreseeably relevant information must be provided, including bank information
and information held by fiduciaries, regardless of the existence of a domestic
tax interest or the application of a dual criminality standard.

All members of the Global Forum, as well as jurisdictions identified by the
Global Forum as relevant to its work, are being reviewed. This process is
undertaken in two phases. Phase 1 reviews assess the quality of a
jurisdiction’s legal and regulatory framework for the exchange of information,
while Phase 2 reviews look at the practical implementation of that framework.
Some Global Forum members are undergoing combined – Phase 1 and Phase 2 –
reviews. The Global Forum has also put in place a process for supplementary
reports to follow-up on recommendations, as well as for the ongoing monitoring
of jurisdictions following the conclusion of a review. The ultimate goal is to
help jurisdictions to effectively implement the international standards of
transparency and exchange of information for tax purposes.

All review reports are published once approved by the Global Forum and they
thus represent agreed Global Forum reports.

For more information on the work of the Global Forum on Transparency and
Exchange of Information for Tax Purposes, and for copies of the published
review reports, please refer to www.oecd.org/tax/transparency and www.eoi-
tax.org.