The Global Forum met on 1-2 September 2009 in Mexico and agreed in its Summary of Outcomes on a restructuring of the Global Forum and a three-year mandate to establish a robust and comprehensive peer review process to monitor and review progress made towards full and effective exchange of information.

The Global Forum at its 1-2 September 2009 meeting in Mexico decided to engage in a robust and comprehensive monitoring and peer review process. In order to carry out an in-depth monitoring and peer review of the implementation of the standards of transparency and exchange of information for tax purposes, the Global Forum agreed on the setting up of a Peer Review Group (PRG). The Global Forum agreed that the PRG would develop detailed terms of reference and the methodology for a robust, transparent and accelerated process.

The Terms of Reference note breaks down the standards of transparency and exchange of information into 10 essential elements under three broad categories: (A) availability of information; (B) access to information; and (C) exchanging information. This note establishes a system for assessing the implementation of the standards that corresponds to the Global Forum’s goals of achieving effective exchange of information and to the subject and structure of the review process for both Global Forum members and non-members. Briefly, Phase 1 reviews will lead to an assessment of the jurisdictions’ legal and regulatory framework, accompanied where necessary by recommendations for improvement. Phase 2 reviews will assess the application of the standards in practice, along with recommendations related to all of the categories, and will ultimately lead to a rating of each of the essential elements along with an overall rating. This note must be read in conjunction with the Terms of Reference and Methodology notes.