Ecuador’s Adherence to International Tax Transparency Standards

Key Findings and Recommendations

Jurisdiction Should Ensure Ownership and Identity Information is Available

• Ecuador has a robust legal framework in place, but there are shortcomings in execution and enforcement.

Reliable Accounting Records Should be Kept

• There is uncertainty regarding the proportion of companies that have submitted financial statements to the Superintendency of Companies.

Banking Information and Beneficial Ownership Information Should be Available for All Account-Holders

• The definition of beneficial owners for trusts in the binding guidance applicable to banks does not require the identification of trustees as beneficial owners.

Recommendations for Improvement

1. Enhance Supervision and Enforcement Actions: Ecuador should strengthen its supervision and enforcement actions to ensure that companies are complying with tax transparency requirements.
2. Implement a Registry of Beneficial Ownership: Ecuador should implement a registry of beneficial ownership to provide accurate and up-to-date information on beneficial owners for all account-holders.
3. Monitor the Functioning of the Registry: Regular monitoring of the registry’s functioning is essential to ensure its effectiveness in providing beneficial ownership information.
4. Maintain Accounting Records for Entities Not Subject to Supervision: Ecuador should ensure that accounting records are maintained for entities not subject to supervision, such as those operating in non-regulated sectors.
5. Ensure Accurate and Up-to-Date Information on Beneficial Owners: Ecuador should ensure that adequate, accurate, and up-to-date information on beneficial owners is available on all account-holders.