Bloomberg TV grills Premier Smith on venturing into Asian market
The question was put to Premier Smith during a recent interview on Bloomberg Television’s “First Up” by Susan Li. At the time the interview was focusing on why the British Overseas Territory picked Hong Kong as its Asia hub.
The Premier also clarified that the VI’s Financial Service was not a tax haven.
“How do you feel being in a position having to defend the British Virgin Islands, basically as a country where companies go to escape paying taxes in their own country?” Susan Li asked. Premier explained that the Virgin Islands is a financial centre like many others that seek to work around the world. “We respect those tax regimes of those countries in the world and we are in fact corresponding and cooperating with the United States as far as we are required. We are also cooperating with Europe and other countries as they may require…” said Premier Smith.
Dr Smith also told Bloomberg Television that the VI is opening an office in Honk Kong because it is necessary to promote the interest of the VI as a Financial Services jurisdiction. “While it is true that we are very popular already, as far as companies are concerned we have over 450,000 companies, 40% of them being in the Asian Pacific Region,” Premier Smith said.
He also said that talks with the US and the IRS have already begun and are expected to be completed within two months time. The US government has recently requested of the VI government to open up its books as they seek to tap in on information that may lead them to companies who have allegedly been guilty of tax evasion in their homeland.
Ms Susan Li also expressed the view that taxes in the VI is much lower than other parts of the world, which has and continues to attract companies.
Setting the record straight yet another time, the Premier and Finance Minister said the VI is not a tax haven but rather a financial services jurisdiction. He said that investing in the Financial Services in the Virgin Islands does not require companies to pay taxes in the VI but they are obligated to do so in the country of origin.
The host of “First Up” singled out Apple as being one of the large international companies that have investments in the VI Financial Services and also allegedly owns companies here. She questioned if Apple’s investments are specifically to help the company escape some of its big tax bills. “Is that correct?” she asked.
“Apple, like many other companies, have one of the business companies in the BVI, this company is used by Apple and as do other companies, to do trans-national business,” Premier Smith responded.
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21 Responses to “Bloomberg TV grills Premier Smith on venturing into Asian market”
Oh my another big government bill with this one!! Hope Fraser and Fahie will ask the cost of this trip. High price hotels and cocktails?!
STOP the travel madness !!!!!!!!!!!!
Question is did he VERIFY that VI's FS is not a tax haven?
Make the BVI the first completely tax free country. WE have the Rain Tree and the Almond Tree, Now we have the Money Tree too!