Do not mistake privacy for secrecy - Lorna G. Smith OBE
The Virgin Islands, despite being one of the most regulated offshore finance jurisdictions, continues to be menancingly and unfairly labelled a tax haven, especially by the so called International Consortium of Investigative Journalists (ICIJ), who has been relentless in attacking the reputaton of the ligitimate business of the British Overseas Territory.
Tax neutral jurisdiction
“And please do not mistake privacy for secrecy. We share all necessary information, including beneficial ownership, on the individuals and businesses that use our offshore services with relevant competent authorities, including those in the UK,” said Mrs Smith, who is the wife of the Territory’s Premier and Minister of Finance Dr The Honourable D. Orlando Smith (AL).
In the article in The Sunday Herald, Mrs Smith said claims that the territory is a Tax haven; secrecy jurisdiction; a faraway place serving no purpose or value to those other than the super-rich are all wrong.
“The BVI is a tax neutral jurisdiction. This means that whilst the BVI applies taxes on residents and domestic businesses for activity that takes place in the jurisdiction, authorities do not charge local taxes on transactions conducted or assets held in the BVI that relate to economic activity elsewhere.”
“But let me be clear. This does not reduce, mitigate or in any way change the tax liability in other jurisdictions. For example, a business operating in the UK but which is incorporated in the BVI is still liable to pay taxes on its UK activity to HMRC.”
VI is transparent
International journalists often suspiciously label the VI's financial services operations as being 'secretive' in nature.
According to Mrs Smith, “people lazily assume and criticise us for our supposed opaqueness. The reality is that the BVI is transparent. I could list all the initiatives that support this, such as the BVI’s full support and membership of the OECD’s Global Forum on Tax and Exchange of Information and the fact we have no banking secrecy rules, but without context these can distract us from an important principle – the principle of the right to privacy.”
She said another way of looking at it is to ask whether you would want to share details of your financial transactions with the world, or whether you deem this to be private?
Contrary to what many are led to believe, Mrs Smith said the VI fully supports initiatives to improve international standards on governance and regulation. For example, the VI was an early adopter of the OECD’s Common Reporting Standard (CRS) and is currently rolling out an innovative cloud based technology platform, known as the Beneficial Ownership Secure Search System (BOSSs), which allows competent authorities to access beneficial ownership on BVI business companies. This information is then available to relevant authorities, including Her Majesty's Revenue and Customs (HMRC) in the UK.
“Simply put, the BVI has developed a world renowned international business and finance centre that helps facilitate cross-border trade and investment,” she added.
Mrs Smith added that, according to a recent study by Capital Economics, a leading economics consultancy, the VI mediates over US$1.5 trillion of investment globally (US$169 billion in the UK), supports two million jobs globally (150,000 in the UK) and contributes over US$15bn in tax annually to governments around the world, including US$3.9B in the UK.
“This represents real trade, real business activity and real investment that has tangible benefits to people the world over. Major international development banks which use BVI business companies to fund vital projects, such as the World Bank’s International Finance Corporation, can vouch for this too,” said the Territory’s First Lady.
A section of the article by Mrs Lorna G. Smith OBE published in The Sunday Herald. Photo: VINO
Willock was previously the lone voice defending FS
Most of the points mentioned by Mrs Smith, however, were uttered before by one person, former Permanent Secretary and young Virgin Islander businessman Julian Willock who has strongly and publicly defended the VI's financial services industry, including on the international scene.
Last year Mr Willock had an interview with the BBC when local political leaders were silent while the world was labelling the VI as a 'tax haven' following the Panama Papers and in January of this year he had another interview with the United States National Public Radio in the New York Area.
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24 Responses to “Do not mistake privacy for secrecy - Lorna G. Smith OBE”
Heads of government that allows anyone whether under their government or from another country to steal from the citizens needs to be removed from power expeditiously and held accountable in court.
If them wasn't such a snotty self serving diva then tem might be worth listening too. But since them have no time for us common folk, I have no time for them!
SECRECY VS. PRIVACY SHOULDNT BE. TRANSPERECY ALL THE WAY IS SECURITY FOR THIS COUNTRY
VELL VELL VELL
Please, you don't give a #@%$& about any children, you care about yourself. If you were getting your way with Government finances you would take it and never ask about children. Everyone cares about children in the BVI but look at the young generation, how they're treated, how they behave. Look at how they're abandoned day in and day out by their caring parents to fend for themselves. Give me a @$%^& break please. Leave the kids out of this mess.
They want handouts from international agencies but they refuse to co-operate with international agency requirements. Dumb and Dumber!
depositors, Lorna? Why did you and you husband sit there while a certain Toronto based bank wanted to know
how much money a deceased relative left to family members? That is SICK and you were told about it and did
nothing. That is plain disgusting. BVI isn't a 'tax haven' and if it were, so what? What puts taxes up there with
God anyway? You let banks walk on people here, you deserve to be punished. worse than Irma.