Hon Fahie says the VI has always been a jurisdiction that keeps pace with international standards, “We have also cooperated closely with the EU… Although the BVI always has and will continue to provide substance to the global economy, the Economic Substance Act was passed to address the EU’s specific concerns. It includes the need for those companies and limited partnerships which are tax resident in the BVI to have premises, employment and expenditure located in the BVI.” Photo: Internet Source

The announcement was made yesterday Tuesday, March 12, 2019, by Premier and Minister of Finance Hon Andrew A. Fahie (R1) during the First Sitting of the First Session of the Fourth House of Assembly (HoA) at the Multi-Purpose Sports Complex in Road Town, Tortola. Photo: Facebook

“We welcome the EU’s recognition of the BVI as a cooperative jurisdiction. We have always had substance and will take steps to add further substance following the passage of the Economic Substance (Companies and Limited Partnerships) Act, 2018,” said Elise Donovan, Chief Executive Officer of BVI Finance. Photo: GIS

The announcement was made yesterday Tuesday, March 12, 2019, by Premier and Minister of Finance Hon Andrew A. Fahie (R1) during the First Sitting of the First Session of the Fourth House of Assembly (HoA) at the Multi-Purpose Sports Complex in Road Town, Tortola.

Premier Credits NDP Gov’t

“For many months, we have been working closely with the European Union to meet its requirements regarding fair taxation. This milestone has been achieved due to the hard work and tireless efforts of the previous government administration and your new government. I humbly thank you as well for your continuous prayers to the God of our forefathers regarding this matter,” the Premier told those gathered at the HoA sitting.

According to Hon Fahie, “I am pleased the EU has said the BVI will not be placed on its ‘blacklist’ of non-cooperative jurisdictions for tax purposes… This is a significant outcome, but also in some ways it is not surprising.”

He says the VI has always been a jurisdiction that keeps pace with international standards, “We have also cooperated closely with the EU… Although the BVI always has and will continue to provide substance to the global economy, the Economic Substance Act was passed to address the EU’s specific concerns. It includes the need for those companies and limited partnerships which are tax resident in the BVI to have premises, employment and expenditure located in the BVI.” 

Welcomed Revelations  

Meanwhile, a release from BVI Finance said it welcomed the news noting that the territory has delivered on its commitment relating to economic substance as defined by the EU.

“We welcome the EU’s recognition of the BVI as a cooperative jurisdiction. We have always had substance and will take steps to add further substance following the passage of the Economic Substance (Companies and Limited Partnerships) Act, 2018,” said Elise Donovan, Chief Executive Officer of BVI Finance.

According to Hon Fahie, “As the new Leader of the BVI, I have instructed officials to continue positive engagement and discussions with EU officials to ensure additional technical issues are addressed as soon as possible.”

He says through positive engagement, the territory will improve its status as a leading and compliant finance centre and the EU announcement represents a stepping stone in the right direction.