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VI fell short in ‘quality’ of info given to France – Premier Smith

- new unit established to better facilitate flow of tax information
Premier Dr The Hon. D. Orlando Smith told members of the media today, September 18, 2013 that much work was done, but in many cases some of the information requested was not provided by the Ministry of Finance, which was reportedly the competent authority with delegated powers at the time to the Inland Revenue Department. Photo: VINO
He said the French competent authority began sending requests to the Virgin Islands for information in 2011, in keeping with a 2009 treaty that came into force in 2010. Photo: VINO
He said the French competent authority began sending requests to the Virgin Islands for information in 2011, in keeping with a 2009 treaty that came into force in 2010. Photo: VINO
Premier Smith said issues encountered with French authorities were corrected in the middle of 2013 with the establishment of the International Tax Authority (ITA), a unit based within the Ministry of Finance. Photo: VINO
Premier Smith said issues encountered with French authorities were corrected in the middle of 2013 with the establishment of the International Tax Authority (ITA), a unit based within the Ministry of Finance. Photo: VINO
In August 2013, France added Jersey, Bermuda and the [British] Virgin Islands to its list of uncooperative tax havens, paving the way for tougher financial levies as the EU's No. 2 economy tries to crack down on tax evasion.Photo: www.hothdwallpaper.net
In August 2013, France added Jersey, Bermuda and the [British] Virgin Islands to its list of uncooperative tax havens, paving the way for tougher financial levies as the EU's No. 2 economy tries to crack down on tax evasion.Photo: www.hothdwallpaper.net
ROAD TOWN, Tortola, VI – The Virgin Islands reportedly fell short in the ‘quality of information it provided’ to French authorities and this has been noted as one of the main reasons for the Territory’s addition to a list of uncooperative jurisdictions recently.

Premier Dr The Hon. D. Orlando Smith told members of the media today, September 18, 2013 that much work was done, but in many cases some of the information requested was not provided by the Ministry of Finance, which was reportedly the competent authority with delegated powers at the time to the Inland Revenue Department.

He said the French competent authority began sending requests to the Virgin Islands for information in 2011, in keeping with a 2009 treaty that came into force in 2010.

He further explained that these requests were for the most part, information in relation to the financial and accounting records of the companies registered in the Virgin Islands.

Premier Smith also outlined that there were three reasons that could cause a country to be listed as non-cooperative, namely if a country was identified by the OECD (Organisation for Economic Co-operation and Development) as a non-cooperative jurisdiction, then France will view them as non-cooperative as well; if France attempted to have a tax treaty with any other jurisdiction and for whatever reason this country refused to do so, then this country will be identified as non-cooperative; and if a tax treaty was signed between France and any other country and for some reason in the practical implementation of the treaty, the level of cooperation was sub-optimal, that country would be viewed as a non-cooperative jurisdiction.

“The BVI unfortunately fell short in the quality of information that was sent to the French authorities,” Premier Smith disclosed.

The Finance Minister said in some instances, information requested by French authorities had become overdue because of the time it usually takes to put information together.

He related that this was the reason that he, as Minister of Finance, requested a restructuring of the Ministry for it to be more aligned with international standards.

Formation of International Tax Authority

Premier Smith said issues encountered with French authorities were corrected in the middle of 2013 with the establishment of the International Tax Authority (ITA), a unit based within the Ministry of Finance. He further disclosed that the French authorities seemed to be satisfied based on dialogue that had been shared thus far.

The Territory's leader said the ITA, currently headed by Attorney Chrystlyn Benjamin, is responsible for receiving all requests for the information that is to be shared and for providing this information.

Removal from blacklist

Premier Smith expressed confidence that the Territory will be removed from the blacklist on which it has been placed, citing that French authorities have since been in discussions with the Financial Secretary, Neil M. Smith, and have since indicated that they are now satisfied with the data which is being provided.

He made no mention of a possible timeline for the removal.

Dr Smith felt it was unfair to label the VI as uncooperative given that in his opinion, there was limited time between the enactment and enforcement of the French treaty requiring compliance from the Virgin Islands.

The Premier further said he would not be involved in the day to day running of the ITA but will receive regular reports from the Unit which he expects will facilitate the continuation of the provision of information to France that is both accurate and timely.

14 Responses to “VI fell short in ‘quality’ of info given to France – Premier Smith”

  • we had it (18/09/2013, 18:51) Like (5) Dislike (1) Reply
    the media and all getting tire of the spin
    • hello (18/09/2013, 20:02) Like (1) Dislike (1) Reply
      i agree this is just more Blah Blah Blah the writing is on the wall 2 more years
    • @ we had it (19/09/2013, 06:34) Like (1) Dislike (0) Reply
      If the media is tire what do you think about we the people?????...sick to our stomach of the propaganda and lies
  • zoe (18/09/2013, 19:00) Like (4) Dislike (1) Reply
    it is clear that the NDP is sinking this lil BVI
  • civil servantts (18/09/2013, 19:04) Like (7) Dislike (0) Reply
    I smell incompetence here!!!! how come the heads like the FS, the CEO of the FSC and the ED of the IFC NOT ROLLING eh? how did we get on the black list in the first place?
    • Jon Publik (19/09/2013, 06:44) Like (0) Dislike (0) Reply
      .....nepotism and politcs rules...thye are all NDPs so can't be touch!!! while the country and industry goes to hell in a hand basket.
  • ooooo (18/09/2013, 20:46) Like (1) Dislike (0) Reply
    its like this couldn't be covered up?
  • Manifest Illegality (18/09/2013, 22:22) Like (0) Dislike (0) Reply
    Government need to pay atention to the details of the peoples business and not worry about who running an office in hong kong or what a politician say about who Fatcat (FATCA) who they dont have control over is going to harm and the like.
  • hello (18/09/2013, 23:13) Like (0) Dislike (0) Reply
    Kids from china could see it...and could have read the Premier speech at this press meeting!!!!

  • So? (19/09/2013, 07:46) Like (1) Dislike (0) Reply
    What the Premier is trying to say is we were responsible for the cockup.
  • jokes (19/09/2013, 07:50) Like (2) Dislike (0) Reply
    Does anything in the BVI ever get done properly from any government? Mediocrity is the norm and accepted here.
  • Real (19/09/2013, 19:28) Like (0) Dislike (0) Reply
    In this environment where special attention have to be made when it comes to these info requested? its either they wanted to give it or they didn't want to give it. who drop the ball?
  • geo (20/09/2013, 08:38) Like (0) Dislike (0) Reply
    It is time that attention be paid to quality. Hurry dog eat raw pudding. Not good for government.
  • just do it (22/09/2013, 12:46) Like (0) Dislike (0) Reply
    Time they got rid of those million-dollar consultants who are really party faithful being rewarded for loyalty to the NDP both here and overseas.


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