Got TIPS or BREAKING NEWS? Please call 1-284-442-8000 direct/can also WhatsApp same number or Email ALL news to:newsvino@outlook.com;                               ads call 1-284-440-6666

The BVI’s tax information exchange is in chaos – and it’s time the UK acted

BVI has well over 400,000 offshore companies. Photo: VINO/File
Tax Research UK

As the OECD has noted in a new report on information exchange:

British Virgin Islands : The Phase 2 review shows that the Virgin Islands experienced some difficulties obtaining and exchanging information for tax purposes during the three-year review period from 1 July 2009 – 30 June 2012.

Its exchange of information partners indicated that in a significant proportion of cases the responses to EOI requests were incomplete. This was largely because no clear organisational process was in place, resulting in the Virgin Islands not using its access powers effectively. In particular accounting information was not obtained or exchanged in many cases. A reorganisation of the Virgin Islands competent authority has taken place since the end of the review period.

BVI has well over 400,000 offshore companies.

It came 11th on the Tax Justice Network Financial Secrecy Index.

According to Withers, solicitors:

The BVI is a popular jurisdiction for investors from emerging markets to use when structuring their affairs. The BVI has more offshore companies than any other country with just short of 500,000 active companies. It is also the second largest fund jurisdiction in the world, and the fourth largest insurance captive domicile. According to a Financial Times survey, the BVI is the second largest source of international foreign direct investment globally, with upwards of US$125 billion invested through the BVI each year.

And it has no effective information exchange. That’s not by chance. I suspect, very strongly, that’s be design.

It’s no use Monaco and San Marino having powers to information exchange: no one uses them. They do use BVI.

And that’s precisely why the UK needs to exert its right to impose a requirement of transparency on the BVI, as the UK Corporate and Individual Tax and Financial Transparency Bill demands.

6 Responses to “The BVI’s tax information exchange is in chaos – and it’s time the UK acted”

  • AWAL (01/08/2013, 12:33) Like (2) Dislike (0) Reply
    this is daming where is the NDP
  • rock rock (01/08/2013, 19:37) Like (4) Dislike (0) Reply
    So what happened to all the high price consultants they have failed us????
  • @rock rock (02/08/2013, 06:11) Like (1) Dislike (13) Reply
    What high price consultants? Look at the review period where there high priced consultants at the time? 1 July 2009 - 30 June 2012!
    • question (03/08/2013, 10:26) Like (0) Dislike (0) Reply
      what exactly have either the NDP or VIP done for your country lately?
  • band man (02/08/2013, 08:15) Like (0) Dislike (0) Reply
    Why the big powers after the lil crèmes we get from the financial services cable?
  • BVI lawyer (15/08/2013, 17:07) Like (1) Dislike (0) Reply
    I don't understand this article - it looks as if it is copied and pasted from different sources. Firstly, the BVI does have effective information exchange. It has TIEAs with about 26 different countries, which account for about half of the world's population. Secondly, speaking as a practising lawyer, the reason that many information requests get rejected is because they don't comply with the regulations, are non-specific and are often nothing more than transparent "fishing expeditions" (which the legislation expressly states are not permitted). If other countries don't use the system properly, they should get their own house in order rather than crying off to pressure groups like the Tax Justice Network who exist purely to seek the abolition of places like the BVI.


Create a comment


Submit comment

Create a comment

Submit comment
Disclaimer: Virgin Islands News Online (VINO) welcomes your thoughts, feedback, views, bloggs and opinions. However, by posting a blogg you are agreeing to post comments or bloggs that are relevant to the topic, and that are not defamatory, liable, obscene, racist, abusive, sexist, anti-Semitic, threatening, hateful or an invasion of privacy. Violators may be excluded permanently from making contributions. Please view our declaimer above this article. We thank you in advance for complying with VINO's policy.

Follow Us On

Disclaimer: All comments posted on Virgin Islands News Online (VINO) are the sole views and opinions of the commentators and or bloggers and do not in anyway represent the views and opinions of the Board of Directors, Management and Staff of Virgin Islands News Online and its parent company.