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UPDATE: Premier Smith shocked at French blacklisting of VI

- says VI doing all the right things
August 30th, 2013 | Tags: France BVI Jersey Bermuda Tax Haven blacklist
Road Town, Tortola, Virgin Islands: France has 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: Reuben J.A. Stoby/VINO
ROAD TOWN, Tortola, VI – Premier Dr The Hon. D. Orlando Smith has expressed shock at revelations in the media that France has blacklisted the Virgin Islands and placed it on a list of uncooperative tax havens.

In a press conference today, August 30, 2013 with members of the media, Dr Smith said, “When I saw the news today I was really shocked because we have done the necessary things. We have signed the TIA treaty, the tax exchange with France.” 

He further stated that the VI has also joined with other European countries and is also a part of the multi-lateral convention on tax information exchange, “we’re doing all the right things or we have done those things so we were quite amazed at hearing that.”
 
He told reporters that the Territory is investigating the reason for the blacklisting and is moving speedily towards ensuring that this is corrected so that the VI can get off the blacklist and continue its good relations with France.
 
In response to reports that the VI has not acceded to some of the requests made for information, Premier Smith said when requests are made they are looked at by the International Tax Authority (ITA).
 
According to Premier Smith, “I don’t anticipate any necessary ontoward effects at this time and I anticipate that once we have discovered or understood the cause we will be able to get that rectified very shortly and we [will not] be blacklisted by France.”
 
The Premier said he did not know of any instances where the VI was uncooperative with France but said once this discovery is made the necessary action will be taken.
 
He noted that the issue was not in his initial statement because the issue was just discovered today and is currently being investigated.
 
He told reporters that he is normally not made aware of requests being made for information, “I would not have seen those requests on an individual basis. We have set up an ITA in the Ministry of Finance and they handle all the [requests] that come through the Ministry in that regard.”
 
He added that if there were difficulties with any requests, the committee would have informed him and said this was the reason they were not sure of the cause.
 
See story posted today, August 30, 2013 as reported by Reuters

France adds BVI to tax-haven blacklist!

- Jersey & Bermuda added while Philippines removed from list

REUTERS

PARIS, France- France has 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.

French tax law applies some of its harshest rates on investors from countries deemed to be uncooperative.

France added the three countries to the blacklist and removed the Philippines, an entry in France's gazette for official decisions dated Aug. 21 showed. That puts the total number of countries on the list at 10, including Guatemala, Botswana, Brunei and the Marshall Islands.

"Being on the 'blacklist' triggers the application of 75 percent withholding taxes on French source flows to those territories and the strengthening of anti-abuse mechanisms," said Michel Collet, a partner at law firm CMS Francis Lefebvre in Paris.

The entry gave no reason for the move. However, given that France signed exchange-of-information agreements with Jersey, Bermuda and the British Virgin Islands in 2010, it is likely that France was simply unhappy with the response of these territories to requests for tax information, Collet said.

According to data compiled by the French government through to August 2011, Jersey and Bermuda had responded to all French requests for information. The British Virgin Islands had responded to 31 out of 41 requests.

"I am slightly surprised regarding Jersey, as I had heard it was cooperating," said Paris-based lawyer Charles Scheer. "Financial flows with Jersey are likely to be more significant than for Bermuda and the British Virgin Islands."

Governments worldwide are attempting to fight tax evasion and plug holes in their national coffers in the wake of the 2008 financial crisis.

Tax has always been a sensitive issue for France, which has among the highest tax takes in the developed world, but President Francois Hollande has been under pressure to regain the initiative after the embarrassing resignation of his budget minister this year over a secret Swiss bank account. (Reporting by Lionel Laurent and Yann Le Guernigou)

24 Responses to “UPDATE: Premier Smith shocked at French blacklisting of VI”

  • ccc (30/08/2013, 10:18) Like (0) Dislike (0) Reply
    WOW WOW
  • apple pie (30/08/2013, 10:26) Like (5) Dislike (2) Reply
    See the NDP cannot run this country they now going kill our off shore financial sector!
    • xxxxxxxx (30/08/2013, 10:55) Like (5) Dislike (2) Reply
      NDP does not have any superb skills in managing the territories off shore sector this is shameful
    • reality (31/08/2013, 22:06) Like (0) Dislike (0) Reply
      Clearly you have no idea what you're talking about!!!
  • ooooo (30/08/2013, 11:46) Like (5) Dislike (2) Reply
    blame it on the NDP
  • Go on (30/08/2013, 11:57) Like (3) Dislike (2) Reply
    So all the money wasted on consultants and officers in Hon Kong is pointless…election come fast
  • @@@@@ (30/08/2013, 13:13) Like (5) Dislike (1) Reply
    One day its France the next day is the USA...poor we UK come for your land soon
  • Last place (30/08/2013, 15:54) Like (1) Dislike (0) Reply
    Sadly, with all the recent complaints from various government departments lamenting poor equipment etc, I have a vision of an office here.

    It probably has broken computers, unanswered phones, too many staff, a highly paid director, large government vehicles, no French dictionary, and a sign on the door "out to lunch"
  • pic (30/08/2013, 16:27) Like (0) Dislike (0) Reply
    go ahead and raise the departure tax another $10 you smart jackos in these hard economy times
  • weak (30/08/2013, 16:37) Like (6) Dislike (0) Reply
    doc does not have a clue of what is going on around him the worse leader ever in the bvi
  • sea weed (30/08/2013, 16:57) Like (12) Dislike (1) Reply
    no one else in the bvi is shocked but Orlando smith
    • poor we (30/08/2013, 23:44) Like (0) Dislike (0) Reply
      I added this mis fortune to my better memories of life with the two years so far under this clueless adminsitration.
  • I heard u loud and clear (30/08/2013, 17:20) Like (2) Dislike (0) Reply
    Dats a good one.... I totally agree with you 1000%.
  • Join with Me (30/08/2013, 17:32) Like (1) Dislike (0) Reply
    Singing "Arise, arise, wake up oh sleepers...............
  • tell the truth (30/08/2013, 18:57) Like (0) Dislike (0) Reply
    Frazer please let the people know the truth about this matter
  • Chris (30/08/2013, 20:06) Like (0) Dislike (7) Reply
    France has later remove the BVI from their black List.
  • french diplomacy (31/08/2013, 00:34) Like (2) Dislike (1) Reply
    Who cares what France thinks? They are utterly arrogant and at the most, difficult people to get along with.
    French owned territories tend to charge the highest prices, have the most anti-social attitudes, and then
    the gall to demand everyone pay them the hightest government taxes. The idea of getting along with
    other humans - is almost extraterrestrial to them. They want to 'blacklist' the BVI? Maybe they should
    just drop their nukes on themselves and rid the world of their pompous and utterly worthless behaviour.
    They do make good wine and cheese and had famous artists, but they just about killed that also. Idiots.
  • facts man (31/08/2013, 09:49) Like (2) Dislike (0) Reply
    See these NDP guys aren't prepared to deal with the international communuty
  • @@@@@@ (31/08/2013, 15:58) Like (0) Dislike (0) Reply
    Seriously the people have more confidence along with the international community when the VIP is in office...Look the evidence here for all to see
  • Charles De Gallblader (01/09/2013, 00:35) Like (0) Dislike (0) Reply
    Don't criticize France or their ways of doing things. After all, they did invent the toilet and
    French fries. How else can they get that grease into the wheels of diplomacy to squeek by?
    We should all be thankful that they think the world is their property - including everyone's money.
    It is the French thing to do, and is fashionably fascist. How do you think America and Britain
    keep up their sexy looks, EH? Why, French makeup of course!
  • ABC (01/09/2013, 14:42) Like (0) Dislike (0) Reply
    we only have to wait now for the speech wrtiers and consultants to tell Dr. Smith not to worry about France and their black list the Finaicial Servcies Sector is rubust


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