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