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VI under fire from international media over no ‘Tax Haven’ label

- The international media houses have harsh headlines over just released report about the Virgin Islands' contribution to the global economy & that VI is no tax haven
In about three published articles circulating, two by critics of the VI’s legitimate offshore financial services centre, Business Insider and Tax Justice, the international media have sought to discredit the recently released Capital Economics report. Photo: Business Insider/Tax Justice Network
Mr Julian Willock, left, a former Permanent Secretary and local businessman, has again come to the defence of the Virgin Islands’ legitimate offshore financial sector in the wake of attacks from the international press while the Dr The Honourable D. Orlando Smith (AL), right, led Administration has remained silent. Photo: VINO/File
Mr Julian Willock, left, a former Permanent Secretary and local businessman, has again come to the defence of the Virgin Islands’ legitimate offshore financial sector in the wake of attacks from the international press while the Dr The Honourable D. Orlando Smith (AL), right, led Administration has remained silent. Photo: VINO/File
BVI Finance is designed to promote the Virgin Islands offshore financial sector and structures, while the BVI Financial Services Commission (BVIFSC) is the Territory's single financial services Regulator. Photo: BVI Finance/BVIFSC
BVI Finance is designed to promote the Virgin Islands offshore financial sector and structures, while the BVI Financial Services Commission (BVIFSC) is the Territory's single financial services Regulator. Photo: BVI Finance/BVIFSC
ROAD TOWN, Tortola, VI- It was on June 21, 2017 in front of the local press that the Government of the Virgin Islands (VI) though its statutory body, BVI Finance, the body which is a joint public-private partnership to promote the VI's offshore financial sector and structures, released a glowing report about the British Overseas Territory’s role in the global economy.

The report paid for by the Government body and done by the consulting firm Capital Economics based in the United Kingdom said the VI is responsible for providing some 2 million jobs worldwide.

In addition, the report entitled ‘Creating Value’ The BVI’s Global Contribution, stated that the tiny British Overseas Territory of some 30,000 residents “mediates over US$1.5 Trillion of cross border investment flows, the equivalent of two percent of the global GDP.”

The report from Capital Economics also claims that the VI helped the United Kingdom with some US$3.9 Billion in investments, the European Union, excluding the UK with US$4.2 Billion and China and Hong Kong with some US$2.1 Billion.

The report also stated that the Virgin Islands is not a Tax Haven as the international media likes to label the jurisdiction.

Negative international headline

However, the international media is lashing back. In about three published articles circulating, two by critics of the VI’s legitimate offshore centre, Business Insider and Tax Justice, they have sought to discredit the Capital Economics report.

In an article by ‘Business Insider’ headlined: 'The British Virgin Islands trying to prove it’s not a tax haven- campaigners aren’t buying it' by Camilla Hodgson, dated June 25, 2017, it stated that “critics have questioned whether a strong legal framework, which is available in other countries, is really what makes the BVI such an attractive destination for investors and businesses.”

They went on to say “tax campaigners point to the fact that the islands do not charge capital gains or corporation tax and are known for being secretive about who owns the companies that are registered there.”

Additionally the article stated: “the ‘not a tax haven’ line is basically only one you ever hear from tax havens,” Alex Cobham from Tax Justice Network told Business Insider.

In another article critical of the Capital Economics Report and the VI is by the Tax Justice Network with the headline ‘The BVI: Responsible for worldwide tax losses of $37.5 Billion a year’, an even more harsh report of the VI.

They claim “the rest of the world is paying around $1.25 Million every year for each of the 30,000 inhabitants of the BVI, as a massive subsidy of the islands’ secrecy model. And that’s before we factor in the undoubtedly large, non-tax costs of the corruptions that BVI facilitates through its anonymous companies.”

Julian Willock defends again while others are AWOL

However, Julian Willock, a former Permanent Secretary and local businessman who often speaks to the international media on the Territory’s offshore financial sector, disagrees with the international criticism.

In an invited comment, Mr Willock said, “the state of Delaware, USA is the biggest tax haven in the world and people in the industry knows that, but I often ask why are there no articles and headlines about that?...I am sure most progressive thinkers can draw their own conclusions…it’s just not fair, as we remain the most transparent and highly regulated offshore sector in the world…”

Mr Willock, who spoke last year to BBC Radio and this year to the National Public Radio heard in the New York City, New Jersey area in April, said “our laws are tougher than those in London, Paris, Switzerland and many states in the USA, and we comply with all the global regulatory bodies set up to ensure transparency.”

“Do you know that the United States have not even signed on to new global disclosure standards that are forcing companies to reveal their real owners around the world, compared with other developed countries. Where are the headlines about that and the labeling as a tax heaven?” Mr Willock asked.

When asked what the VI should be doing, the political aspirant told our newsroom, “the VI should continue to defend our offshore sector, while remaining calm and point out the double standards and that we continue to comply with all local and international regulations, and laws…. We should not be afraid to promote  what we do here…”

When ask if this could be the end of the Financial Services Sector in the VI, Mr Willock replied “No, but there will be a shift from volume incorporations to value added services.”

Despite the three articles in the international press being critical of the VI's financial services sector within the past 2 days, the Dr The Honourable D. Orlando Smith (AL) led Administration has remained mum.

See links to reports from Business Insider and Tax Justice Network:

http://www.businessinsider.com/british-virgin-islands-a-tax-haven-or-legitimate-business-hub-2017-6

http://www.taxjustice.net/2017/06/21/bvi-blagging-venal-income/

39 Responses to “VI under fire from international media over no ‘Tax Haven’ label”

  • cat (25/06/2017, 16:06) Like (29) Dislike (12) Reply
    Willock for FSC CEO
    • pat (25/06/2017, 20:59) Like (8) Dislike (0) Reply
      The fear of inadvertent non-compliance and the penalties that will result may drive some tax professionals to over-disclose, just to be on the safe side
    • Candi (26/06/2017, 09:26) Like (9) Dislike (2) Reply
      I agree with you 110%!!!! Mr. Willock is the only competent, intelligent individual who has the guts to defend us internationally. Our current leaders does not have a clue so they obviously can't do the same.
    • smdh (26/06/2017, 19:22) Like (2) Dislike (3) Reply
      Is anyone surprised by the international press response to this self worshiping crap. If this is our idea of solutions we are in some deep sh*t.
  • belonger (25/06/2017, 17:09) Like (19) Dislike (13) Reply
    Julian Willock for Premier in nx election and Finance Minister,he will defend the VI vigorously.
    • @ belonger (25/06/2017, 21:13) Like (21) Dislike (1) Reply
      let's not get carried away, I can settle for him being elected and a ministry but for now that's about it!!!
    • Defend (26/06/2017, 18:28) Like (1) Dislike (4) Reply
      So if I defend the VI internationally I would be a contender for Premier?
  • Boo (25/06/2017, 17:28) Like (23) Dislike (3) Reply
    This Smith gobernmint will be the death of the BVI. By the way, when are the British going to lock up the Anguillan?
    • Yes (26/06/2017, 08:32) Like (9) Dislike (2) Reply
      Yes the Anguillian out of control. The Antiguan not too far behind either.
  • don't mind dem (25/06/2017, 17:50) Like (13) Dislike (1) Reply
    DEM JEALOUS WE
    • qc (25/06/2017, 20:55) Like (16) Dislike (1) Reply
      the bvi needs to say to the big powers Enough is enough
      • pat (26/06/2017, 20:43) Like (0) Dislike (0) Reply
        It should not have anything to do with another country--abide by our own laws and our constitution.
    • NYT (25/06/2017, 21:13) Like (4) Dislike (2) Reply
      US Federal officials estimate that the government loses between $40 billion and $70 billion a year in unpaid taxes on offshore holdings.
  • just asking... (25/06/2017, 18:06) Like (10) Dislike (5) Reply
    Why they always picking on the bvi?
    • I voting willock.. (25/06/2017, 19:43) Like (28) Dislike (4) Reply
      Mr Willock I had my doubts about you because of your loyalty to Fraser, I'm not a fan of Frazer..But I'm convince you have the BVI people st heart all the people not one set and you are the best person for our minister of finance... I've made up my mind to vote for you..great job...nice representation..Fed up these dead horses.. I gave up on them....serious talk...Remember CB Romney in all you do. That's the man have food on all of us table... Nine is perfect but the best we can do is to give Jack his jacket. Serious talk..
    • @just asking.. Lord O. (25/06/2017, 19:53) Like (7) Dislike (0) Reply
      Jealousy, envy---- Even our friends, our neighbors and family pick on us and try to bring us down when we are doing good.. That's your answer..Smile !
      • Panama papers (25/06/2017, 21:03) Like (11) Dislike (0) Reply
        shortfalls in regulation, supervision, governance and transparency in the Panamanian financial system! remember the bvi role
  • Emerging Leadership (25/06/2017, 19:22) Like (48) Dislike (4) Reply
    Wow! Thanks for publishing this international article so we can acquire a better balance perspective on the position of our financial services and the response by the international critics. We already know our current government would rather keep us in the dark that to educate us on our true condition. Just using common sense and looking at the title, one can see how this current government is completely unprioritized and just wasting our tax dollars on these international consultants to have them present their heavy-laden subjective report on the industry. Have them present their methodology in the research and it can easily be debunked by an objective and unbias researcher. Easily.

    What we need are true fighters- that is, intellectuals who haven’t been too refined and still possess their naturally sharp streets instincts- to defend our industry and not another set of comfortable, money-sucking, linear-thinking intellectuals who have completely lost their fight or flight instincts in order to acquire the taste for more undeserving materialistic white-collar type inclinations.

    These international organized critics are making serious chess moves and this government continue to counter like they are still trying to master checkers.

    In the meantime, once again, wasting hard earned tax dollars on such an unbalanced report. In fact, it strongly seems like these consultants are milking the opportunity by being paid, big bucks, twice for a similar report which they used to promote Jersey in 2016 in the same light.

    NDP has failed us both locally and internationally and to save what’s left of their reputations they have become desperate and fiscally irresponsible: waste, waste, waste, and more waste of taxpayers’ funds.

    And let’s not be mistaken, the ministry of education is not off the hook either.

    We were only waiting for the “spin” to subside because we didn’t want to deflate the happy moment for our children. However, for those who know better, we understand how the “grade curve” was applied to justified this extra wasted year and how it has been used as a tool to justify its apparent success. Further comments will be presented after the methodology has been thoroughly evaluated against the outcomes; that is, if we are given the opportunity to do so knowing the track record of secrecy and non-transparency of this current government who have politricked/duped/swindled/conned us into voting them into office.

    Taxpayers/Voters, listen-up! We need to rid ourselves of all these current coons and coonettes before they further brainwash, hoodwink, bamboozle, and trick us all once again into voting them in. The fabric of our society is, at present, being torn from every direction because of these current detached, self-absorbed, delusional, power-hungry (even to the point of using our children as checkers in the game), and “allegedly corrupted” elected leaders.
    • Guest (25/06/2017, 19:57) Like (15) Dislike (3) Reply
      Wow!! you don't have to behave so bad... this is telling!!
      • 1 world (25/06/2017, 21:07) Like (20) Dislike (2) Reply
        The Big Powers making a valiant effort to sound tough but they are just hypocrites
    • Emerging Leadership (26/06/2017, 17:08) Like (4) Dislike (9) Reply
      You are clearly also an emerging fool thats waxes eloquently. Do you undestand that TJN and other NGOs are totally biased in what they say? Its ironic that you are quick to swallow their crap, yet BVI has finally presented an alternative and accurate view of what our jurisdiction is and does and all you can do is cast doubt. Read the damn report for yourself and stop casting the BVI and a well researched and written report in a negative light. If you care anything for BVI you should use your clearly great intelligence to defend the BVI.
  • Wilock is King... (25/06/2017, 19:31) Like (15) Dislike (4) Reply
    You are the man willock...Next time be rude tell them go an fff the mmmm...Leave us to hell alone.. If the report is true we are like 1 billion short we are not getting enough. Reaping enough, charging enough...
  • dude (25/06/2017, 20:20) Like (9) Dislike (3) Reply
    We're not a tax haven and they know we're not but the truth doesn't matter they will use their reach and tell enough people that we are and that will be the lasting impression. Would they do this if we were a different population of people? I doubt it
  • ... (25/06/2017, 20:58) Like (13) Dislike (0) Reply
    more like "preferential tax regimes".
  • Xxx (25/06/2017, 21:00) Like (19) Dislike (2) Reply
    that report from Capital Economics will not be a game-changer
    • so it seems (26/06/2017, 13:28) Like (8) Dislike (1) Reply
      It doesn't look like it has been handled very well by BVI Finance.

      I wonder how much they paid Capital Economics to repeat the Jersey job but with less success.

      Why does it focus on the local economy so much.

      What is the message it is trying to put forward, apart from meaningless guessed figures which can be easily turned around?
  • chad (25/06/2017, 21:01) Like (14) Dislike (0) Reply
    The EU and the USA are just not credible as long as there are inner-European tax havens and in some three US and some member states keep systematically undermining their neighbours' tax base
  • facts man (25/06/2017, 21:04) Like (10) Dislike (1) Reply
    Both London and New York didn’t spend an awful amount of time on due diligence so they need to back off the BVI
  • Local (25/06/2017, 21:06) Like (17) Dislike (0) Reply
    I cannot help feeling that the premier and his team are fast asleep on the offshore sector
    • NAIL IT (26/06/2017, 09:27) Like (12) Dislike (0) Reply

      I said that years ago .I also told some ministers if they do not be careful the crystal ball will go into pieces . I blog on it recently and some people blog sh*t . But believe me if the premier do not wake up he will ruin what is left of the BVI. They think only them have common sense but some of them only have book sense and not common sense. When people travel aboard to those big countries you learn a lot just listening to people. Those big countries does send their spies all over the globe even here and I am quite sure these power hungry /////////does dine and give out information to them.

  • one eye (25/06/2017, 21:11) Like (15) Dislike (0) Reply
    Federal law allows United States citizens to transfer money overseas, but these foreign holdings must be declared to the Treasury Department, and any taxes on capital gains, interest or dividends must be paid — just as if the money had been invested domestically.

    Ask them if this happens in Delaware USA
    • Yes (26/06/2017, 11:19) Like (7) Dislike (1) Reply
      No it doesn't...Then again Delaware is not a little island run by black people..It's white America so their corruption and criminality is just fine in the eyes of the G7. Hypocrites!
  • jah (25/06/2017, 21:27) Like (1) Dislike (3) Reply

    Leave the bvi alone us full a sh***t

  • VG (26/06/2017, 08:09) Like (14) Dislike (4) Reply
    Mr Willock can represent us on the world stage he has my vote...
  • Bushmaster (26/06/2017, 08:36) Like (7) Dislike (0) Reply
    Lets see. Companies registered in the BVI have money in US and UK banks that don't do any due diligence on the companies and their governments don't charge them tax for doing business in the US and UK and that's our problem to fix? Fix your blasted banks and tax code and stop beating on us! Oh I forgot you like it so and just want the business transferred to unregulated Delaware and Vegas.
    • Newsflash (26/06/2017, 10:14) Like (5) Dislike (3) Reply
      EXAAAAAAAAAAAAAAAAAAACTLY!!!! Our people are so easily fooled by this nonsense and it's sad. The money is not here so how are we to be blamed?
  • Newsflash (26/06/2017, 10:14) Like (5) Dislike (4) Reply
    People with zero experience or understanding about the industry should do their research before making this a political issue. The BVI provides corporate vehicles for people to use for various reasons internationally. The BVI is not a banking jurisdiction and does not hold the trillions of dollars here. Ironically, the money that these onshore jurisdictions claim to lose are held RIGHT IN THEIR OWN BANKS, IN THEIR OWN COUNTRIES! The BVI does not have the money here and it's not hidden because it's right in their own banks. Most of these same jurisdictions that are trying to make us look bad do not even have the framework that we have in place. London, New York, Nevada, Delaware, the top places for tax evasion and corrupt entities and they're on poor little BVI. It's sad that our own people read this nonsense and believe every bit of it because it's considered 'news'. The same study by BVI Finance mentioned the banks here and the money they hold. Why wasn't that part of it mentioned in these articles? The BVI does not have money here hiding for anyone, we register companies and they open their accounts onshore. If they want the money why don't they tackle it when it hits their own banks. Financial Services is a BVI thing, not an NDP or VIP thing, please wise up.
  • unattached american (26/06/2017, 13:09) Like (4) Dislike (0) Reply
    its all about controlling and stealing from others. us just wants everyone and everything to be theirs or at least
    in their full control. england much the same - nothing new here except the psychotic made up situations like the
    panama papers being created to whip up the moron masses into a riot. usually rioting them against a little place
    like this one. but it is true most of the banks here that are big foreign multinational ones - do suck and get away
    with murder when they should be kicked out. this is against the customers.


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