Global Forum Released Reports on Information Exchange in BVI and Other 12 Jurisdictions

According to the Tax-news, Global Forum on Transparency and Exchange of Information for Tax Purposes issued peer review reports assessing tax systems of thirteen countries, including BVI, for information exchange. These reviews are to become part of the ratings of 50 jurisdictions, in compliance with G20 and Global Forum efforts to strengthen tax cooperation.

All the reports assess the commitment of the jurisdictions to the international requirements for tax information exchange. Of these 13 reports, 11 are “Phase 2” reports covering the exchange of information in Austria, Bermuda, Brazil, British Virgin Islands, India, Luxembourg, Malta, Monaco, Qatar, San Marino and The Bahamas. Two are “Phase 1” reports, concerning Israel and Lithuania, looking at the legal and regulatory framework for transparency and exchange of information. 

The Chair of the Global Forum Kosie Louw, of the South African Revenue Service, welcomed the reports noting: "The Global Forum is applying pressure on all jurisdictions to implement the standard and co-operate effectively in tax information exchange. The publication of the ratings later this year will be a crucial moment for all those committed to fighting cross-border tax evasion."

Brian Obvi,
Offshore Analyst

Article any source

BVI Among Major Foreign Investors in Nepal in 2012/2013

According to the Department of Industry of Nepal, the amount of Foreign Direct Investment (FDI) in the economy of the country increased by 163% in year 2012/2013, as compared to the previous fiscal year. In 2012/2013, 275 joint venture companies were registered in the country. They have committed to make investment of Rs 18.84 billion, while in 2011/2012 FDI commitment was Rs 7.14 billion.

British Virgin Islands is at the top of the list of countries investing in Nepal, in terms of commitment amount, with investment commitment of Rs 4.49 billion. The BVI is followed by Hong Kong with investment commitment of Rs 3.07 billion, and India with as much as Rs 2.45 billion. In terms of number of companies, China is on the leading position with 87 joint ventures, followed by India. Most of FDI from China and Hong Kong are in the sector of hydropower projects and infrastructure development.

Brian Obvi,
Offshore Analyst

Article any source

BVI Premier Takes Part in Pre-G8 Meetings with UK Prime Minister

Premier and Minister of Finance of the British Virgin Islands, Orlando Smith, has accepted the invitation to attend two meetings in London on June 15.

These meetings are hosted by UK Prime Minister David Cameron before the G8 meeting. During the first meeting, the BVI Premier is having an open consultation with the UK Prime Minister, together with leaders from all UK Overseas Territories and Crown Dependencies, while the second meeting is the discussion on the key issues of the G8 summit, including tax, trade and transparency, and involves a range of stakeholders, including representatives from Overseas Territories and Crown Dependencies.

The BVI Premier said in a letter sent to David Cameron that the jurisdiction will in principle commit to joining the Multilateral Convention on Mutual Assistance on Tax Matters - a multilateral agreement having the aim to promote international cooperation to combat tax evasion and aggressive tax avoidance.

Speaking about the meeting, the BVI Premier Dr Orlando Smith welcomed the invitation from David Cameron for consultation, and expressed Government’s support for the G8 agenda on tax, trade and transparency and trust that the G8 members will see the value of, and accept the need for, establishing global standards."

Brian Obvi,
Offshore Analyst

Article any source

Premier Smith Hosting Chairman of OCTA Organisation

The chairman of the Overseas Countries and Territories Association and president of the Territorial Council of St Pierre and Miquelon Stéphane Artano visited the territory of the British Virgin Islands, as part of the regional familiarisation mission to the Caribbean countries as the OCTA chairman. This visit to the BVI will help to enhance its relationship with the overseas countries and territories of the European Union (OCT-EU).

Premier of the British Virgin Islands Dr Orlando Smith, who hosted OCTA chairman, will assume the chairmanship of OCTA in December 2013. During his visit to the BVI, Artano had the purpose to personally familiarise himself with the BVI, as well as to inform Smith of his green growth agenda for the OCTs. Also, the director of the International Affairs Secretariat, Sylvia Moses, informed that “the OCTA chairman would like to discuss Premier Smith’s views on the revision of the Overseas Association Decision (OAD) and its programming regulations; the OCT regional funding envelope; and regional programming under the 11th European Development Fund.” 

According to Sylvia Moses, the talks between the premier of the BVI and OCTA chairman were to focus on innovation in economic and environmental policies for all overseas territories. Moses said that Artano will address common issues and interests among OCTs, including tourism, fisheries and the internet communications.

The British Virgin Islands is vice president of OCTA organisation, as well as the co-chair of the OCTA/EU Financial Services Partnership Working Party that brings together technical experts from the EU and OCTs to discuss financial services related matters.

Brian Obvi,
Offshore Analyst

Article any source

BVI and Other Financial Centres Sign Up for UK Strategy to Enhance Tax Transparency

UK Chancellor of the Exchequer George Osborne welcomed the news that British Overseas Territories with significant financial industry sector, among them the Cayman Islands, the British Virgin Islands, Anguilla, Bermuda, Montserrat and the Turks and Caicos Islands, signed up for the UK government’s strategy on global tax transparency. This strategy will allow these financial centres to automatically share information bilaterally with the UK, and multilaterally with the G5 countries - the UK, France, Germany, Italy and Spain. 

Under the agreement, much greater levels of information about bank accounts, including those held by trusts, will be exchanged, marking a turning point in the fight against tax evasion and illicit finance. The parties involved in the agreement will know the names, addresses, dates of birth, account numbers, account balances and details of payments made into those accounts. This will increase the level of international transparency and will make it much harder for people to escape paying taxes.

This year, Britain’s Prime Minister David Cameron identified tax transparency as a key priority for the summit of the G8. The jurisdictions, including BVI, have also committed to take action to ensure they are at the forefront of transparency on BVI company ownership. Osborne has invited other countries to join the initiative.

Brian Obvi,
Offshore Analyst

Article any source

BVI and Macau Sign TIEAs with Japan

The Ministry of Finance of Japan had agreed on the new Tax Information Exchange Agreements with the British Virgin Islands and Macau, which will provide for the effective exchange of information in compliance with international standards, and for strengthening relations between the countries.

Under the Tax Information Exchange Agreements, the British Virgin Islands and Macau, and Japan from the other side, will share relevant information on request, when there is evidence of any kind of fiscal crime. 

The Japanese Ministry of Finance said that the government is determined to strengthen its tax information exchange network, to contribute to efforts to tackle international tax evasion and abuse.

The Japanese government intends to conclude the agreements with the BVI and Macau as soon as possible. They will be formally signed after the texts are finalized, and they will enter into force, once the countries have completed their domestic ratification procedures.

Brian Obvi,
Offshore Analyst

Article any source

UK Issued White Paper on Overseas Territories

Last week, White Paper was published by the UK government, aimed at renewal and strengthening of country’s relationship with its Overseas Territories. The document is entitled “The Overseas Territories: Security, Success and Sustainability”, and, according to Foreign Secretary William Hague, it is the first review of the Overseas Territories since 1999. He said that the White Paper is designed to meet the diverse challenges of the British Overseas Territories, and to set the ways how they can be supported.

The White Paper was developed by several government departments working in co-operation, and in consultations with the people and governments of the Territories, including British Virgin Islands. The goals on which the White Paper is focused are: strengthening engagement between the UK and the Territories; strengthening good governance, public financial management and economic planning in the Territories where it is necessary; and increasing the support available to the Territories.

William Hague said in his comments on publishing the White Paper: “As well as having a responsibility to ensure the security and good governance of the Territories, we want the Territories to be vibrant, flourishing communities that proudly retain aspects of their British identity.”

Brian Obvi,
Offshore Analyst

Article any source

UK Receives Feedback on BVI and Other Overseas Territories

The UK government received feedback as part of its consultation on the review of its relationship with country's overseas territories, including BVI and other Caribbean territories. It was stated that the government should support its Overseas Territories to develop sustainable economic models, and provide assistance to ensure good governance by local governments.

One of the most often named challenges that interfere with economic development in the British Overseas Territories was the need for the diversification of jurisdictions' economies. Economic diversification was raised by various respondents to the consultation.

According to the official submission of the Premier of the British Virgin Islands, the contraction of tourism and financial services has had “multiplier effects across all sectors of the society”. This issue was also raised in the official response by the government of the Cayman Islands.

The respondents also said that transparency, poor planning and corruption were the most prominent issues in relation to good governance and stated that the UK could assist with solving these problems by providing audits and advice to local authorities. This issue was raised by residents of the British Virgin Islands, the Cayman Islands and Montserrat.

Brian Obvi,
Offshore Analyst

Article any source

UK Government Strengthens Relationship with Overseas Territories

The UK's Foreign and Commonwealth Office (FCO) highlighted progress made in strengthening its relationship with the Overseas Territories, including British Virgin Islands.

The consultations that were held during the Overseas Territories Consultative Council (OTCC) were focused on the forthcoming White Paper on enhancing the UK's relationship with Overseas Territories, on strengthening the Overseas Territories' international financial centres and stimulating economic growth in the jurisdictions. According to the FCO, the meetings also covered such issues as good governance, financial management, economic planning and taxation policy.

The FCO noted that 2011 was a “landmark year for Overseas Territories”.

Brian Obvi,
Offshore Analyst

Article any source

Annual OTCC Meeting to be Held in London

During the Overseas Territories Consultative Council (OTCC) meeting, which is held annually in London since 1999, and this year will be held on 23-24 November, the UK government will discuss new strategy for its Overseas Territories.

The meeting will be hosted by Henry Bellingham, Foreign Office Minister for the Overseas Territories. It will be visited by premiers, chief ministers and elected representatives from UK Overseas Territories. There will also be ministers from the Departments for International Development; Transport; Environment; Energy and Climate Change; the Treasury; Home Office; Ministry of Defence; Culture, Media and Sport; and Business, Innovation and Skills.

Speaking on the event, Bellingham said: “I look forward to discussing with Territory leaders their ideas for the development of our partnership which will help us develop our thinking for the White Paper on the Overseas Territories that we intend to publish next year."

During the OTCC meeting, the leaders and elected representatives will attend a reception hosted by the Commonwealth Parliamentary Association, and will have bilateral meetings with Bellingham. From the British Virgin Islands, the OTCC meeting will be attended by the newly elected Premier Dr Orlando Smith.

Brian Obvi,
Offshore Analyst

Article any source

UK Overseas Territories Attorneys General Conference being Held in Cayman Islands

This week, the 20th annual conference was opened in the Cayman Islands, where meet attorneys general from British Overseas Territories, including British Virgin Islands, Anguilla, Montserrat, Turks and Caicos, Pitcairn and the Cayman Islands. Attorneys general from Bermuda, the South Atlantic Territories of St Helena, Ascension and Tristan da Cunha, Falkland Islands and Gibraltar are not present at the meeting.

During the conference, the attorneys general discuss the important issues for their countries with the solicitor general for England and Wales and MP, Edward Garnier, QC, who is the conference chairman, and other officials from the UK, and the Justice Departments of the US and Canada.

Garnier said that in July the National Security Council of the UK government had confirmed the UK's fundamental policy and objective to ensure the security and good governance of the 14 Overseas Territories of the United Kingdom. He also acknowledged the special challenges that attorneys general face in their everyday work, and recognised that the British Dependent territories are very diverse, requiring specifically tailored policies.

Garnier said that, despite the constitutional arrangements between the UK and the Overseas Territories, they should jointly work to improve the link, strengthen mutual ties, good governance and financial management as well as the quality and range of support to the OTs.

Brian Obvi,
Offshore Analyst

Article any source

UK Launches Consultations with Overseas Territories

Henry Bellingham, Minister of State at Britain's Foreign and Commonwealth Office, who is in charge of overseas territories, has formally launched a consultation process in respect of the new White Paper that will be produced and published in 2012 on the UK's relationship with its Overseas Territories, including British Virgin Islands. In a speech during his visit to Bermuda, Mr. Bellingham said that the UK government's strategy towards the Overseas Territories focuses on the following areas: strengthening the engagement and interaction between the UK and the Territories, working with territories to strengthen good governance arrangements, public financial management and economic planning where this is necessary; and improving the quality and range of support available to the territories.

Bellingham said that the period of consultation is “for the purpose of identifying what we can do to improve the functioning of the relationship between the UK and each Overseas Territory in the three broad areas defined.”

All the leaders of the Overseas Territories will be able to discuss the White Paper when they meet on the annual Overseas Territories Consultative Council, which will take place in London on November 23-24.

Brian Obvi,
Offshore Analyst

Article any source

BVI signed TIEA with Czech Republic

On June 13, the British Virgin Islands has signed a tax information exchange agreement (TIEA) with the Czech Republic. The Agreement was signed in Prague, the BVI was represented by the BVI's Deputy Premier and Minister of Health and Social Development Dancia Penn, and the Czech Republic was represented by First Deputy Minister Ladislav Mincic.

The parties also agreed to a Protocol setting out that no prejudicial or restrictive measures will be applied to residents or nationals based on harmful tax practices.

The statement issued jointly by the governments of the British Virgin Islands and the Czech Republic, included the following: “The Czech Republic and BVI have long been active in international efforts in the fight against financial crimes and each share a common commitment to develop and comply with international standards on money laundering, terrorist financing and financial regulation. The Czech Republic recognises the BVI government's reputation as a constructive and co-operative member of the international community with a globally integrated and responsible finance centre.”

The TIEA signed by the BVI and the Czech Republic provides for the exchange of information by request on civil and criminal tax matters, in accordance with the OECD standards. This is already the twenty first Tax Information Exchange Agreement signed by the British Virgin Islands, the previous one was concluded with the Republic of India.

Brian Obvi,
Offshore Analyst

Article any source

BVI Signed Twentieth TIEA

The Government of the British Virgin Islands has signed Tax Information Exchange Agreement (TIEA) with the Republic of India. The Agreement was signed by Deputy Premier and Minister of Health and Social Development Honourable Dancia Penn OBE QC and the High Commissioner of India to the UK His Excellency, Nalin Surie.

In a Joint Declaration signed with the TIEA both parties state that their countries are active, constructive and cooperative members of the international community with globally integrated and responsible finance centres. It is also stated that India and BVI have long been active in international efforts in the fight against financial crimes, and each of them shares a common commitment to develop and comply with international standards on money laundering, terrorist financing and financial regulation.

Honourable Dancia Penn welcomed this agreement, saying that India is a key market for financial services business of the British Virgin Islands. Also, she said that the BVI is fully committed to pursuing further discussions with the Government of the Republic of India, and the jurisdiction will look to build on the important trading and cultural ties that already exist between the countries.

The Agreement with India is the 20th TIEA of the British Virgin Islands. To answer the OECD guidelines and the new international tax standard, jurisdictions are required to sign at least 12 TIEAs.

Brian Obvi,
Offshore Analyst

Article any source

BVI Among Most Popular Offshore Destinations for Czech Businessmen

Czech firm SMART Office & Companies stated that in 2010 there was more than double growth in the interest of Czech entrepreneurs in buying foreign ready-made companies, compared to last year.

It was also said that the most popular countries for offshore companies are British Virgin Islands and Seychelles. The interest of entrepreneurs to the British Virgin Islands has grown by 172% in 2010 as compared to the previous year (87 235 companies), and the interest to Seychelles has grown by 94% (119 231 companies).

The BVI, Seychelles and Cyprus are among offshore jurisdictions where tax system is most advantageous for Czech businessmen.

For next year, Smart Companies expects a growth of interest in traditional offshore tax havens, and in Asian jurisdictions – Hong Kong, Singapore and India.

Brian Obvi,
Offshore Analyst

Article any source

Leaders of BVI and other Overseas Territories Met with UK Foreign and Commonwealth Office Minister

Last week, leaders from the overseas territories met with the minister for the overseas territories of Britain’s Foreign and Commonwealth Office (FCO) Henry Bellingham. On this meeting, during their visit in London on the annual meeting of the Overseas Territories Consultative Council (OTCC), they discussed the number of issues of mutual concern, including commercial and economic development of the overseas territories in the Caribbean region, transport, environment and passport issues. They also discussed possible UK assistance in the areas of criminal justice.

There was a separate session on financial services and the sector of public finance, where the UK and the Caribbean territories including British Virgin Islands agreed on the importance of complying with international financial sector standards on tax transparency, financial regulation and anti-money laundering/counter terrorism financing. They agreed that these standards must be applied without discrimination. It was also decided that overseas jurisdictions should take forward work on a framework for fiscal responsibility.

Brian Obvi,
Offshore Analyst

Article any source

BVI Premier Attends OTCC Meeting in London

Premier Hon. Ralph T. O´Neal has come to London to take part in the annual meeting of the Overseas Territories Consultative Council (OTCC). The delegation of the BVI Premier includes Dr. the Honourable Vincent Scatliffe, Financial Secretary, Mr. Neil Smith, Assistant Secretary for external affairs in the Premier´s Office Ms. Najan Christopher and personal assistant to the Premier Ms. Marsha-Ann Gumbs.

At the OTCC meeting, the questions of UK/OT relationship will be discussed, as well as the issues of financial services and public finance, the questions of passport and identity, and many others.

During his visit, Ralph O'Neal along with heads of UK Overseas Territories will have an audience with Her Majesty Queen Elizabeth II. Also, the BVI Premier will also have a bilateral meeting with Parliamentary Undersecretary of State Hon. Henry Bellingham. Before his return, he will also meet the BVI students in London.

This OTCC Meeting will be the first opportunity for Overseas Territories to meet collectively with the Parliamentary Undersecretary of State and UK Minister for Overseas Territories since the formation of the new government in the UK.

On November 10-12, the BVI Premier also visited the Czech Republic.

Brian Obvi,
Offshore Analyst

Article any source

Leaders of BVI and other British Overseas Territories Meet in Bermuda

The meeting of the Overseas Territories Consultative Council (OTCC) was held in Bermuda, visited by the representatives of four Britain's Overseas Territories. From the British Virgin Islands, there were Premier Ralph O'Neal and MP Vincent Scatliffe; they were joined by Premier Mckeeva Bush of the Cayman Islands, Deputy Chief Minister Edison Baird of Anguilla, and Charles Kirnon, Montserrat's Minister of Communication, Works and Labour.

The main purpose of the OTCC meeting was to offer the leaders of the countries an opportunity to discuss the matters of interest for the participants before the official conference which will take place in London at the end of the year. By words of Bermuda Premier Dr Ewart Brown, the meeting was successful, because the participants “have completed full and varied agenda”, and now they are well prepared for London conference. He said that during the meeting the members of the OTCC expressed concern about the scrutiny that was given by the UK to financial affairs of its overseas territories.

Brian Obvi,
Offshore Analyst

Article any source

Offshore Agreement Signed Between BVI and Australia

By the announcement of the Australian government, the Additional Benefits Agreements between Australia, the British Virgin Islands, the Isle of Man and Jersey have come into force.

These agreements help to prevent double taxation by allocation of the taxing rights over certain income of pensioners, students and government employees - residents of Australia, the British Virgin islands, the Isle of Man and Jersey. This kind of agreement also provides for a mechanism to deal with disputes arising from transfer pricing adjustments.

The Additional Benefits Agreement with the British Virgin Islands entered into force on April 12, 2010. As well as the other two jurisdictions, BVI have also signed TIEA with Australia.

By words of Assistant Treasurer, Senator Nick Sherry, these arrangements are part of the new taxation and financial relationship between Australia and the jurisdictions.

Brian Obvi,
Offshore Analyst

Article any source

BVI Identified as One of Special Tax Havens by Indian Government

The government of India approved notification of nine offshore jurisdictions as 'specified territories' to officially initiate information exchange with them and modify regulations to combat tax evasion. The tax havens classified as special territories are British Virgin Islands, Bermuda and Cayman Islands, Gibraltar (all of them being British Overseas Territories); also British Crown Dependencies Guernsey, Isle of Man and Jersey; Netherlands Antilles, and Macau, a Special Administrative Region of the People's Republic of China.

The special status of these jurisdictions allowed Indian government to officially initiate talks with them with regard to tax avoidance, exchange of information, and assistance in collection of income tax.

Brian Obvi,
Offshore Analyst

Article any source