The British Virgin Islands (BVI) government has succeeded in its request for a supplementary review to more accurately reflect its current legislative status following the EU's decision last month to add the BVI to its list of non-cooperative jurisdictions for tax purposes.
The BVI Government issued a statement highlighting that it had already introduced legislation to address the EU Council's concerns but the legislative changes, which came into effect in January, were not recognised in the most recent OECD peer review rating. The BVI Government immediately requested a supplementary review with a view to having the BVI removed from the list as soon as possible. Permission for the review has been given by the Peer Review Group of the Global Forum on Transparency and Exchange of Information for Tax Purposes (PRG).
The BVI is confident that a "largely compliant" or "compliant" rating will be given, which would see the BVI removed from the non-compliant list.
While the inclusion of the BVI will have limited or no direct immediate consequences for investors or clients using BVI structures, the announcement of the supplementary review will be welcomed by the BVI government and investors.
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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
