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  by pltm
• Jun 21, 2017
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(PLTM) - The British Virgin Islands is about ready to revive and maintain their credibility in the financial services sector internationally, as their prowess and economic standing can now be supported by an in depth research of the Territory’s contribution to the global economy, as well as its status on several international policies. Among the many strengths of the research and findings, that speak positively of the Territory as a reputable offshore financial services jurisdiction, one argument leading the charge is that the BVI is not a tax haven. The report, “Creating Value: The BVI’s Global Contribution”, was launched earlier today, June 21, at the BVI Finance conference room, Road Town, with a panel of experts. The report, which was first mentioned sometime last year, seeks to dispel negative comments on the BVI, that are circulating in the industry globally. The report also seeks to assist in better informing and educating the BVI public on the Territory’s financial services industry, and its impact on their lives. As noted by BVI Finance, the report, which was formulated by Capital Economics, a United Kingdom based company, provides a valuable research, facts and figures to help promote the BVI as a reputable offshore financial services jurisdiction, assist potential clients in better understanding the benefits of doing business in the BVI, and challenge ill-informed voices in the international community, that are seeking to dispute the value that the Territory’s financial services bring to global businesses. Financial expert, Ryan Geluk, who served on today’s panel, spoke to the Territory’s drive towards tax transparency, noting that the information provided in the research reinforces the Territory’s stance on the matter. “The BVI gets negative press from around the world, regarding tax transparency, but this report really highlights why those myths are completely false,” he said. “We are not a tax haven,” he noted, adding that what contributes to the definition of the term does not coincide with the actions of the Territory. “A tax haven is a term that is used quite often, especially when you’re looking at things like bank secrecy and lack of transparency. This is one thing that the BVI is absolutely and figuratively not.” He said, “It’s not a label, not a credible legal category of jurisdiction, it’s just a negative connotation that’s been put on by NGO’s, which we’ve over the years really dispelled. One of the big areas of tax haven is showing a level of secrecy and not being transparent in relaying information, and the BVI is certainly not amongst those in being very opaque in what we do. We have the ability and history of responding to information requested.” The BVI is considered as a tax neutral jurisdiction, he noted. “The BVI is a very proactive jurisdiction, one that responds quickly and constructively to international developments that seek to approve tax transparency around the world.” He further noted that tax transparency often refers to how many tax information exchange agreements jurisdictions sign and how many jurisdictions that country openly and willfully shares information with when there is a valid request. “The BVI has the 5th most tax information exchange agreements, being signed of any of the jurisdictions looked at. We have many more than most the other developed nations around the world, including countries like the United Kingdom and the United State; they don’t have nearly as many as we do.” Another identifier of a tax haven, Geluk explained, are countries that have double taxation treaties, where income is taxed in one jurisdiction and not the other.

“BVI signed only three double tax agreements with countries around the world, and two of those are ones passed down because the United Kingdom is involved in them. That’s really important because the BVI is not used as a ground where by persons are shifting profits around the world. He highlighted that the United Kingdom signed over 120 double taxation agreements, while the United States signed over 60. Geluk said, “Those jurisdictions who have preferential rates for specific forms of income are ones that are particularly looked at when looking at things like profit sharing and shifting profits from one jurisdiction to another. We are a tax neutral jurisdiction.” He noted that the Territory is also compliant with international regulations and responds quickly to any changes in policies around the world. “We also have a very strong anti-money laundering and finance regulations in the BVI, and a strict history of enforcing them. Whether it is our deficiencies being seen by particular companies, there is strong evidence to say that the local regulators do go in and enforce those options against those companies that are not complying with the regulations. The BVI has a very strict enforcement policy.” Other persons on the panel were Rachael McDonald of Mourant Ozannes, Jonathon Bailey of Nerine Fiduciaries, Kedrick Malone of the Financial Services Implementation Unit and Mr. Gary Hales of BVI Finance. The report is also available online for the general public at www.bviglobalimpact.com.