BVI international tax co-operation initiatives: FATCA and misconception
On 4 April 2013, the BVI government announced that it has decided to pursue a bilateral intergovernmental agreement (IGA) with the US for the implementation of the US Foreign Account Tax Compliance Act, colloquially known as FATCA. A further announcement followed, confirming BVI’s commitment to similar information sharing agreements with Britain and other western European countries.
The aspect of FATCA that has attracted the most attention in offshore jurisdictions is the requirement that foreign financial institutions (FFIs) identify and disclose US account holders or become subject to a 30 per cent withholding tax with respect to certain payments of US source income or proceeds from dispositions of property that can produce interest or dividends constituting such income. The acknowledged aim of the requirements is to increase transparency in order to detect and deter offshore tax abuses by US taxpayers and, having regard to the extraterritorial scope of FATCA and potential domestic legal impediments to compliance, the US government has promoted its implementation through IGAs with partner jurisdictions.
This article considers the nature and implications of the BVI’s commitment to FATCA and, in the process, seeks to dispel several misconceptions relating to it and other BVI tax co-operation initiatives…
If you are registered and logged in to the site, click on the link below to read the rest of the Conyers Dill & Pearman briefing. If not, please register or sign in with your details below.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from Conyers Dill & Pearman
Briefings from Conyers Dill & Pearman
This article provides a reminder of the impending deadlines and action that is required for those BVI entities that are classified as ‘foreign financial institutions’ for the purposes of FATCA.
Cayman has taken a creditor-friendly approach to implementation.