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.
News from Conyers Dill & Pearman
Briefings from Conyers Dill & Pearman
Cayman Islands Law Update: the Exempted Limited Partnership Bill and the Contracts (Rights of Third Parties) Bill
Following extensive consultation in both the public and private sectors, the Exempted Limited Partnership Bill 2014 was gazetted on 21 February 2014.
The court looked at the issue of whether a stranger to a trust, who dishonestly assists in a breach of trust, is a ‘trustee’ within the meaning of s21(1)(a) of the UK Limitation Act 1980.