FRIDAY 21 FEBRUARY, 2020

H O M E

A B O U T

EVENTS

BVI GLOBAL IMPACT

PREMIER WELCOMES EU DECISION TO RECOGNISE BVI AS A FULLY COMPLIANT JURISDICTION

The Government of the Virgin Islands has welcomed the announcement by the European Union recognizing the British Virgin Islands as a fully compliant jurisdiction for tax purposes.

While the BVI was never added to the EU’s list of non-cooperative jurisdictions, it was placed on Annexe ll while the EU monitored the Territory’s compliance in matters related to economic substance. In order to comply, the Economic Substance (Companies and Limited Partnerships) Act was passed in December 2018.

The BVI was also required to undertake further work to define appropriate substance requirements for collective investment vehicles. Following a thorough process of assessment, monitoring and dialogue, the EU now deems the BVI to be fully compliant with its EU tax good governance principles and the jurisdiction has been removed from Annexe ll.

Commenting on the outcome, Premier and Minister of Finance, Hon. Andrew A. Fahie said: “I welcome the European Union’s recognition that the BVI fully complies with its tax good governance principles. This is as a result of close cooperation and positive dialogue with the EU and demonstrates the BVI’s commitment to meeting and surpassing international standards.

BVI Finance fully supports the decision made by the EU. Elise Donovan, Chief Executive Officer of BVI Finance said: “We warmly welcome the statement of the Premier of the Virgin Islands that the European Union has recognised us as a fully compliant jurisdiction for tax purposes. “There has been a lot work across the public and private sector to get to this important outcome and I wanted to thank all those involved for your engagement with this process.”

Read the full article, here.

DANCIA PENN, QC SWORN IN AS CARICOM ADMINISTRATIVE TRIBUNAL JUDGE

Queen’s Counsel Dancia Penn, QC was sworn-in on Monday in Barbados as Judge of the new Caribbean Community Administrative Tribunal (CCAT), established by the Caribbean Community (CARICOM).

CARICOM Heads of Government approved the establishment of the Tribunal at their 30^th Inter-Sessional Meeting in St. Kitts and Nevis in February 2019. The CCAT is an impartial and independent judicial body that will provide staff members of the CARICOM Secretariat and Regional Institutions, subject to the CCAT’s jurisdiction, with a forum for the final settlement of employment disputes. The Community and its Institutions, as international organisations, enjoy immunity from lawsuits brought in national courts.

Penn’s appointment is an ad hoc one, as “she will be assigned to hear cases from time to time” – it will not occupy a significant portion of her time, and she will continue with her full-time practice as a lawyer, arbitrator and mediator, and her other professional activities.

Read the full article, here. 

REGISTRY OF CORPORATE AFFAIRS EXPAND PREMIUM SERVICES OFFERINGS

The BVI Financial Services Commission (FSC) has now made additional transactions to the premium services offerings at its Registry of Corporate Affairs available. These transactions are:

• Change of Company Name or Add/Change a Foreign Character Name;
• Application to register variation in terms of Registered Charge; and
• Notice of Satisfaction or Release of Charge.

The Commission began offering premium services for the expedited processing of select registry transactions in December 2015. The prescribed statutory transaction fee in addition to a processing fee of US$500.00 will be applied to all premium service transactions.

Visit the FSC’s website for more on the existing premium service transactions. 

"BREXIT THROUGH THE BVI LENS"

During the fifth sitting of the second session of the fourth House of Assembly, Premier and Minister of Finance Hon. Andrew A. Fahie provide the Members with an update on Brexit and what it means for the BVI. Below are just a few highlights from his statement:

• By virtue of the UK’s membership in the EU, persons who hold UK passports, including BVIslanders, enjoy the benefit of visa-free travel to the European Schengen Area and the ability to work, study and do business in the EU without restriction. However, these privileges are now up for negotiation as the UK and EU begin negotiations on their future relationship that will conclude by the end of the year. It is important to point out here, that holders of British Overseas Territories passports fall under a different visa-free travel regime to the EU Schengen Area that is unaffected by Brexit.
• The implications of Brexit on the BVI also extend to international relations and development cooperation. Politically, the BVI has enjoyed Associate Status in the EU as one of the Overseas Countries and Territories (OCTs) directly associated with the bloc. Our Associate Status has entitled us to EU funding with which to tackle issues such as climate change, sustainable energy and marine biodiversity; and also, recovery after Hurricanes Irma and Maria. Now with the exit of Britain from the European Union, BVI no longer has Associate Status in the EU and no access to the next round of EU funding earmarked for the French, Dutch and Danish Territories we leave behind.
• It has been made clear to the UK that the BVI wishes to retain as many of the benefits and privileges that we currently enjoy with the EU, including visa-free travel and tariff and quota free trade, among other things. In terms of replacement EU funding, your Government has officially recommended to the UK that it create a Sustainable Development Fund for all Overseas Territories from which to fund climate change, biodiversity and sustainable energy projects.
• We will also continue membership in the Overseas Countries and Territories Association (OCTA) as an Associate Member to maintain a political presence in Brussels. It is more critical than ever that we work closely with our fellow French, Dutch and Danish Territories to lobby in the European Parliament and among other stakeholders where our interests are at stake.

Read the full statement, here.

SPOTLIGHT

CEO REPORT - OPPORTUNITY IN AFRICA: A PARTNERSHIP FOR GROWTH

I had the honour of attending the African Mining Indaba conference in Cape Town earlier this month, alongside a number of high-profile investors, suppliers and other stakeholders from over 40 African countries.

A major event for those in the mining industry, I was excited learn more about reform, policy and innovation in the sector, as well as exploring opportunities for the British Virgin Islands to support the exciting developments taking place across the continent.

The three-day event was a forward-looking affair, with topics ranging from what the industry is doing to address climate change, de-carbonisation and sustainability, through to how to attract the next generation of miners to drive change in the sector.

Discussions were lively and provided plenty of food for thought. The use of technology to improve sustainability, for example, was a core theme throughout with many industry experts believing it will be key to ensuring the long-term viability of the sector.

Read the full post event blog by Elise Donovan, CEO of BVI Finance, here.

Weekend Reading Suggestions

BEARER OF GOOD NEWS: BVI COURT RULES ON SURVIVAL OF POWER TO CONVERT BEARER SHARES

In a recent decision, Sempacher Foundation v Lark Service Inc. & Others (BVIHC (Com) 2018/0027) ("Sempacher"), the BVI Commercial Court has ruled that BVI companies continue to have power to convert bearer shares to registered shares following the transition date of 31 December 2009 (the "Transition Date") and that there is no statutory time limit on the exercise by a BVI company of such a power.

Click on this link to see how Walkers breaks down the recent BVI Court ruling.

HOW MUCH MONEY SHOULD I 'INVEST' IN MYSELF?

I feel caught between what people seem to consider “investing” in myself versus saving money for the future. I’m 27 and I feel like everyone is constantly telling me to do things that cost money now but will “pay off” down the road — buy expensive clothes that will last longer, take a business class because it’ll help my career, pay for therapy because it’ll help me be better at work and life in general, go to fancy exercise classes because they’re good for me. I also recently took a lower-paying job at a respected PR firm instead of a higher-paying one at a boring marketing company (which I mostly don’t regret), but I’m wondering where the buck stops. When do I get a return on this stuff, and at what point am I actually hurting my future by not saving anything (which I’m not)?

In this article, author Charlotte Cowles discusses the best practices to take up in order to invest in yourself, correctly. Read more here!

IN THE NEWS

Statement by the OECD/G20 Inclusive Framework on BEPS on the Two-Pillar Approach to Address the Tax Challenges Arising From the Digitalisation of the Economy

Prioritising risk management for family offices

56-year single-engine aircraft ban lifted at VG airport as new airline expresses interest to operate

Five things you probably mistakenly think you can recycle

Honourable Rymer To Address Biker's Licencing And Registration Drive

UPCOMING EVENTS

March

BVI Finance Breakfast Forum

Road Town, Tortola | 18 Mar

Biennial IBA Latin American Regional Forum Conference

Cartagena, Colombia | 25-27 Mar

BVI Finance

Road Town, Tortola, BVI

www.bvifinance.vg