The British Virgin Islands ("BVI") and Cayman Islands
have recently been added to an updated version of the
'whitelist' published by the Italian government by
Legislative Decree 239/1996, which lists those countries that Italy
recognises as having adequate cooperation and tax information
exchange arrangements with the Italian authorities.
This development will now mean that investment funds, financing
entities and other companies based in the BVI and the Cayman
Islands will be able to invest in certain types of Italian assets
(such as bonds and loans and other similar securities issued by
Italian companies) and receive interest payments exempt from some
Italian taxes. BVI and Cayman companies will also be able to invest
in certain types of Italian real estate, investment funds, repos
and securities lending transactions and benefit from relevant tax
exemptions, paving the way for BVI and Cayman vehicles to be used
in many types of Italian capital markets, structured finance and
other investment fund transactions.
This welcome news reflects the BVI and the Cayman Islands'
cooperative and transparent approach with foreign governments with
regard to the exchange of tax information. The BVI and the Cayman
Islands have signed and brought into effect a bilateral tax
information exchange agreement with the Italian authorities and
also implemented automatic exchange of information programmes under
initiatives such as the OECD's Common Reporting Standard and US
The BVI and the Cayman Islands are two of the largest domiciles
for private companies, alternative investment funds, hedge and
private equity funds and capital markets transactions. These
entities play a valuable role in the global economy, acting as
useful allocators of international investment capital (increasingly
from large pension funds) and can provide an advantageous source of
inward investment for businesses in Italy and elsewhere, which
ultimately can help create jobs and taxable revenue in those
It is hoped that this positive step forward will encourage other
jurisdictions to similarly recognise the BVI and the Cayman
Islands' commitment to transparency and cooperation, and take
advantage of the opportunity to use BVI and Cayman companies and
investment funds to help stimulate inward investment and economic
growth in those countries.
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.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
This webcast focuses on the impact FATCA and CRS are having on structured finance vehicles set up in the BVI, Cayman Islands and Ireland and covers in detail the impending reporting and notification deadlines in each of these jurisdictions.
Many people are baffled by trusts, the purpose of which they don't fully comprehend. Some even regard them with suspicion, as tools of of opaque tax evasion strategies of a type favoured by wealthy individuals.
We were recently instructed by a Bank in relation to a regulatory matter. The Bank had made a suspicious activity report to the Financial Investigation Unit ("FIU") due to their concerns about the potential source of funds in an account.
Many of us will have heard the recent claim by Donald Trump in the US presidential election that, if elected, he will ensure that a 1,000 mile border wall is constructed between the US and Mexico...
Some comments from our readers… “The articles are extremely timely and highly applicable” “I often find critical information not available elsewhere” “As in-house counsel, Mondaq’s service is of great value”
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).