The BVI has released guidance notes on the requirements of the Common Reporting Standards (CRS) as implemented in the British Virgin Islands. A copy of the guidance notes can be found here.
This is welcome news, as until now, there has not been any BVI specific guidance and the interpretation of the CRS rules has been reliant on the general guidance provided in the CRS Implementation Handbook issued by the Organisation for Economic Co-Operative and Development which can be found here. The additional guidance has provided certainty on some key points, as well as a wealth of commentary and guidance on the specifics of interpretation of the CRS.
The CRS was brought into force in the BVI with the introduction of the Mutual Legal Assistance (Tax Matters) (Amendment) (No. 2) Act, 2015 (the Amendment Act), as subsidiary legislation to the Mutual Legal Assistance (Tax Matters) Act, 2003 (the MLAT). Under section 22(1) of the MLAT, the Financial Secretary (the FS) is the competent authority for CRS purposes. Under Statutory Instrument 6 of 2016, the FS designated the International Tax Authority (the ITA) to perform the functions conferred on the FS under section 22(1) of the Amendment Act.
The guidance provides certainty on a number of key points, which are outlined in this update.
Download a PDF of this legal update here.
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