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About The British Virgin Islands........Our World Tax Haven Directory
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Ascot Advisory Services
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Panama, Republic of Panama
Santo Domingo, Dominican Republic
Telephone Direct Dial USA  809 - 334 - 5387   or   809 - 756 - 1917
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Email Direct:   info@ascotadvisory.com
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Quick Facts About the British Virgin Islands........
English Common Law:
Exchange Controls:
Political Stability:
       Offshore Bank Accts:
Company Formation:
Offshore Co. Taxation:
Minimum Directors:
Minimum Shareowners:
Company Directors:
Secretary Required:
Bearer Shares Allowed:
 YES
NO
GOOD
YES
IBC
NONE
ONE
ONE
YES
NO
YES
Registered Office:
Directors Disclosed:
Underlying Client Disclosed:
Tax Treaties:
Local Meetings:
Owned By Trust:
Change of Domicile:
 YES
 NO
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* YES
* YES
NO
YES
YES
* The British Virgin Islands is somewhat unique in that it is one of the few tax have jurisdictions that is directly regulated by the UK Government.  A variety of legislation passed in 1999 allows for certain types of disclosures and the recognition of external confiscation orders coming from other jurisdictions (The US for example).  Currently specific tax treaties exist with Japan & Switzerland, with other legislation addressing the release of information to other foreign governments. 
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 NOTE:  Our firm does NOT suggest the BVI as a suitable jurisdiction for clients to consider with regards to Company Formation.  Please consult with us regarding before considering any English Common Law Jurisdiction. 
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The British Virgin Islands is one of the few tax haven jurisdictions to directly fall under the control of the British Government.  This is because the BVI is not an independent country per say, but is rather a “dependent territory” much like the US Virgin Islands is with respect to the US government.  While the BVI has been a popular place for matters such as offshore incorporations and boat registration, there is some recent legislation passed in 1999 that investors should be aware of.  This is not to say that the British Virgin Islands is a “bad” place to consider when thinking about forming an offshore company or trust.  However, investors should be aware of all issues when contemplating such an idea.  Most clients would applaud any efforts to address criminal activity as they themselves know better than anyone else, that this does not affect them. The real concern is, how far would a foreign government go if the true motivation for forcing client information to be released involved taxation matters, and not criminal activity?
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A number of proposed or recently passed legislation includes:
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The Anti-Money Laundering Code of Practice, which was approved in September of 1999.  This directly effects all firms or activities concerning financial services, and dictates such matters as record keeping and disclosure of client information.  While in theory it sounds like a good idea to “combat” criminal activity, this legislation would appear to diminish the previous client confidentiality that presumed to be in place prior.
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The Proceeds of Criminal Conduct Order was another piece of legislation also approved in September of 1999.  This permits external confiscation orders from other jurisdictions to be registered and acted upon within the British Virgin Islands.  Again, while the intent is commendable, the concern is really the process or procedure for this.  In other words, will a local magistrate in the British Virgin Islands demand to see the proof and evidence concerning such an order, or will a court order from another jurisdiction be sufficient?  If only a court order is sufficient, what about the cases where “criminal activity” in one jurisdiction is not criminal activity in the BVI?  This raises the issue of tax disputes, where one may argue that “tax evasion” is a criminal matter.  Also, the idea of a client setting up a Trust structure also comes into play, whereby the client wishes to pass along assets to heirs without any tax consequence which might otherwise be due in their original “home” jurisdiction.  Is this “criminal activity”, and subject to confiscation as a result?  All of this also raises the issue or point whereby the BVI becomes an extension of the laws and regulations that may exist in another jurisdiction, and if this is the case, what type of asset protection or tax benefits do the client obtain?
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The offshore incorporation statues that exist in the BVI are modeled on similar “IBC” or International Business Company legislation that exists in other jurisdictions, such as the Bahamas, Nevis and Belize.  In this regard, perhaps it is not worthwhile to reprint this information here (see our section on the Bahamas).  IBC companies from the British Virgin Islands are of course 100% free from local taxation.  Assets of the company may be domiciled anywhere in the world, so no requirement exists that the company maintain a local bank account, as an illustrative example.  Company and Trust formation is fairly quick and efficient.  In the cases of Trusts, which own the stock of an IBC company, there are no requirements that the trust be registered or that there be disclosure of assets under current existing guidelines.
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