BVI Leader, Premier and Minister for Finance, Dr. the Hon. D. Orlando Smith is anticipating the removal of the BVI from France’s list of non-compliant states soon. The BVI Leader during a press conference on 26 June explained that his optimism stems from the fact that he has been in communication with the French Government who have noted the Territory’s remedial moves.
“They were impressed with the progress we have made in fulfilling our obligations to France under the Tax Information Agreement. As you know, we created the International Tax Authority in 2012 and have further strengthened its capacity… I am optimistic that we will be considered for removal from that non-compliance list,” Hon Smith disclosed.
At a press conference on 12 November, 2013 Premier, Smith assured that the blacklisting of the BVI by France was being sorted out. In response to a question from the media, Premier Smith disclosed that the Government has had discussion with France as far as the blacklisting is concerned and that France is now satisfied with the process which the Territory has since put in place.
As a future precaution the BVI Leader said that the Territory would have to make sure that it provides all of the required information that is requested and is expected under the tax information exchange agreements.
In late August 2013, the BVI along with fellow overseas territories Bermuda and Jersey were added to France’s list of uncooperative jurisdictions. Following the blacklisting some persons in the community expressed concern over the fact that the blacklisting comes with a withholding tax of 75% on transactions that involve payments to the Territory and the extra scrutinizing of French companies’ subsidiaries or French nationals who do business in the BVI.