Question 1
Madam Speaker, would the Honourable Premier and Minister of Finance please tell this Honourable House how many Tax Information and Exchange Agreements (TIEAs) have been agreed to and signed between the Government of the Virgin Islands and any:
i) European country;
ii) Central American country;
iii) South American country;
iv) Asian country;
v) Southern African country; or
vi) Canada, during the period 1st January, 2012 to the present, 24th July, 2012?
Answer
Madam Speaker, the concise answer to this question is that we have not agreed to and signed, any Tax Information Exchange Agreements since 1st January 2012.
We have however made noticeable progress in the various matters associated with these efforts that involve Tax Information and Exchange agreements.
Madam speaker the most significant of these has been the establishment in function, of the International Tax Authority. This unit which originally was conceived as the Tax Information Exchange Unit in the Department of Inland Revenue was revamped with a wider scope that treats with International Tax Issues in general with part of their mandate being to deal with the negotiation of, and processing of Tax Information Exchange Agreements.
This unit has produced a manual, has established standard protocols for making requests and communicated with our treaty partners in respect to these.
Negotiations have been continuing after the responsibilities and files reflecting the current status quo in respect various discussions were passed from the IFC to the newly developed division.
Madam Speaker, pursuant to this, as of July, 2012, four (4) TIEA negotiations were concluded and the text agreed in each case for both the TIEA itself and the Memorandum of Understanding associated with it.
These texts are in the process of being initialed by our treaty partners, after which they will be sent to Cabinet and the Foreign and Commonwealth Office for approval. The countries involved and their respective updates are as follows:
1. Guernsey - TIEA and MOU agreed. TIEA and MOU initialed and sent to Guernsey for their competent Authority to be initialed. When returned the TIEA will be sent to Cabinet and the FCO for approval.
2. Poland - TIEA and MOU initialed and being prepared for Cabinet and FCO approval
3. South Korea - TIEA and MOU initialed and being prepared for Cabinet and FCO approval
4. Canada - TIEA and MOU agreed. TIEA and MOU initialed by BVI Competent Authority and sent for the Competent Authority of Canada to initial the same. When returned the TIEA and MOU will be prepared and sent to Cabinet and FCO for approval.
Madam Speaker, all four countries are currently completing their internal processes with a view of signing after the summer of 2012.
In addition, negotiations continuing and progressing with the following countries:
1. Japan - TIEA model exchanged and both countries are making comments in an effort to agree on a TIEA and MOU.
2. Belgium - TIEA model exchanged and both countries are making comments in an effort to agree on a TIEA and MOU.
The Virgin Islands has attempted to and will continue to pursue the following countries:
Argentina, Austria, Brazil, Hungary, Indonesia, Italy, Macao, Mexico and Spain among others.
Madam Speaker as you may imagine, in some cases there has been little to no response from some of these countries; however we shall continue to pursue them in the event it is determined that it is required to maintain our mandate with the Global Forum.
Thank you.
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