Mutual Legal Assistance (Tax Matters) (No.3) Order, 2010

Summary

This Order is made under the Mutual Legal Assistance (Tax Matters) Act, 2003 and brings specific tax information exchange agreements (TIEAs) into force under Part 1 of that Act. The Schedule reproduces the Agreement between the Government of the British Virgin Islands and the Government of Iceland for the Exchange of Information Relating to Taxes, along with a related Protocol amending the BVI-Netherlands tax information exchange arrangement.

• Scope: Extends Part 1 of the Mutual Legal Assistance (Tax Matters) Act, 2003 (covering procedures for obtaining and exchanging information) to the agreements listed in the Schedule.
• Information exchange: Requires BVI's competent authority (the Financial Secretary or designate) to exchange information foreseeably relevant to tax administration, assessment, enforcement or investigation with Iceland's competent authority upon request.
• Access to records: Obliges the competent authority to be able to obtain and provide information held by banks, other financial institutions, nominees, trustees, and information on legal and beneficial ownership of companies, partnerships, trusts and foundations.
• Confidentiality and limits: Sets confidentiality rules for exchanged information, legal privilege protections, and limits such as a six-year look-back period and exclusion of ownership information for publicly traded companies (unless obtainable without disproportionate difficulty).
• Netherlands Protocol: Also incorporates a Protocol amending the BVI-Netherlands tax information exchange agreement, addressing modifications to align with international standards and prohibiting prejudicial or restrictive tax measures between the parties while the agreement is in force.

The Order itself does not create new direct compliance filings for BVI-regulated entities; rather it operationalises intergovernmental information-sharing machinery. However, banks, financial institutions, trustees, company service providers and persons holding ownership or beneficial interest information may be compelled to produce records or information to the BVI competent authority in response to a valid request from Iceland (or, via the Protocol, the Netherlands) under these agreements.

Key obligations

• BVI's competent authority must exchange information with Iceland's (and, under the Protocol, the Netherlands') competent authority that is foreseeably relevant to tax determination, assessment, verification, enforcement, recovery or investigation.
• The competent authority must be able to obtain and provide information held by banks, other financial institutions, nominees, trustees, and ownership information for companies, partnerships, trusts and foundations when properly requested.
• The Requested Party's competent authority must confirm receipt of a request in writing and notify the Requesting Party of any deficiencies within 60 days of receipt.
• If information cannot be obtained and provided within 90 days of receipt of a request, or obstacles/refusal arise, the Requested Party must promptly inform the Requesting Party in writing with reasons.
• Information exchanged must be kept confidential, disclosed only to persons or authorities concerned with the purposes specified in the agreement, and not disclosed to any other jurisdiction without express written consent.

Applies to

banks, other financial institutions, trustees and persons acting in a fiduciary or agency capacity, companies, partnerships, trusts, foundations, persons subject to BVI tax laws

Deadlines

• 60 days of receipt of the request: Requested Party's competent authority must notify the Requesting Party of any deficiencies in an information request.
• 90 days of receipt of the request: If the Requested Party has been unable to obtain and provide requested information within this period, it must inform the Requesting Party in writing of the reasons or obstacles.
• more than six years prior to the tax period under consideration: Information relating to periods beyond six years before the relevant tax period is excluded from the exchange obligation.

Related documents

• This document is made under Mutual Legal Assistance (Tax Matters) Act, 2003 (No. 18 of 2003)
• Mutual Legal Assistance (Tax Matters) (Amendment of Schedule) Order, 2013 (SI 2013 No. 14) amends this document