Mutual Legal Assistance (Tax Matters) Order, 2013 (SI 2013 No. 39)

Summary

This Order, made under the Mutual Legal Assistance (Tax Matters) Act, 2003, brings into effect Tax Information Exchange Agreements (TIEAs) between the British Virgin Islands and other jurisdictions (including Guernsey and Canada, as reproduced in the Schedules) by applying Part 1 of the Act to those agreements. It is primarily a government-to-government instrument establishing the legal framework for BVI's competent authority to exchange tax information with treaty partners, rather than a rulebook directly regulating licensees.

• Scope of exchange: Competent authorities must exchange information foreseeably relevant to the administration, enforcement, assessment or investigation of tax matters, including criminal tax matters, covered by each agreement.
• Information holders: The Requested Party's authority must 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 collective investment schemes.
• Confidentiality: Information exchanged must be kept confidential, used only for the purposes specified in the agreement, and not disclosed to any other jurisdiction.
• Response timeframes: The Requested Party must confirm receipt and flag deficiencies within a set period, and provide the requested information (or explain delay/refusal) within a further set period after receiving a complete request.
• Grounds to decline: A request may be declined if it does not conform to the agreement, if domestic remedies were not exhausted, or if disclosure would breach public policy or legal privilege.

The document itself does not impose new compliance duties on private sector entities beyond their existing obligations to maintain records that competent authorities can access and disclose under domestic law; its operative effect is to make the underlying TIEAs legally binding for BVI's mutual legal assistance mechanism.

Key obligations

• Competent authorities must confirm receipt of an information request and notify any deficiencies within 60 days of receipt
• Competent authorities must provide the requested information within 90 days of receiving a complete request, or explain in writing any inability, obstacles or refusal
• Information exchanged under the agreements must be kept confidential and used only for the purposes stated in the agreement, and not disclosed to any other jurisdiction
• Banks, other financial institutions, nominees, trustees and persons holding ownership or beneficial interest information must be capable of having such information obtained and provided by the competent authority upon a valid request

Applies to

banks, other financial institutions, trust companies and trustees, companies, partnerships, collective investment schemes or funds, nominees acting in a fiduciary capacity

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 complete request: Requested Party must have obtained and provided the requested information, or must explain in writing its inability, obstacles, or refusal
• six months after receipt of a notice of termination: An agreement terminates on the first day of the month following expiration of this period after a termination notice is served

Related documents

• This document is made under Mutual Legal Assistance (Tax Matters) Act, 2003 (No. 18 of 2003)