International Tax Authority Act (Revised Edition 2020)

Summary

This Act establishes the International Tax Authority (the Authority) as a body corporate responsible for the Virgin Islands' compliance with international cross border tax obligations, including administration of mutual legal assistance legislation (such as FATCA and CRS related agreements). It sets out the Authority's governance structure (a Board chaired by the Director of International Business Regulations), the Director's role, staffing, funding, confidentiality rules, and related administrative matters.

Establishment and governance: Creates the Authority as a body corporate with a Board comprising the Chairperson, Attorney General, Managing Director of the Financial Services Commission, Director of the Financial Investigation Agency, and the Director of the Authority.
Functions: Authority monitors VI compliance with international tax obligations, administers mutual legal assistance legislation, advises the Minister, engages with foreign competent authorities, and issues guidelines and advisories to the public.
Confidentiality: Persons connected with the Authority must not disclose information obtained through that connection except as permitted by law; breach is a criminal offence. Board members, the Director and staff must take an Oath of Confidentiality before assuming office.
Reporting and accounts: The Director must submit an annual report to the Board by 30 June each year, which is then laid before the House of Assembly; the Authority's accounts must be audited annually and the audited accounts laid before the House of Assembly.
Budget: The Board must submit annual budget estimates to the Minister for approval at least three months before the start of each financial year.
Immunities and protections: Officers of the Authority are immune from suit for good faith acts, and persons who in good faith transmit information to the Authority are protected from civil, criminal or professional sanction (overriding banking/professional confidentiality duties).
Fees: The Authority may charge fees for costs incurred in performing its duties under the Act or mutual legal assistance legislation.

The Act is primarily an institutional and constitutive statute for the Authority rather than a direct compliance regime for private financial institutions, though it underpins the Authority's authority to administer and monitor compliance by persons, entities and legal arrangements in the Virgin Islands with mutual legal assistance legislation (including tax information exchange agreements).

Key obligations

Persons connected with the Authority must not disclose information obtained in that capacity except as permitted by law (breach is an offence carrying a fine up to ten thousand dollars or imprisonment up to one year, or both)
Board members, the Director and staff must subscribe to the Oath of Confidentiality before assuming office
The Director must prepare and submit an annual report to the Board on or before 30 June each year, which the Chairperson must forward to the Minister for tabling in the House of Assembly
The Authority must keep proper accounts, have them audited annually by the Auditor General or a designated auditor, and submit audited accounts to the Minister, who must table them before 31 December of the following year
The Board must submit annual budget estimates to the Minister for approval not later than three months before the commencement of each financial year
The Authority must maintain a bank account with a licensed institution approved by the Minister for its funds, and any budget surplus must be paid into a reserve account unless otherwise agreed with the Minister

Applies to

International Tax Authority, Board members, Director of the Authority, officers, employees and agents of the Authority, public officers seconded to the Authority, members of the Financial Services Commission, members of the Financial Investigation Agency, persons, entities, legal and other arrangements in the Virgin Islands subject to mutual legal assistance legislation

Deadlines

30 June each year: Deadline for the Director to prepare and submit the Authority's annual report to the Board
before the end of the year immediately following the year to which the report relates: Minister must lay the annual report before the House of Assembly
31 December of the following year: Minister must lay audited accounts of the Authority before the House of Assembly
not later than three months before the commencement of each financial year: Board must submit budget estimates to the Minister for approval
three months' notice in writing: Notice period required for the Director to resign office

International Tax Authority Act (Revised Edition 2020)

Summary

Key obligations

Applies to

Deadlines

Related documents

Topics

Version history

source file (current)