No. 11 of 2012 - Mutual Legal Assistance (Tax Matters) (Amendment) Act, 2012

Summary

This Act amends the Mutual Legal Assistance (Tax Matters) Act, 2003 by inserting a new section 5A that imposes specific record keeping obligations on BVI companies, aimed at ensuring compliance with information exchange requirements under section 5 of the principal Act. It applies in addition to any record keeping duties already imposed under the BVI Business Companies Act, 2004.

• Where records are kept: Every company must keep its records and underlying documentation at the office of its registered agent, or at another place within or outside the Virgin Islands as its directors determine.
• Retention period: Records and underlying documentation must be retained for at least five years from completion of the relevant transaction or termination of the business relationship to which they relate.
• Notifying the registered agent: If records are kept somewhere other than the registered agent's office, the company must give the registered agent a written record of the physical address(es) where the records are kept.
• Updating on change of location: If the location of the records changes, the company must notify its registered agent of the new physical address within fourteen days of the change.
• Quality of records: Records and underlying documentation must be sufficient to show and explain the company's transactions and to allow the company's financial position to be determined with reasonable accuracy at any time.
• Scope of terms: "Company" takes the meaning in section 3 of the BVI Business Companies Act, 2004 (including foreign companies), and "records and underlying documentation" is defined to include accounts.

The amendment took effect on enactment (Governor's assent 12 November 2012, passed by the House of Assembly 15 October 2012, gazetted 26 November 2012) and creates ongoing, ongoing compliance duties for companies and their registered agents rather than a one-off filing requirement.

Key obligations

• Companies must keep records and underlying documentation at the registered agent's office or another determined location, within or outside the Virgin Islands.
• Companies must retain records and underlying documentation for at least five years from completion of the relevant transaction or termination of the business relationship.
• Companies must provide their registered agent with a written record of the physical address where records are kept if not held at the registered agent's office.
• Companies must notify their registered agent of the new physical address within fourteen days of any change in the location where records are kept.
• Records and underlying documentation must be sufficient to show and explain the company's transactions and enable determination of its financial position with reasonable accuracy at any time.

Applies to

companies incorporated under the BVI Business Companies Act, 2004, foreign companies, registered agents

Deadlines

• within fourteen days of the change of location: Company must notify its registered agent of the new physical address of records and underlying documentation after any change in location.
• at least five years: Minimum retention period for records and underlying documentation, measured from completion of the transaction or termination of the business relationship.

Related documents

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