The International Tax Authority (Amendment) Act, 2023 (No. 17 of 2023)

Summary

This Act amends the International Tax Authority Act, Revised Edition 2020. It introduces a new category of 'local company' that can be excluded from certain reporting obligations under mutual legal assistance legislation (the CRS/FATCA framework), restructures the ITA Board, and updates the Authority's power to issue guidance and rules.

• New definitions: Adds definitions of 'local company' (a VI-resident company or limited partnership holding a certificate of exclusion under new section 27) and 'resident for tax purposes' (an entity able to demonstrate no tax liabilities outside the Virgin Islands).
• Board composition changed: Replaces section 3(2) so the ITA Board comprises the Financial Secretary (Chairperson), the Executive Director of International Business Regulation (acting Chairperson in the Financial Secretary's absence), the Attorney General, the Managing Director of the Financial Services Commission, the Director of the Financial Investigation Agency, and the Director of the International Tax Authority.
• Section 4I amended: Deletes subsection (2) of section 4I of the principal Act.
• Guidance and rules power replaced: Replaces section 20 to allow the Authority to issue, revise and publish guidance and rules on how requirements under mutual legal assistance legislation may be met, including interpretation of terms; such guidance must be had regard to.
• Sections repealed: Repeals sections 21 and 22 of the principal Act.
• New exclusion regime for local companies: Inserts new section 27 allowing a local company to apply to file directly with the competent authority, in a prescribed form and within prescribed time periods and frequency, accompanied by supporting documents, in order to satisfy obligations under mutual legal assistance legislation; if accepted, the Authority issues a certificate excluding the company from the relevant reporting obligations.
• Schedule 2 amended: Revises paragraph 1(2) of Schedule 2 so that if both the Chairperson and the Executive Director of International Business Regulation are absent from a Board meeting, members present may select one of their number to act as Chairperson.

The amendments took effect on passage and assent (10 and 20 March 2023, gazetted 21 March 2023) and are now in force as part of the International Tax Authority Act framework.

Key obligations

• A local company seeking exclusion from reporting obligations under mutual legal assistance legislation must apply to the Authority and, if permitted, file directly with the competent authority using the prescribed form, within prescribed time periods and frequency, accompanied by requisite supportive documents.
• The Authority must have regard to any guidance or rules it issues under section 20 concerning interpretation of expressions used in the Act or mutual legal assistance legislation.
• The Authority must publish any guidance or rules issued under section 20 in a manner reasonably likely to bring them to the attention of the public and affected persons.

Applies to

local companies (Virgin Islands resident companies or limited partnerships with no tax liabilities outside the Virgin Islands), entities subject to mutual legal assistance legislation (CRS/FATCA reporting), International Tax Authority Board members

Related documents

• This document amends International Tax Authority Act (Revised Edition 2020)