Unofficial Consolidation of the International Tax Authority Act (Revised Edition 2020, as amended, consolidated 2023-04-20)

Summary

This is the unofficial consolidated text of the British Virgin Islands' International Tax Authority Act, which establishes the International Tax Authority (the Authority) and its governing Board, and sets out their functions, powers and administrative rules. It underpins the BVI's international tax cooperation framework, including CRS and FATCA-related mutual legal assistance legislation, by giving the Authority broad information-gathering, inspection, examination and enforcement powers over persons and legal entities in the Virgin Islands.

• Core functions: The Authority monitors and enforces compliance with the BVI's international tax obligations, administers mutual legal assistance legislation, and provides assistance to foreign competent authorities.
• Information and document powers: The Authority may issue written notices requiring legal entities and connected persons to provide information or produce documents within a specified period and form, and may apply for search warrants where a notice is not complied with or evidence may be destroyed.
• Examination powers: The Authority can require persons to be examined under oath, either before a Magistrate or before its own examiner, with statutory timeframes for processing applications and transmitting results.
• Compliance and enforcement: The Act provides for compliance inspections, appointment of examiners, enforcement action and the power to issue directives to entities subject to mutual legal assistance legislation.
• Confidentiality: Board members, the Director, officers, employees, agents and advisers of the Authority must take an oath of confidentiality (Schedule 3) and are restricted from disclosing information obtained in that capacity except as authorised by law.
• Local company exclusion: Companies or limited partnerships resident for tax purposes in the Virgin Islands may seek a certificate of exclusion from the Authority under section 27 to be treated as a 'local company'.
• Governance provisions: The Act also covers the Authority's funding, annual budget, accounts and audit, annual report, exemption from taxation and work permit requirements, secondment arrangements, and the Authority's power to issue guidelines and amend the Schedules.

Because large portions of the operative provisions (including compliance inspections, enforcement action, directives, fees and annual reporting requirements) fall within the elided middle section of the source text, some specific procedural details and deadlines could not be verified against the full text for this summary.

Key obligations

• Persons or legal entities issued a notice under section 4C must provide the specified information or produce the specified documents within the period and to the person specified in the notice.
• Legal entities and connected persons have a duty to cooperate with the Authority in the discharge of its functions.
• Board members, the Director, officers, employees, agents and advisers of the Authority must swear or affirm the oath of confidentiality in Schedule 3 and must not divulge confidential information except as authorised by law.
• Where a person is examined under oath by the Authority's examiner, the examinee must attend as required by the written notice and may be represented by a legal practitioner.
• The Director must not hold any other office or employment without prior Board approval, and must give three months' notice in writing to resign.
• Companies or limited partnerships seeking treatment as a 'local company' must obtain a certificate of exclusion from the Authority under section 27.

Applies to

companies, limited partnerships, financial institutions, multinational enterprise groups, intermediaries (promoters), reportable taxpayers, legal entities and persons subject to mutual legal assistance legislation in the Virgin Islands

Deadlines

• seven days of the application: A Magistrate must process an application for examination under oath under section 4E within seven days.
• not exceeding fourteen days from the date of examination: Results of an examination under oath before a Magistrate must be transmitted to the Authority within this period.
• one month from the date of the warrant: A search warrant issued under section 4D authorises entry and search of premises within one month of issue.
• three months (or until conclusion of related criminal proceedings): Documents seized under a search warrant may be retained for three months, or longer if related criminal proceedings are commenced.
• three months' notice in writing: The Director may resign by giving three months' written notice to the Chairperson.