BVI-Guernsey Competent Authority Agreement on Automatic Exchange of Financial Account Information (CRS)

Summary

This is a bilateral Competent Authority Agreement between the BVI International Tax Authority and the Guernsey Director of Income Tax, implementing automatic exchange of financial account information under the OECD Common Reporting Standard (CRS). It sets out what information BVI Reporting Financial Institutions' data on Guernsey account holders will be exchanged, and the timing, confidentiality and enforcement framework governing that exchange between the two competent authorities.

• Scope: Covers Guernsey Reportable Accounts, i.e. financial accounts maintained by BVI Reporting Financial Institutions and held by Guernsey resident individuals, entities, or passive NFEs with Guernsey controlling persons.
• Information exchanged: Name, address, TIN, date and place of birth of reportable account holders, account number, balance/value, and income or gross proceeds details depending on account type (custodial, depository, or other).
• Timing: The BVI Competent Authority will exchange information annually, on an automatic basis, covering 2016 and all subsequent years, within nine months after the end of the relevant calendar year.
• Format: Exchange occurs using the CRS schema in Extensible Markup Language, with methods for data transmission and encryption to be agreed between the authorities.
• Compliance and confidentiality: Each Competent Authority must notify the other of suspected errors, non-compliance, or confidentiality breaches, and take appropriate domestic-law measures to address them.
• Suspension and termination: Either Competent Authority may suspend the exchange for significant non-compliance (with immediate effect) or terminate the Agreement on 12 months' written notice; previously exchanged information remains confidential after termination.

The Agreement itself operates at the level of the two tax authorities rather than imposing direct duties on private parties, but it underpins and depends on domestic BVI CRS reporting and due diligence rules that apply to BVI Financial Institutions with Guernsey-linked accounts.

Key obligations

• The BVI Competent Authority must annually exchange CRS information on Guernsey Reportable Accounts with the Guernsey Competent Authority.
• Exchange of information for a given calendar year must occur within nine months after the end of that calendar year, starting with 2016.
• The BVI Competent Authority must use the CRS schema in Extensible Markup Language for automatic exchange.
• The BVI Competent Authority must take appropriate measures under domestic law to address errors or non-compliance notified by the Guernsey Competent Authority.
• Each Competent Authority must notify the other immediately of any breach of confidentiality or failure of data safeguards.
• The BVI Competent Authority must notify Guernsey once BVI has the necessary laws in place to implement the CRS, including relevant effective dates for Preexisting and New Accounts.
• A Competent Authority terminating the Agreement must give 12 months' written notice, after which previously exchanged information remains confidential under the TIEA.

Applies to

British Virgin Islands Financial Institutions, Reporting Financial Institutions, BVI Competent Authority (International Tax Authority), Guernsey Competent Authority

Deadlines

• within nine months after the end of the calendar year to which the information relates: Deadline for the BVI Competent Authority to exchange CRS information with Guernsey annually, starting with the 2016 reporting year.
• 12 months after notice of termination: Termination of the Agreement becomes effective on the first day of the month following expiration of this 12 month period.