BVI Extends Fatca Deadlines
BVI, 1 June 2015 – The Government of the Virgin Islands is advising all British Virgin Islands Reporting Financial Institutions that the FATCA deadlines for the United Kingdom and United States of America have been extended.
Minister of Finance, Dr. the Honourable D. Orlando Smith, OBE made an Order under section 3A of the Mutual Legal Assistance Tax Matters Act on May 26, which formalises the registration deadline of June 1, and the reporting deadline of June 30. This was done in relation to the Inter-Governmental Agreement between the Government of the British Virgin Islands and the Government of the United States of America to improve Tax Compliance and to implement FATCA (US FATCA).
This Order will be published in the next issue of the Virgin Islands Official Gazette.
The International Tax Authority of the Ministry of Finance, Government of the Virgin Islands, has also decided to take a relaxed approach towards the enforcement of these deadlines. This was done in response to a number of requests from BVI financial institutions for an extension to these deadlines to allow these institutions to complete their customer due diligence, and comply with the FATCA Agreements.
The International Tax Authority will accept registration or enrolment applications for 2015 reporting via the BVI Financial Account Reporting System (BVIFARS) up to Tuesday, June 30. The Authority will also accept filings for 2015 up to Friday, July 31 in order to meet the reporting deadline.
Acting on the Inter-Governmental Agreement between the Government of the British Virgin Islands and the Government of the United Kingdom to improve International Tax Compliance (UK FATCA), the International Tax Authority has also decided to extend the deadline of May 31 in relation to the Alternative Reporting Regime for UK Resident Non-Domiciled (RND) Individuals.
BVI financial institutions wishing to offer the Alternative Reporting Regime to its clients now have until Wednesday, September 30, to submit an election to the International Tax Authority.
UK Resident Non-Domiciled individual wishing to use this facility, must submit their election to the Reporting BVI Financial Institution that will be reporting, in respect of financial accounts held by the RND and maintained by that reporting BVI financial institution by September 28. The Reporting BVI Financial Institution may determine that the election should be made by an earlier date, provided they notify their clients in advance.
This relaxed approach, only applies for the year 2015, to give BVI Financial Institutions an opportunity to ensure that they complete their customer due diligence and comply with the Agreements. BVI Financial Institutions with reportable financial accounts that comply with these revised deadlines will not attract any enforcement actions.
The International Tax Authority would like to remind all reporting BVI Financial Institutions that failure to comply with the obligations created under any of the relevant Mutual Legal Assistance Tax Matters Orders, made under the Mutual Legal Assistance (Tax Matters) Act, 2003 as amended, constitutes an offence.
On summary conviction infractions can result in a fine not exceeding $5,000.00 or two years imprisonment or both. On indictment, infractions can result in a fine not exceeding $100,000.00 or five years imprisonment or both. BVI Financial Institutions are encouraged to use all efforts to meet the revised deadlines.
International Tax Authority is reminding all those reporting BVI Financial Institutions that have not obtained their Global Intermediary Identification Number (GIIN) from the Government of the United States, Internal Revenue Service (IRS), to do so, as the GIIN is required to enrol with BVIFARS.
