The British Virgin Islands is implementing a raft of amendments to the Beneficial Ownership Secure Search system (BOSSs) Act to adjust to the new rules of economic substance and avoid being placed on the EU's blacklist.
The territory is also increasing funding and staff to its International Tax Authority (ITA) as it deals with more requests for information relating to taxes, including the area of economic substance.
"We have been holding widespread consultations with stakeholders to get this right and similarly our equal effort is being exerted in ensuring that the International Tax Authority is adequately resourced in terms of staffing and financing," premier Andrew Fahie said, local news outlet BVINews reports.
Premier Fahie said the ITA performs a critical role in ensuring the smooth implementation and operation of the economic substance reporting requirements along with the structures.
"It is mission-critical that we do all in our power to minimize the negative impact on our territory's economy that the economic substance requirement portends. We will be coming back into this House with more legislation and also new policy shifts that we feel the people of the Virgin Islands can benefit from the economic substance," Fahie said.
In January, the BOSSs Act was amended to work alongside the Economic Substance Companies and Limited Partnership (Amendment) Act of 2018. In March this year, Fahie said the focus of his office would be to convince Britain that the BVI's Beneficial Ownership Secure Search System (BOSSs) is a better alternative to the UK-mandated public registers of company beneficial ownership.
"BOSSs can be extremely effective aids to law enforcement authorities and much more so than the unverified public register which the UK hosts," he said at the time.