BVI Banker Expresses Concern Over Impact Of EU Savings Tax Initiative

by Amanda Banks, Tax-News.com, London

11 February 2003

Speaking on the occasion of his appointment earlier this month, FirstBank Virgin Islands' new Offshore Banking Manager, Robbie Hirst praised the BVI government's legislative efforts to ensure that the jurisdiction's finance centre is well regarded by the international community, but expressed concern with regard to the potential impact of the EU's Savings Tax Directive.

'I think the things that the BVI is doing now to increase regulation is absolutely the way it has to go, and I think it's doing the jurisdiction a lot of good to give it a good reputation,' he told the BVI Island Sun Newspaper, adding: 'You can see what has happened in other jurisdictions which take on business but don't do the work they should do and end up with problems.'

Mr Hirst revealed that the bank is concerned that the Savings Tax Directive may have an adverse effect on the BVI finance centre, but doesn't believe that the jurisdiction will be hit as hard as some of its regional rivals.

'We don't get anything in return, and it (the agreement) will increase the cost of doing business here and make it more inflexible. But the BVI is not based on confidentiality in the way that some other jurisdictions are, like the Cayman Islands,' he observed, continuing: 'The cornerstone of the BVI is the formation of IBCs (International Business Companies) which are easy to form and cost efficient.'

However, Mr Hirst refused to be complacent, arguing that at this point, no one knows exactly what will happen:

'It's a complicated issue that is on the horizon,' he concluded.

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