BVI Leader Seeks To Correct Misleading Statement Over EU Savings Tax Directive

by Amanda Banks, Tax-News.com, London

26 July 2004

The Chief Minister of the British Virgin Islands, Dr Orlando Smith, has criticised what he considers to be inaccurate comments made in the UK's House of Commons relating to the European Union's Savings Tax Directive.

According to Caribbean Net News, In a letter written to Parliamentary Under Secretary of State Bill Rammell, the BVI leader requested that statements suggesting that the EU directive will have no impact on the jurisdiction’s financial industry be amended in the light of recent findings.

“In fact, as you should well know, the Maxwell Stamp Report, which has recently been published, specifically looked at the potential economic consequences for BVI of the implementation of the EU Savings Directive,” stated Dr Smith.

He added that the report clearly explains that the savings directive will “have an initial and continuing negative impact on the BVI’s financial services sector from an initial loss of flight business and a future loss of new business.”

It has been estimated that this decline could amount to between 10% and 20% of the jurisdiction’s economy.

Dr Smith also reminded Rammell of the UK’s commitment to promote the British Virgin Islands in a positive light.