Local government has approved more funds for legal costs associated with the economic substance legislation, a post-Cabinet report has said.
The decision was made during a special Cabinet meeting on December 16 last year. However, the report was only made public on Wednesday.
It said: “Cabinet Decided to approve an additional $150,000 to cover additional work on Economic Substance legislation and related matters and approved an additional payment of $114,485.19 to Messrs. Michael Furness and Jack Rivett for additional work completed on the said legislation.”
Government first hired Furness and Rivett in 2018 for them to draft legislation intended to keep the BVI off the European Union’s (EU) blacklist of tax haven jurisdictions.
Since then, they have been made to make multiple amendments to the legislation because of additional requirements from the EU.
The EU’s explanation of economic substance has to do with financial services companies setting up physical and appropriately-staffed office spaces in the territory.
The BVI is just one of several jurisdictions targeted by the EU and just this month, one of the EU’s member countries — France — blacklisted the British Virgin Islands as a non-cooperative territory in tax matters.
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