Offshore News: January 2009

9.01.2009 The Jersey government has released its 2009 Business Plan, which proposals, initiatives and projects include some important changes in the area of taxation. The 2009 Business Plan contains a number of initiatives aimed at enhancing financial management in the states including the introduction of GAAP.
Jersey also plans to implement the Land Transactions Tax and to bring forward proposals for environmental taxes and changes to stamp duty. Also, the Treasury will progress further efficiency savings, and will enter into Tax Information Exchange Agreement with a number of countries.

14.01.2009 The Informal Consultative Group on the Taxation of Collective Investment Vehicles and Procedures for Tax Relief for Cross-Border Investors (ICG) has prepared two reports for the consideration of the OECD's Committee on Fiscal Affairs (CFA).
The ICG's first Report is on the 'Granting of Treaty Benefits with respect to the Income of Collective Investment Vehicles'; according to the OECD, it included recommendations concerning the legal and policy issues relating specifically to Collective Investment Vehicles (CIVs).
The second Report, named the 'Possible Improvements to Procedures for Tax Relief for Cross-Border Investors', discussed more general procedural problems in claiming treaty benefits faced by portfolio investors, and made a number of recommendations regarding procedures for making and granting claims for treaty benefits for intermediated structures.
The ICG includes representatives of the financial industry and of the tax administrations of some OECD member countries.

20.01.2009 British Virgin Islands Premier and Minister of Finance Ralph O'Neal disclosed the information that in 2008 the company incorporations were down by 20%, compared with the record year of 2007 with 75,000 new companies registered. However, the figures reported in 2008 are still the third-best on record.
The most negatively affected sectors of the BVI's financial services industry in 2008 were the captive insurance and mutual funds. The “minimal growth” in this sectors is expected also in the first half of 2009.