These amendments will facilitate use of the BOSS system by registered agents to make economic substance filings. The amendments also clarify certain obligations of registered agents in relation to economic substance: in particular, registered agents will not need to file a determination as to whether a company is carrying out relevant activities for the purposes of the Economic Substance (Companies and Limited Partnerships) Act, 2018 (the Act) until after the end of the relevant financial period. Further amendments are anticipated in due course and we will issue further e-alerts when these are made.
The BVI International Tax Authority has indicated that it will issue Rules and Explanatory Notes in accordance with the Act on 30th September 2019. These will provide guidance on how the economic substance requirements under the Act may be met and will also assist with interpretation of the Act. The Rules and Explanatory Notes will remain substantially the same as the draft Code and Guidance Notes issued to industry participants in April 2019 and accordingly we do not anticipate that there will be any changes to the qualified advice given in the light of those drafts. Upon publication of the Rules and Explanatory Notes we will issue a further e-alert.
Appleby has a regulatory team with a specialised knowledge and in-depth understanding of the economic substance regime. For further information please contact Jeffrey Kirk, Robert Varley, or your usual Appleby contact.
