Our BVI economic substance team has put together an overview of the process under which we are beginning to see the BVI International Tax Authority (ITA) determining that a BVI company or limited partnership may have been non-compliant with the economic substance regime requirements during the first financial period (typically June 2019 to June 2020, with reporting submitted by December 2020).

Where a determination of non-compliance is made it is anticipated that the ITA will issue a "Non-Compliance Notice" to the entity. Understanding the rights and potential liabilities tied up in such notices is crucial for senior management and other operators of BVI entities.

Our detailed legal guide can be found here.