The amended law also includes that the 7% toll collected must be paid to the Financial Services Commission every month unless stipulated by the Commission. If any agency shows negligence toward the legislation may be subjected to an administrative penalty from the Commission.
However, the administrative penalties regulations, say that the Commission can take “any other enforcement action” against the transfer agencies that don’t comply with the newly made rule, except to bar the agency’s operating license as an additional penalty.
Previously, the governing body of BVI passed a bill stating that a fee of seven percent tax would be deducted from all the transfer agencies that will be sent out of the BVI. The bill caused controversy at that time and the opposition party enunciated that the legislation will cripple the working class. To answer why the government chose to take such a drastic step, Premier and Minister of Finance Andrew A. Fahie said that despite millions of dollars being transferred from BVI to other countries, the government doesn’t get any financial benefits.
“Well, the argument might be well they paid the tax, so why tax them twice, but I ask you, is it a tax and I ask of you, how do we know that they paid all their taxes,” Fahie asserted. “We have a problem in this country right now where persons are working on a work permit and working three or four jobs..which is illegal. How do we know we are getting our fair share as a government?”
Fahie believes the establishment of the amended law will prove useful for times when economies are threatened globally by the recent pandemic, COVID-19.