Bellerage

British Virgin Islands to disclose beneficiaries of its companies

British Virgin Islands to disclose beneficiaries of its companies

Russian tax authorities are going to exclude the British Virgin Islands (BVI) from the black list of offshore territories. Since 2018, BVI authorities will be disclosing information on beneficial owners of BVI residents upon request of Russian tax authorities.

The obvious disadvantage of this fact is full transparency of beneficial owners. However, on the positive side, BVI companies will no longer be subject to law on controlled foreign companies, whereby financial activity of the company should be reported in Russia and taxes should be declared and paid.

Apart from that, it should be taken into account that there are several hundred thousand BVI residents and BVI authorities will not be physically able to disclose information on all of them.