The questions raised by the ITA in these audit requests have included not only details of the business purpose, assets and day-to-day activities of the relevant entity, but also details as to what steps the entity took in order to make its determination as to what, if any, relevant activities were carried on by the entity during the financial period in question. It is therefore important that BVI entities properly document any legal advice which was obtained and their decision making process in determining their status under the ES Act (e.g. through written memos of advice from BVI legal counsel and director resolutions). If you have not already taken such steps, please contact one of our lawyers listed below or your usual Conyers lawyer who can assist in this regard.
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BVI Economic Substance – ITA Commences Audit Process