Virgin Islands Law Blog

Virgin Islands Law Blog

U.S. Virgin Islands law & politics

Category Archives: Tax & Estate Planning

Subscribe to Tax & Estate Planning RSS Feed

The Dangers of Prepackaged Wills and Trusts

Posted in Tax & Estate Planning
In our do-it-yourself era, prepackaged wills and trusts may seem like an incredibly convenient option for individuals and couples not wanting to add extra stress to an already emotional process. However, most legal professionals strongly advise against using them. If your will or trust doesn’t meet specific requirements, your wishes may not be carried out … Continue Reading

Recent Arrest Demonstrates US Virgin Islands’ Crackdown on Tax Evasion

Posted in Corporate & Financial Services, Tax & Estate Planning
A recent arrest made in the U.S. Virgin Islands has demonstrated the territory’s renewed dedication to enforcing tax evasion laws. In April, police arrested Johnathan Cohen, the sole owner of JKC Communications. Cohen was charged with failing to file and pay both individual and corporate income taxes for the past several years, according to the … Continue Reading

U.S. Third Circuit Uses Vento for Guidance on Residency

Posted in Tax & Estate Planning
U.S. Virgin Islands residents pay income taxes to the Virgin Islands Bureau of Internal Revenue (VIBIR) rather than the Internal Revenue Service (IRS). The appellants in the recently decided case, Vento v. Director of Virgin Islands Bureau of Internal Revenue, (C.A. 3 April 17, 2013). Richard and Lana Vento filed a joint 2001 income tax return with the VIBIR, … Continue Reading

Effective Planning for the Newly Divorced

Posted in Tax & Estate Planning
If you are newly divorced, you’re probably overwhelmed with all of the changes going on in your life.You should seriously consider stepping back, taking a deep breath and began developing a plan to secure your future.  One of the basic steps in moving forward after this major event in your life is updating your estate … Continue Reading

Governor Promotes Urban Renewal with Tax Benefits

Posted in Tax & Estate Planning
U.S. Virgin Islands Governor John P. de Jongh  De Jongh has executed an executive order this past week laying the groundwork for new economic and cosmetic renewal projects in historic towns on St Croix and St Thomas. “The United States Virgin Islands recognizes the importance of revitalizing these once-vibrant towns with an infusion of new business and … Continue Reading

New VI Tax Break Legislation Introduced in U.S. Congress

Posted in Tax & Estate Planning
U.S. Virgin Islands Delegate to Congress Donna Christensen has introduced legislation that would create an innovative tax program that would leverage private pension assets to raise funds for infrastructure development in the U.S. Virgin Islands.  The bill amends the Internal Revenue Code of 1986 to assist in the recovery and development of the Territory by providing … Continue Reading

Third Circuit Overrules Tax Court on EDC Case

Posted in Tax & Estate Planning
An interesting tax case with implications for beneficiaries of the Virgin Islands Economic Development Program is currently being fought in U.S. Tax Court.  On April 1, 2010, Arthur I. Appleton filed a Petition with the Tax Court to challenge as void the tax assessments leveled against him by the Internal Revenue Service (“IRS”) because, he argued, the … Continue Reading

Tech Park Can Offer Investors Savings and Simplicity

Posted in Corporate & Financial Services, Government Relations, Tax & Estate Planning
The USVI attracts many businesses to its shores by offering generous tax incentives to qualifying companies that are approved by the Economic Development Commission (“EDC”). However, fewer people seem to be aware that those same benefits—90% reduction in income tax liability; 100% exemption on real property taxes, gross receipts taxes, and excise taxes, and a … Continue Reading

Virgin Islands 90 Day Gross Receipt Amnesty

Posted in Tax & Estate Planning
The Virgin Islands Bureau of Internal Revenue (“BIR”) recently announced a 90 day gross receipts tax amnesty, which will expire on January 25, 2011. The amnesty was signed into law in October and allows businesses to file delinquent gross receipts tax returns with the BIR and pay any outstanding balances due without having to pay … Continue Reading

Preserving Peace in the Family

Posted in Tax & Estate Planning
  Discussing your estate plan with heirs can be a very difficult conversation to have, but no matter how uncomfortable it may be, it can be quite effective in reducing potential conflicts among family members and make sure your heirs understand the choices you have made. If your children will not receive equal amounts of … Continue Reading

Gross Receipts Tax Amnesty In Effect

Posted in Tax & Estate Planning
The Virgin Islands Bureau of Internal Revenue has implemented a 90 day gross receipts tax amnesty program.  The waiver of penalties and interest for failure to timely file territorial gross receipts taxes was granted as a result of Act No. 7233 which was signed into law by Governor John P. deJongh, Jr. on October 26, 2010. Daniel J. Gravel, … Continue Reading

The Importance of Estate Planning

Posted in Tax & Estate Planning
  As we all know, questions concerning death and disability are sometimes difficult for many families to discuss. However, individuals must address these issues in advance to ensure that their family members are in a strong position to deal with illness and death. Consider these vital questions, for starters… Continue Reading

Territory Receives New Probate Code

Posted in Tax & Estate Planning
After over a decade of discussion, review and deliberation by the Virgin Islands bench and bar as well as the Law Revision Commission and several Legislatures, on February 8, 2010, U.S. Virgin Islands Governor John P. deJongh signed into law sweeping reforms of the Territory’s probate practice and procedure. This new legislation reduces needless expense … Continue Reading

Federal Estate and Generation-Skipping Tax Repeal in 2010

Posted in Tax & Estate Planning
Congress failed to address pressing estate and generation-skipping transfer tax matters before it adjourned in December. Consequently, as of January 1, 2010, the provisions of 2001 federal tax legislation (the “2001 Act”) will cause the federal estate and federal generation-skipping transfer (GST) taxes to be repealed for one year, starting on January 1, 2010.     For 2009, … Continue Reading

St Thomas Attorney Advocates New Probate Code

Posted in Tax & Estate Planning
In order to clarify outdated and inappropriate legal guidelines and streamline the Territory’s slow probate process, the Senate Rules and Judiciary Committee passed a bill Thursday that will adopt the Uniform Probate Code currently enacted in 19 states. In the U.S. Virgin Islands, probate, the legal proceeding in which a court determines how an estate will be … Continue Reading

Stimulus Legislation Provides Tax Relief For Certain Debt Restructurings

Posted in Tax & Estate Planning
One of the most significant tax provisions contained in the recently enacted American Recovery and Reinvestment Act of 2009 might prove helpful to certain taxpayers looking to restructure their balance sheets. A debtor generally recognizes income from the cancellation of its debt. A debtor recognizes COD income when it purchases the debt instrument for less … Continue Reading