Virgin Islands Law Blog

Virgin Islands Law Blog

U.S. Virgin Islands law & politics

Category Archives: Tax & Estate Planning

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US Tax Law Changes Take Hold in 2016

Posted in Tax & Estate Planning
With tax season now in full swing, businesses of all shapes and sizes are in the process of ensuring their books are in order and consulting their tax accountants and attorneys to be certain their practices and policies are in line with the law. This year, they also have a number of new legal changes… Continue Reading

Audit Prevention: Preparing Your Business Taxes as Effectively as Possible

Posted in Corporate & Financial Services, Tax & Estate Planning
Tax season is officially here, and individuals ranging from small business owners to top executives at the largest corporations are thinking about business taxes. It might not be the time of the year you mark on your calendar with a big smiley face—but it’s important nonetheless. How you are feeling about upcoming tax deadlines may… Continue Reading

E-Commerce: Know the Legal Way to Sell Products Online

Posted in Corporate & Financial Services, International, Tax & Estate Planning
With so much business either originating online or migrating there from brick-and-mortar establishments, the possibility of conducting transactions via the Internet is opening up a whole new world for entrepreneurs and business owners on a global scale. Whether you’re selling products or services, having the ability to sell your goods online makes it possible to… Continue Reading

What are Constructive Dividends?

Posted in Tax & Estate Planning
No one wants to pay more taxes, including corporations. When a corporation turns a profit, portions will often be distributed to shareholders in amounts based on the total number of shares each individual holds—in addition to reinvesting some of the funds in the business itself. These distributions are called dividends (this classification applies to any… Continue Reading

Managing a Business Tax Audit from the BIR

Posted in Tax & Estate Planning
There are few words that strike fear in the minds of U.S. Virgin Islands business owners more than these two: “tax audit.” Thus, it’s a priority for most entrepreneurs and business owners to avoid, at all costs, an audit from the U.S. Virgin Islands Bureau of Internal Revenue. Although the odds of being audited by… Continue Reading

Importance of Sound Estate Planning

Posted in Tax & Estate Planning
Like the old saying goes, there are only two certainties in life—death and taxes. Through effective estate planning, you can prepare for the future and address these two very important issues, as difficult as they may be and as little as you’d like to think about them on a daily basis. A comprehensive estate plan… Continue Reading

Federal Estate Tax Could Be Permanent

Posted in Tax & Estate Planning
The federal estate tax, a source of consternation for many who believe personal wealth and assets should be freely transferable to family, friends or charities after a person dies, seems to have become a permanent fixture of U.S. tax law. However, opposition to the estate tax — which some opponents have dubbed the “death tax”… Continue Reading

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