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 reduction in customs duties—are available to technology-based businesses through partnership with the University of the Virgin Islands Research and Technology Park the (“Technology Park” or “Park.”)

Continue Reading Tech Park Can Offer Investors Savings and Simplicity

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 penalties and interest.

Continue Reading Virgin Islands 90 Day Gross Receipt Amnesty

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 inheritance, it would be helpful to explain why. Maybe you previously helped one child buy a house, so the other is receiving a larger percentage of your estate. Maybe one child will require medical care, so you wish to make sure they are taken care of into the future.

Continue Reading Preserving Peace in the Family

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, Chair of BoltNagi’s Corporate, Tax and Estate Planning Practice Group said that "taxpayers who file and pay their delinquent gross receipts taxes before the January 25, 2011 deadline will be exempt from the payment of penalties and interest for the late filing."  Gravel further noted, "Unlike previous amnesty programs that were enacted, all delinquent gross receipts taxes are eligible for the current amnesty program.  It is an outstanding value to Virgin Islands taxpayers."

Continue Reading Gross Receipts Tax Amnesty In Effect

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 and delay in the administration of estates and trusts, enhances protections for those under guardianship and increases uniformity with other states and territories. This summary highlights five areas of important reforms enacted by the new legislation.

Continue Reading Territory Receives New Probate Code

The first "opportunity for solution" that you have in preparing a U.S. Virgin Islands Individual Income Tax return is that your tax preparation software doesn’t have a state module for the U.S. Virgin Islands. This is not a problem. A U.S. Virgin Islands income tax return is prepared using the same Form 1040 U.S. Individual Income Tax Return that is used throughout the United States. The major difference is the tax is paid to the U.S. Virgin Islands Treasury rather than the United States Treasury. This entry will cover some minor differences and practical tips which you may want to pass on to your tax preparer.

Continue Reading Preparing an Individual Income Tax Return with U.S. Virgin Islands Income

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, there was a $3.5 million exemption for each tax and a 45 percent top tax rate for each tax. Under the 2001 Act, the federal estate and GST taxes will come back into effect on Jan. 1, 2011, but with only a $1 million exemption for estate tax, a $1.1 million exemption for GST tax (indexed for inflation), and a top rate of (generally) 55 percent for each tax.

Continue Reading Federal Estate and Generation-Skipping Tax Repeal in 2010

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 divided, can sometimes take up to 20 or 30 years.  This long and arduous process has been known to deplete estates of any monies while properties stand empty and dilapidated due to years of legal wrangling.

According to Dan Gravel, an attorney with Tom Bolt & Associates, P.C. who concentrates his practice in trusts and estates and who testified in favor of the bill, the Uniform Probate Code (UPC) “will lessen the burden on courts and on families who have to navigate the probate process.” 

Continue Reading St Thomas Attorney Advocates New Probate Code