In response to the OECD Global Forum Peer Review, both the BVI and the Bahamas have introduced new record-keeping rules.
For BVI companies the new amendment to the British Virgin Islands Mutual Legal Assistance (Tax Matters) Act was approved on 12 November 2012.
For Bahamas companies the new rules introduced in the Bahamas International Business Companies (Amendment) Act 2011, came into force effective 1 January 2013.
- Maintain records and underlying documentation for at least 5 years from the date of completion of financial transactions to which the records and underlying documentation relate
- Ensure at all times that records are sufficient to illustrate a Company’s transactions and determine at any given time the actual financial position of the Company
- Keep these records and underlying documentation at the office of the registered agent or confirm in writing to the registered agent the location of such documents
- Allow financial statements to be prepared showing the value and detail of expenses, sales and purchases and other relevant financial transactions, showing at any given time the assets and liabilities of the Company
- A Company must at all times be able to show the source of funds from other offshore/onshore entities and the purpose and relation to such Companies.