BVINews.com --The British Virgin Islands (BVI) enables global investment and trade, which supports more than two million jobs worldwide, according to a detailed report published today.
The report, which analyses the significant global economic contribution of the BVI, will be launched today during a reception at the BVI International Arbitration Centre.
It was undertaken by independent economics consultancy firm Capital Economics, and is titled Creating Value: The BVI’s Global Contribution.
The report finds that the BVI mediates more than US$1.5 trillion of cross-border investment flows – the equivalent to two percent of global Gross Domestic Product (GDP).
The first of its kind report also finds that more than US$15 billion of tax revenues are generated annually for governments around the world, via investment mediated by the BVI and the resulting economic activity.
The largest beneficiaries of that tax generation are the United Kingdom (US$3.9 billion), the European Union excluding United Kingdom (US$4.2 billion), as well as China and Hong Kong (US$2.1 billion).
Coupled with the jobs it supports, the tax generation marks the BVI as a substantial net benefit to governments worldwide.
Commenting on the findings, Interim Executive Director of BVI Finance Lorna Smith said: “The results of this study clearly demonstrate the significant contribution the BVI makes to the global economy.”
“Not only does the BVI enable cross border trade and investment; it also supports millions of jobs, and generates substantial tax receipts for governments globally. This brings tangible benefits to the lives of employees, voters, families and businesspeople around the world,” Smith continued.
“The report is unequivocal. Contrary to some accusations, the BVI is a sound and reliable centre, which has worked harder than many bigger nations to meet international standards, and is not a tax haven. This independent and authoritative report is equally clear in stating that the BVI is not a centre for corporate profit shifting. This helps clarify once and for all some of the inaccuracies and misunderstanding about what the BVI is, and the valuable role it plays in the global economy.”
In the meantime, Mark Pragnell, the report’s author and head of Commissioned Projects at Capital Economics, commented:
“The BVI provides the legal structures that allow companies, institutions and individuals to safely and efficiently carry out their business and make investments across international borders.”
Pragnell further said: “The BVI Business Company is a widely used and dependable vehicle to facilitate cross-border trade, investment, and business. Over 140 major businesses listed on the London, New York or Hong Kong main stock exchanges use BVI vehicles to support their international investment activities. Similarly, major international development banks, such as the World Bank’s International Finance Corporation use BVI Business Companies to help fund vital projects.”
“Our report shows that the BVI is a global powerhouse for cross-border investment equating to a conservatively estimated $1.5 trillion across its 417,000 active BVI Business Companies,” added Pragnell.