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January 31, 2006

Some EDC news

The Source is reporting the following:

V.I. Officials Disappointed with New EDC Residency Regulations

Jan. 30, 2006 -- The Internal Revenue Service and the U.S Department of Treasury Monday made public the long-awaited residency requirements concerning Economic Development Commission companies. Delegate Donna Christensen said, "The only good thing we can say about this is that they are out, and the companies now know what they need to know."

She added, "This is not what we wanted or what we needed." The federal authorities did not budge much on the 183-day residency requirement. Christensen and others had advocated that an average of 122 days in the territory over three years be sufficient.

The final regulations do allow that time in the United States for medical reasons will not be applied against residency time. But here, too, Christensen has concerns. She says the medical days just cover in-patient time, and people often have to travel to the states and spend time that necessarily is not under in-patient care but is still medical.

The New York Sun also has an article:

"The Treasury Department and the IRS yesterday announced a final regulation that will go a long way toward plugging a loophole that allowed some very rich Americans to cut their personal income tax bills by 90% by declaring themselves residents of the U.S. Virgin Islands. Front-page New York Sun articles in August and September of 2003 highlighted the obscure tax break, which Virgin Islands officials touted as an economic development program. The Sun reported back in 2003 that prominent money managers such as Richard Driehaus and Jeffrey Epstein were availing themselves of the provision and that the provisions on who qualified as a Virgin Islands resident for tax purposes were vague."

You have to be registered to read the whole thing.

Posted by afinta at January 31, 2006 10:04 AM


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