In December 2018, various offshore jurisdictions such as Bermuda, the British Virgin Islands (BVI), the Cayman Islands and the Crown Dependencies (Guernsey, Jersey and the Isle of Man) introduced economic substance legislation in response to requests from the European Union. If the jurisdictions did not introduce the new rules, they faced the possibility of being added to the list of “non-cooperative” jurisdictions by the EU (widely known as the EU Blacklist). The new rules will take effect on January 1, 2019 for all entities in the Crown Dependencies and for new entities in Bermuda, the BVI and the Cayman Islands.
Jennifer Smithson et al. (Macfarlanes), Economic substance – application to trust structures – Bermuda, British Virgin Islands, Cayman Islands, Guernsey, Isle of Man, Jersey
