Delegate Pledges to Work to Protect Territory’s Tax Incentive Programs

(Washington, DC, June 25, 2004)—Delegate to Congress Donna M. Christensen said today that although the Internal Revenue Service issued its statement on potential Virgin Islands tax shelter schemes before the Congress could clearly define residency, that she will continue to work towards a resolution that would protect the territory’s tax incentive programs.

“The advisory sent out by IRS and Treasury yesterday, came without warning or prior consultation as promised in numerous conversations, and before we could complete the ongoing work here in Congress to clearly define residency,” the Delegate said.

“Nevertheless, it affirms the kinds of provisions and safeguards we have been working with the local government and private individuals on over the past months,” she explained.  “Where it opens questions, we will clarify and ensure that there is accurate understanding of the issues and the program so as not to unfairly damage already existing or planned EDC beneficiaries, and the investment they have made.”

The Delegate said that her objective is to protect and strengthen the program. “I have already placed calls to Treasury, and have consulted with the Governor and his representatives,” she said.  “Whatever our office does, will be done in concert with them, as has been the case on this issue from the outset.”

Delegate Christensen pledged to continue to work with the various EDC companies and their representatives as well potentially affected businesses as this issue unfolds.