Bill to Close Gross Receipt Tax Loophole for Off-Island Contractors Unanimously Supported in Senate

Proposed legislation to close a loophole relating to the collection of gross receipts taxes on disaster recovery projects breezed through the Committee on Economic Development and Agriculture last week. Bill 36-0063, sponsored by Senator Clifford Joseph, seeks to amend the relevant sections of Virgin Islands Code to “clarify that gross receipts taxes must be paid by all contractors doing business in the Virgin Islands, regardless of physical location.”  Introducing the draft legislation on April 16, Joseph announced that “the measure tightens up the code so that, moving forward, all businesses doing work in the territory pay their fair share. We must collect all monies due to the government,” he urged. According to the lawmaker, the current language in the law allows contractors operating outside of the U.S. Virgin Islands to avoid paying the 5% gross receipt tax (GRT).  “We are rebuilding after the hurricanes, and there are millions of dollars, potentially, that would be lost if we...