Two High-Net-Worth Taxpayers Leave USVI, Costing Up to $40 Million in Income Tax Revenue, BIR Says

The departure of two high-net-worth taxpayers from the Virgin Islands may have cost the government as much as $35 million to $40 million in income tax revenue, Bureau of Internal Revenue Director Joel Lee told lawmakers during this week’s FY2027 budget hearings. The disclosure came as Senator Novelle Francis Jr. questioned Mr. Lee about a downturn in income tax collections, adding a sharper explanation to concerns already raised during the budget cycle about the territory’s heavy reliance on tax revenues to support the proposed $1.638 billion spending plan for fiscal year 2027. “Director Lee, have you recognized over the last several months that we have seen a downturn in income tax collection?” Senator Francis asked. “Yes,” Mr. Lee replied. Asked what he attributed the downturn to, Mr. Lee pointed to the loss of high-income taxpayers who had been part of the territory’s personal income tax base. “As I mentioned in the budget overview, we have lost some very high net worth individ...