The British Virgin Islands, like other British so called 'dependent territories', was forced to apply the EU's Savings Tax Directive starting on 1st July, 2005, and chose to apply a withholding tax (initially of 15%) to the returns on savings paid to residents of EU Member States. The Directive does not apply to corporate entities. So now we have the BVI banks doing income tax reporting and withholding taxes. Does that make you feel good about this jurisdiction?

British Virgin Islands Incorporation used to allow bearer share companies until 2005. The existing bearer share companies can continue as such until 2010 when they must comply with the new rules and thus will no longer be anonymous bearer share companies.

The British Virgin Islands signed a broad tax treaty with the US allowing for generous and liberal exchange of information, see text of treaty here:

http://www.treas.gov/press/releases/docs/kingdom.pdf

This allows for wholesale fishing expeditions and erodes privacy to an unacceptable level.

British Virgin Islands Incorporation used to offer bearer share anonymous corporations. They stopped doing so in 2005.

We can think of no good reason to use the British Virgin Islands for asset protection since privacy has been seriously eroded.