The Company Amendment Bill, 2019, was passed Tuesday in the National Assembly as part of the Federation’s move to align its laws with those of the global community.
According to the Prime Minister of St. Kitts and Nevis, Dr. the Honourable Timothy Harris, the goal is to “abolish harmful features within their tax regimes that have the potential to unfairly impact the tax base of other jurisdictions.”
“The Bill is intended to attend to two matters: firstly, to ensure that St. Kitts and Nevis addresses the recommendations that were made by the Global Forum with respect to tax transparency and exchange of information for tax purposes and, secondly to address the requirement that safeguards are put in place in relation to certain aspects of the exempt companies’ regime,” Prime Minister Harris said.
The prime minister explained the final amendment would require the revised Section 224 of the Companies Act to be further amended to prevent current exempt companies from acquiring new assets or engage in new activity that is inconsistent with the objectives for which the exempt company was incorporated, and to further prohibit exempt companies from acquiring intellectual property assets of related parties.
Prime Minister Harris stated that it is important to re-emphasize the point that St. Kitts and Nevis is a responsible and respected partner in the global financial system, and in order for the Federation to maintain this good standing, the government has to review the existing legislation to ensure that the laws comply with the international standards as they evolve.