BASSETERRE, St. Kitts, March 25, 2021 (Press Unit in the Office of the Prime Minister) – After its successful readings in the National Assembly on Thursday, March 25, the Companies (Amendment) Bill, 2021 was unanimously passed, bringing St. Kitts and Nevis even more in line with best practices within the international financial services sector.
The Bill was moved through the House by Prime Minister and Minister of Finance, Dr. the Honourable Timothy Harris.
In his presentation, Prime Minister Harris said it was necessary for his Government to re-examine the nature of the Companies legislation and seek ways in which it could reasonably and sustainably adjust to the imperatives and complexities of doing business within the global sphere.
He said, “This Bill therefore seeks to introduce a new feature in our Companies Act which it is anticipated would provide attractive business and investment opportunities within our jurisdiction while at the same time satisfying the international standards on taxation. Mr. Speaker, the Bill therefore seeks to remove the tax exemption elements from the Companies Act. In short, the term ‘exempt company’ would no longer be valid after June 20, 2021.”
A new product, referred to as an international company was introduced as part of the Bill in order to keep the Federation competitive. An international company is defined as a body corporate which is incorporated in Saint Christopher, but whose mind and management are outside of the Federation.
The prime minister said, “This kind of company Mr. Speaker, would have no permanent establishment here. If approved by this Honourable House, this proposed new product would be more in line with the requirements of the OECD [Organisation for Economic Co-operation and Development] and the EU [European Union], since the tax exemption features would have been completely excised from the legislation,” the prime minister said.
Prime Minister Harris further noted that the legislation outlines the different options that are now available to those persons who formerly had exempt companies in St. Kitts but would now be required to deal with them before the June 20 deadline.
“In that regard Mr. Speaker, Clause 10 of the Bill makes provision for exempt companies to be converted to an ordinary company. Mr. Speaker it would be proposed at Committee stage to also clearly include the option of conversion to an international company. In other words, there will now be two options introduced to take care of the removal of the exempt companies provision in the Act – a term or terminology which the international marketplace at the level of the regulatory arm has found to be offensive,” the prime minister said.
Prime Minister Harris stated that allowing exempt companies to convert to international companies is aimed at providing a reasonable measure to make the process less onerous and costly for those involved.
]]>Basseterre, St. Kitts, March 11, 2021 (Ministry of Foreign Affairs): Minister of Foreign Affairs, the Honourable Mark Brantley, met in separate virtual settings recently with some of the Federation’s international allies. The meetings, held from March 2 – 11, 2021, form part of the Ministry’s drive to ensure that restrictions of travel and other exigencies posed by the COVID-19 pandemic do not impede bilateral discussions with cherished international partners.
During this period, Minister Brantley met with ambassadors representing the Federal Democratic Republic of Ethiopia, the Republic of France, the Kingdom of The Netherlands, the Kingdom of Belgium, and the European Union.
Among others, some important matters discussed were the proposed removal of visa requirements between Saint Kitts and Nevis and Ethiopia, cooperation on climate change and its impacts, inoculation against COVID-19, and naming and shaming of uncooperative jurisdictions (blacklisting).
The different representatives reiterated their governments’ commitments to ensuring cooperation with Saint Kitts and Nevis for the mutual benefit of all.
]]>BASSETERRE, St. Kitts, November 18, 2020 (Press Unit in the Office of the Prime Minister) – As a responsible member of the global community, the Federation of St. Kitts and Nevis continues to bring its regulations relating to taxation matters in line with best international practices.
This was again demonstrated on Tuesday, November 17, when the Team Unity-led Government passed the Saint Christopher and Nevis (Mutual Exchange of Information in Taxation Matters (Amendment) Bill, 2020, in the National Assembly.
Prime Minister and Minister of Finance, Dr. the Honourable Timothy Harris, who moved the Bill through the House, said the amendments to the bill brought about a change to the tax co-operation authority for the exchange of information for tax purposes.
“Under the said parent act, the Saint Christopher and Nevis (Mutual Exchange of Information in Taxation Matters (Amendment) Bill, 2020, the competent authority was the Financial Secretary. This Act seeks to put [the competent authority] to the source of the department that is involved in the provision of the information, and in that regard our Inland Revenue Department becomes the lead department of the Government to deal with these matters and accordingly, the Comptroller of Inland Revenue is now the competent authority,” Prime Minister Harris said.
The prime minister added that the Government’s actions to date have demonstrated St. Kitts and Nevis’ continued commitment to promoting international standards for transparency and exchange of information for tax purposes and minimizing instances of tax evasion schemes operating from within our jurisdiction.
“As the international standards for tax transparency continue to change and expand, so have the obligations of our country and our people. Apart from responding to an increasing number of requests for information from treaty partners, and automatically providing information to the USA and a large number of other jurisdictions that have committed to the implementation of the automatic exchange of information under the rubric of the Common Reporting Standard (CRS), St. Kitts and Nevis is expected to respond in a timely manner to the evolving requirements of the OECD and the European Union. The country is further required to facilitate the various assessments that are undertaken by international bodies that are geared towards ascertaining the Federation’s level of compliance with the international standards,” Dr. Harris said.
Premier of Nevis and Minister of Foreign Affairs, the Honourable Mark Brantley, while giving his support to the legislation, noted that these actions taken may not always seem popular, but they are the decisions of a responsible government that is adamant in protecting the Federation’s reputation.
The minister said, “I believe that this Bill, as simply as it is, is a further demonstration of the responsible way in which this Government continues to conduct its affairs. It is important for me to point out to the House and to the public that as I speak, St. Kitts and Nevis does not find itself on any list anywhere which suggests that we are uncooperative, either on the criminal side in the fight against money laundering and terrorist financial or on the tax side. This has not come about, Mr. Speaker, by chance. This has come about because there has been prudent, sensible, practical and responsible leadership in the Government on this matter, from the prime minister as Minister of Finance, but also through the relevant authorities including the Comptroller Mr. Gift.”
Earlier this year, the Government established an International Taxation Unit, within the Inland Revenue Department, that will focus on all the requirements with respect to reporting on international tax matters.
The International Tax Unit is headed by Adeola Moore, Assistant Comptroller. The other members of the unit are Fredericia Hodge from the Inland Revenue Department in St. Kitts, and Janesha Daniel from the Inland Revenue Department in Nevis.
]]>BASSETERRE, St. Kitts, November 17, 2020 (Press Unit in the Office of the Prime Minister) – By making the necessary legislative amendments now, the Government of St. Kitts and Nevis is ensuring that the twin-island Federation is never again listed as a non-cooperative tax jurisdiction – a classification that causes significant reputational damage to listed nations.
“A blacklist is a signal to the rest of the world, with whom you are engaged, that something is awry with some aspect of the governance agenda. Therefore Mr. Speaker, we will not chance those things. We have come a long way. We have, in the past, been blacklisted on several occasions and those who had been involved know how hard and difficult it was to move from that dissent to a place again of recognition as one who was cooperating with the good governance agenda,” said Prime Minister and Minister of Finance, Dr. the Honourable Timothy Harris, during the Tuesday, November 17 Sitting of the National Assembly.
In February of this year, St. Kitts and Nevis was removed from the European Union’s (EU) List of Non-Cooperative Jurisdictions. The European Council stated that the Federation of St. Kitts and Nevis has “managed to implement all the necessary reforms to comply with EU tax good governance principles ahead of the agreed deadline and [is] therefore removed from Annex II.” Annex II is referred to as the grey list while Annex I is called the blacklist.
“It meant that in December [2019] after the Budget, we had to go to the Parliament again to meet certain deadlines so as to ensure that by the official deadline they had given by the end of the year, our legislative framework was consistent with their expectations. So we have come a long way to get where we are, and it would be foolish if having worked so diligently over this long stead to get us back to where we ought to be at the apex of highly performing countries that we would allow any stubbornness to take us back down from whence we came,” the prime minister said.
The Government of St. Kitts and Nevis today tabled before the National Assembly the Income Tax (Amendment) Bill, 2020 which seeks to bring clarity to the existing legislation. The Bill will provide the entities operating in the Financial Services Sector and other sectors of the Federation’s economy with the clarity and certainty they require to continue to operate with confidence, to grow and to increase their contribution to the economic advancement of the Federation.
Prime Minister Harris said the amendments to the Bill will further ensure full compliance with international good governance standards and will ensure that St. Kitts and Nevis meets its commitments to the EU and the Organisation for Economic Co-operation and Development (OECD), and in so doing, avoid the reputational damage.
]]>NIA CHARLESTOWN NEVIS October 22, 2020 (Nevis Island Administration)— Hon. Mark Brantley, Minister of Foreign Affairs in St. Kitts and Nevis, continues to engage allied countries.
The Foreign Affairs Minister has embarked on a round of virtual meetings with friendly governments across the globe, utilising technology to hold discussions as travel remains a health and logistical challenge for many of the foreign diplomats.
“I have participated in several virtual meetings recently with diplomatic colleagues around the world to share experiences on and responses to COVID-19 and to seek to animate and energise our bilateral relationships globally. Some important issues were discussed including trade relations, climate change, and the European Union’s blacklisting of Caribbean countries without any consideration to the serious harm to our economies,” he said.
Some of these recent engagements include virtual meetings with His Excellency Gustavo Pandiani Ambassador of Argentina to St. Kitts and Nevis, and Her Excellency Janet Douglas CMG, United Kingdom (UK) High Commissioner to Barbados and the Organisation of Eastern Caribbean States (OECS), on October 20, 2020; and His Excellency Carlos de Sousa Amaro Ambassador of Portugal to St. Kitts and Nevis on October 21, 2020.
Mr. Brantley also met virtually with Her Excellency Vera Lucia dos Santos Caminha Campetti, Brazil Ambassador-designate to St. Kitts and Nevis, and His Excellency Inho Lee Ambassador-designate of South Korea to St. Kitts and Nevis on October 22, 2020.
The Foreign Affairs Minister stressed that “diplomacy matters,” as St. Kitts and Nevis’ relationships with friendly countries provide tangible and intangible benefits to citizens of the federation and those of allied countries.
Mr. Brantley also disclosed that he has held significant discussions with African countries with respect to visa waiver agreements as he continues work to spread St. Kitts and Nevis’ diplomatic footprint across the globe.
“St. Kitts and Nevis is committed to deepening and strengthening existing relations and developing new relations. We remain friends to all and foes of none,” he said.
]]>Basseterre, St. Kitts, July 23, 2020 (SKNIS): The St. Kitts and Nevis Bureau of Standards (SKNBS) is planning to expand its services in its Metrology Department, says Director Stuart Laplace, while appearing on the radio and television show “Working for You” on July 22.
Mr. Laplace stated that metrology is the science of weights and measure. He noted that the department deals with collaborating all equipment that are used in trade.
“So if you go to the supermarkets or you go to the gas stations you would notice that there will be some stickers being displayed there to verify that we have been to that location; we have checked those devices to ensure that what they are measuring is indeed correct and the customer is not being robbed and you as the business owner are not giving away your product either. So it covers both the retailer as well as the customer because to us they all are customers involved in trade,” he said.
The new services will include the calibration of medical equipment such as stethoscopes and sphygmomanometers to read blood pressure and heart palpitations.
Mr. Laplace said that the Metrology Department also wants to venture into electrical meter calibrations, the gaming industry where they will calibrate slot machines, testing of aggregates in terms of equipment used on the road and in construction generally, and testing cement, steel, and blocks to ensure they are of the right quality standard to avoid catastrophes.
Currently, the Metrology Lab is being expanded with funding from the European Union (EU) and the Caribbean Development Bank to have an accredited lab in St. Kitts and Nevis where it can calibrate standard weights that it uses to verify others, said Mr. Laplace.
“Traditionally, this is an exercise that would have incurred significant amount of money that we would have to send our weights off to another lab let’s say in Jamaica and that would run us anywhere between US $40,000 to $50,000 a year,” he said. “So, I’m thinking it’s best that if we are able to do that ourselves here in St. Kitts and Nevis, we can then offer that service to the neighbouring islands as well that are closer to us geographically.”
]]>