Grenada gives nod to repeal legislation in keeping with EU demands

Friday, December 21, 2018

Print this page Email A Friend!


ST GEORGE'S, Grenada (CMC) — The Grenada Parliament Wednesday began the process of repealing four pieces of legislation that the European Union has described as “harmful tax practices”.

“The International Companies Act in its present construct gives incentives to foreign entities that are not domicile in Grenada and, Mr Speaker, it has been deemed to be unfair and lacks transparency by the EU intergovernmental code of conduct group on taxation,” said Legal Affairs Minister Kindra Maturine-Stewart, as she piloted the motion to repeal the legislation.

She told legislators that in 2017 Grenada was among a group of 90 countries that the EU selected to be screened against tax transparency, harmful tax practices and base erosion profit shifting.

“As a result, Mr Speaker, it has become necessary to amend, examine and abolish, where necessary, existing tax measures or regimes that constitutes harmful tax practices,” said Maturine-Stewart, who also informed the House that the EU new guidelines prohibit new measures that will provide for international companies to benefit but not domiciled in the State.

Apart from the International Companies Act, the Government is also moving to repeal the International Insurance Act, the International Trusts Bill, and the Offshore Banking Act.

The Keith Mitchell Government said that these pieces of legislation were approved during the mid-1990s when Grenada embarked on making offshore banking one of the sectors to grow and develop the economy.

Maturine-Stewart said the laws provided for the international companies to receive favourable incentives and the playing field was not one that was even with respect to resident companies and non-resident companies.

“For instance, Mr Speaker, an international business company does not have to pay corporate income tax, whereas, Mr Speaker, a local company is subjected to 30 per cent corporate income tax,” she said, while pointing out that such an incentive for international companies is not usual because that is a benefit that is offered in all offshore jurisdiction.

Maturine-Stewart said that at present, only 84 companies are registered as international businesses in Grenada and it's not expected to hurt the country economically.

“Unlike St Vincent, where there are over 6,000 international businesses registered,” she said.

The new measures will be debated in the Senate and the authorities say they hope that the repeal legislation would go into effect by the end of the year.


Now you can read the Jamaica Observer ePaper anytime, anywhere. The Jamaica Observer ePaper is available to you at home or at work, and is the same edition as the printed copy available at http://bit.ly/epaperlive


ADVERTISEMENT




POST A COMMENT

HOUSE RULES

1. We welcome reader comments on the top stories of the day. Some comments may be republished on the website or in the newspaper � email addresses will not be published.

2. Please understand that comments are moderated and it is not always possible to publish all that have been submitted. We will, however, try to publish comments that are representative of all received.

3. We ask that comments are civil and free of libellous or hateful material. Also please stick to the topic under discussion.

4. Please do not write in block capitals since this makes your comment hard to read.

5. Please don't use the comments to advertise. However, our advertising department can be more than accommodating if emailed: advertising@jamaicaobserver.com.

6. If readers wish to report offensive comments, suggest a correction or share a story then please email: community@jamaicaobserver.com.

7. Lastly, read our Terms and Conditions and Privacy Policy



comments powered by Disqus
ADVERTISEMENT

Poll

ADVERTISEMENT
ADVERTISEMENT

Today's Cartoon

Click image to view full size editorial cartoon
ADVERTISEMENT