Cayman Island Revenue Enhancement Measures

In addition to the revenue measures announced as alternatives to the Community Enhancement Fee, Government is proposing increases to other existing fees to further improve Government’s revenue for the 2012-13 Financial Year and beyond.

Along with the increases, a proposed new licensing system for Fund and Corporate Directors will create a new revenue stream.

The Government is proposing to increase the annual fees for Exempt Companies by $100. Issuing of certificates for a company, filing of a company document, company certification and express service for certificates, certification, filing and registration and re-registration are slated for a $25 increase.

Annual Fees for directorships under the Companies Law are earmarked for the following increases: Securities and Investment Businesses increased by $500; Regulated Entities increased by $300; and all other directorships by $100. Company Managers and Trust Services are both listed for increases of $100. A variety of CIMA fees are also among the proposed fee increases, ranging from $100 to $800.

Proposed amendments to the Companies Management Law will create and implement a new licensing system for Fund and Corporate Directors. At present these Directors are not licensed or regulated. But once the 2012-13 budget and the Amendments to the Companies Management Law are passed by the Legislative Assembly they will have to pay the fees detailed in this revenue measure. The proposed fees range from a low of $500 for one directorship per director to a high of $25,000 for 100 or more directorships

These measures are in addition to the revenue measures that replaced the Community Enhancement Fee, namely: increased bank and trusts license fees, work permit fees, tourist accommodation tax, departure tax, master fund registration fees, traffic regulatory fees; exempted limited partnerships; imposition of a stamp duty on certain property insurance policies; reverting to the 7.5% stamp duty on land transfers; and implementing fees for non-commercial boats.

In all, these revenue measures and those measures that replaced the Community Enhancement Fee are expected to earn the Government some $90.46 million during the 2012-13 fiscal year.

The above was a News Release from OFFICE OF THE PRESS SECRETARY TO THE PREMIER