Hon. Speaker,
Hon. Premier,
Hon. Members of this House of Assembly,
Strangers in the Gallery,
Persons tuning in via radio and streaming media, and
My fellow Turks and Caicos Islanders.
Good day,
Today, I stand in this honorable to table the Land Holdings Companies
Transfer Duty Amendment Bill 2023, which includes pivotal amendments
to the Land Holding Companies (Transfer Duty) Ordinance.
Mr. Speaker, I am happy to say that this Bill stays true to our
Government’s commitment to fiscal prudence, while giving us the ability
to continue to grow our local economy at a pace that maximizes benefits
to our people and our beautiful by nature Turks and Caicos Islands.
Mr. Speaker, for clarity, this Bill seeks to give the Minister of Finance
(through Cabinet) the authority to remit, either wholly or in part, the
duty payable on the transfer of an interest, or transfer of any equity
capital, in a land-holding corporation.
Mr. Speaker, simply put, this Bill will give our government, and future
governments, a strategic lever, that can be used to, when necessary,
dynamically adjust our economic policy to strengthen our ability to
achieve the best outcomes for our people and our beautiful nature
Turks and Caicos Islands.
Mr. Speaker, consider, for example, a situation where a significant
investment opportunity comes to our shores.
Let’s say an international company with a reputation for sustainable and
responsible development wishes to establish a large-scale project that
promises employment for hundreds of our citizens.
Mr. Speaker, if such a development required a transfer of equity capital
in a land holding company, currently, it would not qualify for the (stamp
duty) concessions that are allowable on the property – e.g. land sales.
However, with this Bill Mr. Speaker, TCIG will have the ability to step in,
assess the broader socio-economic benefits, and if deemed prudent,
provide relief on the transfer duty; and in so doing, make our islands a
more attractive investment destination.
Mr. Speaker, for the record, not every transfer of capital in a land holding
company will qualify for remission. However, with this Bill, the Minister
of Finance (in Cabinet) will have the discretion to evaluate and respond
to situations in real time, thereby ensuring that every decision made is
in the best interest of our people and our beautiful nature Turks and
Caicos Islands.
Additionally, Mr. Speaker, this Bill will act as a safety net for unforeseen
economic downturns or global crises.
Mr. Speaker, during challenging times, like the COVID-19 pandemic,
governments need every tool at their disposal to stimulate economic
activity, encourage investments and bolster economic resilience. By
having the ability to remit transfer duties, we are giving our government,
and future governments, a tool that can be used for swift, targeted
responses to economic challenges whenever they arise.
Mr. Speaker, to those people who may have concerns about this Bill, I
would like to state that it is not about previous revenue arbitrarily.
Instead, it is about giving TCIG the flexibility to make strategic fiscal
decisions, to assess the broader socioeconomic implications of each
transaction, and to act in the best interests of our people and our
beautiful by nature Turks and Caicos Islands.
Mr. Speaker, as you are aware, our regional and global competitors often
use such strategic incentives to attract and anchor investments that have
transformative potential. With this Bill, our Government is not just
leveling the playing field, but it is also signaling to the world that our
beautiful by nature Turks and Caicos Islands is open to attracting
responsible, impactful, and transformative businesses.
In conclusion, Mr. Speaker, this Bill is not just about remitting
duties. It is about the bigger picture – i.e. creating a thriving, dynamic,
and resilient Turks and Caicos Islands.
It is about seizing opportunities and navigating challenges with agility.
It is about telling domestic and foreign entrepreneurs that the Turks
and Caicos Islands are the best place for their investments.
Mr. Speaker, in summary:
• Clauses 1 and 2 of the Bill make provision for the short title,
commencement, and interpretation of the Bill.
• Clause 3 of the Bill seeks to amend the Ordinance to insert a new
section 4A to empower the Minister of Finance to remit, wholly
or in part, the duty payable on the transfer of an interest or
transfer of any equity capital in a land-holding corporation.
• The amount of any duty remitted under the new section 4A(1)
in respect of the transfer of an interest or transfer of any equity
capital in a land-holding corporation shall for the purposes of the
Ordinance be deemed to have been paid in respect of that
transfer.
Mr. Speaker, I urge all members of this honorable House to consider
the long-term benefits and the doors of opportunities this Bill will open.
Let us act in unison, with foresight and ambition, to make a decision that
will undoubtedly write a new, prosperous chapter for our people and our
beautiful by nature Turks and Caicos Islands.
With that Mr. Speaker, I now invite this Honourable House to debate the
Land Holdings Companies Transfer Duty Amendment Bill 2023.
Thank you.
Hon. E. Jay Saunders
Minister of Finance, Investment & Trade
