s.7Requirement to provide information
7
Section 7Part 0 —

Requirement to provide information

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An entity shall annually notify the Authority of the following —
whether or not it is carrying on a relevant activity;
if it is carrying on a relevant activity, whether or not it is a relevant entity;
in the case of an entity that is carrying on a relevant activity and is tax resident in a jurisdiction outside the Islands —
the name and address of its immediate parent, ultimate parent and ultimate beneficial owner and any other information reasonably required to identify its immediate parent, ultimate parent and ultimate beneficial owner;
the date of the end of its financial year; and
the jurisdiction in which the entity is claiming to be tax resident and any other information as may reasonably be required to support that claim;
in the case of a relevant entity that is carrying on a relevant activity —
the date of the end of its financial year; and
the name and address of the officer who is responsible for providing information to the Authority,
The notification under subsection (1) shall be made at the time specified by the Authority and in the form and the manner approved by the Authority.
Subject to subsection (4), a relevant entity that is carrying on a relevant activity and is required to satisfy the economic substance test shall, no later than twelve months after the last day of the end of each financial year of the relevant entity commencing on or after the prescribed date, prepare and submit to the Authority a report for the purpose of the Authority’s determination under section 6.
The report under subsection (3) shall be in the form approved by the Authority and shall include the following information with respect to the relevant entity —
the type of relevant activity conducted by it;
the amount and type of relevant income in respect of the relevant activity;
the amount and type of expenses and assets in respect of the relevant activity;
the location of the place of business or plant, property or equipment used for the relevant activity of the relevant entity in the Islands;
the number of full-time employees or other personnel with appropriate qualifications who are responsible for carrying on the relevant entity’s relevant activity;
the name and address of any person other than the relevant entity who is conducting the relevant entity’s core income generating activities in relation to its relevant activity;
information showing the core income generating activities in respect of the relevant activity that have been conducted;
a declaration as to whether or not the relevant entity satisfies the economic substance test in accordance with this Act;
in the case of a relevant activity that is an intellectual property business, a declaration as to whether or not it is a high risk intellectual property business and, if it is, whether or not the relevant entity will provide the information under paragraph (j) to rebut the presumption in section 4(7) within the time specified in subsection (3);
details of any MNE Group in respect of which the relevant entity is a Constituent Entity for the purposes of the Tax Information Authority (International Tax Compliance) (Country-By-Country Reporting) Regulations, 2017;
in the case of a relevant entity that is carrying on a high risk intellectual property business —
detailed business plans which demonstrate the commercial rationale for holding the intellectual property assets in the Islands;
employee information, including level of experience, type of contracts, qualifications and duration of employment;
evidence that decision making is taking place within the Islands; and
any other information as may be reasonably required by the Authority to determine whether the relevant entity meets the economic substance test; and
such other information as may be prescribed.
A relevant entity shall, subject to subsection (6), provide the Authority with such additional information (including a copy of a relevant book, document or other record, or of electronically stored information) as shall be reasonably required by the Authority in making a determination under section 6.
The information referred to in subsection (5) shall be in the form approved by the Authority and shall be provided within a reasonable time specified by the Authority.
Where under section 4(4), a person is conducting core income generating activities in relation to the relevant activity of a relevant entity, that person may verify the information provided to the Authority under subsection (4) within thirty days after the day on which the information is provided.
The Authority may, by notice served on any person that the Authority reasonably believes to have relevant information, require that person —
within a reasonable time specified by the Authority in the notice, to provide the Authority with information (including a copy of a relevant book, document or other record, or of electronically stored information); or
at a reasonable time, during office hours, specified by the Authority, to make available to the Authority for inspection, a book, document or other record, or any electronically stored information,
A relevant entity that is required to satisfy the economic substance test in relation to a relevant activity shall retain for six years after the end of a financial year, a book, document or other record, including any information stored by electronic means that relates to the information required to be provided to the Authority under this section.
Where a relevant entity that is required to satisfy the economic substance test fails to prepare and submit to the Authority the report required under subsection (3) within the time specified in that subsection, the Authority shall by notice in writing impose a penalty of five thousand dollars and an additional penalty of five hundred dollars for each day during which the failure to comply continues.
The Authority shall not impose a penalty under subsection (8A) after the earlier of the following —
one year after becoming aware of the contravention; or
six years after the contravention occurred.
A penalty under subsection (8A) must be paid before the end of the period of thirty days commencing with the date mentioned in subsection (8D).
That date referred to in subsection (8C) is the later of —
the date from which the penalty is due under subsection (8A); or
if a notice of appeal is given under subsection (8F), the date on which the appeal is finally determined or withdrawn.
A penalty under subsection (8A) shall be paid into the general revenue of the Islands and may be recovered as a civil debt due to the general revenue of the Islands.
A relevant entity that has a penalty imposed pursuant to subsection (8A) may, within thirty days after the notice is given under that subsection, appeal against the penalty to the Grand Court and such appeal shall act as a stay on the enforcement of the penalty.
A relevant entity upon whom a penalty is imposed under subsection (8A) may appeal against the penalty on the ground that liability to a penalty does not arise.
An appeal under this section may be made on questions of law or fact or both and the Grand Court may affirm or reverse the penalty or substitute its own penalty for that imposed by the Authority.
A person who, having been required under this section to provide or make available to the Authority any information (including a copy of a relevant book, document or other record, or of electronically stored information) that is in that person’s possession or under that person’s control —
without lawful excuse fails so to do, within the time specified by the Authority under this section, or by the Authority by notice; or
knowingly or willfully alters, destroys, mutilates, defaces, hides or removes any such information,
In this section “entity” means —
a company that is —
incorporated under the Companies Act (2026 Revision); or
a limited liability company registered under the Limited Liability Companies Act (2025 Revision);
a limited liability partnership that is registered in accordance with the Limited Liability Partnership Act (2025 Revision); or
a company that is incorporated outside of the Islands and registered under the Companies Act (2026 Revision).

Defined Terms

entity

Cross References

Referenced By