s.6Financial Secretary to give undertaking
6
Section 6Part 3 — Tax Exemption Undertakings

Financial Secretary to give undertaking

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The Financial Secretary may give an undertaking to any exempted company or any other company whose operations the Financial Secretary deems to be in the national interest that makes application therefor that no law which is hereafter enacted in the Islands imposing any tax to be levied on profits, income, gains or appreciations shall apply to such exempted company or other company or its operations.
An undertaking given under subsection (1) may provide, in addition, that no tax to be levied on profits, income, gains or appreciations or which is in the nature of estate duty or inheritance tax, shall be payable —
on or in respect of the shares, debentures or other obligations of the exempted company or other company referred to in subsection (1); or
by way of the withholding in whole or part of any relevant payment.
In subsection (2)(b) "relevant payment" means —
a payment of dividend or other distribution of income or capital by the exempted company or other company referred to in subsection (1) to its members; or
a payment of —
principal or interest; or
other sums due under a debenture or other obligation of the exempted company or other company referred to in subsection (1).
In the period beginning 1st May, 1963 and ending on 1st September, 1996 —
the power of the Financial Secretary to give an undertaking to an exempted company under subsection (1) shall be deemed always to have included the power to give in any such undertaking the provision described in subsection (2)(b); and
any undertaking given under subsection (1) shall be deemed to include the undertaking described in subsection (2)
Any such undertaking as aforesaid may be for any period not exceeding thirty years from the date of the approval of the application and may be in such form as the Financial Secretary shall determine.
The Chief Officer in the Ministry responsible for Financial Services shall prepare and present to the Cabinet, a report of all applications made and granted pursuant to this section on a monthly basis.
The first report due to be prepared pursuant to subsection (6) shall be presented to the Cabinet on the date specified by the Cabinet by Order.

Defined Terms

relevant payment

Referenced By