Trinidad and Tobago Senate Takes Significant Step towards Enhancing Tax Transparency

The Trinidad and Tobagonian Senate has made a major stride in its efforts to combat money laundering and financial crimes by passing Bill No. 3, which aims to amend various tax laws related to beneficial ownership and international cooperation.

Clarifying Beneficial Ownership Definition

Under the bill, a clear definition of “beneficial owner” will be added to the Incorporation Act, providing clarity on who is considered the ultimate owner of a company. This move is expected to enhance transparency and help authorities identify individuals or entities involved in illicit activities.

Key Provisions of the Bill:

• Beneficial Ownership Register: Companies and their authorized representatives must maintain beneficial ownership information in a register for up to six years after a person ceases to be a beneficial owner.
• Tax Authority Access: Such corporations are obligated to submit beneficial ownership information to the Inland Revenue Division, ensuring that tax authorities have access to this critical data.

Strengthening Regulatory Framework and Facilitating International Cooperation

These measures are expected to strengthen Trinidad and Tobago’s regulatory framework and facilitate international cooperation in combating financial crimes. The bill now proceeds to the House of Representatives for further consideration and approval.