Corporate Income Tax (Penalty Provisions) Amendment Act 2025

What this bill does

This bill adds penalty rules to Bermuda's corporate income tax system that was introduced in 2023. It creates both civil fines (money penalties) and criminal charges (including possible jail time) for companies that don't follow tax rules properly, such as failing to file returns or pay taxes on time.

If passed (voted YES)

• Companies can be fined up to $10,000 for not registering for corporate tax, and face monthly penalties of $3,000 or 5% of taxes owed for late filing
• Tax evasion becomes a criminal offense punishable by up to $5 million in fines and 5 years in prison
• All companies within the same multinational group become jointly responsible for penalties - meaning if one company in the group gets fined, all related companies are liable to pay

If rejected (voted NO)

• The corporate income tax system continues without formal penalty enforcement mechanisms
• Companies face no specific financial consequences for failing to register, file returns late, or underpay taxes
• Tax authorities have limited tools to ensure companies comply with the new corporate tax requirements

Who it affects

This primarily affects large multinational companies operating in Bermuda that are subject to the new corporate income tax system. It also affects the Corporate Income Tax Agency, giving them new powers to collect penalties and enforce compliance.