Economic Substance Amendment Act 2026
Passed
Simplified for You
What this bill does
This bill transfers the responsibility for monitoring and enforcing Bermuda's economic substance rules from the Registrar of Companies to the Corporate Income Tax Agency. It gives the Tax Agency new powers to inspect businesses, request documents, and impose fines on companies that don't meet economic substance requirements.
If Passed (Voted Yes)
The Corporate Income Tax Agency will take over handling economic substance compliance from the Registrar of Companies starting March 31, 2026
The Tax Agency will have stronger enforcement powers, including the ability to enter business premises, demand documents, and impose daily fines of $100-$500 for non-compliance
Companies that repeatedly fail to meet economic substance requirements could face escalating penalties up to $250,000 and potential court-ordered business restrictions
If Rejected (Voted No)
The Registrar of Companies would continue to handle economic substance enforcement as they do now
The government wouldn't achieve its goal of centralizing international tax matters under one agency
Current enforcement procedures and penalty structures would remain unchanged
Who It Affects
This primarily affects Bermuda companies that must comply with economic substance requirements, particularly those conducting certain types of international business activities. It also impacts the Registrar of Companies office and the Corporate Income Tax Agency as their responsibilities shift.
Vote counts are not published.
The Bermuda Parliament does not publicly record individual vote counts or how each member voted.
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