Government of Bermuda

Ministry of Finance

Public Communication

Corporate Income Tax Agency

Table of Contents

1. Introduction ......................................................................................................... 3

2. The Agency .......................................................................................................... 4

3. Illustrative Draft Legislation .............................................................................. 9

1. Introduction

Following the enactment of the Corporate Income Tax Act 2023 in December, 2023 (the
“Principal Act”), the Government is moving ahead with the establishment of a Corporate
Income Tax Agency (the “Agency”). The Principal Act, together with the legislative
provisions (whether in the form of statute, regulation or others) governing the formation
and conduct of the Agency are collectively referred in this document for the sake of
convenience as the “CIT Laws”.

The Government is, additionally, in the process of drafting provisions for the
administration of the corporate income tax, which will be the subject of a Public
Consultation later in the year.

This document sets out a high-level background in Section 2 to the structure and function
of the Agency, to provide public information on the proposals for the Agency’s
organisation and powers. An illustrative draft of the legislation is included in Section 3.

Questions and points of concern in relation to these proposals should be directed to

FINANCE@gov.bm to be received no later than 5 July, 2024.
2. The Agency

Structure

A Corporate Income Tax Agency, will be established to administer the CIT laws in exercise
of the power conferred by section 3 of the Corporate Income Tax Act 2023,with the
requisite powers and responsibilities to ensure that public confidence and international
credibility is maintained in the regime.

The Act regulating the Agency will be entitled the Corporate Income Tax Agency Act 2024
and steps will be taken to bring the law into effect following the passage through the
legislature.

The Agency will take the form of a body corporate with perpetual succession, and shall
act as an agent of the Crown subject to directions from the Minister of Finance. As such,
it will have the power to acquire, hold and dispose of property and to enter into contracts
and undertake such other acts as may be necessary to further its purposes.

Governance of the Agency shall be by a board of directors and there will also be a Chief
Executive Officer appointed under the Act. The process and structure of the appointment
of the board of Directors and the Chief Executive Officer is broadly consistent with the
framework governing the Bermuda Monetary Authority. The Board will consist of a
Chairman appointed by the Minister together with six additional directors also appointed
by the Minister. The customary limitations on the experience, qualification, credentials
and background of those individuals to be appointed shall apply.

A Chief Executive Officer will be appointed by the board of directors after consultation with
the Minister, who will be an Agency employee but not a director. The CEO will be
responsible for the day-to-day management of the Agency, which shall include the
following, without limitation:

• the administration and enforcement of the rules set out in the CIT Laws;

• providing for the allocation and effective utilisation of all of the Agency’s
human resources;

• determining requirements for the training and development of Agency

personnel;

• establishing policies and procedures for the operation of the Agency;

• managing the Agency’s budget and expenditure during the course of the
financial year;

• preparing the draft budget and annual report of the Agency; and

• commissioning, establishing and managing such infrastructure as the

Agency may require for the discharge of its functions.

In line with the day to day management of the Agency being the responsibility of
the CEO, the Board shall not be entitled to countermand the decisions of the CEO
and Agency staff in respect of the tax affairs or tax liabilities of Bermuda Constituent
Entities. Further, access to information regarding Bermuda Constituent Entities’ tax
affairs is only available to the Board on a “need to know” basis.

In discharging his responsibilities, the CEO may delegate his powers to the staff of
the Agency as he shall see fit. There shall be provisions for the term of office and
for the appointment of interim or temporary personnel should circumstances require
it. The staff of the Agency can include consultants on hire and secondments from
Government and all costs related to such resources are the responsibility of the
Agency. Arrangements may be required to compensate the Government for the
services of public officers seconded to the Agency.

The Agency’s general functions cover the following aspects:

• administering the processes and procedures for the filing of tax returns and
the calculation of taxes owed;

• reviewing and where appropriate auditing tax returns and ensuring

compliance more generally with the CIT Act and any related regulations;

• prosecuting any enforcement action in connection with or under the CIT Act
or any related regulations;

• supervising and administering the collection and/or refund of tax revenues

and any associated tax credits, and

• aiding and providing support to taxpayers.

The Agency shall be entitled and empowered to issue and update any guidance or
“frequently asked questions” relating to the CIT Laws.

The Agency is an agent of the Crown for the purposes of stamp duty. Tax receipts
received by the Agency are not part of the Agency’s property; rather, the Agency is
funded from grants appointed by the Government and other financing, and the
Agency will follow the Government’s financial year.

As with the Bermuda Monetary Authority, provisions will be made for the Agency to
provide a budget prior to each financial year for approval by the Minister, to be
monitored and adhered to with specific provisions to be satisfied if the budget is to
be amended in any way. The Agency may borrow, subject to the approval of the
Ministry, to enable it to discharge its obligations, and the Government may
guarantee any such borrowings if the Minister sees fit. The Agency must also
maintain books and records of account as well as preparing a statement of account
each year, including a balance sheet, statement of income and expenditure and a
statement of surplus or deficit. Finally, an annual report must be produced no later
than six months from the end of each financial year.

Reserve Fund

Tax revenues collected by The Agency will be deposited in a Tax Reserve Fund and
will not be the property of The Agency. Details of the structure, operation and the
management of the Fund will be provided in separate Regulations with the objective
that the Tax Reserve Fund be administered by the Accountant-General pursuant to
the Public Treasury (Administration and Payments) Act 1969.

Determinations and settlements

The Agency is empowered to issue determinations on questions of interpretation

under the CIT Laws where there may be material uncertainties. Such
determinations would only be provided where the Agency has been provided with
the full details and context of a proposed transaction or set of facts, together with
the commercial background and the significance of the tax result, and an analysis
of the legislative uncertainty involved. The Agency may require a fee for such
determinations. These determinations will be binding on the Agency and the
Agency may, if it considers the matter involved to have general application, adapt
and publish the determination as guidance in accordance with the Principal Act.

The Agency may also determine any disputes relating to tax liabilities, along the
criteria set out in the CIT Laws. The Agency is not empowered to give guidance
other than in writing.
Confidentiality and Cooperation

The Agency and its staff will be subject to confidentiality obligations, subject to
limited exceptions, and will have information gathering powers to discharge its
obligations under the Principal Act and any related administrative provisions. The
Agency is also expressly authorised to provide assistance to foreign tax authorities
exercising similar functions to the Agency under relevant foreign law.
 3. Illustrative Draft Legislation

A BILL

entitled

CORPORATE INCOME TAX AGENCY ACT 2024

WHEREAS it is expedient to make provision for the establishment of an agency to

administer Bermuda’s corporate income tax regime;

Be it enacted by The King’s Most Excellent Majesty, by and with the advice and
consent of the Senate and the House of Assembly of Bermuda, and by the authority
of the same, as follows:—

PART I

INTRODUCTORY

Citation
1 This Act may be cited as the Corporate Income Tax Agency Act 2024.

Interpretation
2 In this Act, unless the context otherwise requires –

“Agency” means the Corporate Income Tax Agency established by this Act;
“Bermuda Constituent Entity Group” has the meaning given to that term in the
CIT Act;
“Board” means the board of directors of the Agency;

“CIT Act” means the Corporate Income Tax Act 2023;

“Minister” means the Minister of Finance;

“tax liability” means the liability of a Bermuda Constituent Entity Group under
 the CIT Act (or any related regulations) to pay corporate income tax
thereunder, provided that such liability shall only be crystallised and payment
in respect of such liability shall only become due and owing following the end
of the fiscal year to which such tax liability relates, and only in accordance
with any relevant regulations or other legislative provisions governing the
administration of Bermuda’s corporate income tax regime; and
“tax receipts” means any monies collected or paid in respect of a tax liability
(including a prospective or estimated tax liability).

PART II

THE CORPORATE INCOME TAX AGENCY

Establishment of Corporate Income Tax Agency

3 (1) There shall be established an Agency to be known as the “Corporate
Income Tax Agency” which shall have such powers and shall perform such functions
as are assigned to it by this Act, the CIT Act and any related regulations.

(2) The Agency shall be a body corporate having perpetual succession and a common
seal and, subject to this Act, shall have power to acquire, hold and dispose of movable
and immovable property of whatever kind and to enter into contracts and to do all
things necessary for the purposes of its functions.

(3) The Agency may sue and be sued in its corporate name and may for all purposes
be described by that name.

(4) The seal of the Agency shall be authenticated by the signature of any director of
the Agency or any other member of the Agency authorised to act in that behalf and
shall be judicially and officially noticed.

(5) All documents, other than those required under law to be under seal, made by, and
all decisions of, the Board may be signified under the hand of any director of the
Agency or any person authorised to act in that behalf.

(6) The Agency in the exercise of its functions shall act as agent of the Crown and
shall be subject to any general or particular directions given to it by the Minister.

Board of Directors
4 (1) The governing body of the Agency shall be a board of directors consisting,
of a Chairman appointed by the Minister, together with six additional directors
appointed by the Minister.

(2) In making any appointment to the Board the Minister must have regard to and only
appoint those individuals which, in his reasonable opinion, have significant experience
and expertise in the fields of one or more of accountancy, law, taxation or financial
services.
(3) Notwithstanding subsection (2), no person shall be appointed to the Board (or shall
remain appointed to the Board)-

(a) if he has been or is declared bankrupt or insolvent under the law of any
country and has not been discharged or rehabilitated or if he has made
a composition with his creditors and has not paid his debts in full;
(b) if he is incapacitated by physical or mental illness or infirmity so as to be
unfit to perform his duties as a director;

(c) if he has been sentenced to imprisonment without the option of a fine or

has been convicted of an offence involving dishonesty;

(d) if he is delinquent on the payment of any taxes for which he, or any
business of which he is a majority owner, is liable; or

(e) if he has such financial or other interest, whether in the operations of the
Agency or otherwise, as in the opinion of the Minister is likely to affect
prejudicially the performance of his functions as a director.

(4) If a member of the Board has any direct or indirect interest in any dealing or
business with the Agency—

(a) he shall disclose his interest to the Board at the time of the dealing or
business being negotiated or transacted; and
(b) he shall have no vote in relation to the dealing or business, unless the
Board has resolved that the interest does not give rise to a conflict of
interest.

(5) Subject to any directions given by the Minister, the Board shall have the general
oversight of the property, income and funds of the Agency and of the affairs and
concerns thereof, provided that the day to day management of the Agency shall, in
accordance with section 5, be the responsibility of the Chief Executive Officer, and
provided further that the Board shall not:

(i) be entitled to pass upon or countermand the actions and decisions of

the Chief Executive Officer (as assisted by the Agency staff) in respect
of the affairs or tax liability of individual taxpayers (which for these
purposes shall mean Bermuda Constituent Entity Groups and their
constituent members); or
(ii) have access to information pertaining to any individual taxpayer or
such taxpayer’s tax liability, except on a “need to know” basis.

(6) The affairs and proceedings of the Board shall be regulated in the manner set out
in the First Schedule.

The Chief Executive Officer

5 (1) Subject to subsection (5), there shall be appointed by the Board, following
consultation with and approval by the Minister, a Chief Executive Officer, who shall be
an employee of the Agency, but who shall not be a director.
(2) The remuneration, emoluments, terms and period of service of the Chief Executive
Officer shall be recommended by the Board and shall thereafter be fixed by the
Minister on recommendation of the Board, and shall not be altered save with like
approval or pursuant to the terms of a contract of employment approved in the same
manner.

(3) The Chief Executive Officer shall be responsible for the day to day management
of the Agency which shall include, without limitation-

(a) administration and enforcement of the tax regime prescribed in the CIT
Act and any related regulations;
(b) providing for the allocation and effective utilisation of all of the Agency’s
human resources;
(c) determining requirements for the training and development of Agency
personnel;

(d) establishing policies and procedures for the operation of the Agency
including, without limitation, in relation to tax administration and the
establishment, oversight and approval of any rulings, determinations or
settlements made by the Agency pursuant to Part III of this Act;

(e) managing the Agency’s budget and expenditure during the course of the
financial year;

(f) preparing the draft budget and annual report of the Agency; and

(g) commissioning, establishing and managing such infrastructure as the

Agency may require for the discharge of its functions.

(4) In discharging his responsibilities, the Chief Executive Officer may delegate his
powers to the staff of the Agency as he shall see fit.

(5) When there is a vacancy for the Chief Executive Officer and there are insufficient
directors then in office to form a quorum for the Board, in the interests of the continuing
functioning of the Agency, the Minster shall have the power to make a temporary
appointment of an interim Chief Executive Officer, who shall hold office for no more
than 12 months on such terms as the Minister may determine.

Staff of the Agency

6 (1) In addition to the Chief Executive Officer, the Agency shall employ such
staff and hire such consultants as may be necessary for the proper carrying out of its
functions and such staff or consultants shall be employed or retained on such terms
as the Chief Executive Officer may determine, subject to such guidelines as the Board
may establish from time to time.

(2) The Government may at the request of the Agency provide it with such consultants
and/or second to it any public officer or other Government employee on such terms
and conditions as may be agreed.
(3) The Agency shall be responsible for the payment of the salaries and wages and
for the cost of all emoluments of the Chief Executive Officer and other staff of the
Agency including those of any public officers, consultants or Government employees
seconded to the service of the Agency.

(4) If any person in Government employment in a pensionable office is seconded to

the Agency then for the purposes of computing the time and amount of his service for
the purposes of his Government pension the period of his secondment shall be
deemed to be service in his pensionable office.

(5) The Minister may require the Agency to pay into the Consolidated Fund such
amounts as he may determine to reimburse the Government in respect of pensions
payable by the Government to public officers who have been seconded to the Agency
under this section.

General functions of the Agency

7 (1) The Agency shall be responsible for the administration of the CIT Act and
the collection of tax receipts including, without limitation-

(a) aiding and providing support to taxpayers (including by way of

determinations pursuant to Part III of this Act);
(b) administering the processes and procedures for the filing of tax returns
and the calculation of taxes owed;
(c) reviewing and where appropriate auditing tax returns and ensuring
compliance more generally with the CIT Act and any related regulations;
and
(d) prosecuting any enforcement action in connection with or under the CIT
Act or any related regulations (including concluding such enforcement
action pursuant to a settlement agreement made in accordance with
Part III of this Act).

(2) Notwithstanding the above, the Agency shall be entitled and empowered to issue
and update any guidance or “frequently asked questions” relating to this Act, the CIT
Act or any related regulations.

(3) In exercise of its functions, the Agency shall, subject to the provisions of this Act,
have the capacity, rights, powers and privileges of a natural person.

Tax exemption
8 The Agency shall be deemed to be an agent of the Crown for the purposes of
section 4 of the Stamp Duties Act 1976.

Tax receipts
9 Notwithstanding any other provisions of this Act or any related regulations,
tax receipts shall not form part of the Agency’s property.
Funds and budget of the Agency
10 (1) The funds of the Agency shall consist of-

(a) grants from the Government out of moneys appropriated by the

Legislature for the purposes of the Agency;
(b) any loan or advance to the Agency; and

(c) any moneys accruing to the Agency in the course of the discharge of its
functions.

(2) The financial year of the Agency shall be the Government financial year.

(3) The Agency shall, not later than four months (or such shorter period as the
Minister may allow) before the commencement of each of its financial years
commencing on or after 1 April 2025, submit to the Minister for his approval a draft
budget that has been approved by the Board in such form and in such detail as the
Minister may require in respect of the Agency’s expenditure on operations in that
financial year.

(4) The Agency shall submit as soon as may be known to the Minister for his
approval any proposed amendments to any such draft budget.

(5) Any such draft budget and any such amendments, when approved by the
Minister for any financial year, shall constitute the Agency’s expenditure budget for
that financial year.

(6) The Agency shall not without the Minister’s approval spend in total in any
financial year more than the total amount of expenditure approved by the Minister for
that financial year.

(7) The Minister may lay down in writing guidelines to be observed by the
Agency in the management of the Agency’s expenditure budget (“Ministerial
guidelines”), and the Agency shall comply with any such guidelines.

Borrowing powers
11 (1) The Agency may, with the approval of the Minister and subject to such
conditions as he may determine, borrow moneys to enable it to discharge its functions
under this Act and to meet its obligations.

(2) The powers of the Minister under this section shall extend to the amount, the nature
and sources of the borrowing, and the time at and conditions on which the borrowing
may be effected, and his approval may be either general or limited to a particular
borrowing.

(3) Failure to enquire whether the borrowing of any money is within the power of the
Agency shall not preclude a person lending such money to the Agency from enforcing
the contract under which the money is lent.
Guarantees by Government
12 (1) The Government may guarantee, by the undertaking of the Minister, in
such manner and on such conditions as he thinks fit, the payment of the principal and
interest on any authorized borrowings of the Agency.

(2) Any sums required by the Government for fulfilling any guarantee under this Act of
borrowings of the Agency are hereby charged upon the Consolidated Fund.

(3) As soon as may be practicable after any guarantee is given under this section, the
Minister shall lay before both Houses of the Legislature a statement of the guarantee
so given.

Investments
13 If the Agency at any time has moneys that it does not require for its purposes
for a foreseeable period, it may invest those moneys in such manner as the Minister
may approve.

Accounts and audit

14 (1) The Agency shall prepare books and records of account.

(2) The Agency shall prepare in respect of each financial year commencing on or after
1 April 2025, a statement of account which shall be approved by the Board and shall
include-

(a) a balance sheet, a statement of income and expenditure and a statement

of surplus or deficit; and

(b) such other information in respect of the financial affairs of the Agency as
the Minister may require.

(3) The books and accounts of the Agency shall be audited within a period of [six]
months after the end of each financial year by the Auditor General, or an auditor
appointed by him.

Annual report
15 (1) The Agency shall, as soon as practicable, and in any case not later than
six months after the end of each financial year ending on or after 31 March 2026,
submit an annual report approved by the Board to the Minister on the activities of the
Agency.

(2) The Minister shall as soon as practicable after receiving the report of the Agency,
lay such report before both Houses of the Legislature.

PART III
 DETERMINATIONS AND SETTLEMENTS

Determinations by Agency
16 (1) The Agency shall be empowered and authorised to issue determinations
on the application of the CIT Act or any related regulations to a specific transaction or
event.

(2) The Agency will only exercise its power to issue a determination where there is a
demonstrable material uncertainty about the tax consequences of the proposed
transaction or event, and will only provide a determination where it has been supplied
with:

(a) the full facts and context of the transaction or event including details of
when the transaction or event occurred or is intended to occur and the
parties involved;
(b) the commercial background relevant to the requested determination
including the significance of the tax result and the consequences of any
alternative legal interpretation;
(c) the legislative uncertainty in question; and

(d) payment of such fee as may be prescribed by the Agency from time to
time.

(2) The Agency shall not issue a determination where, in its reasonable opinion:

(a) the questions posed for determination are equivalent to tax planning
advice;
(b) there is not any material uncertainty; or

(c) the questions do not involve the interpretation of tax law or its application
to particular circumstances.

(3) Any determinations made the Agency under this section shall be in writing and
may, if the Agency considers that they have general application, be adapted and
published as guidance in accordance with the Agency’s powers under this Act.

(4) A determination made by the Agency under this section shall be binding as against
the Agency and the Crown.

Settlements and compromises

17 (1) Where a dispute has arisen between the Agency and any taxpayer on a
specific issue or liability under the CIT Act or any related regulations, the Agency shall
have the power, assisted by external counsel if it deems necessary, to conduct and
conclude settlement negotiations in respect of such issue or liability.
(2) Where the Agency determines that it is proper and appropriate to settle any such
dispute, it may enter into an agreement with the taxpayer to whom the dispute relates.

(3) In determining whether it is proper and appropriate to settle a dispute, the Agency
must take into account which outcome secures the right tax most efficiently including:

(a) securing the best practicable return for the Crown having regard to the
future as well as immediate revenue flows, costs, and the deterrent effect
on non-compliance;
(b) the potential for other prospective disputes as well as the impact which
settling the dispute could have in releasing Agency resources to work on
other matters;

(c) the Agency’s likelihood of success if the disputed matters are litigated and
the costs involved in any such litigation (including the likelihood of
recovery of such costs); and

(d) how the terms on which disputes are resolved will likely impact taxpayer
behaviours both generally and in respect of the specific taxpayer
concerned, including any question of avoidance, evasion or a failure to
take reasonable care,

provided that, notwithstanding any of the foregoing, where there is a range of possible
figures for tax due, the Agency shall not settle by agreement for an amount which is
less than that which is reasonably likely to be obtained through litigation.

(4) An agreement shall be a final agreement which conclusively determines, settles

and compromises the liabilities which are the subject of such agreement provided
there is an absence of fraud, malfeasance or misrepresentations of material facts or
circumstances.

(5) The Agency shall provide a quarterly summary of all settlements reached to the
Board as soon as practicable following the end of the relevant quarter.

(6) Notwithstanding subjection (5), the Agency shall provide such reports and/or
information on settlements to the Minister as he may require to assist in the
performance of his duties.

Oral guidance
18 (1) The Agency shall not issue any oral determinations, nor shall it respond to
any oral request for the same.

(2) Any statement made orally by the Agency may not be relied upon.

PART IV
 GENERAL AND MISCELLANEOUS

Immunity from suit

19 (1) No action, suit, prosecution or other proceeding shall be brought or
instituted personally against an officer, employee or agent of the Agency in respect of
any act done bona fide in pursuance or execution or intended execution of this Act or
any other Act or any regulations made thereunder.

(2) Where any officer is exempt from liability by reason only of subsection (1), the
Agency shall be liable to the extent that it would be if that officer were an employee or
agent of the Agency.

(3) Neither the Agency nor any person who is, or is acting as, an officer, employee or
agent of the Agency is liable in damages for anything done or omitted in the discharge
or purported discharge of the Agency’s functions under this Act or any other Act and
regulations made thereunder unless it is shown that the act or omission was in bad
faith.

(4) For the purposes of this section, “agent” includes an auditor, accountant or other
person who by or under any statutory provision is under a duty to give notice of, or
report on, any fact or matter to the Agency for the purposes of its functions.

Confidentiality
20 (1) Except in so far as may be necessary for the due performance of his
functions under the Act or any other statutory provision, and subject to subsection (3)
any person who is, or is acting as, an officer, employee, agent or adviser of the Agency
shall preserve and aid in preserving confidentiality with regard to all matters relating to
the affairs of the Government or the Agency or of any person that may come to his
knowledge in the course of his duties.

(2) Any such officer, employee, agent or adviser who communicates any such matter
to any person other than the Minister, the Board or another officer, employee, agent
or adviser of the Agency authorised in that behalf or suffers or permits any
unauthorised person to have access to any books, papers or other records relating to
the Government or the Agency, or to any person, commits an offence, the penalty for
which, on conviction, shall be as follows-

Punishment on summary conviction: a fine of[ up to $50,000 or imprisonment for up to

two years or both.

Punishment on conviction on indictment: a fine of up to $100,000 or imprisonment for

up to five years or both.]1

(3) Subsection (1) does not preclude the disclosure of information:

1
Penalties subject to policy decision.
 (a) to the Minister in any case in which the disclosure is for the purpose of
enabling or assisting him to discharge his statutory functions or is in the
public interest;
(b) to the Bermuda Monetary Authority for the purposes of enabling or
assisting it in the discharge of its statutory functions;
(c) to the Registrar of Companies for the purpose of enabling or assisting
him to discharge his statutory functions;
(d) to the Office of the Tax Commissioner for the purpose of enabling or
assisting him to discharge his statutory functions;

(e) to the Financial Intelligence Agency, established under section 3 of the

Financial Intelligence Agency Act 2007, for the purpose of its functions;
(f) for the purpose of enabling or assisting the Agency to exercise any
functions conferred on them by this Act, the CIT Act or any regulations
made thereunder;
(g) if the information is or has been available to the public from other
sources;
(h) in a summary or collection of information framed in such a way as not to
enable the identity of any individual taxpayer;
(i) for the prevention, detection, investigation or prosecution of criminal
conduct, whether in Bermuda or elsewhere;
(j) in assistance of the carrying out of any functions of any intelligence
service; or
(k) for the purposes of assisting with the implementation of, compliance with
or enforcement of any international tax cooperation or information
sharing agreements or international sanctions measures that have
effect within Bermuda.

(4) No officer, employee, agent or adviser of the Agency shall be required to produce
in any court any book or document or to divulge or communicate to any court any
matter or thing coming under his notice in the performance of his duties under this Act
or other statutory provision, except on the direction of the court or in so far as may be
necessary for the purpose of carrying into effect this Act or other statutory provision.

(5) Notwithstanding anything to the contrary in this section the Minister, where he is of
the opinion that it is desirable so to do in the interests of internal security or for the
detection of crime, may authorise any police officer of or above the rank of Inspector
by warrant under his hand to inspect and take copies of any of the books or records
of the Agency.

(6) Where the Agency or any officer, employee, agent or adviser of the Agency
proposes to share any information pursuant to subsections (3) through (5) and such
information has been received by the Agency from a foreign tax authority, the
information in question shall not be shared without the approval of the relevant foreign
tax authority.
 Furnishing information
21 (1) Subject to this Act and any related regulations, the Agency may require
any person to furnish it at such time or times or at such intervals or in respect of such
period or periods with such information as the Agency may reasonably require to
discharge its functions under this Act, the CIT Act or any related regulations, provided
that in considering the reasonableness of its request the Agency shall act
proportionately and with due regard to any matters or privilege or data protection.

(2) Subject to this Act, where the Agency in the discharge of its functions requires
information and any person fails to comply with any requirements made by Agency
under this section, then that person is guilty of an offence and is liable on summary
conviction to a fine of [up to twenty-five thousand dollars or to imprisonment for up to
six months or both or on conviction on indictment to a fine of up to one hundred
thousand dollars or to imprisonment for up to two years or both]2.

Request for assistance by foreign tax authority

22 (1) The Agency may, subject to this section, exercise its powers under this
Act for the purposes of assisting a foreign tax authority which has requested
assistance in connection with inquiries being carried out by it or on its behalf.

(2) The Agency shall not exercise the powers conferred by section 22 unless it is
satisfied that the request from the foreign tax authority has been made in compliance
with the International Cooperation Tax information Exchange Agreements Act 2005
and, in the case of the USA, the USA Bermuda Tax Convention Act 1986.

Appeal to Supreme Court

23 (1) A person who is aggrieved by a decision (including any determination
issued pursuant to Part III) of the Agency may appeal to the Supreme Court against
the decision.

(2) On any appeal under this section, the Court may make such order, including an
order for costs, as it thinks just.

(3) Section 62 of the Supreme Court Act 1905 shall be deemed to extend to the making
of rules under that section to regulating the practice and procedure on an appeal under
this section.

2 Penalties subject to policy decision.

Consequential amendments
24 (1) Section 2 of the CIT Act is hereby amended by the insertion of the following
definitions in the correct alphabetical order-

“Agency” means the Corporate Income Tax Agency established pursuant to

the CIT Agency Act;

“CIT Agency Act” means the Corporate Income Tax Agency Act 2024;

“tax receipts” has the meaning given to that term in the CIT Agency Act;

(2) The CIT Act is hereby amended by the insertion of a new section 50A after section
50 as follows-

“Establishment of tax refund reserve fund

50A (1) There is hereby established a reserve fund to be called the “tax
refund reserve fund”, which shall, subject to this Act, the CIT Agency Act and
any related regulations, be administered by the Accountant-General pursuant
to the Public Treasury (Administration and Payments) Act 1969.

(2) The Minister may, by regulations made under this section, provide for the
treatment and allocation of tax receipts as between the tax refund reserve
fund and the Consolidated Fund, including the role of the Agency in respect
of providing assistance in relation to the same.

(3) Regulations made under this section shall be subject to the negative
resolution procedure.”

Commencement
25 This Act shall come into force on [DATE].
 FIRST SCHEDULE

1 (1) A director shall be appointed for a period of three years, beginning on such
day as may be determined by the Minister, and may, unless disqualified, be
reappointed from time to time for a like period.

(2) A director may resign his office at any time by notice in writing to the Minister.

2 The Minister may terminate the appointment of a director at any time upon at
least two weeks notice to such director and shall terminate the appointment if he is
satisfied that the director—

(a) is unable through absence from Bermuda to perform to the satisfaction

of the Minister the functions of his office;
(b) has failed, without adequate cause, to attend three successive meetings
of the Board;

(c) would be disqualified for appointment by reason of the provisions of

section 4;

(d) has made a false or incomplete declaration for the purposes of section
4; or

(e) has failed to notify the Minister of any material changes in the nature of
the financial or other interests required to be declared under section 4
which have occurred subsequent to such declaration.

3 (1) A person appointed to fill the place of a director before the end of the
director’s term of office shall hold office so long only as the vacating director would
have held office.

(2) Where the place of a director becomes vacant before the end of his term of office
and the unexpired portion of his term of office is less than three months, the vacancy
need not be filled.

4 Subject to the provisions of this Act and to any directions given to the Board
by the Minister, the Board shall meet for the dispatch of business and otherwise
regulate its meetings and procedure as it may determine.

5 There shall preside at any meeting of the Board-

(a) the Chairman; or

(b) in the absence of the Chairman, such director as those present may
elect for that meeting.

6 The majority of the directors then in office shall form a quorum at a meeting
of the Board.

7 Any question proposed for a decision by the Board shall be determined by a

majority of the votes of the directors present and voting at a meeting of the Board at
which a quorum is present; each director present shall have one vote on a question
proposed for decision by the Board and, in the event of an equality of votes, the person
presiding at the meeting shall have, in addition to a deliberative vote, a second, casting
vote.

8 As soon as practicable after each meeting of the Board, a copy of the minutes
of such meeting shall be forwarded to the Minister.

9 A decision or an act of the Board shall not be rendered invalid by reason only
that there is a vacancy in the directorship of the Board or a defect in the appointment
of a director or that a disqualified person acted as a director at the time the decision
was taken or the act was done or authorized.

10 If a director or his spouse or any company of which he is a director or

shareholder has any interest, direct or indirect, in any contract or proposed contract,
or in any other matter which is the subject of consideration by the Board and whereby
his interest may conflict with his duties as a director, he shall disclose the same to the
Board and shall absent himself from the meeting while the matter is being discussed
and voted upon.

11 Directors shall be paid such fees and allowances out of the funds of the
Agency as the Board may, with the approval of the Minister, determine.

12 The Board may, in its discretion, appoint (and remove) a secretary for the
purposes of assisting the Board to maintain records of the proceedings of the Board.