As at March 31, some 60,373 companies were in default for not filing with Government the required Annual Return information about their companies for three-plus years - and defaulters can be struck off the Companies' Register if they aren't up to date on annual returns and other documents.
Local Government Minister Faris Al-Rawi indicated this during debate on the Miscellaneous Provisions (Global Forum) bill 2024 in the House of Representatives last Friday, noting an advertisement by the Registrar General about the number of companies.
The bill is geared to assist T&T in being removed from the European Union's blacklist concerning non-cooperative tax jurisdictions and the Global Forum's non- compliant list concerning transparency and tax exchange issues. The bill, which was passed in the HOR, will be debated in the Senate on Tuesday.
Al-Rawi said the Global Forum (GF) comprised 16 states that came together to deal with tax matters and tax evasion, and ensure the base of taxation is as wide as it can be. He said T&T's current blacklist status by the GF originated in 2011, when the past People's Partnership government promised that in its term, T&T would accept all of the requirements necessary to become GF compliant.
He said the bill involved legislatively completing amendments required of T&T by GF inspection.
On aspects of the bill concerning companies, Al-Rawi said Government discovered issues in 2019 and put to the GF an amendment on the Companies Act which involves matters that a company has to record - directors, registered office etc.
He said, "In this law, all companies must, upon incorporation, have a shareholder identified and an agreement must be had among shareholders to identify shareholders - those who are nominees and those who are beneficial owners. In other words, if you have somebody pretending to own the share, you need to know. This is how you 'follow the money'."
"Be it a property that was purchased via a corrupt contract or owned by a company with somebody pretending they own it but the real owner is a person somewhere else. Or be it activities of a criminal nature - firearms importation or drugs using companies that are defunct or using nominee shareholders - we've discovered by the 'Follow the Money' process that it's imperative to have shareholders identified."
Al-Rawi said the Registrar General's recent advertisement gave public notice that someone is to look for the striking-off of their company (from the Companies Register) if they aren't up to date on annual returns and other documents.
He said one "would no longer have to pay $10,000 a day" in the newspapers.
"It's on the website," he stated, although giving no explanation.
He said the Registrar General, under the bill and other laws, now has the obligation to scrutinise the company's records to ensure documents and filings are accurate.
He said the Registrar General's advertisement stated that an audit of Companies' Register at March 31, 2024, indicated that approximately 60,373 companies are in default of the companies' law for not filing annual returns for three or more years.
Al-Rawi added, "This means Government is paying attention to all corporate filings and other documents to ensure transparency ... we're ensuring owners of companies are identified by their shareholding."
He said Government cannot proclaim some of the bill until the GF has certified T&T is compliant with confidentiality and information technology arrangements and there are other prerequisites required.
