The Tribune

Ministry of Finance officials fielded some 400 private sector questions last week when hosting two webinars designed to help companies meet their substance reporting obligations.

More than 450 persons attended the sessions on the Commercial Entities (Substance Requirements) Act 2018. The three-part webinar series was designed to provide companies with details on the legislation, the reporting process, and to address the various challenges businesses have been experiencing.

The Ministry of Finance also released the first of several "how to” video tutorials that will further guide companies through the substance reporting process.

“The business community has been very receptive to our ongoing outreach as there are many good faith efforts to comply with the new Commercial Entities (Substance Requirements) Act regulations. It is a new process so naturally there are many questions," said Kwasi Thompson, minister of state for finance.

"The penalties for non-compliance are quite high given the seriousness of the legislation, but they are intended as deterrents for those trying to skirt the process. So we are strengthening our efforts to help businesses who need a bit more support to complete the process and avoid late penalties.

“We listened to the concerns at the start of the year and suspended late penalties until January 31. And we listened to the concerns of those who said they needed more help to understand and work through the process. This is why the team is engaged in direct outreach, training and public education to ensure everyone is in a position to meet their obligations."

Questions raised ranged from the legislation in general to the reporting platform in particular. “The webinar sessions provided corporate service providers, business persons and, indeed, the general public with a practical, step-by-step tutorial on the process to register entities for the Commercial Entities (Substance Requirements) Act using the portal," said Alexandra T. Hall, partner, Higgs & Johnson, who participated in the webinar.

"The panellists were able to clarify certain general areas of uncertainty and were able to quickly respond to specific questions through the convenient webinar chat feature. Having the benefit of attending one of the sessions, the scope of the reporting obligations under Commercial Entities (Substance Requirements) Act is much clearer and I am pleased with the responsiveness of the Ministry of Finance in addressing any issues that may arise ahead of the reporting deadline."

Gaynell Rolle, acting comptroller of inland revenue, who co-hosted the session along with facilitator Stephen Coakley-Wells, the Ministry of Finance's director of regulatory and international affairs, said: “It has been most encouraging to see the active participation of so many entities and their representatives posing questions to ensure they are in compliance with the requirements.

"I am happy to know that most stakeholders now have an appreciation of the importance of this activity from a global perspective.” A third and final webinar is scheduled for this morning.

“In these sessions, we have attempted to explain the Commercial Entities (Substance Requirements) Act and the economic substance reporting process to as wide an audience as possible. There now appears to be a degree of comfort with the process and businesses are recognising that it is not as burdensome as was previously thought,” said Mr Coakley-Wells.