Exit

CONSULTATION ON PROPOSED AMENDMENTS TO THE BUSINESS LICENSE ORDINANCE & REGULATIONS

This consultation paper is being issued to seek feedback from businesses, stakeholders, consumers, industry associations, practitioners and any other interested parties (“Consultees”) in regard to the proposed amendments to the Business Licensing Ordinance & Regulations (the “Proposal”).
 
The Inland Revenue Department (“IRD”) is therefore, seeking feedback, comments and suggestions on the Proposal.
CONSULTATION ON PROPOSED AMENDMENTS TO THE BUSINESS LICENSE ORDINANCE & REGULATIONS

Question Title

* 1. Are you or do you represent any of the following?

Question Title

* 2. How many businesses do you have?

Question Title

* 3. Which category does your license/business fall?

Question Title

* 4. Do you believe that the current business licensing process requires review?

Question Title

* 5. Business licenses are currently only valid for one (1) year from 1st April-31st March. At the end of this period, licenses must be renewed. Do you believe that licenses should be issued for multiple years?

Question Title

* 6. If you are in agreement for a multi-year license, do you believe it should be for a period of

Question Title

* 7. There is a proposal for the establishment of a Board to consider applications for business licenses. Do you agree that the establishment of a board would be the best option?

Question Title

* 8. If no, please select one of the following:

Question Title

* 9. Select the powers that the board should have:

Question Title

* 10. 1.          The recommendation is for the Board to be comprised of the following:

              - Director of Trade and Fair Competition;

              - The head of the Inland Revenue Department;

              - The legal advisor to the Ministry of Finance; and

             - An economist from the Strategic Policy and Planning Department

Do you agree with this composition?

Question Title

* 11. How often should the Board meetings should convene?

Question Title

* 12. The proposed amendment will remove the decision in regards to appeals and vest it in the Minister of Finance. The Minister will therefore have the authority in reference to appeals to do the following:

-  Overturn any decision of the Board;

-  Direct the Board to issue licenses and determine if there should be imposed any special terms and conditions and what;

-  Direct the Board to cancel conditions and substitute/impose with another; and

-  Restore licenses that have been suspended/revoked.                           

Do you agree that the authority detailed above should be vested in the Minister?

Question Title

* 13. If the response to the above is No, which of the following do you believe it should be vested in:

Question Title

* 14. Special conditions for licenses are currently determined by the Permanent Secretary, Finance. The proposed amendment is to have this done by the Minister in consultation with Cabinet. Do you:

Question Title

* 15. Do you agree that self-employed work permit holders should disclose their intention to hire others who will require work permits, during the application process?

Question Title

* 16. Do you think that Turks & Caicos Islanders are the genuine benefactors of the reserved business activities or businesses in general?

Question Title

* 17. The current term “Turks & Caicos Islander” in the context of business licensing means that the Turks & Caicos Islander holds 51% or more shareholding in the case of a Partnership and Company. The proposal is therefore to change it to the following:

 -  Either add a category which gives 100% ownership meaning Turks & Caicos Islander will retain full ownership and there can be no outside investment; and/or

-  Change the current meaning to give a 2/3 majority minimum, meaning the Turks & Caicos Islander must have a minimum 67% shareholding or more.
                           
Select your preferred option for the allocation of majority/complete Turks & Caicos Islander ownership:

Question Title

* 18. Are you aware that there is fronting (holding or applying for a business on behalf of a person not qualified) of business licenses by Turks and Caicos Islanders?

Question Title

* 19. Should fronting be made an offence?

Question Title

* 20. Please indicate how licensees found to be fronting should be treated:

Question Title

* 21. There is a classification of “restricted business activities” under Schedule 4 which requires consultation with the Minister. There are currently eighteen (18) activities which have been classified as restricted business activities. These include commercial fishing activities, commercial marine produce processing plants, distilleries, medical practices, law firms between 4-6 and greater than 6 and ambulance and emergency services etc.

It has been proposed that there be a reclassification of this, meaning that this classification be abolished and the business activities listed under the “Restricted” category be placed in the “reserved” category and some in the general category. Do you:

Question Title

* 22. There is a proposal to amend sections 3 & 6 of the Ordinance which now allow for the imposition of fines for non-compliance to be enforced by Officers of the Inland Revenue Department. Do you agree that the Inland Revenue Department and Permanent Secretary, Finance should be permitted to do so?

Question Title

* 23. Under section 7 of the Ordinance a license is not transferrable. The proposed  amendment to section 7 will expand the scope of the restriction on the transference of licenses to include partnerships and companies. Do you agree with this proposal?

Question Title

* 24. Do you think that licenses should be transferred/transferrable?

Question Title

* 25. Do you think that when shares are transferred and this affects the threshold of holding a business, a license should automatically be terminated?

Question Title

* 26. Amendment to section 10 streamlines the process for suspension & revocation of licenses.  (Please refer to page 16 of the “Proposed Amendments to Existing Provisions” table in the Consultation Document) Do you

Question Title

* 27. Under the current regime where an application is not renewed by the 30th April it is not cancelled but accrues penalties for late renewal. This amendment will see licenses automatically cancelled on 1st May and license holders will have to reapply. Should licenses:

Question Title

* 28. The new amendment will also see those who fail to renew at the end of the licensing period commit an offence under section 3 and be subject to fine. Do you agree?

Question Title

* 29. The Ordinance will permit the legal service of notices by email as opposed to  only hand delivery. Do you agree with this amendment?

Question Title

* 30. An administrative fee will be charged in relation to printing and photocopying of applications, certificates or related paper works. Do you think this will add to ease of doing business?

Question Title

* 31. There are several amendments recommended under the Business Licensing Regulations- (Section 24). Please select the amendments you are in agreement with:

Question Title

* 32. There will also be further amendments to the Fee Schedule. Do you agree this needs to be updated?

Question Title

* 33. Are there any amendments or information/thoughts you wish to share?

T