PENALTIES
A false declaration will entail the loss of IC status and attract penalties under the Income Tax Law. The maximum penalty is o5,000.
SWITCHES OF STATUS
An IC is unable to alter its status in any way. Consequently this prohibits a subsequent claim for exempt status or, in the case of captive insurance operations, an election under section 187A of the Income Tax Law (relating to the "sliding scale" basis of assessment).
CLAIM FOR RELIEF OR REPAYMENT OF TAX
In the unlikely event of a claim for relief or repayment in respect of tax deducted or authorised to be deducted from any dividend paid by an IC, any entitlement is restricted to the specified tax rate.
DOCUMENT DUTY
The aggregate document duty payable on the formation or increase in share capital of a Guernsey company shall not exceed o5,000. For example, an authorised share capital of o10m. only attracts the maximum duty of o5,000.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
For further information contact Peter Crook on Tel: +44 (0) 1481 712706 or visit the Guernsey Financial Services Commission Web Site at:
http://gfsc.guernseyci.com
