The BVI Business Companies (Amendment) Act 2022 has dealt the Cabinet Office a financial blow since coming into force, significantly impacting its annual revenue, with the Office collecting $170,000 less in fees in 2023 when compared to 2021.
This is according to the information presented by Cabinet Secretary (CS) Sandra Ward during Standing Finance Committee deliberations late last year.
Ward highlighted concerning trends in fee collection at the Cabinet Office, attributing the decline to both historical factors and recent legislative changes. She said the impact of the BVI Business Companies (Amendment) Act, 2022, which came into effect in July of the same year, has been particularly pronounced, affecting the Office’s ability to generate revenue.
During her presentation, the CS underscored the challenges faced by the Cabinet Office in fee collection over the past years, with a notable exacerbation following the enactment of the aforementioned legislation. The BVI Business Companies (Amendment) Act, 2022, introduced new residency rules for liquidations, significantly limiting the pool of available liquidators for companies undergoing the liquidation process.
Explaining the repercussions of the Act, the CS noted that the decline in the number of eligible liquidators has substantially impacted fee collection, as a significant portion of the fees traditionally stemmed from liquidation notices. This legislative shift has forced the Cabinet Office to grapple with reduced revenue streams.
Providing specific figures, the Ward revealed that for the year 2023, the Cabinet Office had collected $226,468.00. In comparison, the total for 2022 amounted to $300,342.00, and in 2021, it stood at $396,925.00. The stark decline in revenue over the years, coupled with the recent legislative changes, underscores the financial challenges faced by the Cabinet Office.