Asian Village Resort (Incentives) Act 1997

Link to law: http://laws.gov.ag/acts/1997/a1997-14.pdf

No. 14 of 1997. The Asian Village Resort (Incentives) 1 ANTIGUA
Act, 1997. AND

BARBUDA

[ L.S. ]

I Assent,

James B. Carlisle,
Governor-General

9th December, 1997.

ANTIGUA AND BARBUDA

1997, No. 14

An Act to provide for theimplementation of the Incentives specified
in the Agreement between the Government of Antigua and
Barbuda and the Asian Village Antigua Limited.

[ 29th January, 1998 1

WHEREAS on the 18th of February, 1997 the Government and
Asian Village (Antigua) Limited entered into an Agreement to
develop Guiana Island and certain lands in the neighbowhood into
a tourist resort, including the construction of hotels, a casino, golf
courses, tennis courts and facilities for water sports; and

WHEREAS on the 4th of June, the House of Representatives
ratified with amendments the said Agreement; and

WHEREAS in the view of the Government and Asian Village
(Antigua) Limited the Project is a economically viable and that its
implementation will bring immense economic benefits to the
people of Antigua and Barbuda, especially in the creation of
employment, the transfer of managerial and other skills to the
people of Antigua and Barbuda;

ANTIGUA
AND

BARBUDA

Short title.

Interpretation.

Regulations to
implement
provisions of this
Ad.

2 172e Asian Village Resort (Incentives) No. 14 of 1997.
Act, 1997.

NOW, THEREFORE, IT IS -

ENACTED by the Parliament of Antigua and Barbuda as
follows -

1. This Act maybe citedas the AsianVillageResort (Incentives)
Act, 1997.

2. In this Act, unless the context otherwise requires -

"the Agreement" means the Agreement dated the 18th of
February, 1997 between the Government of Antigua and
Barbuda and the Addendum to the Agreement signed on 4th
June, 1997 between the Government of Antiguaand Barbuda
and Asian Village Antigua L i t e d and attached hereto as
Schedule 11;

"Court" means the High Court or a Judge thereof;

"Concessions" means the concessions granted by the
Government of Antigua and Barbuda to the Enterprise in
consideration of the Enterprise executing the project in
accordance with the Agreement;

''Demised Property" has the meaning assigned to it in Article
I of the Agreement;

"Enterprise" means Asian Village Antigua Limited, a
company incorporated under the laws of the British Virgin
Islands, and includes any company which may legally hold
all or a -on of the rights to which Asian Village Antigua
Limited is entitled pursuant to the Agreement and this Act;

''Project" means the development described in the Agreement
to be executed by the Enterprise.

3. (1) The Cabinet may make Regulations to give effect to the
provisions of this Act.

(2) Without prejudice to the generality of sub-section (I),
Regulations may be made specifying the steps which may be taken,
and by whom they may be taken, to prevent a breach of any of the
provisions of this Act and the Agreement.

No. 14 of 1997. The Asian Village Resort (Incentives) 3 ANTIGUA
Act, 1997. AND

BARBUDA

(3) The Cabinet may, by Regulation, provide that the breach of
any regulation made under this Act shall constitute an offence and
may provide for penalties on summary conviction of a fine not
exceeding five thousand dollars.

(4) All Regulations made under this section shall be laid before
Parhament as soon as may be after they are made and if aresolution
is passed by Parliament that the sameRegulations be annulled, they
shall henceforth be void, be without prejudice to the validity of
anything previously done thereunder or to the making of new
Regulations.

4. The Court may, upon the application of the Attorney General Application for
or the Enterprise, issue an injunction restrak~ing any person from srant of injunctions.
engaging in any operation in respect of which the Enterprise has
been accorded an exclusive right or privilege under the provisions
of the Agreement, this Act or any Regulations made thereunder:

Provided that any relief granted by way of injunction against the
infringement of any such right or privilege shall cease to have effect
on the expiration of the period in respect of which such right or
privilege was granted.

5. Notwithstanding a n y b g to the contrary contained in any Exemption of
law for the time being in force - expatriates,

contractors and
consultants from
income and other

(1) Expatriates employed by the Enterprise are hereby exempt taxes on their
from income tax on their employment income and shall enjoy free ;z2fmnt
repatriation of not more than half of such employment income.

(2)Foreignum~tors, andconsultantsengagedby theEnte@se
are likewise hereby exempt from any and all taxes on income
derived from the project during the Development Period.

(3) Foreign contractors and consultants working on the project
are hereby exempt f3om withholding or other taxes from income so
derived.

6. (1) Notwithstanding anything to the contrary contained in Exemption from
any law for the time being in force the Enterprise shall be entitled impoa duty
to importmachinery, equipment, fittings, buildmg materials, motor
vehicles, boats, airmft, furniture, office equipment, and other mmsSeNicetax.
mechanical or construction material components for the project,
free' from duty, consumption tax, customs service tax and or
surcharges of any kind, but not including handling charges.

ANTIGUA 4 The Asian Village Resort (Incentives) No. 14 of 1997.
AND Act, 1997.

BARBUDA

(2) The Enterprise shall not -

(a) sell or disposeofany material which has been imported
free of customs duties, taxes, surcharges or other
impost; or

(b) use such items f a the purpose other than in connection
with an operation authorisedby the Agreement, without
the prior approval of the Government and the payment
of the appropriate customs duties and other charges
imposed by law.

(3) Where the Enterprise dsposes of; or uses any material
brought into Antigua and Barbuda in contravention of subsection
(1) the Enterprise shall pay to the Government any customs duties,
consumption taxes, customs service and surcharges which would
have been payable on such material if it had been imported in the
condition in which it was at the time of such improper disposition
or use.

Exemption of 7. (1) Notwithstandmg anything contrary contained in any law
EnteWsefiom for the time being in force the Enterprise shall, for a period
taxes On income and commencing on the 18th September, 1997 and terminating on the
profits. 17th September, 2012, be free of any and all taxes on its income or

profits.

Provided that if the Enterprise shall not be in breach of any
applicable law or in breach of any obligation under the Agreement,
the period shall be extended to terminate on 17th September, 2022.

(2) There shall becalculatedinaccordance with s~undaccounting
practices any operating loss which may exist at the expiration of the
period ending 17th September, 201 2 or 17th September 2022 as the
case may be.

Provided that no such loss shall be carried forward beyond five
years from the end of the fiscal period during which the loss has
originated. TheEnterprisemay char e to an operating account costs
incidental to the training of its loc af personnel and to the carrying
out of any benefit or pension plan on behalf of its employees.

Exemption from 8. (1) Any income of the Enterprise derived from operation of
taxes on dividends the Enterprise and distributed as dividends to its shareholders shall
to shareholders etc. be exempt from income tax payable by such shareholders of she

Enterprise out of the capital of the Enterprise, its earnings or its
retained earnings.

No. 14 of 1997. The Asian Village Resort (Incentives) 5 ANTIGUA
Act, 1997. AND

BARBUDA

(2) Where otherwise applicable on repatriation of profits,
dividends and capital, and on payment of royalties, technical and
management fees, interest, rentals or amenities, the Enterpriseshall
be entitled to free repatriation thereof and is hereby exempted from
any withholding tax and any other taxes in connection therewith.

9. The Enterprise is hereby exempt from the provisionsof section Exemption from
3 of the Foreign Currency Levy Act.

foreign levy Cap cwency 175.

10. 'IheEnterprise shallbegrantedexemption fromtheprovisions Exemption from
of the Exchange Control Act to the extent required by the Eastern ?$%; Control
Caribbean Central Bank.

11. Upon application by the Enterprise on behalf of an applicant Permission for non-
permission shall be granted to such applicant under the Non- nationals to own
Citizens Land Holding Regulations Act Cap. 364, to own shares ~ ~ ~ ~ ~ $ ' ~
and property, to be directors and to vote at general meetings of the in general
Enterprise. meetings.

12. Notwithstandmg the provisions of any other law for the time Granting of Casino
being in force - licence and

exemption from
gaming taxes and

(1) The Enterprise is hereby granted a casino licence for a casinooperations.
minimurnduration of fifty (50) years with effect from 18thFebruary,
1997 at an annual licence fee of three hundred thousand Eastern
Caribbean Dollars (EC $300,000) for the operation of the casino
during the period of the casino licence. The casino licence so
granted shall be subject to review as regards the annual licence fee
as prescribed under any law regulating casinos.

Provided that such prescribed fee shall not exceed six hundred
thousandEastem Caribbean Dollars (EC$600,000) within the first
twenty-five (25) years from the 18th September, 1997 and thereafter
shall be at the level prescribed from time to time under any law
regulating casinos.

(2) The Enterprise shall be exempted from any and all gaming
taxes in respect of all casino operations pursuant to the casino
licence granted by the provisions of subsection (1) for the duration
of the licence period.

(3) Existing casino operators are hereby prohibited from
combining their operations orbusiiess so as to achieve greaterrnass
than that of the Enterprise and are each also hereby prohibited from
moving their existing premises to within a six mile radius from the
prom andoperations of the Enterprise. Neitherare they permitted

ANTIGUA 6 The Asian Village Resort (Incentives) No. 14 of 1997.
AND Act, 1997.

BARBUDA

tomove to any larger premises than they occupied on 18th February,
1997.

(4) No casino licences may be issued without consultation with
casino operators in Antigua and Barbuda having been first notified
by the Government in advance that such an application is pending
and affording the casino operators the opportunity to make
representations with respect to possible objections.

(5) Except with respect to the wino to be built by the Enterprise,
there shall not be issued to any person any new licence for a casino
which will have a floor area greater than two thousand square feet
(2,000 sq. ft.).

(6) The casino licensed under subsection (1) shall be permitted
tooperate for three hundredand sixty-five (365) days a year, twenty
four (24) hours a day.

(7) All winnings at the casino of the Enterprise are hereby
exempt from any and all taxes, levies, dues, dudes or asry f;.m of
withholding tax and shall enjoy the right of free repatriz6:on in
respect of such winnings; provided that the casino operators have
sufficient foreign currency reserves to meet such repatriation.

(8) The management of !he casino operated by the Enterprise is
hereby granted the sole discretion to determine what currency shall
be in use in operating the casino, except that Eastern Caribbean
dollars shall not be used in operating the casino.

(9) The management of the casino operated by the Enterprise are
hereby permitted to establish minimum standards for entry in to the
resort in general and the casino in particular and the management
are hereby granted the freedom to enforce those standards and
restrict the right of admission to any member or person not meeting
those standards.

(10) The management of the casino of the Enterprise are hereby
granted the freedom to set reasonable stakes in accordance with
market demand.

(1 1) Subsections (3) to (6) shall be of no force and effect if within
three (3) years from the 18th September, 1997 the Enterprise fads
to substantially complete and commence operation of a casino in
accordance with this Act.

Exemption from 13. (1) The Enterprise shall not sell or dispose of any goods or
sales taxes, capital equipment imported free of any taxes and duties for the purposes of
gains taxes etc. the project without the prior approval of the Cabinet.

No. 14 of 1997. The Asian Village Resort (Incentives) 7
Act, 1997.

(2) TheEnterprise is hereby exempted fromthe provisionsof any
law providii for the payment of sales taxes mital gains taxes or
dutiis on g d s or equipment imported into Arhgu
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