Cricket World Cup Projects (Incentives) Act 2005

Link to law: http://laws.gov.ag/acts/2005/a2005-20.pdf

Cricket World Cup Projects (Incentives) Act 2005
No. 20 of 2005. ANTIGUA
AND

BARBUDA

1The Cricket World Cup Projects
(Incentives) Act, 2005.

ANTIGUA AND BARBUDA

No. 20 of 2005

AN ACT to provide incentives to encourage the development of
hotel accomodation and other tourism related products to
meet the demands of the Cricket World Cup 2007.

[ Published in the Official Gazette Vol. XXV No. 77
dated 1st December, 2005. ]

ENACTED by the Parliament of Antigua and Barbuda as
follows —

1. This Act may be cited as the Cricket World Cup Projects
(Incentives ) Act, 2005.

2. In this Act —

“condominium” has the same meaning assigned to it as in
section 2 of the registration of Condominium Titles Act,
Cap. 376.

“cricket world cup accommodation project” includes

(a) the construction or extension of a hotel, guest
house, a villa resort, a condominium or an upscale
residential complex; or

Short title.

Interpretation.

[ L.S.]

I Assent,

James B. Carlisle,
Governor-General.

15th November, 2005

No. 20 of 2005.ANTIGUA
AND

BARBUDA

2 The Cricket World Cup Projects
(Incentives) Act, 2005.

(b) conversion of an existing building by reconstruction
or renovation into a hotel, a guest house, villa resort,
a condominium or an upscale residential complex of
at least five bedrooms;

“cricket world cup related projects” include restaurant,
night club and catering service;

“guest house” means a building containing not less than
five bed rooms, but no more than ten bedrooms and may
also contain —

(a) one or more kitchens in which meals may be
prepared by the operator of the guest house for the
guests; and

(b) one or more dining rooms shared in common by all
the guests.

“hotel” includes any building or group of buildings
(occupied together) for the accommodation for reward of
guests and the curtilage thereof and all structures within
such curtilage, containing or intended to contain when
completed not less than ten bedrooms;

“Minister” means the Minister responsible for tourism;

“person” includes a body corporate or unincorporated
body;

“upscale residential complex” means a development of
luxury homes guided by an overall master plan which offers
a wide range of recreational facilities within the
development;

“villa resort” means a cluster of dwelling units available
for rent by holiday makers with supporting leisure facilities;

3. (1) Any person who desires to develop and operate a cricket
world cup accommodation project may apply to the Minister for
a licence to import into, or purchase in, Antigua and Barbuda
such building materials and articles of equipment in such
quantities as may be specified in the licence.

Development of
cricket world cup
accommodation
project.

No. 20 of 2005. ANTIGUA
AND

BARBUDA

3The Cricket World Cup Projects
(Incentives) Act, 2005.

(2) Every application for a licence shall be in the form
prescribed in Schedule II and shall be accompanied by the
information and documents specified in section 4.

(3) Subsection (1) does not apply to the importation or the
purchase of articles of equipment to replace articles of equipment
of a hotel, guest house, villa resort, condominium or upscale
residential complex, which have been imported or purchased
under the terms of a licence.

(4) An application under this section shall be made before
30th June, 2006.

4. (1) An application pursuant to section 3 shall be
accompanied by the following documents —

(a) certificate of ownership of the hotel, guest house,
condominium, the upscale residential complex,
restaurant, night club or catering service, in respect
of which the licence is sought;

(b) certificate of title to the land to be used for the cricket
world cup accommodation project or cricket world
cup related project;

(c) the planning approval, if any, for the cricket world
cup accommodation project or cricket world cup
related project pursuant to the Physical Planning
Act.

(d) estimated expenditure of the financial arrangements
and the source of the funds to be used;

(e) a feasiblity study forecasting economic benefits to
Antigua and Barbuda.

(f) a project feasibility study forecasting the use of the
property for tourism after the Cricket Workd Cup 2007.

(g) a certificate from the Commissioner of Inland
Revenue stating the applicant’s current status in
respect of his tax liability to the Government.

Supporting
information.

No. 6 of 2002.

No. 20 of 2005.ANTIGUA
AND

BARBUDA

4 The Cricket World Cup Projects
(Incentives) Act, 2005.

(h) an undertaking in writing that the Cricket World Cup
accommodation project or the Cricket World Cup
related project for which application is being made
shal be completed not later than the 31st December,
2006.

(i) an undertaking in writing that the cricket world cup
accommodation project or the cricket world cup
related project will be used to accommodate or
provide services to tourists throughout the period
of the tax relief.

(2) The Minister may request, in writing, from the applicant
any further information reasonably required to enable full
consideration of the application.

(3) Where the Minister makes a request for further information
pursuant to subsection (2), the applicant shall submit the relevant
information in writing within fourteen days of the request or
within such time as may be specified in writing by the Minister.

5. (1) Any person who desires to develop a cricket world cup
related project in Antigua and Barbuda may apply to the Minister
for a licence to import or purchase in Antigua and Barbuda such
building materials and articles of equipment in such quantities
as may be specified in the licence.

(2) The application shall contain all the relevant documents
required under section 4.

(3) Where the Minister is satisfied that the project will enhance
the Cricket World Cup in Antigua and Barbuda and would
continue to be operated as a tourism project, he shall submit the
application to the Cabinet for approval.

(4) An approval by the Cabinet shall entitle the applicant to
be granted the incentives specified under this Act.

6. (1) Upon receipt of an application, and the accopmanying
documents pursuant to sections 3, 4 and 5 the Minister shall
submit to the Cabinet for approval the following —

(a) the application together with all the supporting
documents; and

Cricket world
cup related
project.

D e t e r m i n a t i o n
by Cabinet.

No. 20 of 2005. ANTIGUA
AND

BARBUDA

5The Cricket World Cup Projects
(Incentives) Act, 2005.

(b) the recommendation of the Minister.

(2) Upon Cabinet’s approval of an application pursuant to
this section, the Minister shall, by an Order, grant the applicant
a licence which shall, subject to this Act, enable the applicant to
enjoy the tax reliefs specified in the order.

(3) The licence shall specify —

(i) the tax reliefs and exemptions approved by
the Cabinet;

(ii) the commencement and termination dates for
the tax reliefs and exemptions granted;

(iii) the time frames for completion of the cricket
world cup accommodation project or the
cricket world cup related project;

(iv) the condition that the cricket world cup
accommodation project or the cricket world
cup related project must be used as
accommodation for tourists to Antigua and
Barbuda during the Cricket World Cup 2007
and throughout the period of the tax relief;

(v) the condition that the tax reliefs and
exemptions for the importation of building
materials and articles of equipment shall take
effect subject to the approval of —

(a) the Town and Country Planner of the
plans and designs of the cricket world
cup accommodation project or the
Cricket World Cup related project;

(b) the Director of Public Works of the
specification, quantity and quality of
building materials and articles of
equipment for the cricket world cup
accommodation project or the cricket
world cup related project.

(vi) any other conditions as it deems necessary.

No. 20 of 2005.ANTIGUA
AND

BARBUDA

6 The Cricket World Cup Projects
(Incentives) Act, 2005.

7. The Minister shall publish the Order made pursuant to
section 6 in the Gazette.

8. (1) The Minister shall designate an officer within the
Ministry of tourism to assist applicants to obtain all necessary
licences and Government approvals for the execution of the
project.

(2) Any person who applies for a licence in connection with
the development of a cricket world cup project or cricket world
cup related project shall, as soon as practicable, inform the officer
designated under subsection (1) of such application.

(3) On receipt of information pursuant to subsection (2), the
designated officer shall liaise with the Ministries and statutory
bodies concerned with the issue of the licences and facilitate
the approval of the licences applied for.

(4) Until all applications for licences and approvals have been
granted, the designated officer shall provide the Minister with a
weekly report of the status of each application and the efforts
being made to facilitate the expeditious issue of the licenses and
approvals.

9. (1) The Minister shall revoke any Order made pursuant to
section 7, if the licensee fails;

(a) to complete the cricket world cup accommodation
project or the cricket world cup related project within
the time specified in the order; or

(b) to use the cricket world cup accommodation project
or the cricket world cup related project for the
purposes for which the incentives were granted.

(2) Where the Minister revokes an order made under
subsection (1), all tax reliefs or exemptions specified in the licence
shall be suspended or cancelled, with effect from the date
specified in the order and the licensee shall be liable to pay the
Government the amount of any tax relief or exemption already
received pursuant to the licence.

Failure to
comply with
conditions
specified in an
order.

Minister to
make an order.

Fast track
licensing.

No. 20 of 2005. ANTIGUA
AND

BARBUDA

7The Cricket World Cup Projects
(Incentives) Act, 2005.

(3) The amount of any tax relief or exemption to be paid to the
Government under subsection (3) shall be recovered as a debt
due to the Government from the licensee.

10. (1) Where the financing of the development and operation
of a cricket world cup accommodation project or other Cricket
World Cup related project is wholly or partly obtained from a
Caricom member state, the amount of the funds so obtained
shall, subject to subsection (2), be deducted from the income of
the financial institution before assessing its tax liability.

(2) Any relief granted pursuant to subsection (1) shall be
determined in accordance with the First Schedule.

11. In the event that the Cricket World Cup 2007 is postponed
or cancelled, an applicant who has been granted tax exemption
and reliefs under this Act shall continue to enjoy such tax
exemptions and reliefs in accordance with the terms specified in
the order.

12. (1) The Minister shall appoint an officer in his Ministry to
be known as the Compliance Officer.

(2) The Compliance Officer shall be responsible for monitoring
and enforcing the compliance of the terms and conditions of
any Order published under section 7.

(3) In the performance of his duties under this section, the
Compliance Officer shall, during reasonable hours, visit the
building sites and premises of the cricket world cup
accommodations project or the cricket world cup related project
to enforce compliance of the terms and conditions of the Order
made by the Minister under section 7.

(4) The owner or operator of a cricket world cup
accommodation project or the cricket world cup related project,
shall provide the Compliance Officer or any duly authorised
officer designated by him, all information relevant in the
performance of his duties under subsection (2).

(5) The Compliance Officer shall submit to the Minister a
quarterly report on the progress and performance of the

Cancellation of
cricket world
cup.

Monitoring and
enforcement of
compliance of
the terms and
conditions of a
licence.

Tax relief for
financial
institutions.

No. 20 of 2005.ANTIGUA
AND

BARBUDA

8 The Cricket World Cup Projects
(Incentives) Act, 2005.

operations of the cricket world cup accommodation projects
and other cricket world cup related projects.

13. Where a cricket world cup accommodation project or a
cricket world cup related project is sold or transferred during the
tax holiday period but continues to be used for the purpose
which the tax relief was granted, the tax relief and exemptions
provided under this Act shall continue to apply to the new owner
or lessee, as the case may be, for the remainder of the tax relief
period.

14. Cabinet may by Order published in the Gazette amend the
First and Second Schedules.

15. The Minister may make Regulations for the purpose of
giving effect to the provisions of this Act.

Amendment of
Schedules.

Regulations.

FIRST SCHEDULE

TAX RELIEFS AND EXEMPTIONS FOR CRICKET WORLD CUP
ACCOMMODATION PRODUCT

1. A corporate income tax holiday for a period based on the number of rooms in
the world cup cricket accommodation product as follows:

(a) 50 rooms and under — 15 years

(b) over 50 rooms — 25 years

The corporate income tax holiday shall only apply to the income
generated from the cricket would cup accommodation project.

2. A percentage relief on stamp duty on transfer of land, property and non-
citizens landholding licence fees based on the total number of rooms in the world
cup cricket accommodation product as follows:

(a) 50 rooms and under — 50%

(b) over 50 rooms — 100%

The exemption from property tax shall be for the duration of the period of any
income tax holiday granted, in respect of a new construction and a new extension
only.

Sale of transfer
cricket world cup
accommodation
product.

No. 20 of 2005. ANTIGUA
AND

BARBUDA

9The Cricket World Cup Projects
(Incentives) Act, 2005.

3. A percentage tax credit for financial institutions based on the quantum of the
investment as follows:

(a) EC$1 million and under — 1%

(b) Over EC$1 million and up to EC$5 million — 2%

(c) Over EC$5 million and up to EC$10 million — 3%

(d) over EC$10 million — 4%

The tax credit shall be available to a financial institution only in respect of the
tax year in which the investment was made.

4. Waiver of all customs duty and consumption tax on the imports of building
materials, and equipment, furniture of furnishings, appliances, office equipment
and vehicles to be used in the construction and operation of the business/
corporation for a period to be determined by Cabinet. Custom Service Tax to be
paid by the applicant, for the duration of the period of any income tax holiday
granted.

5. The right to repatriate all capital royalties, dividends and profit free of all
taxes.

SECOND SCHEDULE

APPLICATION FOR DECLARATION OF ACCOMMODATION PROJECT
AS A CRICKET WORLD CUP ACCOMMODATION PRODUCT AND

FOR THE GRANT OF TAX RELIEFS AND EXEMPTIONS

The owner or operator of an accommodation project who wishes to own or
operate the accommodation project as a cricket world cup accommodation product
must apply for approval to Cabinet by submitting an application in the following
form to the Minister responsible for tourism.

A. IDENTIFICATION

1. Name of Applicant

2. Nature of Applicant (corporate or unincorporate body)

3. Address of applicant (if corporate body, address of registered office)

No. 20 of 2005.ANTIGUA
AND

BARBUDA

10 The Cricket World Cup Projects
(Incentives) Act, 2005.

B. INCENTIVES SOUGHT

1. Percentage relief on property tax, stamp duty on transfer of land and non-
citizen Land Holding licence.

2. Corporate income tax holiday

3. Customs Duty and Consumption Tax Exemptions

C. DETAILS OF PROJECT OR UNDEREAKING

Background/rationale for incentives sought, including informtion on previous
application (s) for concessions if applicable. The following sholud be considered:

— Details of facilities and amenities on offer

— Profile of Applicant

— Anticipated implementation of cricket world cup accommodation product

D. PLANNING APPROVAL OF ACCOMMDATION PROJECT

(Incentives are subject to DCA aproval of the accommodation project) Has the
project received approval from Development Control Authority?

(i) DCA approval in principle

(ii) DCA full approval

Approval No ______________________________

(iii) DCA Application submitted/pending

E. FINANCING

(i) Estimated Cost of Project

(ii) Source(s) of Financing

F. PROJECT ECONOMIC BENEFITS

Indicate where applicable the economic benefits of the proposed activity to Antigua
and Barbuda to include but not be limited to employment during construction and
operational phase.

No. 20 of 2005. ANTIGUA
AND

BARBUDA

11The Cricket World Cup Projects
(Incentives) Act, 2005.

G. SIGNATURE AND CONTACT INFORMATION

(i) Name of Applicant

(ii) Signature of Applicant Date: (dd) (mm) (yr)

(iii) On behalf of (if applicable)

(iv) Address of Applicant

(v) Telephone No.

(vi) Facsimile

(vii) Email Address

This Application must be made prior to 30th June, 2006 and shall be accompanied
by the following supporting information —

(i) evidence of ownership of the accommodation project;

(ii) evidence of the land and ownership of the land to be used for the
accommodation project;

(iii) evidence of at least planning approval in principle for the
accommodation project;

(iv) estimated expenditure on the accommodation project and evidence of
the financial arrangements and the source of the funds to be used;

(v) a project feasibility study forecasting economic benefits to Antigua
and Barbuda.

(vi) a projected plan for the use of the property after cricket world cup 2007.

THIRD SCHEDULE (Application form)

[Address of applicant]

To: The Minister responsible for Tourism
c/o Ministry of Tourism
St. John’s Antigua

No. 20 of 2005.ANTIGUA
AND

BARBUDA

12 The Cricket World Cup Projects
(Incentives) Act, 2005.

Pursuant to section 3 of the Cricket World Cup (Tourism Accommodation) Incentives
Act, 2005, I/We hereby make application to the Minister for —

(a) a licence to develop a cricket world cup accommodation project or
cricket world cup related project;

(b) the grant of one or more of the tax reliefs and exemptions specified in
the First Schedule —

(i) Corporate income tax holiday 25 years

(ii) A percentage relief on stamp duty, property tax, stamp duty on
transfer of land and non-citizens landholding licence fees

(iii) A waiver of all customs duty and consumption tax on the
following items

......................................................

......................................................

......................................................

The following documents must accompany the application:

(a) Evidence of ownership of project;

(b) Land certificate or Lease Agreement.

(c) Letter setting out the percentage of relief on property tax, stamp duty
on transfer of land, corporate income tax holiday, customs duty and
consumption tax exemption.

(d) Details of project or undertaking and rational for incentives sought.

(e) Planning approval or approval in principle from DCA of accommodation
project;

(f) Financing or project, including estimated cost of project and sources
of finance

(g) Projected economic benefits of the project to the ecnomy of Antigua
and Barbuda; and

No. 20 of 2005. ANTIGUA
AND

BARBUDA

13The Cricket World Cup Projects
(Incentives) Act, 2005.

Passed by the House of Representatives this
14th day of October, 2005.

D. Giselle Isaac-Arrindell,
Speaker.

Yvonne Henry,
Clerk to the House of Representatives.

Passed by the Senate this 3rd
day of November, 2005.

Mackenzie M. Frank,
Vice President.

Yvonne Henry,
Clerk to the Senate.

EXPLANATORY MEMORANDUM

(h) Projected use of property after cricket world cup 2007.

Name of applicnat

............................................................. .............................................................
Signature of Applicant Date

Address:

Telephone:

Fax:

E-Mail.

Applications should be submitted to:
The Minster responsible for Tourism, Ministry of Tourism
Government Office Complex
Queen Elizabeth Highway
St. John’s Antigua

________
Printed at the Government Printing Office, Antigua and Barbuda,

by Eric.T. Bennett, Acting Government Printer
— By Authority, 2005.

800—11.05 [ Price$5.40 ]

ANTIGUA AND BARBUDA

THE CRICKET WORLD CUP PROJECTS (INCENTIVES) ACT 2005.

ARRANGEMENT OF SECTIONS

Sections

1. Short title.

2. Interpretation.

3. Development of cricket world cup accommodation project.

4. Supporting information.

5. Cricket World Cup related project.

6. Determination by cabinet.

7. Minister to make an order.

8. Fast track licensing.

9. Failure to comply with conditions specified in an order.

10. Tax relief to financial institutions.

11. Cancellation of Cricket World Cup.

12. Monitoring and enforcement of compliance of the terms and conditions of a
licence.

13. Sale or transfer of Cricket World Cup accommodation project.

14. Amendment of Schedule.

15. Regulations.
AN
Read Entire Law on laws.gov.ag