Opposition Leader Ralph Gonsalves has mounted a scathing rebuttal against the Companies Amendment Bill, declaring it highly damaging to the country’s public interest.
Gonsalves argues that the government’s “ease of doing business” justification is merely a smoke screen to mask massive fiscal concessions for a select group of delinquent companies and local professionals, while compliant, law-abiding businesses receive absolutely nothing.
Under the bill, non-compliant companies are instead rewarded with retroactive fee reductions and a 50% discharge of their liabilities.
A major point of contention involves local lawyers who serve as agents for external companies. Gonsalves alleges that some of these lawyers collected fees but failed to file annual declarations, causing huge non-compliance penalties to accumulate.
When these external firms threatened to sue their local attorneys for professional negligence, the administration introduced retroactive fee cuts and amnesties. Gonsalves charges that this move artificially wipes out those liabilities to shield negligent local attorneys from malpractice lawsuits and save delinquent foreign firms millions of dollars.
The Opposition also warns that the bill threatens the international reputation of St. Vincent and the Grenadines. In January 2024, the Caribbean Financial Action Task Force (CFATF) rated the country as “partially compliant” regarding transparency and beneficial ownership, noting that the Commercial and Intellectual Property Office (CIPO) does not verify beneficial ownership details beyond basic lists. By repealing Section 338(e)—the provision designed to track indirect foreign ownership through complex shell structures—the government creates a major regulatory loophole.
Gonsalves warns that this rollback, combined with a six-month enforcement suspension during the amnesty, risks drawing negative attention and potential grey-listing or blacklisting from the Financial Action Task Force (FATF).
Gonsalves questions the fiscal wisdom of the bill. Over the past five years, CIPO has generated more than EC $10.2 million, with nearly EC $5 million coming from fines and forfeitures. Giving away millions in outstanding penalties harms the public purse during a period of widening deficits and unpaid debts.
Gonsalves highlights the unfairness of this policy, noting that ordinary citizens who owe property taxes do not receive similar 50% amnesties while delinquent foreign companies are prioritized.
