House approves refinements of CIT oversight body
Bills to expand the oversight of the Corporate Income Tax Agency and clarify its finances were approved by the House of Assembly today.
David Burt, the Premier and Minister of Finance, said the Corporate Income Tax Agency Amendment Act 2026 refined the legislation that governs the agency to clarify available funding and strengthen its financial management framework.
He told MPs: “The amendment confirms that income generated from any reserve or specified fund established under the regulations made pursuant to the Corporate Income Tax Act, including investment income, may be used to support the agency’s operating expenses.
“The amendment also requires the agency to establish and maintain a general reserve account into which any annual operating surplus may be transferred up to a maximum of 50 per cent of the agency’s approved budget expenses for the following financial year.”
He said the reserve would allow the body to regulate fluctuations in revenue and meet its operational needs.
Surplus funds beyond the threshold would go into the consolidated fund, unless otherwise directed by the minister.
The amendments also make changes to the community development tax credit, which was designed to encourage companies to support local charities.
The House of Assembly approved $21.4 million in supplemental expenditure caused by increased salaries.
Wayne Furbert, the Junior Minister of Finance, said an increase in negotiated salaries for public officers had resulted in $3.1 million of expenditure in the Ministry of Finance beyond what was included in the 2025-26 Budget.
However, he said about $700,000 in savings was identified in other departments, reducing the overrun to $2.4 million.
Meanwhile, Kim Wilson, the Minister of Health, said retroactive salary increases at the Bermuda Hospitals Board had resulted in the need for a $19 million supplemental.
The figure represents half of the $38 million, with the second half to be delivered next month.
Ms Wilson said hospital staff have carried a tremendous load in recent years and continue to work hard for the community.
She said the figure was not included in the original estimates because negotiations had not been completed when the Budget was prepared.
Craig Cannonier, the Shadow Minister of Health, said that while the sum was a “hefty amount” it was required, noting that hospital staff had worked for years without an increase.
Mr Burt said the legislation only offered credit for donations to charities that submit audited financial statements, but those in the charitable sector said that the policy would discourage donations to smaller charities that are not required to submit such statements.
He said: “This may inadvertently place smaller charitable organisations at a disadvantage when it comes to raising funding.
“While the original inclusion of the auditing requirement was intended to promote transparency and accountability, tax advisers have indicated that removing this requirement for the purposes of the credit would not represent a substantive change to the overall policy framework.”
Douglas De Couto, the Shadow Minister of Finance, said the OBA fully supported the Corporate Income Tax Agency and the efforts of the Government to remain in compliance with international regulations.
He added: “We have discussed how the agency would be funded, and these bits of legislation help to support that.”
The House also approved the Economic Substance Amendment Act 2026, which transfers responsibility for the economic substance regime from the Registrar of Companies to the CITA.
Mr Burt said the transition was a natural extension for the agency.
Scott Pearman, the Shadow Attorney-General, said he understands why CITA might be a better fit, and that he hoped the agency would receive additional support to meet the increased obligations.
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