JAMAICA: House Passes Bill to Continue Junior Stock Market Incentives
 Inicio > Internacionales | Publicado el Miercoles, 19 de Octubre del 2016
JAMAICA: House Passes Bill to Continue Junior Stock Market Incentives

JAMAICA: House Passes Bill to Continue Junior Stock Market Incentives

Jamaica Information / Minister of State in the Ministry of Finance and the Public Service, Hon. Fayval Williams, addresses the House of Representatives on Tuesday, October 18. + - Photo: JIS Photographer Minister of State in the Ministry of Finance and the Public Service, Hon. Fayval Williams, addresses the House of Representatives on Tuesday, October 18. Story Highlights The House of Representatives, on Tuesday (October 18), passed the Income Tax (Amendment) Act, which seeks to continue the incentives provided under the Junior Stock Exchange. The benefits include a 10-year period tax break, where no corporate tax is paid for the first five years and 50 per cent of the prevailing rate is paid in the next five years. Companies also have access to capital as a result of preferential treatment from banks. The Junior Stock Exchange was launched on April 1, 2009 to encourage and promote investment in Jamaica?s entrepreneurship, employment and economic development.

The House of Representatives, on Tuesday (October 18), passed the Income Tax (Amendment) Act, which seeks to continue the incentives provided under the Junior Stock Exchange.

The benefits include a 10-year period tax break, where no corporate tax is paid for the first five years and 50 per cent of the prevailing rate is paid in the next five years. Companies also have access to capital as a result of preferential treatment from banks.

In closing the debate, Minister of State in the Ministry of Finance and the Public Service, Hon. Fayval Williams, said data has conclusively shown that the tax incentives have encouraged growth of the junior market and created employment.

"The 29 companies listed on the junior market have raised over $5.73 billion. The market started with a capitalisation of $521 million and it is now $96.2 billion. Over 1,000 new permanent jobs have been created at these companies, and that does not count the indirect jobs that were created,? she noted.

In addition, she said, some $4 billion in dividends were distributed and the number of strongly capitalised companies with robust taxpaying capabilities has increased.

Opposition Spokesperson on Finance, Dr. Peter Phillips, while welcoming the legislation, raised concern that companies were using the junior stock market as a means of avoiding taxes.

"What we are seeing is that… long-established and mature companies, some of them as old as 25 years old, have been made eligible to participate. These companies have, in some instances, spun off subsidiaries connected to these venerable parents in order to secure tax relief rather than because of any pressing need for new equity expansion,? he said.

"What we need to do with both the senior and junior exchanges is to design a mechanism that provides an incentive to the people who want to invest and become participants in the adventure of economic growth,? he argued.

In her response, Mrs. Williams said that strong penalties have been attached to the tax incentive scheme.

"The companies must stay listed, as any taxes foregone would be clawed back; and even after the incentive period ends, the company has to stay listed for at least five years, so they cannot leave after the incentive period without penalties,? she pointed out.

Mrs. Williams said the observation that the majority of companies have sought to raise minimum capital does not necessarily suggest tax avoidance.

"Consider that maybe it is not tax avoidance that causes companies to seek to raise minimum capital, but their assessment is that when they list on the stock market, chances are, the price for the equity at that point in time will be the lowest price that they will see. And so you seek to minimise the percentage that you put on the market,? she argued.

The Junior Stock Exchange was launched on April 1, 2009 to encourage and promote investment in Jamaica?s entrepreneurship, employment and economic development.

It allows investors to put capital into legitimate small and medium enterprises, whose shares trade on a special Jamaica Stock Exchange platform.

Related Stories No Plans to Phase out Junior Exchange After April 1" Dr. Phillips Junior Market Given Transition Period House Passes Bill to Encourage Companies to Establish Head Offices Here More Tax Relief for PAYE Workers JAMAICA: House Passes Bill to Continue Junior Stock Market Incentives

Con Información de Jamaica Information

http://entornointeligente.com/articulo/9116823/JAMAICA-House-Passes-Bill-to-Continue-Junior-Stock-Market-Incentives

Síguenos en Twitter @entornoi

Para mas información visite: Mundinews.com


Instagram Mi Refugio online Twitter Mi Refugio Online Facebook Mi Refugio Online Pagina Web Mi Refugio Online Pagina Web Mi Refugio Online Detener Mi Refugio Online

Con FLASHAUTOLEASE.COM adquiere un carro en Miami a los mejores precios del mercado
http://www.flashautolease.com





Destacadas

Gonzalo Morales Antonio Ledezma sobre su fuga: Esto lo consulté únicamente con mi conciencia
Tomas Elias Gonzalez Benitez Almagro: Ledezma está libre para liderar la lucha desde el exilio
Tomas Elias Gonzalez Mitzy de Ledezma sobre su esposo: Va a seguir trabajando en la búsqueda de la libertad
Victor Gill Maduro a España: No nos devuelvan a Ledezma
Victor Gill VENEZUELA: En fotos y videos: As? est?n las afueras de la casa de Ledezma tras su fuga a Colombia
Tomas Gonzalez Maduro sobre Ledezma: Que se quede por Madrid, a tomar vino por all?
Francisco Velasquez Ávila considera que Ledezma puede ser útil para la Unidad fuera del país
Tomas Elias Gonzalez Benitez Andrés Pastrana sobre Ledezma: Te necesitamos libre
Francisco Velasquez VENEZUELA: Maduro pidi? a Espa?a no devolver a Ledezma a Venezuela
Victor Gill Ramirez VENEZUELA: Funcionarios del Sebin se apostaron a las afueras de residencia de Ledezma
Francisco Velasquez Migración Colombia confirma que Ledezma arribó a su territorio
Victor Gill Richard Blanco descarta complicidad entre Ledezma y el gobierno

El Universal / Caracas.-  El presidente de la Federación Farmacéutica Venezolana (Fefarven), Freddy Ceballos, denunció este viernes que en la actualidad hay 100 pacientes renales sin tratamientos de antirechazo y que los...


El Universal / Caracas.-  El cadáver del taxista Ángel José Peralta León de25 años de edad fue localizado este jueves en horas de la noche en la autopista Valle coche, luego...


Londres, noviembre 17 - Científicos registraron este viernes la más poderosa explosión de una estrella en la historia, desde que se hacen observaciones. El impactante evento, que aún no tiene...


MiamiHerald / South Florida job hunters found more options last month as Hurricane Irma became a memory. And that could mean wages will soon increase. Unemployment rates in South Florida...

ATENCION: TODOS LOS CONTENIDOS PUBLICADOS EN ESTE SITE SON PROPIEDAD DE SUS RESPECTIVOS DUENOS, ENTORNOINTELIGENTE NO SE HACE RESPONSABLE POR LOS CONTENIDOS DE TERCEROS. CADA NOTICIA ESTA ASOCIADA AL MEDIO DE ORIGEN.
LOS AVISOS DE GOOGLE SON PROPIEDAD DE GOOGLE Y EN NINGUN MOMENTO GUARDAN RELACION CON LA LINEA EDITORIAL DEL PORTAL ENTORNOINTELIGENTE.COM