Relevant entities conducting relevant activities that are required to satisfy the ES Test must prepare and submit to the TIA an annual report containing prescribed information for the purpose of the TIA’s determination whether the ES Test has been satisfied in relation to that relevant activity within twelve months after the last day of the end of each financial year.
For companies, limited liability companies, limited liability partnerships and registered foreign companies, this obligation is in respect of the financial year commencing on or after 1 January 2019 (for example, where the financial year is 1 January 2020 to 31 December 2020, such entity would be required to submit the first annual report on or before 31 December 2021.
As mentioned above, entities that re-registered as “registered persons” with CIMA prior to 15 January 2020 have only been required to comply with the ES Act in respect of fund management business since the date of re-registration. Therefore, such entities were not be required to file a first annual report until 2021.
General partnerships, limited partnerships, exempted limited partnerships and registered foreign limited partnerships that are conducting relevant activity are required to submit an annual report no later than twelve months after the last day of the end of each financial year of the relevant entity commencing on or after 1 July 2021. For example, if such a partnership has a financial year end of 31 December, the first financial year after 1 July 2021 will commence on 1 January 2022. The end of that financial year will be 31 December 2022. The partnership would be required to file an economic substance annual report by 31 December 2023. That being said, as noted above, general partnerships, limited partnerships, exempted limited partnerships and registered foreign limited partnerships formed on or after 30 June 2021 must have satisfied the ES Test from the date the entity starts carrying out a relevant activity.
Where a relevant entity that is required to satisfy the ES Test fails to prepare and submit the annual report to the TIA by the deadline, the entity may be subject to a penalty of CI$5,000 (or US$6,250) and an additional penalty of CI$500 (or US$625) for each day during which the failure to comply continues.