Work is “well under way” to finalise arrangements for the establishment of a tax refund reserve fund under the corporate income tax regime, the Senate heard today.

Crystal Caesar, the government spokeswoman for finance in the Upper House, said that the relevant provisions are being developed and legislation will be tabled in the House of Assembly at a later date.

She told senators: “This fund represents an important component of the corporate income tax system, ensuring appropriate management and allocation of tax revenues in accordance with international standards.”

Ms Caesar’s comments came as she presented the Corporate Income Tax Amendment Act 2025, which senators approved, further strengthening the CIT law.

The amendment will ensure that tax receipts are paid into the tax refund reserve fund rather than the consolidated fund.

Ms Caesar told the Upper House that an important milestone was reached this week when the Corporate Income Tax Agency launched its operations online.

She said the platform is “secure and digital-friendly” and that it was developed to enable corporate taxpayers to submit their payments online.

“It is further evidence of the jurisdiction’s ability to quickly and effectively develop complex change,” she added.

Marcus Jones, the Opposition leader in the Senate, said that the One Bermuda Alliance supported the amendment.

He added: “It does make sense that these amendments be brought to this chamber as we go through the stages of framing this Corporate Income Tax Agency.”

Tawana Tannock, an independent senator, suggested that a document could be compiled to track amendments to the CIT law as they are taken before legislators.

She said she observed that since the tax agency established an online presence this week, 125 companies have registered.

Ms Tannock questioned whether a tax registration number was given to those companies.

Ms Caesar said: “In order to keep track of those that are registering, there would be some sort of identification number.

“How that will play out jurisdictionally and used as formal identification numbers across jurisdictions, that is something that is still under consideration at this point.

“Obviously there would need to be conversations with other tax jurisdictions as to how those numbers would be used or if at all.”

Victoria Cunningham, an OBA senator, asked about feedback from the island’s international business community on legislative amendments to the tax regime.

Ms Caesar said: “There has been wide, robust consultations with them.

“So these amendments actually incorporate some of their concerns, some of the ideas from stakeholders.

“So it would be that they are quite satisfied with the amendments as they stand.”

Ms Caesar told the Senate that the framework for the establishment of legislation that allows for tax refunds is being “actively” developed and is expected to be completed by December 1.

She added: “It’s quite complex and technical and the ministry is undertaking a thorough and diligent process to ensure that any framework that is put into place is efficient, effective and beneficial to both the Government and any key stakeholders.”

Ms Caesar said that the Government remains confident that the CIT framework reinforces the island’s commitment to global compliance and transparency, while preserving its “strong and respectful” international standing.