Interpretation

In this Act“banking business” means the business regulated under the International Banking Act; CAP. 267. “commercial entity” means an entity incorporated, registered or continued under– (a) the International Business Companies Act; or CAP. 270. (b) any other law which the Minister by Order published in the Gazette for the purpose set out in this Act; “competent authority” means the International Financial Services Commission established by section 3 of the International Financial Services Commission Act; CAP. 272. “distribution and service centre business” means the business of either or both of the following– (a) purchasing from foreign related parties6 (i) component parts or materials for goods, or (ii) goods ready for sale; and (iii) reselling such component parts, materials or goods; (b) providing services to foreign related parties in connection with the business, but does not include any other activity except holding company business; “finance and leasing business” means the business of providing credit facilities of any kind for consideration– (a) such as– (i) by way of interest; (ii) the provision of credit by way of instalments for which a separate charge is made and disclosed to the customer in connection with– (aa) the supply of goods by hire purchase; (bb) leasing, other than any lease granting an exclusive right to occupy land; or (cc) conditional sale or credit sale; (iii) where an advance or credit repayable by a customer to a person is assigned to another person, that other person is deemed to be providing the credit Economic Substance [CAP. 273:01 7 facility for the purposes of this definition; (b) but does not include an activity falling within the definition of banking business, fund management business or insurance business; CAP. 210:01. “fishing vessel” has the meaning assigned in the High Seas Fishing Act; CAP. 268. “fund management business” means a business regulated under the Mutual Funds Act; “headquarters business” means the business of providing any of the following services to an entity in the same group– (a) the provision of senior management; (b) the assumption or control of material risk for activities carried out by, or assets owned by, any of those entities in the same group; or (c) the provision of substantive advice in connection with the assumption or control of risk referred to in paragraph (b), but does not include anything falling within the definition of financing and leasing business, insurance business, or banking business; “holding company” means a commercial entity which– (a) is a holding body; (b) has as its primary function the acquisition and holding of shares or equitable interests in other companies; or (c) does not carry on any relevant activity as its primary function; 8 “holding company business” means the business of being a holding company; “included entity” means an entity which– (a) is a commercial entity and is engaged in a relevant activity provided that it does not include a commercial entity that is tax resident in a jurisdiction other than Belize; or (b) is a regulated entity; CAP. 272. CAP. 269. “insurance business” means the business regulated under the International Financial Services Commission Act and the International Insurance Act; CAP. 272. “managing agent” means the managing agent licensed by the Commission pursuant to the International Financial Services Commission Act; “Minister” means the minister responsible for Finance; “non-included entity” means a commercial entity which is not an included entity; “pleasure yacht” means– (a) a vessel which when in use is– (i) in the case of a vessel owned by a commercial entity, used only for sport or pleasure and which the persons on board are employees or officers of the commercial entity, or their immediate family for friends; or (ii) in the case of a vessel owned by a beneficial owner of a commercial entity, used only for sport or pleasure of the Economic Substance [CAP. 273:01 9 beneficial owner or the immediate family or friends of the owner, and on a voyage or excursion which is one for which commercial entity or beneficial owner of a commercial entity does not receive money for or in connection with operating the vessel or carrying any person, other than as a contribution to the direct expenses of the operation of the vessel incurred during the voyage or excursion; (b) a vessel which pursuant to paragraph (a) no other payment is made by or on behalf of users of the vessel, other than by the beneficial owner; “pure equity holding company” means a commercial entity which only holds equity participations and earns only dividends and capital gains or related incidental income; “regulated entity” includes an entity regulated in accordance with the International Financial Services Commission Act and “regulated activity” shall be construed accordingly; CAP. 272. “related party” means a person that is related to an included entity– (a) namely, a person or a close member of that person’s family is related to an included entity if that person has control, joint control, or significant influence over the entity or is a member of its key management personnel; (b) if, among other circumstances, it is a parent, subsidiary, fellow subsidiary, associate, or joint venture of the included entity, or it is controlled, jointly controlled, or significantly influenced or managed by a person under paragraph (a); and 10 “shipping business” means any of the following activities involving the operation of a ship anywhere in the world other than in the territorial waters of Belize– (a) the business of transporting, by sea, persons, animals, goods or mail; (b) the renting or chartering of ships for the purpose described in paragraph (a); (c) the sale of travel tickets or equivalent, and ancillary services connected with the operation of a ship; (d) the use, maintenance or rental of containers, including trailers and other vehicles or equipment for the transport of containers, used for the transport of anything by sea; (e) the management of the crew of a ship, but does not include a fishing vessel or the owning, operating or chartering of a pleasure yacht as defined in this section.