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Company audit in the Turks and Caicos Islands. Financial reporting, accounting, consulting in the Turks and Caicos Islands

Turks and Caicos is a British tropical archipelago located in the Atlantic Ocean, consisting of 40 islands and coral reefs. As the name implies, it consists of two island groups. Turks and Caicos Islands were among 35 jurisdictions identified by OECD in June 2000 as meeting the technical criteria for being recognized as an offshore zone. Setting up a company in this jurisdiction is facilitated by the absence of many taxes and financial reporting filing and auditing requirements.

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Service packages Legislation Tax System Audit Services
Preparation of audited financial statements (for CFC purposes)
from 1 500 USD
Apostille of financial statements (if necessary)
from 675 USD
Consulting services and support during tax audits
from 200 USD per hour

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Contents

  1. General requirements
  2. Audit of accounts
  3. Consolidated financial statements
  4. Liability for failure to meet legal requirements
  5. Consolidated financial statements

General requirements

Companies are incorporated and operate in accordance with the Turks and Caicos Islands Companies Ordinance, 2017. According to this document, a company must keep its documents in the office of its registered agent.

Legislation does not contain a requirement to file and publicly disclose financial statements, however any company must keep records sufficient to show and explain the company’s transactions. These records must also make it possible to determine the company’s financial position with sufficient accuracy at any time, including all supporting documents (invoices, receipts, contracts and any other documents evidencing transactions made by the company).

A company’s reporting period is 12 months and can begin in any of them.

Being a jurisdiction that works in the international financial arena, the Turks and Caicos Islands have adopted international standards for fighting money laundering and terrorism financing and incorporated requirements into their legal system.

Audit of accounts

Companies incorporated in the territory of the jurisdiction are not required to audit their financial statements.

Consolidated financial statements

In 2020, the Turks and Caicos Islands introduced the Base Erosion and Profit Shifting (BEPS) Project.

In accordance with this project, companies whose consolidated income exceeds 850,000,000 USD must file a tax return with the Registrar within 12 months after the end of the tax period.

Since this jurisdiction is an independent tax jurisdiction, information is kept private and not disclosed to other jurisdictions.

Liability for failure to meet legal requirements

The Turks and Caicos Islands Financial Services Commission (TCIFSC), which is responsible for supervision of companies incorporated in the jurisdiction in accordance with the Turks and Caicos Islands Companies Ordinance, 2017, can impose a financial penalty on a company if it:

  • violates the clause of the above document about use of a registered agent (clause 44) – 25,000 USD;
  • violates the clause of the above document about use of the company’s name (clause 39) – 20,000 USD;
  • issues a bearer share, converts a share into a bearer share or exchanges a share for a bearer share – 50,000 USD;
  • does not keep a register of shareholders – 50,000 USD;
  • does not maintain necessary corporate documents of the company at its registered address – 30,000 USD;
  • does not keep accounting records and does not maintain documents relating to the company’s economic activity – 50,000 USD.

Below is the list of the rest of possible penalties.

  • An international company conducts business in the territory of the jurisdiction.
  • A company does not file an application for change of name when directed by the Registrar.
  • A company does not file a notice of appointment of a registered agent.
  • A registered agent has not appointed one or several directors or failed to provide a notice of appointment within the prescribed period.
  • A company does not file a notice of change of director.
  • A company does not keep a register of directors containing necessary information.

The amount of the penalty depends on the violation itself and can vary from 20,000 USD to 50,000 USD.

Consolidated financial statements

Preparation of consolidated financial statements is not required.

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