BSX Amendment Act Applauded By Exchange Chief

by Mike Godfrey, Tax-News.com, Washington

02 December 2002

Chief Executive Officer of the Bermuda Stock Exchange (BSX), Greg Wojciechowski has refuted allegations that new legislation recently passed by the House of Assembly abolishing stamp duty on stock exchange transactions is 'elitist'.

Opposition UBP member, Cole Simons claimed that the BSX Amendment Act discriminates against the country's less wealthy taxpayers, who will still be obliged to pay stamp duty on property transactions, whilst the transfer of millions of dollars of shares will henceforth be free of the levy.

However, according to reports in the Bermudian media, Mr Wojciechowski refused to be drawn into the debate, stating instead that:

'The passage of the BSX Amendment Act is a positive development, one which supports the development of the exchange whilst providing equal benefits to all Bermudian investors regardless of their socio-economic position.'

Observing that the extension of the stamp duty exemption to gifts of securities, in line with the regime put in place in 1992 for the transfer of shares resulting from the sale of a security listed on the BSX, was necessary in order to ensure the smooth running of the new electronic clearing, settlement and depositary system, the BSX chief concluded that:

'This amendment should make all investors, regardless of the content of their main investment (real property or otherwise) look to the stock market as a mechanism for reaching their future goals.'

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