Most Read Contributor in Cayman Islands, September 2016
The Cayman Islands Government has formally asked the United
Kingdom to extend its membership in the OECD/Council of the Europe
Convention on Mutual Administrative Assistance in Tax Matters (the
convention) to the Cayman Islands.
'Our formal request to join comes after many months of
substantive discussions between Cayman and the UK, and it
underscores our continued commitment to proactive participation in
matters related to international tax cooperation', said the
Minister for Financial Services, Wayne Panton.
The convention is a multilateral instrument designed to combat
tax evasion and aggressive tax avoidance by allowing member states
to assist each other in tax matters. Administrative assistance can
range from the exchange of information for tax purposes to the
serving of documents.
As is common with international instruments, signatory countries
can choose to opt out of certain aspects of the convention but they
cannot opt out of the convention's core elements regarding the
exchange of tax information. Cayman will not handle matters related
to requests for the recovery of foreign tax claims, or exchange of
information regarding local taxes, and social security
Minister Panton noted that the convention is aligned to the
international standard on information exchange for tax purposes,
and it therefore represents another major development in the global
tax and transparency landscape.
He said he looks forward to officials from Cayman and the
UK's HM Treasury working together to complete the necessary
steps for extension.
Cayman Finance fully supports the Minister and the Government in
the decision to join the convention.
'The financial services industry was consulted, through
Cayman Finance, during these discussions and we are confident that
the implementation of the bilateral agreements that will arise from
the convention will consider the needs of our jurisdiction',
said CEO Gonzalo Jalles.
He added that the convention was a standard adhered to by more
than 50 countries, and said it was crucial for our industry to
remain aligned with global movements in the direction of automatic
exchange of information.
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