Sir, Much as Jeremy Corbyn, the Labour party leader, may
secretly admire Lord Palmerston, sending a gunboat to the Cayman
Islands is constitutionally impermissible ("Cameron accused of
backing down on tax havens", FT.com, April 5). The Cayman
Islands are internally self-governing. Nor on any factual analysis
is it necessary to do so.
The reason the Cayman Islands do not feature in the Panama
Papers is that you would need to be unsound of mind to use the
jurisdiction for any form of improper tax structuring. Because the
British and Cayman Islands governments have set the global standard
on the issue of tax transparency, HM Revenue & Customs, the
Internal Revenue Service and the tax and law enforcement
authorities of all EU jurisdictions, among others, have complete
and unrestricted access to all beneficial ownership information on
Furthermore, under the Foreign Account Tax Compliance Act and
the Common Reporting Standard, there will now be automatic
reporting of the financial information of every account maintained
in the Cayman Islands. What precisely further legislative enactment
is intended to achieve is therefore unclear.
If international advances are to be achieved, when David Cameron
next sits with Barack Obama on the subject of global tax avoidance,
rather than simply seeking a useful photo opportunity he should
seek to raise the transparency standards in the US jurisdictions,
notably Delaware, Wyoming and Nevada where no records of beneficial
ownership are maintained and none is available, to the same levels
that exist in the British Overseas Territories. It is not for no
reason that the Panama Papers reveal the increasing use of US
Chairman, Cayman Islands Stock Exchange
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guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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Maltese tax law provides for rules which grant beneficiaries referred to as ‘Highly Qualified Persons' to be taxed at a reduced rate of tax of 15% on their employment income, provided certain conditions are satisfied.
Non-U.S. individuals making direct investments in the United States face a bewildering U.S. tax regime.
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