(Wednesday, 11 May 2016) - The Cayman Islands
has confirmed to the UK that it will join the initiative for the
development of a global standard for the sharing of beneficial
Furthermore, Cayman has informed HM Treasury that, in order to
foster greater collaboration between law enforcement and tax
authorities in the fight against corruption and tax evasion, it is
welcoming jurisdictions that are participating in the initiative
for the exchange of beneficial ownership information to enter
agreements with Cayman that are similar to the Exchange of Notes
currently in place with the UK.
The Premier, the Hon. Alden McLaughlin, said Cayman's
invitation to participating jurisdictions is one of a number of
current, significant measures that it is taking to promote global
tax compliance, and also to collaborate with other countries that
are engaged in global anti-corruption initiatives.
'For many years Cayman has had in place a strong
anti-corruption framework, as evidenced by the extension in 2010 of
the OECD Anti-Bribery Convention; and the expected extension of the
UN Convention against Corruption, for which Cayman was favourably
assessed in 2014', he said.
Cayman's measures include the repeal, by this September, of
The Confidential Relationships (Preservation) Law, which often has
been misrepresented as Cayman's 'secrecy law'. It will
be replaced with The Confidential Information Disclosure Law, which
will better clarify the mechanisms through which confidential
information may be shared with appropriate authorities.
Furthermore, acknowledging privacy as a basic human right, in
September new data protection legislation will also be introduced
that is on par with what is in place in the European Union.
While bearer shares in the Cayman Islands have been immobilised
since April 2000, Cayman recently passed legislation to completely
abolish bearer shares by 13 July this year.
Cayman's commitment to global transparency is well
documented, through the range of instruments and protocols that
already are in effect. These include tax information exchange
agreements with 36 jurisdictions; the Multilateral Convention on
Mutual Administrative Assistance in Tax Matters, which allows tax
information exchange with more than 90 countries; automatic data
exchange as part of the European Union Savings Directive; and
legislation relating to US FATCA, UK FATCA and the OECD's
Common Reporting Standard.
Cayman operates under a system of indirect taxation. This,
however, has no bearing on the taxation that is due, or that is
collected, by the home jurisdictions of foreign investors.
Investors are responsible for tax liabilities in accordance with
the laws of their home jurisdictions. Cayman's transparency
supports the efforts to ensure tax compliance with other
countries' tax authorities.
Minister of Financial Services Wayne Panton said that for nearly
20 years, Cayman's system has helped to fight serious crimes
globally, including money laundering, tax evasion and illicit
finance; and that the current initiatives are reinforcing that
'We recognise the need for closer collaboration, in line
with international standards. We support current initiatives
in this regard, and will do our part to promote transparency in
order to encourage global tax compliance', he said.
On September 30, 2016, the VAT authorities confirmed that VAT shall apply to directors' fees.
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