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McKeeva Bush Precy Dumlao, Opalesque Asia:
The government of the Cayman Islands on Friday announced a new taxation system for certain "master fund" hedge funds that are registered in the country, and at the same time, vowed to regulate the sector through the Cayman Islands Monetary Authority.
In his long awaited budget speech, Prime Minister McKeeva Bush told members of Cayman's Legislative Assembly that his government would introduce only one revenue measure for this fiscal year, "which will be on the hedge fund industry - and no external borrowing."
Bush declared, "The government will introduce a single revenue measure during the course of the 2011/12 fiscal year: the hedge funds sector, certain 'master funds' will be regulated by the Cayman Islands Monetary Authority - just as they are regulated in other jurisdictions - and those funds will be required to pay a very modest fee of one thousand five hundred dollars ( CI$1,500 ) per year."
At present, the hedge fund industry in Cayman enjoy an unregulated regime and does not pay any taxes or fees.
The Premier expressed confidence this new measure will not have an adverse effect on Cayman's hedge fund industry. He projected the new tax measure will generate some CI$4.5m (USD4.5m) in its first year of implementation.
The fund will be converted into a subsidy to Caribbean Utilities Company customers t...................... To view our full article Click here
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