Wed, Dec 7, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Cayman defends its reputation as a 'perfectly transparent jurisdiction'

Wednesday, August 31, 2011
Opalesque Industry Update - This week’s article in the left wing UK newspaper, the Independent, headed “There is no moral case for tax havens,” repeats the hoary old clichés and, predictably, mentions the building in the Cayman Islands “that is home to 12,000 corporations.”

Strangely, the writer, Paul Vallely, omits to mention the office at 1209 North Orange Street in Wilmington, Delaware with 217,000 names on the door. If he had, he could have reminded us that this seemingly inconsequential building sits in the home state of Vice President Joe Biden.

Despite the fact The Cayman Islands facilitates the flow of trillions of dollars funded from the international capital markets to the balance sheets of US financial institutions, its demonization continues.

The left wing press, particularly in the UK, seems determined to suspend factual analysis. The effect has been to conflate Cayman, a perfectly transparent jurisdiction focused on beneficially directing international capital flows in a tax efficient manner, with non transparent jurisdictions such as Andorra, Monaco Liechtenstein and Switzerland and others where, as the facts slowly emerge ,we inescapably conclude that tax evasion actually occurs.

No one disagrees that tax evasion is wrong. Certainly not anyone in the Cayman Islands where the transparency debate was concluded over 20 years ago.

Little publicized full transparency tax treaties with the United States and the European Union have been in place with The Cayman Islands for many years.

Only the criminally insane tax evader would attempt to use the Cayman Islands given the sweeping powers of the IRS, DOJ and the European Treasuries to obtain full information on any Cayman account. Yet we find that the expressions ”evasion”, “outrage “,”loopholes “ and ”avoidance”, are now used interchangeably and indiscriminately to describe Cayman financial structuring without reference to legal and accounting precedent, standard or principle or the factual treaty position.

To present a balanced article on offshore tax The Independent should have quoted Daniel J. Mitchell’s work for The Liberal Institute of the Friedrich Naumann Foundation entitled, “The Moral Case for Tax Havens.”

Dr Mitchell concludes that the campaign against low-tax jurisdictions (headed up by organizations such as the EC, United Nations and the Organisation for Economic Cooperation and Development) is fundamentally misguided.

He says, “They provide a low-tax platform for economic activity. They facilitate the efficient allocation of capital. And because of tax competition, they encourage better tax law in the rest of the world. “

Echoing a point made earlier in this article he says, “Tax competition affords taxpayers the ability to enjoy more of what they earn. This in turn draws savings, investment and skilled labor into the economy.”

The trouble is that excessively high taxes punish the sub millionaire, middle classes with two cars in the garage and three children heading for college. Stifle this section of the community and you’ll soon have no community.

(press release)


This was authored by Richard Coles, the Chairman of Cayman Finance, the body which represents the financial services industry on the islands. www.caymanfinances.com

The Independent’s article can be found here: Source


Bg

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. M&A - AllianzGI to acquire Sound Harbor Partners, SS&C completes acquisition of Wells Fargo's Global Fund Services business[more]

    AllianzGI to acquire Sound Harbor Partners Allianz Global Investors (AllianzGI), an active investment manager, announced that Sound Harbor Partners, a US private credit manager led by Michael Zupon and Dean Criares, have agreed to join its fast-growing Private Debt Platform. Under the te

  2. People - Nectar Financial hires senior investment team, Texas A&M replaces retiring foundation investment chief, Ex-Cadwalader partner Woolery makes another sudden exit, How to become a Python coder at a top hedge fund, by the co-CTO of Man AHL[more]

    Nectar Financial hires senior investment team Nectar Financial AG, a Swiss financial technology company for wealth and asset management, has announced that it has hired two key senior leaders to spearhead its digital asset management efforts. The company also announced that it has entere

  3. Activist News - Cognizant has introductory discussion with activist investor Elliott; to review letter, Starboard Value makes huge investment in Hewlett Packard, Hedge fund calls for removal of First NBC Bank CEO[more]

    Cognizant has introductory discussion with activist investor Elliott; to review letter From Indiatimes.com: Cognizant said it had an introductory discussion with Elliott Management after receiving the activist hedge fund's letter asking for a board shakeup, a buyback, a dividend and chan

  4. Opalesque Exclusive: Ireland relaxes treatment of direct lending funds[more]

    Bailey McCann, Opalesque New York: The Irish Central Bank has relaxed its treatment of direct lending funds, according to a recently released

  5. Institutions - Texas County & District culls 5 hedge funds, reallocates to existing managers, Kentucky board gives final approval to halve hedge fund portfolio, $38bn Finnish fund moves assets to U.S. as Europe flounders, South Korea’s National Pension Fund holds 5% stake in 62 listed companies[more]

    Texas County & District culls 5 hedge funds, reallocates to existing managers Texas County & District Retirement System, Austin, continues to reduce the number of hedge funds, but not the size of its $6.2 billion hedge fund portfolio. It will redeem a total of $760 million from five hedg