Opalesque Industry Update – The Cayman Islands Government today announced that it is prepared to commit to the Convention on Mutual Administrative Assistance in Tax Matters. |
It also announced that it has accepted invitations from UK Prime Minister David Cameron to attend two events on 15 June, immediately prior to the G8 Meeting.
The Convention on Mutual Administrative Assistance in Tax Matters is an OECD/Council of Europe multilateral agreement. It is designed to combat tax evasion and aggressive tax avoidance, by promoting cooperation among jurisdictions for the exchange of information among relevant authorities for tax and transparency purposes.
‘Cayman has engaged in substantive discussions with HM Treasury on the particulars of the convention’, said the Premier, the Hon. Alden McLaughlin. ‘We are satisfied that the extension of the convention to our Islands will be done in accordance with the UK’s recognition of Cayman’s fiscal autonomy, and the well-established principle that countries have the prerogative to set their own tax rates’.
He noted that committing to the convention is in line with Cayman’s extensive network of bilateral exchange of information agreements. This includes commitments to US and UK FATCA; the European Union Savings Directive; and the G5 pilot on multilateral automatic information exchange.
‘We agree with the UK’s statement that there is ‘no point in dealing with tax evasion in one country, if the problem is simply displaced to another’, the Premier said. ‘With this in mind, we also agree that there should be equitable adherence, including within the G8 countries, to global tax and transparency standards. This will set the foundation for full and effective participation, by all countries, in the true spirit of these efforts’.
In announcing government’s decision to attend a 15 June private reception with Mr Cameron, and the ‘Open for Growth’ (also called the tax, transparency and trade) meeting, the Premier said that Mr Cameron, in his invitation, acknowledged its interest in seeing the Overseas Territories and Crown Dependencies flourish.
‘This important recognition acknowledges the benefits that international financial centres, like Cayman, contribute to the global economy – including the stimulation of cross-border trade and investment, which grows economies and creates jobs’, he said.
The Premier will attend the private meeting with Mr Cameron; accompanying him to the ‘Open for Growth’ meeting will be the Minister for Financial Services, the Hon. Wayne Panton.
The G8 Meeting will be held 17-18 June in Ireland.