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Published 30th March 2009, 4:38pm

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George Town, Grand Cayman Ė The Cayman Islands Government today announced that it now has in place arrangements that provide access to comprehensive tax information assistance with 20 countries, including the majority of Caymanís major trading partners.

Ireland, Japan, the Netherlands and South Africa now join eight other countries afforded tax information assistance to OECD standards under a unilateral mechanism, which does not require a bilateral treaty. The Cayman Islands also has eight bilateral tax information agreements, which include recent agreements with the Nordic countries as well as an existing agreement with the U.S. signed in 2001.

The unilateral mechanism, introduced in 2008, provides an additional mode for the Cayman Islands to deliver on its commitment to transparency and exchange of information in tax matters.

"The Cayman Islands took the proactive step of introducing the unilateral mechanism for the provision of information in tax matters, as a complement to our bilateral negotiation programme," said Cayman Islands Leader of Government Business, the Honourable Kurt Tibbetts. "We recognised the need to increase the pace at which we could enter into tax information arrangements, while offering a phased approach to our negotiating partners under our bilateral programme in appropriate circumstances. We look forward to continuing this progressive approach."

In combination, the arrangements noted above cover four of the seven G-7 states and 17 of the 30 OECD member states.

Based on its current negotiating programme Ė which reflects OECD countries (including significant trading partners) that have indicated interest in tax cooperation arrangements Ė the Cayman Islands aims in the following months to enter into arrangements with a number of additional countries, including the remaining G-7 and five other OECD member states.

Notes to Editors

  • The Cayman Islandsí eight bilateral tax information agreements cover the following countries: the United States, Denmark, Faroe Islands, Finland, Greenland, Iceland, Norway and Sweden.
  • The Cayman Islandsí unilateral arrangement for tax information assistance currently covers 12 countries, namely Austria, Belgium, Czech Republic, Germany, Ireland, Japan, Luxembourg, the Netherlands, Slovak Republic, South Africa, the United Kingdom and Switzerland.
  • The Cayman Islands has been an active participant in the OECD Global Forum on Taxation, having been one of the first non-OECD jurisdictions to adopt (in 2000) the principles of transparency and exchange of information in tax matters, based on a level playing field. As an early adopter, the Cayman Islands has been involved in the development of the OECDís standards for effective exchange of information in tax matters and is a member of the Global Forumís level playing field sub-group, along with other OECD and non-OECD colleagues.
  • In addition to arrangements under the OECD initiative, the Cayman Islands has bilateral tax treaties with the 27 EU member states under which it reports savings income information, pursuant to measures equivalent to the European Union Savings Directive.
  • The Cayman Islandsí competent authority for tax cooperation arrangements is the Tax Information Authority, established in 2005 under the Tax Information Authority Law (2005), the law introduced to provide for effective international cooperation in tax matters. More information on the Authority and its operations can be found on www.tia.gov.ky.
Tax Agreements with New Countries
Cayman Islands Extends Tax Information Assistance to 20 Countries, Including Major OECD Trading Partners - Japanese Language
Tax Agreements with New Countries
Cayman Islands Extends Tax Information Assistance to 20 Countries, Including Major OECD Trading Partners - German Language
Tax Agreements with New Countries
Cayman Islands Extends Tax Information Assistance to 20 Countries, Including Major OECD Trading Partners - French Language
 

For more information, please contact the Financial Services Secretariat at (345) 945-5819 or via email at financepr@gov.ky.