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Published 28th June 2010, 4:12pm

George Town, Grand Cayman – The Cayman Islands and Canada entered into a tax information exchange agreement (TIEA) following a signing ceremony held today at the Government Information Services Conference Room.

The event was hosted by the Premier, the Honourable W. McKeeva Bush, OBE, JP; the Premier signed the agreement on behalf of the Cayman Islands.  Canada’s High Commissioner to Jamaica, Mr Stephen Hallihan, signed the agreement on behalf of the Government of Canada.

“The signing of this important bilateral agreement marks a significant milestone in the long-standing relationship between the Cayman Islands and Canada,” said the Premier.  “It is well known that Canada’s top financial institutions have had retail and institutional operations in the Cayman Islands for more than 45 years, but the ties our two countries share go far deeper.  They extend to educational opportunities for Caymanian youth, professional experience for Canadian practitioners and a mutual admiration that has brought together many Canadian and Caymanian families.”

The Premier also outlined future opportunities for mutual growth and development between the Cayman Islands and Canada associated with the agreement, specifically mentioning that the TIEA will result in favourable tax treatment for  active business income earned by Cayman subsidiaries of Canadian companies.

“Many Canadian firms rely on the Cayman Islands’ stable, globally-connected, tax-neutral platform to help reach their business goals,” said the Premier.  “We look forward to  more successful Cayman-Canada business for years to come.”

In attendance at the signing were His Excellency the Governor, Mr Duncan Taylor CBE; the Deputy Premier, members of the Legislative Assembly, the Attorney General, Cabinet Secretary, Financial Secretary and senior officials from the Ministry of Finance,  Canada’s Honourary Consul for the Cayman Islands, Mr Jeff Boucher, was also in attendance as were representatives from Cayman’s business community.

 

Notes to Editors

A copy of the Premier’s remarks following the signing accompanies this release.

Two photos accompany this release; caption is as follows:

Canadian_Signing 1: (L-R) Canadian High Commissioner to Jamaica, Mr Stephen Hallihan, Cayman Islands Premier, the Hon. McKeeva Bush, OBE, JP and His Excellency the Governor, Mr Duncan Taylor, CBE. (Photo by GIS Information Officer Bina Mani)

Premier gives gift: Premier Bush offers a token of appreciation – a rare Cayman Islands Quincentennial Coin - to the Canadian High Commissioner. (Photo by GIS Information Officer Bina Mani)

Background on the Cayman Islands International Tax Cooperation Regime

    • The Cayman Islands is on the Organisation for Economic Cooperation and Development (OECD) ‘white list’ of jurisdictions that substantially implement international tax standards and has 19 bilateral arrangements with the following countries for the provision of tax information:  Aruba, Australia, Canada, Denmark, Faroe Islands, Finland, France, Germany, Greenland, Iceland, Ireland, the Netherlands, Netherlands Antilles, New Zealand, Norway, Portugal, Sweden, the United States and the United Kingdom.  Copies of the agreements can be found via the following link:  www.tia.gov.ky/html/arrangements.htm.
    • 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, based on a level playing field.
    • In September 2009, the Cayman Islands was elected to be  a member of the  Steering Group of the OECD’s  Global Forum on Transparency and Exchange of Information.  Along with Steering Group members from  other countries, the Cayman Islands is playing a leadership role  in the restructuring of policy for the Global Forum, with the remit of preparing and guiding the Global Forum’s future work. 
    • The Cayman Islands competent authority for tax cooperation arrangements is the Tax Information Authority, established in 2005 under the Tax Information Authority Law (2009 Revision).  More information on the Authority can be found on www.tia.gov.ky.
    • The Tax Information Authority also administers bilateral agreements with the 27 EU Member States in relation to the automatic reporting of savings income information, in effect since 2005.
 

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