Cayman Confirms Agreements during Pre G8 Meeting
Published 15th June 2013, 5:8pm
George Town, Grand Cayman – After putting on public record Cayman’s status as an ‘early adopter’ of global tax and transparency issues, the Cayman Islands Premier, the Hon. Alden McLaughlin, said that no new agreements had been reached during today’s meetings with the UK.
‘The UK was informed nearly two months ago – on 25 April – that Cayman would produce the action plan’, he said. ‘Today, we added that we would publicise that plan, which will include an assessment of the Islands’ beneficial ownership regime, following the G8 Summit next week’.
The Premier acknowledged that today, UK Prime Minister David Cameron publicly recognised agreements that were made previously. ‘That is a significant step forward’, he said.
‘Like other jurisdictions including the Crown Dependencies, Cayman has reached this very important juncture because of our many years of our continuous commitment and effort in global tax and transparency’, the Premier said. ‘The public record clearly shows that we have played a significant role as an early adopter of these initiatives’.
Speaking following the ‘Open for Growth’ event on 15 June, the Premier said that Cayman’s commitments to US and UK FATCA, on 15 March; the Pilot for Multilateral Automatic Exchange of Information, on 25 April; and the Convention on Mutual Administrative Assistance in Tax Matters on 7 June had been acknowledged diplomatically by the UK prior to 15 June. He thanked HM Treasury for publicly noting Cayman’s leadership in reducing tax evasion and avoidance in a 2 May release (http://ow.ly/m4iEY).
The Premier also said that Cayman, as well as other jurisdictions that have been proactive in tax and transparency, will continue to collaborate with supranational bodies, and also with efforts such as the UK’s, in order to advance global developments to the next logical phase.
‘Notably, Cayman’s action plan – and the plans of those G8 countries that also are prepared to take this important step – will be published simultaneously’, he said. ‘Yet again, this demonstrates our level of engagement and activity, which is rooted in the efforts of supranational bodies such as the Global Forum on Transparency and the Exchange of Information for Tax Purposes, and the Financial Action Task Force.
‘Indeed it proves the commitment to the development of fair global standards, to which we would urge all countries, regardless of their topography, to adhere’.
The Premier outlined other significant milestones in Cayman’s tax and transparency engagement, including the jurisdiction’s advance commitment in 2000 to the international standards in the original Global Forum on Taxation; implementation in 2005 of automatic exchange of information through the European Union Savings Directive; and membership since 2009 in the Global Forum’s Steering Group, and its Peer Review Group.
He underscored that Cayman has been an early adopter of these initiatives because global tax issues require global solutions, and a genuine global level playing field.
‘We therefore welcome the UK’s intention that international tax and transparency standards continue to reside and develop under the auspices of the relevant supranational bodies’, the Premier said. ‘This will ensure inclusive and equitable treatment, which will support economies, create jobs, and protect public revenue in all countries – whether developed or developing’.
He thanked Cayman’s financial services industry for its close cooperation with government on tax and transparency issues, including with recent developments, and highlighted Cayman Finance’s pivotal role in coordinating this relationship.
‘Cayman is fortunate to have a strong partnership between government and the financial services industry’, he said. ‘This has been a historic strength and, as developments in the global arena continue to occur at an increasingly rapid pace, it will be an asset for years to come’.
The ‘Open for Growth’ meeting was held as a precursor to the G8 Summit, on 17-18 June.
Notes for Editors:
US and UK FATCA statement: http://ow.ly/m4j31
Pilot for Multilateral Automatic Exchange of Information statement: http://ow.ly/m4j7Z
Convention on Mutual Administrative Assistance in Tax Matters letter: http://ow.ly/m4j9B
For more information, please contact the Financial Services Secretariat at (345) 945-5819 or via email at email@example.com.