U.S. Senate Finance Committee Letter

Published 11th June 2007, 1:55pm

George Town, Grand Cayman – June 5, 2007 – The Cayman Islands financial services industry operates on the principle that the presence – not the absence – of effective laws and regulations has contributed to our growth as an institutionally-focused, specialised financial services centre over the past 40 years.

The law enforcement, regulatory and tax information exchange channels between the Cayman Islands and U.S. – some dating back more than 20 years – offer no protection for Americans who are seeking to evade their tax obligations. The Cayman Islands has solid working relationships with the Treasury (including the IRS), the SEC, and the Department of Justice; a product of extensive cooperation between our two countries.

Cayman Islands Government officials have reiterated this point on many occasions both in person and with the support of our counterparts within various areas of the U.S. administration. As part of these efforts, the Cayman Islands has developed a detailed backgrounder titled, “The Facts About Company Formation in the Cayman Islands” to further address misunderstandings about company formation in Cayman, relative to the U.S. tax regime and the global flow of capital.

Substantially all of the answers to the questions that the Senate Committee on Finance is requesting the GAO collect are fully in the public domain. The Cayman Islands (and the companies established here) provide an effective and cost efficient tax-neutral platform for international payment flows, which typically raise finance more cheaply or package financial risk so that it is more easily borne by the markets. This ultimately benefits onshore businesses, their shareholders, their consumers and their governments.

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Editors Note –

A copy of The Facts About Company Formation in the Cayman Islands accompanies this statement

For more information, please contact the Financial Services Secretariat at 345-244-2278 or via email at financepr@gov.ky.