The Cayman Islands Government now has in place arrangements that provide access to comprehensive tax information assistance with 20 countries, including the majority of Cayman’s 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 US 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 Leader of Government Business 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.’
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 – which reflects OECD countries (including significant trading partners) that have indicated interest in tax cooperation arrangements – 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.