The Cayman Islands has entered into a proposed tax information exchange agreement with the Netherlands.
The proposed deal was announced Thursday.
The signing is another effort on behalf of the Cayman Islands to come of the Organisation for Economic Cooperation and Development’s grey list, which indicates jurisdictions that have committed to the internationally agreed tax standard, but have not substantially implemented them. Signing TIEA’s is a way of moving from the grey list to the white list.
Earlier this week Cayman signed a TIEA with Ireland.
Cayman also has TIEAs in place with the United States, the United Kingdom, Denmark, Faroe Islands, Finland, Greenland, Iceland, Norway and Sweden. The OECD has put a threshold of 12 TIEAs for jurisdictions to move to its white list.
The proposed Tax Information Exchange Agreement signed Thursday was drafted during two days of meetings in George Town on Wednesday and Thursday.
The draft agreement covers many of the standard provisions in the Organisation for Economic Cooperation and Development model agreement for the exchange of information on tax matters. It will now be submitted for formal approval by the cabinet and parliament of both jurisdictions.
Attorney General, Hon. Samuel Bulgin led the Cayman Islands delegation while Mr. Rob van Kuik, International Tax Counsellor for the Netherlands Ministry of Finance, led his country’s delegation.
At the conclusion of the discussions both delegations welcomed the efforts and commitment by the two jurisdictions to conclude a TIEA in a timely manner, noting that the agreement will provide an internationally recognised framework for the exchange of tax information.
In addition to the Attorney General, other members of the Cayman delegation were: Solicitor General, Ms Cheryll Richards; Cayman Islands Monetary Authority Managing Director Mrs. Cindy Scotland and Cayman Islands Stock Exchange Chairman Mr. Anthony Travers.
For the Kingdom of the Netherlands, Mr. van Kuik was joined by Mr. Maikel Evers, policy advisor in the Ministry of Finance, and Mr. Anthonie van Baarle, head of the Mutual Assistance Unit of the Netherlands Information and Investigation Service.