Cayman signs TIEA with France

The Cayman Islands signed another Tax Information Exchange Agreement on 5 October 2009.

The agreement, concluded with France via an exchange of letters, is Cayman’s thirteenth TIEA.

It was signed by the Leader of Government Business McKeeva Bush and French minister Eric Woerth.

Mr Bush said: ‘This signing, secured by the Ministry of Financial Services negotiating team signifies the Cayman Islands continued commitment to OECD standards for transparency and exchange of information on tax matters.

‘The Cayman Islands is committed to endorsing OECD standards and we are determined to implement them fully.’

In August, the Cayman Islands was elevated to the OECD’s white list of countries that have substantially implemented OECD tax standards and in September the Cayman Islands was elected as a member of the Steering Group of the OECD Global Forum.

The government continues to negotiate further bilateral agreements with other countries.

‘We hope that this agreement will act as a catalyst for French companies looking to diversify into new markets,’ Mr Bush added.

‘Whilst providing the assurance of mutual cooperation, market access and smooth capital flows, we are hoping it will contribute to growth in international business and to stimulating our local economy.’

French companies and French financial services firms so far have a very limited presence in the Caribbean.

In September BNP Paribas announced that it was going to abandon its operations in Panama and the Bahamas to avoid doing business in countries that are grey-listed by the OECD.

Tax information exchange agreements provide for the exchange of information related to tax evasion investigations and have the potential to uncover undeclared taxable income or assets.