Cayman signs 21st TIEA with Japan
Tax transparency standards in Barbados, Trinidad and Tobago, the Seychelles and San Marino still do not conform with OECD requirements, the latest round of peer review reports has found.
The Global Forum on Transparency and Exchange of Information for Tax Purposes, an initiative backed by the G20 and hosted by the Organisation for Economic Cooperation and Development, is currently analysing the effectiveness and suitability of national legislation and regulatory regimes worldwide.
Of a group of 10 assessed countries, Barbados, Trinidad and Tobago, the Seychelles and San Marino fell short of the requirements for effective tax information exchange.
Guernsey was found to have put in place most of the legal and regulatory framework, while Mauritius has implemented new laws to allow authorities access to tax relevant information.
Australia, Denmark, Ireland and Norway all had effective legal and institutional frameworks in place, according to the reviews.
In a first stage, the Global Forum peer reviews assess the legislative and regulatory frameworks before analysing in a second stage whether information exchange has taken place in practice.
In the Cayman Islands the peer review assessment has highlighted a couple of shortcomings that are being addressed with amended legislation, including the introduction of the requirement for companies and trusts to keep accounts and records for a minimum of five years.
Meanwhile, the tax information exchange regime continues to develop with further conclusions of tax information exchange agreements.
On 7 February the Cayman Islands government signed its 21st TIEA, with Japan, at the Japanese Embassy in London.
Cayman Islands Premier McKeeva Bush, who signed the agreement on behalf of the Cayman Islands said: “We fully intend to continue to demonstrate that tax compliance is a matter of course for the Cayman Islands and we are confident that as a result, our jurisdiction will become increasingly well respected in matters of international financing.
“We look forward to further enhancing our relationship with the Japanese Government, as we work closely with them on the OECD Global Forum Steering and Peer Review Groups,” Mr. Bush added.