The Cayman Islands government signed a tax information exchange agreement with the Republic of Brazil on Tuesday, 19 March. The agreement is the 31st TIEA signed by the Cayman Islands.
The treaty is expected to build on business relationships that are already in place, and provide a springboard for future collaboration on areas of mutual interest that can facilitate economic growth and development in both countries, the government wrote in a statement.
“It sends another strong signal to the global community that the Cayman Islands is serious about building solid partnerships, and adhering to the international standards set by OECD’s Global Forum on Transparency and Exchange of Information for Tax Purposes,” said Rolston Anglin, Cayman’s signatory and the minister for financial services.
The TIEA is the latest agreement between Cayman and Brazil. In 2006, Cayman’s financial services regulator, the Cayman Islands Monetary Authority, entered into a memorandum of understanding with Brazil’s central bank, Banco Central de Brazil. In 2009, it signed a memorandum of understanding with Brazil’s securities and exchange commission, the Comissão de Valores Mobiliários.
Mr. Anglin noted that the TIEA with Brazil will pave the way for future cooperative efforts with Brazil, and that it has the potential to increase commercial activity with the largest economy in South America – a G20 country that is recognised as a rapidly emerging global player.
Data from the International Monetary Fund indicates that the Cayman Islands already ranks in the top five for portfolio investment assets in and out of Brazil. In 2011, capital flows from global investors channelled through Cayman investment funds into Brazil totalled some US$17 billion. These flows are used for projects like major infrastructure and asset financing.