Working group to tackle tax exchange framework

A working group from the public and private sectors has been set up to help develop a legal framework for the automatic exchange of tax information, government announced Tuesday.

The group was established in response to international initiatives that include U.S. and U.K. Foreign Accounts Tax Compliance Acts, known as FATCA.

The group is chaired by MLA Roy McTaggart, who is councillor in the Ministries of Finance and Financial Services.

Mr. McTaggart said the working group would provide recommendations for draft primary legislation, for consideration by the Legislative Assembly during its May session, said group Chairman Roy McTaggart.

The group also will work on draft regulations, and guidance notes as appropriate, for Cayman’s financial services industry, he said, adding that its remit extended beyond FATCA, to encompass future international automatic exchange of information agreements, known as AEOI.

“AEOI is rapidly becoming the global standard for tax information exchange,” Mr. McTaggart said. “While the public is increasingly familiar with the terms ‘U.S. FATCA’ and ‘U.K. FATCA,’ it is important for them to understand that those initiatives are mechanisms for the automatic exchange of information for tax purposes. Other mechanisms will develop, whether by individual countries or on a global scale.

“The working group is therefore assisting with the development of Cayman’s legislative and regulatory framework to meet both the current needs of U.S. and U.K. FATCA, as well as future AEOI initiatives.”

Other members of the working group include Catherine Williams from the Attorney General’s Office; Duncan Nicol from the Department for International Tax Cooperation, Michelle Bahadur from the Department for Financial Services Policy and Legislation, Mike Mannisto of Cayman Finance; Martin Livingston of the Cayman Islands Compliance Association, David Conen of the Cayman Islands Society of Professionals Accountants, and Cecil Chan-A-Sue from the Cayman Islands Bankers Association.

According to a statement released by government Tuesday, the organizations in the working group were selected because their work “overarches all sectors in the financial services industry.”

The Cayman Islands Bankers Association was selected because of the central role banks have in fulfilling exchange of information requests, the statement continued.

Members of sector-specific associations will be able to participate in “subgroups,” the statement read.

“When the working group is considering aspects of legislation, regulation and guidance notes that would affect a certain sector in particular, we will draw upon the expertise of persons in that sector,” Mr. McTaggart said.

The group is chaired by MLA Roy McTaggart, who is councillor in the Ministries of Finance and Financial Services.

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