CIFSA Chair calls OECD ‘impotent’
(Accountancy Age): The world’s tax watchdog has been branded ‘impotent’ by the chairman of the Cayman Islands Financial Services Association. Speaking exclusively to Accountancy Age, Anthony Travers said criticism from the Organisation for Economic Cooperation and Development on the role of the Cayman Islands as a centre for tax evasion is “one of horrible mischaracterisation.” He claims the OECD has ignored some 27 multilateral tax treaties signed by the offshore centre as “they only count treaties in a form they approve.”
Category: Business
Dear Mr Marchant You clearly have no understanding of legal matters at all.Travers is of course correct. The OECD threatens when it has no legal power to do so and certainly no power to impose sanctions. So it is a PR exercise.Incidentally you also misunderstand deal flows in Cayman which have increased each time we enter into new transparency arrangements But treaties are hard to get from the G 20 countries for that reason. Given the OECD initiative however even the French can no longer refuse Cayman s requests .
I would say that you do not understand what the word "impotent" means.
I repeat, it is absurd for anyone to claim that the OECD is "impotent" when Offshore Financial Centres are falling over themselves to pass at least 12 TIEAs in an attempt to be removed from the OECD’s ‘grey list’. It is not a credible criticism of the OECD and is obviously so.
If the OECD was "impotent", no OFC would care whether it was on a list. However, evidence of the exact opposite exists in abundance for all to see, the latest being an article today in the Economist referring to the "stampede" of OFCs seeking to get in the OECD’s good books. The article can be viewed at: http://www.economist.com/world/britain/displaystory.cfm?story_id=13863399
Re. "You misunderstand deal flows in Cayman which have increased each time we enter into new transparency arrangements."
I never commented, directly, indirectly or in any way, shape or form, on "deal flows" so how could you possibly determine that I "misunderstand" them?
"I never commented, directly, indirectly or in any way, shape or form, on "deal flows" so how could you possibly determine that I "misunderstand" them?"
Mr. Marchant, we share the same views as you will see from previous posts.
Re the above quote, I think what the poster is suggesting is that it is not out of fear of the OECD that OFCs are eager to enter into the TIEAs but that they were doing so voluntarily because of all the ‘deal flow’ benefits they comes with transparency. It is true that that was the result of implementing the EU Tax Savings Directive. However, the last minute stampede (rather than an early proactive effort) by OFCs (not just Cayman) belies such a motive in this case.
It is a stretch of the imagination, to say the least, that these TIEAs would have been passed in such quantities and haste without severe international pressure?
I find it difficult to believe that any bona fide player in the offshore world actually believes that.
Given the frantic scramble byOffshore Financial Centres to pass Tax Information Exchange Agreements in order to be removed from the OECD’s grey list, it is absurd for anyone to claim that the the OECD is "impotent".
David MarchantPublisher, Offshorealert
Seriously, everyone who thinks that ‘Mac’ is so god damn bright and has all the solutions really need to wake up. Mr. Travers and much of those in the private sector withpower are trying their hardest to put in a good word for us and try to prevent us from being bullied around by these power hungry groups who want to see us fall.
Your hero Mac can’t do shit. Maybe some of you should go and try and put your neck out for this country because Mr Travers certainly does NOT have to be doing this for alot of YOU.
Regardless of the political wisdom or timing of Travers comments, he is still factually correct. The OECD is impotent. We are all worried and scrambling around to appease them as though they have some legitimate authority, or power to enforce their policy. The offshore world should have responded by putting the OECD on their own blacklist, it would have been similarly farcical. Travers has some stones and I applaud that.
Clearly, Mr. Travers has an adoring fan who is willing to overlook any foible.
"Regardless of the political wisdom or timing of Travers comments, he is still factually correct. The OECD is impotent"
If that is correct that all of the frantic efforts to get off the grey list (as advised by Mr. Travers) are farcical. If the OECD is impotent , its political arm the G20 (and more so, the G8) is not.
I agree with Mr Travers’ accessment of the OECD. The group is a puppet academic thinktank controlled by Western governments. The hypocritical members themselves live tax-free as one of the perks of employment. Their policy papers rarely sway western govenrments, rather quite the opposite, as evidenced by Bermuda’s recent exchange of Guantanamo guests for white-listing. That event showcases the illigitimacy of the OECD, and how easily their opinion can be purchased with a cup of political capital from the USA. Caymanians should not embrace this corruption or aspire to it. The OECD is now publicly exposed as a sham organization.
To: Anonymous (not verified) on Fri, 06/12/2009 – 09:26.
I think you have missed the point. We all know that and we have known it from day 1. The idea of having made "traction" is completely illusory. The issue is the wisdom of the outburst at this particular point in time (before we have reached the requisite number of TIEAs and been rebuffed by the OECD) in the context of having urged the govt. to bend over for the OECD. It makes us seem silly.
Someone used the expression "bull in a china shop" under a previous article. I am beginning to agree.
This analogy is clearly an insult to bulls. I am certain that most bulls would demonstrate much more problem solving skill and agility in manouevering a china shop.
To the poster immediately below who seems to like conspiracy theories. No conspiracies are necessary to do us in. This government and its advisors are well on the way to doing it without outside intervention in a matter of a few weeks.
There is a also a clear difference between pulling no punches to which you refer and thrashing about aimlessly. What we and the rest of the world are witnessing is classic thrashing about.
Please somebody send him back to retirement.
Do you all really think that Mr. Bush will be led by this appointed team of "TEA" or "Double Taxation Agreement" negotiators, whatever the form they finally take?
Message to our government’s new team of advisors. It is possible that you once had good intentions but please resign.
Message to MAC – fire these clowns immediately. Don’t wait for them to do the right thing and resign. That might be too late.
Message to our government’s new team of advisors. It is possible that you once had good intentions but please resign. You are embarrassing us in front of the world.
My Fellow Caymanians,
Many of us are missing the BIG picture here…this issue goes FAR beyond the OECD!!
Travers simply now realizes that our backs are truly up against the wall and he’s decided to not pull any punches an longer!
The Cayman Islands are singled out and targeted – no matter what we do we are fast approaching a massive and overwhelming attack on our Financial Industry.
The bottom line is that we are dead in the middle of an unseen ‘war’ going on behind the scenes in the world of global banking / power. (Hint: Obama, Brown, and Merkel ARE NOT in control of this world!)
The truly sad part is that the forces behind this attack have convinced the citizens of the super-power nations that this is all for their own good! Oh, how wrong they will be proven to be.
People – wake up!! This is nothing like you have ever seen before!!
CLICK HERE!!
http://www.youtube.com/watch
It must have been such a terrible disappointment after all that anticipation.
The official score on the content of the Accountancy Age article is:
OECD 5
Jersey 5
Isle of Man 5
Cayman – zero as well as baffled and looking so – that is clearly just what we need to build confidence in the jurisdiction and a good working relationship with a major international organisation.
Huh?! If the OECD is impotent why has Mr. Travers been urging our govt. to rush around making commitments to repeal the Confidentiality Law and sign up many bilateral agreements (the unilateral mechanism wouldn’t do), abolish rollover so that we can meet a substantial activity criterion as quickly as possible?
From the article: "He expressed some surprise at the comments from Travers because the jurisdiction is currently on an OECD grey list and pushing for ‘white list’ status.
Kirkby said: ‘We’re now on the white list so why would we be too critical. I would’ve expected the Cayman’s to adopt a lower key approach but I think [Travers] is quite passionate about the OECD and introducing this flow of tax information, which you can’t disagree with,’ he said".
Someone used the expression "bull in a china shop" under a previous article. I am beginning to agree.
A very little knowledge is a dangerous thing. Before the election Travers knew little of what he was talking about but managed to scare/convince MAC and others that he had all the answers. Now he admits that he and the new government which he is advising are completely baffled about what to do. Big on talk but no clue about what to do. No surprise there.
Attacking the OECD is also another sign of the desparation of the ignorant. Before the election he was all for showing up at OECD headquarters in Paris and handing them a bunch of signed agreements and that would solve all of Cayman’s problems. It was a bizarre and completely uninformed idea then (apart from fear mongering inorder to influence the election that is) and my guess is that the OECD have told him to get on his bike and learn something before bringing them any more total nonsense.
All in all it is clear that a carefully thought out plan is being put into action – not.
Does that mean that we have new evidence of who has been in bed with who then? Is it now polite for gentlemen kiss and tell?