Cayman meets review transparency standards

(CNS): Government has announced that changes made in the wake of the first assessment the Cayman Islands is now in compliance with all nine essential elements of international tax transparency and information exchange standards as set by the OECD’s Global Forum. The forum has reported that as a result of the changes made since the 2010 Phase 1 report from the Peer Review Group (PRG) and the submission of a supplementary report this summer Cayman is now compliant. Samuel Bulgin, QC Cayman’ attorney general who presented the supplementary report at the Global Forum PRG meeting held in Grand Cayman in July said it outlined proof that all nine of the Global Forum’s essential elements are in place.

“The Cayman Islands has moved quickly to address the shortcomings identified in its 2010 review in respect of the availability of accounting records,” the OECD has said about the jurisdiction adding that concerns originally raised with respect to nominees and the availability of ownership information had been addressed. Although the international organisation also noted that, “Some other recommendations concerning the availability of ownership and identity information remain and these will be considered in the phase 2 review of the Cayman Islands, to take place in the second half of 2012.”

Premier McKeeva Bush said the supplementary report highlighted Cayman’s enactment of the Companies (Amendment) Law, 2010; the Partnership (Amendment) Law, 2010; the Exempted Limited Partnership (Amendment) Law, 2010; and the Trusts (Amendment) Law, 2011. “These amendments, which were in response to findings outlined in the Phase I report, assist government in meeting the international standards on tax information exchange,” Bush who also is the Minister of Finance said.

Bulgin explained that the amendments prescribe the keeping of relevant accounting records, including underlying documentation, for a minimum period of five years. The supplementary report also reflects the Global Forum’s removal of the recommendation in respect to nominees and the availability of ownership information; the removal of this recommendation maintains consistency across Global Forum reports.

The supplementary report also notes Cayman’s continued development of its information-exchange network, through the signing of tax information-exchange agreements (TIEAs).

Cayman has signed tax deals with 25 jurisdictions including one of which became two. With the 2010 official dissolution of the Netherland Antilles Cayman was credited with having separate agreements with the countries of Curaçao and Sint Maarten.

Government’s supplementary report, which contains full details of Cayman’s response to the Phase I report, is published on the OED Website. Bulgin said this ensures transparency in member jurisdictions’ tax information regimes and the peer review process.

The Cayman Islands is a member of the Global Forum’s Steering Group, which prepares and guides the forum’s work and is also is a member of the Global Forum PRG, which is responsible for the peer review process.