Archive for the ‘Cayman budget’ Category

New Head of Insurance appointed in Cayman Islands

Wednesday, July 20th, 2016

In the Cayman Islands, the captive and re/insurance industry is delighted with the announcement that Ruwan Jayasekera has been appointed as Head of Insurance Supervision.

Kieran O’Mahony, Chairman of the Insurance Managers Association of Cayman (IMAC) expressed the pleasure as regards the announcement as Ruwan is highly regarded within the Cayman captive and re/insurance industry not only for his the qualifications, but also as a known, proven and experienced entity having worked closely with industry practitioners for many years. According to O’Mahony, he has a proportionate and balanced approach to insurance regulation and supervision.

To remind, the Cayman Islands is the 2nd largest jurisdiction for captive insurance with over 709 licensees as of the 30th of June 2016. It remains the leading jurisdiction for healthcare and group captives, with 34% and 17% of market share, respectively.

Cayman approves revised Budget

Monday, September 3rd, 2012

The government of the UK has endorsed the revised Cayman budget for 2012-2013. However, it has restricted the size of a second overdraft facility to limit Cayman borrowing.

The latest budget is the result of a second revision of budget proposals from the government of the Cayman Islands, which was instructed to rewrite its initial budget plans earlier this year after the territory was blocked by the UK government from increasing borrowing to service the Cayman Islands’ recurring budget deficits. A second draft of the budget was drawn up in the beginning of August 2012. However, this draft was abandoned after an outcry from the Cayman financial industry regarding a proposal to introduce a direct tax on expatriate workers’ income.

The third budget has been approved by the UK government. The fiscal adjustment contained within the latest draft is less ambitious. It contains no direct tax proposals envisaging a USD 25 million shortfall during the 1st few months of 2013.

However, in agreeing the revised budget the government of the United Kingdom has said that it would grant a second overdraft facility of just USD 15 million, USD 10 million less than requested.

The overdraft facilities with a combined value of USD 81 million are being provided in recognition of the cyclical nature of Cayman revenues from the financial services industry. The Cayman Islands will be required to establish a “Budget Delivery Board” with a view to ensure achieving a budgetary surplus, as well as the repayment of the two credit facilities to the UK government by January 31, 2013, and June 30, 2013.

Balanced Budget Plan outlined by Cayman Islands

Tuesday, June 22nd, 2010

Taxation in 2010 Budget has been only nominally increased by the Cayman Islands. This move reveals the Cayman government’s 3-year plan aimed to bring its budget back to surplus. Besides cuts in expenditure, the government of the jurisdiction has proposed many reforms designed to enhance the jurisdiction’s attractiveness to investors.

When delivering the budget, Cayman’s Premier McKeeva Bush said: “Given the observations of the current fiscal year, it is evident that the economy is at a point where additional taxation will compromise the competitiveness of businesses. Such an outcome would have implications for the economy’s capacity to grow its way out of the recession. There is an awful tendency here to say raise taxes and let business pay, but the harsh reality is that if that is the case, we will run away businesses, and lose more jobs. The only ones to really suffer are Caymanians, particularly those who can’t help themselves. Therefore one of the key tenets upon which government policy would revolve, during the fiscal year 2010/11, is the minimization of any new revenue measures on businesses, especially when it becomes a burden”.

According to the government’s budget forecasts, a small surplus of about USD 11.1 million is expected in the fiscal year 2011-2012. In 2012-2013, a fiscal recovery is foreseen as the surplus is expected to be essential.

To improve the attractiveness of the Cayman Islands to outside investors, the following measures are to be implemented by the government:

– to further modernize and enhance regulation and supervision in order to ensure that the jurisdiction keeps on par with the evolving international regulatory standards and best practices relevant to its various types of business;

– to intensify international cooperation and involvement in order to ensure that the government does its part to ensure the safety and sound regulation of the international financial system, allowing the islands to contribute to the development of international rules and standards that affect it;

– to increase the effectiveness and cost-efficiency with which regulatory agencies operate;

– to facilitate the efforts of government and the private sector to further develop the jurisdiction as an international financial centre;

– to become more business-friendly.

Cayman increases Fees and Taxes

Wednesday, October 7th, 2009

On October 2, 2009, Cayman Islands’ Financial Secretary, Kenneth Jefferson tabled an austerity budget that was designed to tackle the significant challenges that are being faced by the offshore jurisdiction as a result of the financial crisis. Unfortunately, the crisis has not left the government much choice; therefore a multitude of taxes and fees will be increased.

Rising expenditure and lackluster revenues are facing a 5.7% contraction this year. So, Cayman has been forced to reevaluate its tax system in order to provide an additional KYD 126.4 million (USD 156 million) over the next 12 months. KYD 94.9 million (USD 117.2 million) out of this sum will be realized in the fiscal year 2009/2010.

The Cayman Islands has rejected the UK’s call to introduce direct taxes. The jurisdiction has instead decided to introduce broad increases in levies on international trade and transactions and domestic levies on goods and services, consisting mostly of increases in import duties, bank, trust and company licence fees and work permit fees.