Archive for September, 2010

Cayman Islands tax authorities published report on interest paid to EU residents

Saturday, September 25th, 2010

The Cayman Islands’ Tax Information Authority has published details on the amount of interest paid to European Union residents during the year 2009. The Cayman Islands being party to the EU Savings Directive, the residents in EU countries that receive interest from the Cayman Islands are liable to have information relating to the interest they have earned sent confidentially to the tax authority of their home country.

In 2009, the largest number of reports on accounts based in the Cayman Islands was sent to the French tax authority, followed by the UK. Savings income reported to the UK tax authority decreased substantially, but still remained the highest, followed by savings income reported to the French tax authorities. The highest interest income in 2009 was reported by Dutch residents.

Total number of reports on Cayman Islands accounts was 7,397 in 2009, as compared to 5,679 in the prior year. At the same time, there was a significant decrease of total value of income declared – from USD25.7 million in 2008 to USD 12.25 in 2009.

CFATF Chairmanship to be transferred to the Cayman Islands

Monday, September 20th, 2010

The Cayman Islands government announced that from November 2010 it will chair the Caribbean Financial Action Task Force (CFATF), the body responsible for ensuring the uptake of Anti-Money Laundering and Countering the Financing of Terrorism standards in the region. This followed jurisdiction’s recognition by the Banker as the top specialized financial centre. Cayman Islands’ Premier and Finance Minister McKeeva Bush stated that these accomplishments speak to the high standards of financial industry of the Cayman Islands and demonstrate the ability to adopt to an ever-changing economic environment.

The transfer of chairmanship of the CFATF will take place at the 32nd Annual CFATF Plenary. The event will be hosted by the Cayman government from November 2 until November 4, 2010.

Cayman Islands’ official chairmanship of the CFATF will increase the jurisdiction’s participation in setting the global standards for anti-money laundering and fighting terrorism financing

The Attorney General Samuel Bulgin welcomed the appointment of the Cayman Islands, saying: “We look forward to enhancing an already solid relationship with CFATF and FATF members. As incoming Chair, the Cayman Islands are tasked with carrying forward the work programme for the organization over the next year and ensuring that members adhere to strict anti-money laundering standards.”

Cayman Islands recognised as number one specialised financial centre

Saturday, September 11th, 2010

The major banking and finance magazine, the Banker, has named the Cayman Islands as the top specialised financial centre for the second year running. The jurisdiction has been awarded first place by an increased margin over other jurisdictions such as Bermuda, Jersey, Guernsey, Malta, Gibraltar, Monaco and Cyprus.

With more than 40 of the top 50 banks holding licences on the island, Cayman Islands is recognised as one of the top international financial centres in the world, but the ranking of the magazine is based not simply on the size of the financial services industry, but focused on the level of international business and value offered to institutions seeking to expand their overseas operations.

The Chairman of Cayman Finance Anthony Travers said about the results: “this is yet another objective finding that reinforces the fact that Cayman is regarded by institutions… as a successful and transparent tax neutral jurisdiction from which to base international operations.” He also said that the first place award came at a time when the Cayman Islands have signed its twentieth tax information exchange agreement, and when the Cayman Islands Monetary Authority (CIMA) statistics show a continuingly robust performance by the financial services industry over the past year.

Also, according to Mr. Travers, the absence of corporate income, capital gains, payroll or property taxes is likely “to enhance Cayman’s attraction in the immediate future.”

Cayman Islands signed TIEA with Mexico

Friday, September 3rd, 2010

The Cayman Islands has signed Tax Information Exchange Agreement with Mexico, aimed at further strengthening international cooperation regime of the jurisdiction. The TIEA was considered legally binding after being signed by the Cayman Islands Premier and Minister of Finance McKeeva Bush and Ernesto Javier Cordero Arroyo, Minister of Finance and Public Credit for Mexico. The agreement was signed on 28 August 2010. This is the twentieth TIEA for the jurisdiction, the last one was signed between the Cayman Islands and Canada. The Cayman Islands has TIEAs with other countries – members of G7 and G20, including Australia, Germany, France, the United Kingdom and the United States.

Premier McKeeva Bush said in his comments that this agreement also signifies new chapter in the relationship between Mexico and the Cayman Islands, “encouraging further economic development and improved relations, boosting the jurisdiction’s reputation amongst Mexican investors.”