Archive for January, 2011

Cayman negotiates TIEA with Spain

Saturday, January 29th, 2011

On January 17, it was announced that the Cayman Islands has concluded negotiations for a tax information exchange agreement (TIEA) with Spain.

As a result, the authorities of Spain will no longer consider the jurisdiction as a tax haven once Spain signs a deal with the Cayman government.

The TIEA to be signed with Spain follows accord on several areas of common interest. The Ministry of Finance has revealed that the main outcome of the agreement will be Spain no longer classifying the Cayman Islands as a tax haven under its domestic legislation.

Cayman Islands Premier and Minister of Finance, McKeeva Bush said: “The conclusion of negotiations with Spain and the anticipated reclassification of the Cayman Islands under Spanish tax law represent significant progress in the Cayman Islands international tax transparency programme”. He added that Spain is a EU member state and a G-20 country, so, Cayman’s agreement fulfils the objectives of the negotiation strategy focused on concluding TIEAs with nations in these 2 groups.

It should be noted that the Cayman Islands has signed 20 bilateral arrangements for the provision of tax information. The Cayman Islands currently has 7 agreements awaiting signature, in addition to Spain. These are agreements with Italy, Japan, India, Greece, Indonesia, South Africa, South Korea.

Cayman downgraded in insurer’s risk assessment

Monday, January 24th, 2011

The Cayman Islands has been downgraded in an annual review of political and economic risks.

Aon Corporation, a leading international provider of risk management services, insurance and reinsurance brokerage, has lowered the rating of the Cayman Islands as well as 19 other countries. The Cayman rating was downgraded from a low-risk jurisdiction to medium low-risk in its 2011 Political Risk Map.

The jurisdiction was downgraded along with Antigua & Barbuda, Bahamas, Barbados, Bermuda, Dominica, Grenada, Antilles, St Vincent, Trinidad, St. Lucia and St. Kitts & Nevis because of tighter global credit conditions that could lead to an increase in sovereign non-payment risk.

Associate director of Aon Risk Solutions’ Crisis Management Practice, Beverley Marsden, said: “The perceived or actual risk of sovereign non-payment continues to be an issue in countries across the globe. For example, we have seen 13 island nations move into a higher risk category this year because of the effect of a decline in tourism on their economy.”

Cayman Ship Registry says 2010 was a successful year

Wednesday, January 19th, 2011

The parent organization of the Cayman Islands shipping registry, Cayman Maritime, has announced 2010 as a successful year for the maritime industry in Cayman.

According to Cayman Maritime, despite economic difficulties globally, over the past year, there has been noticeable interest in the jurisdiction in terms of vessel registration.

It was reported that 2010 was one of the best years experienced by the Register, in terms of both the total number of vessels registered and the combined gross registered tonnage.

At the end of 2010, a total of 1 870 vessels were listed on the Register, which is an increase as compared with 1 815 in 2009. There was also an increase in gross registered tonnage from 3.7 million in 2009 to 3.9 million at the end of 2010.

As regards new vessel registrations, it was up some 254 in 2010, which was the 2nd best year ever.

Cayman and Indonesia sign TIEA

Friday, January 7th, 2011

On December 4, 2010, the government of the Cayman Islands announced initialing a tax information exchange agreement (TIEA) with Indonesia. This announcement followed negotiations in the beginning of December in Grand Cayman.

Welcoming the agreement, Head of the Cayman Islands’ delegation, Attorney General, Samuel Bulgin, said that this TIEA shows the development of a new partnership between the two jurisdictions. The document will render further transparency and business between the Cayman Islands and Indonesia. He said: “We certainly look forward to a prosperous working relationship and hope to finalise and sign the TIEA early next year.”

The agreement is to be signed. Then, ratification procedure will be required for both countries before it enters into force.

According to statistics published by the OECD, the Cayman Islands has concluded 19 TIEAs with other nations.