Archive for February, 2011

Bank boss rejects using Cayman for tax evasion

Saturday, February 26th, 2011

The Chief Executive Officer of Barclays Robert Diamond has told UK parliamentarians that the bank does not evade taxes. He suggested examining the bank’s offshore operations.

Diamond told a Treasury Committee hearing at the House of Commons in London that Barclays does not evade taxes and is complying with legislation. He answere questions from parliamentarians who alleged that the bank had more than 300 companies operating in the Cayman Islands, the Channel Islands and other tax havens.

Interim Chairman appointed by Cayman Finance

Tuesday, February 22nd, 2011

To replace the outgoing Chairman Anthony Travers, Cayman Finance has appointed an Interim Chairman Roy McTaggart. The decision has immediate effect.

Anthony Travers recently resignated after serving 2 years as Chairman.

Roy McTaggart is the Managing Partner at KPMG Cayman and has over 25 years’ experience in providing assurance services to the hedge fund, captive insurance and offshore banking industries. He acts as the Risk Management Partner with the responsibility for the professional risk management process for the Cayman and BVI offices. McTaggart is a member of the Florida and American Institutes of Certified Public Accountants; council member of the Cayman Islands Society of Professional Accountants; and a member of the Financial Services Council, an advisory group to the Cayman Islands government.

McTaggart welcomed his appointment, saying: “I am pleased to accept this role which will provide continuity of service whilst a permanent appointment is made. We are working with the Financial Services Commission and with the Cayman Islands Monetary Authority to help ensure that there is an articulate and sophisticated understanding of Cayman’s positive role in international finance.”

Book on Tax Havens criticized by Cayman Finance Chair

Friday, February 18th, 2011

In an interview with Cayman’s local television, the chair of Cayman Finance Anthony Travers has called the author of a new book on tax havens called Treasure Islands: Tax Havens and the Men Who Stole the World, Nicholas Shaxson, an imbecile.

Cayman Finance chair criticized the author claiming that his work demonstrates no more than a primitive understanding of offshore finance. Also, Travers supposed that Shaxson’s position came from the politics of envy and said that Shaxson does not understand what is going on in the Cayman Islands.

Cayman Finance chair noted: “There are simply jurisdictions where it would be more sensible to perpetuate your fraud or money laundering than the Cayman Islands”, while the book contain the information that the Cayman Islands is a tax haven or a magnet for illicit transactions.

Cayman signs TIEA with Japan

Monday, February 14th, 2011

The government of the Cayman Islands has announced expanding its network of Tax Information Exchange Agreements (TIEAs) with the signing of its 21st agreement.

The agreement was signed on February 7 between the Cayman Islands and Japan.

The document was inked at the Japanese Embassy in London. On behalf of the Cayman Islands, the TIEA was signed by the Cayman Islands’ Premier and Minister of Finance, McKeeva Bush, and, on behalf of Japan, it was signed by Hitoshi Noda, the Chargé d’Affaires ad interim.

Following the signing of the agreement, Bush commented that the development of the jurisdiction’s tax negotiation process is becoming increasingly valuable to the financial services sector. He noted that the signing of such an agreement with Japan provides benefits to both parties as well as signifies a new type of relationship.

It should be noted that the terms of this Tax Information Exchange Agreement include provisions for pensioners, students, government employees and residents of Japan, in that they will not be subject to double taxation.

US Telecoms Company re-domiciles from Delaware to Cayman

Wednesday, February 9th, 2011

In January, United States’ telecommunications company announced its plans to change its place of incorporation from Delaware to the Cayman Islands. UTStarcom Inc. decided to change its place of incorporation as part of reorganization.

It is worth mentioning that many companies incorporate in the Cayman Islands or other offshore financial centers in the Caribbean and elsewhere because they are drawn by low tax rates and banking rules and legal systems allowing to move capital around the globe easier. To become a subsidiary of a Cayman Islands holding company called UTStarcom Cayman, UTStarcom is merging with a newly-formed unit.

If company’s shareholders approve the deal, the UTStarcom shares they have will convert into shares of UTStarcom Cayman. This will be listed on Nasdaq. It should be noted that the business operations of the company will not change.

Special Economic Zones planned in Cayman

Saturday, February 5th, 2011

In the end of January, the government of the Cayman Islands announced having entered into a Memorandum of Understanding to establish a free zone. The free zone to be established is to offer attractive terms to those who are aimed at making tax-efficient technology-based investments in the Caribbean and Americas region.

The MoU alloows creating a so-called enterprise city. The contractor, Hon Cayman Property Limited is expected to invest more than USD 500 million over 10 years.

The above-mentioned plans are to be approved by the Cabinet in March. After that, construction will commence at the beginning of 2012. It should be noted that the construction will provide 5 000 new jobs and local high-level training.

The government the Cayman Islands has accepted plans for the 300-acre zone to be partitioned into 6 specialized campuses, which will be as follows:
the Cayman Internet Park;
the CayBiotech, a Biotechnology & Research Park;
the Cayman Media Park;
the Cayman Global Commodities Centre (centralizing the global commodity market in Cayman);
the Cayman International Academic Park (a special economic zone dedicated to higher education);
the the Cayman Outsource Park.

Aetna Inc. in deal with Special-Purpose Cayman-based Company

Tuesday, February 1st, 2011

United States’ leading health insurer, Aetna Inc. has entered into a 3-year reinsurance agreement with a Cayman-based company. Vitality Re Limited is a newly-formed special-purpose insurance company based in the Cayman Islands.

According to Aetna, the deal is part of its long-term capital management strategy that allows the insurer to reduce its required capital and provides USD 150 million of collateralized excess of loss reinsurance coverage on a portion of Aetna’s group commercial health insurance business.