Archive for April, 2013

Cayman is not afraid of FATCA

Thursday, April 18th, 2013

The Chief Executive Officer of Cayman Finance, Gonzalo Jalles has discussed the ramifications for the Cayman Islands’ banking sector of the United States’ Foreign Account Tax Compliance Act (FATCA), and has raised doubts about the likelihood that the regime will be replicated globally.

Jalles explained that the Cayman Islands had agreed to enter into a Model 1 Intergovernmental Agreement with the US due to its desire to rid itself of any association with facilitating tax evasion.

Jalles said the information disclosed under FATCA will be cross-referenced against individuals’ tax filings, and as such, “if anyone thought (incorrectly) a Cayman bank account could be used to hide taxes, it will most certainly now be absolutely impossibleā€. He added: “We do not want anyone to use Cayman to evade taxes… we have demonstrated during the last years a consistent desire to help other countries enforce their tax laws.”

In a bid to dispel misconceptions that the Cayman financial industry is built around “some kind of secrecy or tax evasion structure,” Jalles said the Government is confident that increased transparency does not threaten the islands’ prosperity as an offshore financial centre.

He commented: “Our financial industry provides a tax-efficient structure for transactions. Tax-efficient is not a fancy word for tax evasion, but means each investor or investment pays the appropriate taxes in the place where the investor is based or the investment is made without creating a second layer of taxes.”