OECD Confirms Cayman Compliant with Tax Information Exchange Standards
On 11 April 2013, the OECD Global Forum on Transparency and Exchange of Information for Tax Purposes ("Global Forum") released their Phase 2 Peer Review Report on the Cayman Islands.
Given its prominence in global financial markets, the Cayman Islands was one of the first jurisdictions to be reviewed under Phase 1 and Phase 2 of the Peer Review process.
The Phase 2 Review, which was undertaken between July 2012 and January 2013, assessed the practical implementation of the Cayman Islands tax information exchange regime; i.e. whether the regime works in practice. The Cayman Islands has had a tax information exchange framework in place for over a decade and is currently a signatory of 31 bilateral tax information exchange agreements, including most recently with Italy and Brazil.
In summary, the Global Forum Review confirmed:
a) The Cayman Islands has addressed all recommendations in the Phase 1 Report;
b) The Cayman Islands has succeeded in practically implementing the international standard for transparency and exchange of information;
c) The Cayman Islands Tax Information Authority is well organised with adequate internal processes in place for handling EOI requests and has successfully exercised its powers in gathering information for requesting authorities; and
d) Requesting authorities have attested to the high quality responses provided by the Cayman Islands in a swift and timely manner.
The Cayman Islands is a member of the Global Forum's Steering Group and Peer Review Group and continues to demonstrate its adherence to international cooperation and transparency initiatives in relation to tax and criminal matters.
Henry Smith, Global Managing Partner of Maples and Calder noted, "The excellent Phase 2 Report results are not only a testament to the hard work performed by the Cayman Islands government, particularly the Tax Information Authority, in conjunction with the private sector, but also reinforce the fact that the Cayman Islands is, and has been, fully committed to transparency and cooperation in relation to such matters."
If you should have any questions in relation to the Cayman Islands tax information exchange regime, please contact either of the individuals listed above.