Britain has signed a tax agreement with the Cayman Islands, one of the world's largest hedge fund centres, which has come under pressure during the international crackdown on tax havens and offshore financial centres. The deal is designed to address double taxation and "fiscal evasion".
Stephen Timms, financial secretary to the Treasury, said the agreement was "a significant step" in establishing the jurisdiction's compliance. The territory is required to sign three more agreements promising assistance to foreign tax authorities before it will be removed from the "grey list" of tax havens.