The Cayman authorities have signed their 25th Tax Information Exchange Agreement (TIEA) with Guernsey, in a move which commentators have said reinforces Cayman’s commitment to complete tax transparency.
“The new agreement is good for both Guernsey and Cayman for a reason which is more fundamental than the funds industry in either jurisdiction,” says Robert Duggan, partner at Mourant Ozannes.
“It reinforces the message that, when the government of the Cayman Islands and that of Guernsey affirms its commitment to tax transparency and cooperation on matters of tax information exchange, it is not a cynically self-interested gesture which they press home through TIEAs only with 'onshore' jurisdictions, but rather the commitment is universal.
“It is of course beneficial to the funds industry in the Cayman Islands because of the building body of evidence of the Cayman Islands' commitment to tax transparency and cooperation—factors which will be taken into account in any peer assessment of the Cayman Islands' product in terms of Europe's Directive on Alternative Investment Fund Managers.
“It is yet further evidence that Cayman is part of the international finance world's mainstream, and that the jurisdiction is committed to maintaining its position there.”