Cayman Finance CEO, Jude Scott on Monday fired back at a report which harshly labeled the Island as a ‘tax haven’ and criticized it for being slow to release private financial records and facilitating financial secrecy.
Scott in responding to the criticism levelled against the jurisdiction noted that, not only is the island ‘transparent’ but the Cayman Islands has adopted more than twenty global financial standards and adheres to both US FATCA and the EU’s Common Reporting Standards.
“We meet none of the descriptions used by entities such as the OECD or Transparency International to define a tax haven. In fact, our system purposefully lacks any laws or regulations like double taxation treaties or foreign incentives that support the shifting of a tax base by foreign entities to avoid corporate taxes in their home jurisdictions,” said Scott.
“Reports such as this conveniently overlook how International Finance Centers (IFCs) like the Cayman Islands use their commitment to global standards for transparency and cross-border information sharing with law enforcement and tax authorities, “added Scott.
Admittedly, Scott noted that every jurisdiction is at risk from those who will attempt to get around the systematic safeguards, but he noted that the laws and regulations adopted by the Islands make it a strong international partner to address such concerns.
Scott used the opportunity to reiterate that the island is a “premier global financial hub, efficiently connecting law abiding users and providers of investment capital and financing around the world”.
Cayman is an excellent extender of value for the US, UK and other major economies, helping to pool global investment capital and financing for major initiatives like infrastructure development. “said Scott.
The report on International Financial Centers was issued last week by US PIRG and the Institute on Taxation and Economic Policy.