After the first revelations from the hacked documents that have been dubbed the Paradise Papers began making headlines around the world Sunday, Jude Scott, CEO of Cayman Finance, has defended the British monarch’s use of Cayman Islands funds and what he said is the legitimate use of offshore financial services by many investors. As the offshore world poises for more attacks, Scott said that like other international financial centres, Cayman Islands has had “to get used to unfair and inaccurate reporting about our role in the global financial marketplace”, but it was not going to “tolerate unfair attacks against our Queen, Elizabeth II, who maintains normal and legal investments in Cayman”.
He said that Cayman is a compliant and transparent British Overseas Territory that is part of her dominion.
“From investors like Her Majesty to pensioners and university students, a very wide range of people benefit from investments in Cayman,” Scott said in a release. “Individuals as well as institutions such as government and state pension plans, regular pension funds and university endowments invest together in Cayman funds to access investment opportunities from around the world in a neutral location. We are home to funds advised by some of the most talented investment professionals in the world who help those investors increase their returns, which benefit retirees, students, communities and businesses – and on which they pay all relevant taxes in their own jurisdictions.”
He added that the investments people use in Cayman are legal investments which are no different than those that exist in places like London, New York, Frankfurt, Dublin, Luxembourg and Paris and are just as transparently reported to tax authorities.
“Cayman is a transparent, tax neutral jurisdiction and not a tax haven,” Scott stated. “Our legal, regulatory and legislative regimes clearly show we meet none of the definitions of a tax haven used by the OECD or leading transparency organizations. In addition, Cayman maintains a globally responsible tax regime that enables the free flow of trade, services, capital and financing around the world, and does so with transparent stated and actual applied tax rates, cooperation and without engaging in unfair tax practices.
“Cayman has signed agreements which allow tax information exchange with more than 90 countries, automatically shares tax data as part of the European Union Savings Directive, US FATCA and the Common Reporting Standard and has signed onto the country-by-country reporting principles under the BEPS process,” he added.