Ahead of her trip to Brussels this week, Financial Services Minister Tara Rivers and her technical officials engaged with the local industry about Cayman’s commitments in relation to the EU’s assessment of jurisdictions’ tax regimes. Rivers said “developments remain fluid” and that government’s process for fulfilling its commitments continues to include the participation of the sector. “Industry input remains critical,” she said, adding that it would help inform government’s response to the EU.
But she also underscored that discussions with the EU are continuing and, as a result, the process may be adjusted as necessary. While Rivers and Cayman Islands Governor Anwar Choudhury have both said recently that officials here understand what is expected from Cayman by the EU to ensure it is not placed on a blacklist, the minister has failed to explain what the EU wants.
Last December Cayman did not appear on Europe’s blacklist of jurisdictions it says are non-cooperative in tax matters with EU Member States. But Cayman appeared on what was described as a grey list of 47 jurisdictions asked to enhance their regimes to prevent tax misuse. In the documentation the EU said Cayman was one of five countries that “facilitate offshore structures which attract profits without real economic activity”.
Cayman has made commitments to the EU to review their regimes in the area of fair taxation before the end of this year but it has never been made clear to the public what that means and what the financial sector or government must do to avoid being blacklisted.
“Cayman made our commitments following discussions with industry in November 2017, prior to agreeing them with the EU,” Rivers said ahead of her trip this week. “They are a continuation of our longstanding engagement on international tax matters.”
Via: Cayman News Service