Cayman Joins OECD Convention On Tax Assistance
The Organization for Economic Cooperation and Development(OECD)/Council of Europe Convention on Mutual Assistance in Tax Matters has been extended to the Cayman Islands, effective as of January 01, 2014.
The convention provides for all possible forms of administrative co-operation between states in the assessment and collection of taxes, in particular with a view to combating tax avoidance and evasion. This co-operation ranges from exchange of information, including automatic exchanges, to the recovery of foreign tax claims. It currently has more than 50 adherents.
The Cayman Minister of Financial Services, Wayne Panton, said: "For the continued vitality and growth of Cayman's industry, it's an advantage to remain aligned with global movements in the direction of automatic exchange of information."
With international instruments, it is common to allow signatory countries to opt out of certain aspects. Regarding the OECD/Council of Europe convention, Cayman will not handle matters related to requests for the recovery of foreign tax claims, or exchange of information regarding local taxes, and social security contributions. The convention does not allow countries to opt out of core elements regarding the exchange of tax information.
The Cayman Islands has so far signed tax information exchange agreements with 31 jurisdictions and is working on agreements with a further 18 jurisdictions. On November 05 it became the first British overseas territory to sign an intergovernmental agreement with the UK on the automatic exchange of tax information.