Cayman Is Prepared To Commit To Multilateral Convention

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The Cayman Islands Government announced on June 10, 2013 that it is prepared to commit to the Convention on Mutual Administrative Assistance in Tax Matters.

It also announced that it has accepted invitations from UK Prime Minister David Cameron to attend two events on June 15, immediately prior to the G8 Meeting, which will be held in Ireland from June 17 to 18.

The Convention on Mutual Administrative Assistance in Tax Matters is an OECD/Council of Europe multilateral agreement. It is designed to combat tax evasion and aggressive tax avoidance, by promoting cooperation among jurisdictions for the exchange of information among relevant authorities for tax and transparency purposes.

"Cayman has engaged in substantive discussions with HM Treasury on the particulars of the convention", said Premier Alden McLaughlin. "We are satisfied that the extension of the convention to our Islands will be done in accordance with the UK's recognition of Cayman's fiscal autonomy, and the well-established principle that countries have the prerogative to set their own tax rates".

He noted that committing to the convention is in line with Cayman's extensive network of bilateral exchange of information agreements. This includes commitments to US and UK FATCAs, the European Union Savings Directive, and the G5 pilot on multilateral automatic information exchange.

"We agree with the UK's statement that there is 'no point in dealing with tax evasion in one country, if the problem is simply displaced to another'," the Premier said. "With this in mind, we also agree that there should be equitable adherence, including within the G8 countries, to global tax and transparency standards. This will set the foundation for full and effective participation, by all countries, in the true spirit of these efforts."