Cayman Islands

Prev    Next Cayman Islands woo French business with tax accord Published on Thursday, October 15, 2009 Email To Friend    Print Version GEORGE TOWN, Cayman Islands (Reuters) -- The Cayman Islands has signed a tax information agreement with France that it said on Wednesday it hoped would attract French financial institutions and companies. The government of the tiny British overseas Caribbean territory, which is one of the world's largest domiciles of hedge funds, said the accord was signed with Paris via an exchange of letters on October 5. It was the 13th bilateral Tax Information Exchange Agreement (TIEA) signed by the Cayman Islands, which has moved quickly in recent months to update its tax information relations at a time when France and other industrialized states are cracking down on offshore centers perceived as tax havens. France said last week it planned to strengthen its fiscal rules toward countries on the Organization of Economic Cooperation and Development's tax "grey list" that have not signed bilateral agreements with France. Last week, French banks also promised to close all their branches and outlets in jurisdictions considered to be tax havens from March 2010 onward. The Cayman Islands, which in August moved off the OECD's grey list of noncompliance jurisdictions in tax standards, said the new agreement with France showed it was committed to implementing the OECD guidelines. Leader of Government Business McKeeva Bush "We hope that this agreement will act as a catalyst for French companies looking to diversify into new markets," said McKeeva Bush, the Cayman Islands' leader of government business, premier designate and minister for financial services. France's main banks -- BNP Paribas, Credit Agricole, Societe Generale, BPCE and Credit Mutuel -- have a relatively modest presence in the Caribbean and Atlantic territories when compared with American banks. Last month, BNP Paribas said it would shut down its Panama and Bahamas operations as part of a move to close subsidiaries situated in jurisdictions on the OECD grey list. "Whilst providing the assurance of mutual cooperation, market access and smooth capital flows, we are hoping (the tax agreement with France) will contribute to growth in international business and to stimulating our local economy," Bush added in the statement, which was released by the Cayman Islands financial services ministry. The Cayman Islands has also signed bilateral tax information agreements with Denmark, Faroe Islands, Finland, Greenland, Iceland, Ireland, Netherlands, New Zealand, Norway, Sweden, Britain and the United States. The agreements allow tax authorities to access information about people who are seeking to evade payment of tax and help disclose assets that have not been reported in the home country.   Reads : 576   Prev    Next

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