New administration in the Cayman Islands commits to a Global Tax Convention

The new administration in the Cayman Islands, has announced it is prepared to commit to an international tax convention.

“The Cayman Islands Government today announced that it is prepared to commit to the Convention on Mutual Administrative Assistance in Tax Matters,” according to a statement.

Also, ahead of the Group of Eight meeting in Northern Ireland on 17-18 June, the government said it has accepted invitations from British prime minister David Cameron to attend two events on 15 June.

While governments of large industrialized economies in the Group of 20 (G20) and other groupings (such as the G8) have criticized offshore jurisdictions for their low, or even lack, of taxes on some activities, as well as for their allegedly secretive nature, defenders argue they play an important role in a globalized economy, such as dealing with the problem of double taxation and assaults on vulnerable groups by rapacious governments and criminals.

The CATO Institute think tank in Washington DC, for example, has argued that tax havens, on balance, help pressurize “onshore” governments into keeping taxes lower than otherwise would be the case, thereby boosting overall economic growth.

“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,” the statement added.

Source: Wealth Briefing