A statement from the Cayman Islands government confirmed that the GAO officials were due to arrive on March 3rd for week-long discussions with the Cayman authorities, after cabinet approval and the granting of diplomatic clearance by the UK Foreign & Commonwealth Office.

According to the Cayman government, the itinerary for the GAO's visit to the Cayman Islands consists of meetings with senior representatives from the Portfolio of Finance & Economics, the Cayman Islands Monetary Authority, the Financial Reporting Authority, the Tax Information Authority, the General Registry and the Portfolio of Legal Affairs.

It is also understood that the GAO will also meet with Maples & Calder, the tenant of Ugland House, a building that has been referenced in US congressional debates on US tax issues.

The statement explained that:

"The GAO will receive technical briefings and background on the Cayman Islands legal and regulatory framework as it relates to the operation of the financial services industry."

"It is intended that through these meetings, Government representatives will address any misperceptions about the role of Cayman's financial services sector relative to US business interests."

"The Cayman Islands Government has been in dialogue with the GAO since August of 2007, providing written background and guidance on secondary information sources and working with the GAO to determine the scope and timing of the visit, and ensure full opportunity for the GAO to obtain the facts about Cayman's regime."

The GAO is an independent, non-partisan agency that works for the US Congress. Its work is done at the request of US congressional committees or subcommittees, or is mandated by US public laws or committee reports.

However, the GAO has no law enforcement or regulatory powers, and the Cayman government pointed out that it will have no access to information at the level of detail afforded under the various international cooperation channels that exist between the Cayman Islands and the US.

"While the US political context to the US Congress' apparent interest in the Cayman Islands is contentious, we understand that the GAO prides itself on its objectivity and independence and on that basis and on the basis of our confidence in the credentials of our financial services sector, the GAO visit is regarded as a unique opportunity to set the record straight," the statement concluded.

The GAO delegation to the Cayman Islands was prompted by ongoing concerns from the US Senate Finance Committee - which has jurisdiction over US tax legislation - over the US 'tax gap,' or the difference between taxes legally owed and those actually collected.

“Our hope in sending GAO investigators to the Caymans is to get some answers about whether business there indeed contributes to the US tax gap, which totals more than USD300 billion each year," commented Max Baucus, the Montana Democrat who chairs the Committee.

"The tax gap represents taxes legally owed but uncollected, and we know that some of the gap is the responsibility of entities breaking the law by funneling money to offshore locations at the expense of honest, hardworking Americans who pay their taxes. We need the GAO to determine fairly what’s really happening with US companies going offshore," he added.

“Americans benefit from a global economy. We need to strike the right balance between allowing Americans to benefit from the global economy and policing the evasion of US taxes," stated Chuck Grassley, the Committee's senior Republican.

"The Ugland House office building in the Cayman Islands has been the source of much debate on the Senate floor over the past few years. It’s good to have US auditors and investigators with a neutral perspective try to find out what’s really going on there," Grassley added.