CSX Recognition By The UK Inland Revenue Greeted With Mixed Response

by Amanda Banks, Tax-News.com, London

18 March 2004

The decision by UK tax authority, the Inland Revenue to grant the Cayman Stock Exchange ‘recognised’ status has met with a mixed response from the jurisdiction’s financial community, according to CaymanNetNews.

A representative from a leading North American corporate and investment bank told the news service that “as most of our equities are listed in Toronto and New York, I don't think it will really have too much impact on us directly."

However, others feel that the recognition by the UK authorities will undoubtedly boost the exchange's credibility internationally, and that with that will come more funds listings.

“The Cayman Islands is already the leading offshore jurisdiction for structured finance issues. There is no doubt that this recognition, following on from recognition by the London Stock Exchange, will integrate the Cayman Islands further into the European financial architecture,” noted CSX chairman, Mr Anthony Travers, OBE.

Thanks to the Inland Revenue’s move last week, firms listed on the CSX will be able to take advantage of the 'quoted eurobond exemption'. As a result, interest paid on securities listed on the Cayman Islands Stock Exchange can now be paid without deduction of UK tax.

Similarly, securities listed on the CSX are now regarded as 'qualifying investments', allowing them to be held directly in Personal Equity Plans (PEPs) and Individual Savings Accounts (ISAs).

Since opening its doors in 1997, the CSX has attracted over 700 listings, with a market capitalization of more than $46 billion.

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