Cayman Financial Secretary Hits Back Over 'Pirates Of The Caribbean' Report

by Amanda Banks, for LawAndTax-News.com, London

24 February 2004

The Financial Secretary of the Cayman Islands, the Hon. George McCarthy has hit back angrily at a report in the UK media which likened the jurisdiction's government and finance sector to "Pirates of the Caribbean".

Writing with regard to the UK-Cayman negotiations over the EU Savings Tax Directive in the Times earlier this month, Carl Mortished argued that:

"The Cayman pirates are dithering, playing a game of chicken with the Chancellor, daring him to legislate and making cheeky demands for quid pro quos. We are not part of the EU, Cayman says. We might obey your laws if you let us into your ports for a bit of financial raiding."

In a letter to the newspaper published on Monday, the Caymanian Financial Secretary explained that:

"International business is attracted to the Cayman Islands because of the critical mass of experienced professional advisers, our robust and effective regulatory system, innovative products and services and an approach to tax which is business-friendly."

He continued:

"We have signed and implemented commitments on tax transparency. We have consistently asked for fairness — a level playing field and equitable treatment. It is not a case of us asking to be let into your ports “for a bit of financial raiding”, but of the Cayman Islands correcting decades of negative spin by competing onshore financial centres."

"Corporate transparency in leading financial centres such as the Cayman Islands is already as high or at a higher level than that applicable in many places where the Organisation for Economic Co-operation and Development (OECD) has jurisdiction."

The letter concluded by warning that:

"Attacks on well-regulated centres may result in funds moving to less transparent centres where the OECD has no influence."

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