Cayman Islands And Canada Sign TIEA

by Phillip Morton, Investors Offshore.com

28 June 2010

The Cayman Islands government has announced the signing of a Tax Information Exchange Agreement (TIEA) with the government of Canada.

Welcoming the signing, Caymans Premier McKeeva Bush said:

“This is indeed an important day for as we have come together to mark a significant milestone in the long-standing relationship between the Cayman Islands and Canada through the tax information exchange agreement we have just signed.”

“The agreements that we have both signed provide for comprehensive tax information sharing arrangements, reflecting our countries’ commitment to upholding and implementing international standards in an important area of the global financial services sector.”

Bush noted that the signing of the agreement would have a positive effect on the development of mutual cooperation between the Cayman Islands and Canada. Specifically he noted that the TIEA will bolster economic flows, as a result of favourable tax treatment for active business income earned by Cayman subsidiaries of Canadian companies.

“We hope that through agreements like this one, we can increase and broaden the scope of our business relationships," the Cayman Premier said. "In regards to Canada specifically, I am also aware of an important result of our agreement, which will be favourable tax treatment under Canadian tax law for active business income earned by Cayman subsidiaries of Canadian companies. I am sure this will be a welcome benefit as many Canadian firms in the funds and private equity areas rely on the Cayman Islands’ stable, globally-connected, tax-neutral platform to help reach their business goals.”

“We look to forward more successful Cayman-Canada business for years to come,” Bush concluded.

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