Cayman Islands Signs TIEA With Japan

by Phillip Morton, Investors Offshore.com

14 February 2011

The Cayman Islands government has announced that it has expanded its network of Tax Information Exchange Agreements with the signing of a twenty-first agreement on February 7 with Japan, inked at the Japanese Embassy in London.

Signing the comprehensive TIEA on behalf of the Cayman Islands was the island's Premier and Minister of Finance, McKeeva Bush, and for Japan, Hitoshi Noda, the Chargé d'Affaires ad interim.

Commenting following the signing of the agreement, Bush stated: “The development of the Cayman Islands' tax negotiation process is becoming increasingly valuable to our financial services sector. The signing of such an agreement with Japan – a G7 power – provides benefits to both countries, signifying a new type of relationship.”

The terms of this TIEA include provisions for pensioners, students, government employees and residents of Japan, in that they will not be subject to double taxation.

Bush added: “This agreement also demonstrates the acceptance of the major G-20 jurisdictions in acknowledging the valuable role the Cayman Islands plays in international financing transactions. We fully intend to continue to demonstrate that tax compliance is a matter of course for the Cayman Islands and we are confident that as a result, our jurisdiction will become increasingly well respected in matters of international financing. We look forward to further enhancing our relationship with the Japanese government, as we work closely with them on the OECD Global Forum Steering and Peer Review Groups.”

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