Cayman Reports Rise In Saving Income Declarations

by Phillip Morton, Investors Offshore.com

17 September 2010

The Cayman Islands’ Tax Information Authority – the authority responsible for the reporting of savings income information received from domestic 'paying agents', and for then transmitting that information to the relevant counterpart competent authorities in EU member states – has published details on the amount of interest paid to EU residents during 2009.

As the Cayman Islands is party to the European Union Savings Directive, those resident in a European Union country, but who receive interest from the Cayman Islands, are liable, under the Cayman's regime, to have information relating to the interest they have earned sent confidentially to their home country's tax authority. The Cayman Islands does not itself operate a withholding tax.

As in the last two years, the largest number of reports on accounts based in the Cayman Islands were sent to the French tax authority, 3,602 having been sent in 2009 (an increase from 2,159 in 2008, and 1,579 in 2007), followed by the United Kingdom with 1,142 (down significantly on the 1,643 reports received in 2008).

Savings income reported to the UK tax authority fell substantially, from USD13m in 2008, to USD3.3m, although this, again, was more than that reported to the French authorities with savings income of USD2.13m declared. Dutch residents were recorded as having the highest interest income in 2009, with USD4.48m declared.

The total number of reports increased markedly year-on-year, from 5,679 in 2008, to 7,397 in 2009. Meanwhile the total value of income declared fell significantly, from USD25.7m in 2008, to USD12.25m in 2009.

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