Cayman Takes EU To Court Over Savings Tax Directive

by Amanda Banks, Tax-News.com, London

17 March 2003

The Caymanian authorities have launched legal proceedings in the EU's Court of First Instance in order to challenge the European Union's decision not to allow the consultation process over its savings tax directive requested by the jurisdiction last October to go ahead, according to the Cayman Net News service.

Speaking to the Legislative Assembly last Wednesday, Leader of Government Business, the Hon. McKeeva Bush announced that the UK's Paymaster General, Dawn Primarolo had also been informed that the Cayman Islands was prepared to challenge the legality of the draft directive itself, if it is adopted:

'The Cayman Islands government will maintain the approaches I have described, in order to secure the best interests of the Cayman Islands. As I have said ever so often, we will lose jobs and revenue if we have to put in place the tax on savings directive. We are determined not to do so,' Cayman Net News quoted Mr Bush as announcing.

The UK's Caribbean Overseas Territories were required to indicate to the UK by March 7 whether they were prepared to voluntarily implement the terms of the savings tax directive.

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