Germany, Caymans Sign TIEA

by Amanda Banks, Tax-News.com, London

31 May 2010

The Cayman Islands and Germany entered into a Tax Information Exchange Agreement (TIEA) following a signing ceremony held on May 27.

The agreement was signed by the Cayman Islands’ Premier, McKeeva Bush and by Germany’s Ambassador to Jamaica, Jurgen Engel.

The agreement will allow for the exchange of tax information between the two countries’ tax authorities upon request, where there is evidence of the perpetration of fiscal crime, or in civil tax matters.

Speaking following the signing, Bush stated:

“The Cayman Islands’ long-standing commercial ties with Germany and the opportunity to host a distinguished member of its foreign service, Ambassador Engel, make this signing an important one. Not only have Germany’s leading financial institutions held operations in the Cayman Islands for decades, but our two governments have worked closely together for many years, most recently as part of our mutual participation in the OECD Global Forum on Transparency and Exchange of Information for Tax Purposes’ Steering and Peer Review Groups. “

“We have had a bilateral agreement with Germany in effect since 2005 as part of our implementation of the European Union Savings Directive, under which we report interest income earned by German citizens in Cayman Islands accounts. “

“Today’s comprehensive tax information sharing arrangements reflect our countries’ commitment to upholding and implementing international standards in an important area of the global financial services sector.”

“We look forward to many more years of successful work with our German counterparts."

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