UK Government Makes Cayman Tax Treaty A Top Priority

by Amanda Banks, Tax-News.com, London

27 May 2004

A tax treaty between the United Kingdom and the Cayman Islands is now a high priority for the British government, senior Treasury minister Dawn Primarolo has assured the Cayman leader, McKeeva Bush, according to Cayman Net News.

“The UK has moved the Cayman Islands to the front of the queue of countries and territories wishing to have treaty talks,” the UK’s Paymaster General, Dawn Primarolo told Mr. Bush in a letter dated May 20, the news service revealed.

Primarolo added: “I remain optimistic that it will be possible to conclude an arrangement that will be acceptable to both sides.”

Following the jurisdiction’s recent agreement to sign up to the EU's Savings Tax Directive, the letter went on to explain that the UK government remains “fully committed” to fulfilling its obligations towards the Cayman Islands.

Welcoming this apparent progress, Mr Bush was quoted by Cayman Net News as announcing that he hopes to ensure that these commitments are “translated into real and tangible benefits” for the Caymans, particularly the financial services industry.

“The Government is working assiduously to guarantee the Islands’ financial services sector remains world leading,” he declared.

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