CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Cayman, UK Sign 'FATCA'-type Agreement

Cayman, UK Sign 'FATCA'-type Agreement

by Mike Godfrey, Tax-News.com, New York

07 November 2013


The Cayman Islands signed an intergovernmental agreement (IGA) with the United Kingdom on November 05, 2013, laying the foundation for the automatic exchange of financial information about UK taxpayers who hold accounts in the Cayman Islands.

The IGA is modeled on agreements made under the Foreign Account Tax Compliance Act introduced by the United States to ensure tax compliance among its citizens with international interests.

The Premier of the Cayman Islands, Alden McLaughlin, said that the government is working on setting up the legislative and operational framework needed to implement the IGA, and it will issue guidance on implementation.

"Entering into this agreement with the UK builds on our shared history of cooperation in tax and transparency matters; furthermore, it strongly indicates our mutual support for a single, global standard for the automatic exchange of information," McLaughlin said.

The Cayman Islands and the UK will monitor the outcomes of the IGA to ensure that it remains effective in tackling tax evasion without burdening financial institutions with added compliance costs, according to Wayne Panton, the Minister of Financial Services in the Caymans.

The IGA compels financial institutions in the Cayman Islands to report information on financial accounts that are "substantially owned by persons with UK tax-reporting obligations" to the Cayman government, which will in turn pass the information on to the British government.

UK Chancellor of the Exchequer, George Osborne, commented: "We welcome this signing with the Cayman Islands, the first Overseas Territory to sign this type of agreement with the UK. This demonstrates our shared commitment to tackling tax evasion.

"Alongside the significant investment that this government has made in HMRC's anti-avoidance and evasion work, these agreements will help them to clamp down further on those individuals who seek to hide their assets offshore. Our message is very clear: it is only fair that people pay the tax they owe. If you are trying to evade tax, we are coming after you."

In October the Isle of Man became the first British dependent territory to sign an agreement with the UK extending the automatic disclosure of tax information.

TAGS: individuals | Isle of Man | compliance | tax | investment | tax compliance | interest | Cayman Islands | United Kingdom | offshore | agreements | United States | Compliance | Tax

To see today's news, click here.

Leave a comment

Read our Posting Guidelines

 






Close

Password Reminder

Please enter your email address to receive a password reminder.

 

Log into Tax-News+
Not registered yet? Find out about our daily news alert service »

 Email: 
 Password: 

Login »

Forgotten your password?







Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Tax-News+ Updates

Receive FREE daily updates from Tax-News.com, straight to your inbox. Register Now!

For a tailored solution, choose to receive selected news updates for your preferred jurisdictions and topics, with our enhanced Tax-News+ subscriber service. Read more...

 

Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »