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The Exchange of Tax Information Portal is an initiative of the Global Forum on Transparency and Exchange of Information for Tax Purposes. The Global Forum conducts peer reviews of its member jurisdictions' ability to co-operate with other tax administrations in accordance with the internationally agreed standard. The standard provides for exchange of information on request where it is foreseeably relevant to the administration and enforcement of the domestic tax laws of the requesting jurisdiction. Effective exchange of information requires that jurisdictions ensure information is available, that it can be obtained by the tax authorities and that there are mechanisms in place allowing for the exchange of that information. The Global Forum's peer review process examines both the legal and regulatory aspects of exchange (Phase 1 reviews) and the exchange of information in practice (Phase 2). The EOI Portal will track the development of these peer reviews, including changes that jurisdictions make in response to the Global Forum's recommendations.

Peer Review: Cayman Islands Second Round Review (2017)

This report for Cayman Islands has been published on 21 Aug 2017. You can buy this report, or browse it online below.

Skip directly to the Executive Summary. You may also want to view the tables of determinations and ratings.


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Determinations and Recommendations

Jurisdictions should ensure that ownership and identity information for all relevant entities and arrangements is available to their competent authorities. (ToR A.1)
Determination Factors Recommendations
The element is in place.   Over the review period, whilst the Cayman Islands had a legal framework in place for beneficial ownership information to be maintained by almost all entities, there may have been a gap regarding a small number of ordinary resident and non-resident companies that did not engage a service provider. In 2017, the Cayman Islands introduced legal amendments to its company laws clarifying that all companies are now required to maintain beneficial ownership information.   The Cayman Islands is recommended to monitor the practical implementation of the 2017 amendments to its company laws to ensure that beneficial ownership information is available for all relevant entities. 
Phase 2 Rating Factors Recommendations
Largely Compliant.     
Jurisdictions should ensure that reliable accounting records are kept for all relevant entities and arrangements. (ToR A.2)
Determination Factors Recommendations
The element is in place.   Except for those entities that are subject to licensing with the CIMA, no system of monitoring of compliance with accounting record keeping requirements is in place. In one case over the review period, the Cayman Islands was unable to access accounting information that was held outside the Cayman Islands by an exempted entity to provide to its treaty partner. Therefore, the lack of a comprehensive system of oversight of accounting obligations for all entities may not ensure that accounting information will be available in all cases.  The Cayman Islands is recommended to implement an effective system of oversight and enforcement to support the legal requirements which ensure the availability of accounting information in all cases. 
Phase 2 Rating Factors Recommendations
Largely Compliant.     
Banking information should be available for all account-holders. (ToR A.3)
Determination Factors Recommendations
The element is in place.      
Phase 2 Rating Factors Recommendations
Compliant.     
Competent authorities should have the power to obtain and provide information that is the subject of a request under an exchange of information arrangement from any person within their territorial jurisdiction who is in possession or control of such information (irrespective of any legal obligation on such person to maintain the secrecy of the information). (ToR B.1)
Determination Factors Recommendations
The element is in place.   In one case over the review period, the CITIA was unable to access accounting information where the information was not held in the Cayman Islands and no one within the Cayman Islands was obliged to provide it. Although the CITIA successfully accessed and exchanged all of the requested information in all other cases over the review period, as the Cayman Islands did not make use of its enforcement powers, this could become a wider problem in practice.   In those cases where information is not maintained in the Cayman Islands, the Cayman Islands should ensure that its enforcement powers are sufficiently exercised to ensure that it can access all information in all cases. 
Phase 2 Rating Factors Recommendations
Largely Compliant.     
The rights and safeguards (e.g. notification, appeal rights) that apply to persons in the requested jurisdiction should be compatible with effective exchange of information. (ToR B.2)
Determination Factors Recommendations
The element is in place.      
Phase 2 Rating Factors Recommendations
Compliant.     
Exchange of information mechanisms should provide for effective exchange of information. (ToR C.1)
Determination Factors Recommendations
The element is in place.      
Phase 2 Rating Factors Recommendations
Compliant.     
The jurisdictions' network of information exchange mechanisms should cover all relevant partners. (ToR C.2)
Determination Factors Recommendations
The element is in place.      
Phase 2 Rating Factors Recommendations
Compliant.     
The jurisdictions' mechanisms for exchange of information should have adequate provisions to ensure the confidentiality of information received. (ToR C.3)
Determination Factors Recommendations
The element is in place.      
Phase 2 Rating Factors Recommendations
Compliant.     
The exchange of information mechanisms should respect the rights and safeguards of taxpayers and third parties. (ToR C.4)
Determination Factors Recommendations
The element is in place.      
Phase 2 Rating Factors Recommendations
Compliant.     
The jurisdiction should provide information under its network of agreements in a timely manner. (ToR C.5)
Determination Factors Recommendations
The assessment team is not in a position to evaluate whether this element is in place, as it involves issues of practice that are dealt with in the Phase 2 review.      
Phase 2 Rating Factors Recommendations
Compliant.