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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: Peer Review Report Phase 1 - Cayman Islands

This report for Cayman Islands has been published on 17 Nov 2010. 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, but certain aspects of the legal implementation of the element need improvement.   In some cases, there are currently no penalties for noncompliance with obligations to maintain ownership and identity information in the case of companies and partnerships. This is of particular concern in respect of unregulated mutual funds which may manage a significant total asset value.  In so far as there are no penalties provided, introduce effective sanctions against companies and partnerships where they fail to comply with requirements to maintain ownership and identity information as required. 
Identity and ownership information may not consistently be available in respect of all express trusts with respect to which Private Trust Companies and individuals carrying on trust businesses, act as trustees  Private Trust Companies and individuals carrying on trust businesses should be required to maintain relevant identity and ownership information. 
There are currently inconsistent obligations on nominees to maintain ownership and identity information in respect of all persons for whom they act as the legal owner.  An obligation should be established for nominees to maintain relevant ownership and identity information where they act as the legal owner on behalf of any other person. 
Jurisdictions should ensure that reliable accounting records are kept for all relevant entities and arrangements. (ToR A.2)
Determination Factors Recommendations
The element is not in place.   There is currently no requirement for companies to retain their accounting records for a minimum 5 year period.  Introduce a 5 year minimum retention period for the relevant accounting records that companies are required to maintain. 
There are currently no consistent obligations on all types of partnerships and trusts to retain relevant accounting records, including underlying documentation for a minimum period of 5 years.  Introduce a specific obligation on all types of partnerships and trusts to retain relevant accounting records, including underlying documentation for a minimum period of 5 years. 
In some cases there are currently no penalties for noncompliance with obligations to maintain accounting records by all types of entities and arrangements in the case of companies and partnerships.  In so far as there are no penalties provided, introduce effective sanctions against entities and arrangements where they fail to comply with requirements to maintain and provide ownership and identity information. 
Banking information should be available for all account-holders. (ToR A.3)
Determination Factors Recommendations
The element is in place.      
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.      
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.      
Exchange of information mechanisms should provide for effective exchange of information. (ToR C.1)
Determination Factors Recommendations
The element is in place.      
The jurisdictions' network of information exchange mechanisms should cover all relevant partners. (ToR C.2)
Determination Factors Recommendations
The element is in place.     The Cayman Islands should continue to develop its EOI network with all relevant partners. 
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.      
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.      
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.