CIG hopeful of dodging EU’s latest blacklist

(CNS Business): Premier Alden McLaughlin and Financial Services Minister Tara Rivers lobbied EU officials last week in an effort to keep the Cayman Islands off the latest Brussels list of non-cooperative tax jurisdictions. During the visit to the European capital, the premier said, the delegation found that EU decision makers recognised Cayman’s commitment to tax transparency and its overall track record on international regulatory standards. As a result, McLaughlin was hopeful that the meetings would keep Cayman off the blacklist.

“Cayman has consistently engaged on tax matters with EU officials through correspondence and responses to their questions, as well as face-to-face meetings in April 2016 and February 2017,” McLaughlin said. “Our objective is to assist EU ministers of finance in their understanding of Cayman’s compliance efforts, prior to the EU’s December 2017 announcement of the jurisdictions that it considers to be non-compliant with global tax good governance standards,” he added.

The premier said the Brussels officials found Cayman’s maintenance of a ‘largely compliant’ rating on the Global Forum on Transparency and Exchange of Information for Tax Purposes as a positive result and recognised Cayman’s important role as an international financial centre, with a strong legal framework and commitment to global standards and transparency.

McLaughlin said the delegation was able to explain Cayman’s tax system, pointing out the zero direct taxation applies equally to residents and non-residents, with no preference given to either. They were also able to show that Cayman is committed to the OECD’s BEPS (base erosion and profit shifting) tax initiative, which will be an important factor for consideration when compiling the blacklist.

“During every meeting, EU officials praised our engagement and active pursuit of dialogue,” Minister Rivers said. “They also lauded our efforts as a frontrunner for implementing and shaping international transparency standards.”

The premier and minister were accompanied to Brussels by Dr Dax Basdeo, Chief Officer for the Ministry of Financial Services and Home Affairs; Michelle Bahadur, Director of the Department of Financial Services Policy and Legislation; and Senior Political Advisor to the Premier, Roy Tatum.

The delegation met with a number of important EU officials, including the European Commission Vice-President Valdis Dombrovskis, who is in charge of Financial Stability, Financial Services and Capital Markets Union; Member of EU Commissioner Pierre Moscovici’s Cabinet, David Boublil (Moscovici is in charge of Economic and Financial Affairs, Taxation and Customs); The European Commission’s Head of Unit, Directorate-General for Taxation and Customs Union, Bert Zuijdendorp; and Ireland’s Permanent Representative to the EU, Ambassador Declan Kelleher.

Over the two-day outreach, the delegation also met with the Permanent Representations to the EU from Germany, France, Luxembourg, Malta and the UK.