Rivers talked with financial sector ahead of EU trip

| 23/05/2018 | 19 Comments
Cayman News Service

Financial Services Minister Tara Rivers in the LA

(CNS): Ahead of her trip to Brussels this week, Financial Services Minister Tara Rivers and her technical officials engaged with the local industry about Cayman’s commitments in relation to the EU’s assessment of jurisdictions’ tax regimes. Rivers said “developments remain fluid” and that government’s process for fulfilling its commitments continues to include the participation of the sector. “Industry input remains critical,” she said, adding that it would help inform government’s response to the EU. 

But she also underscored that discussions with the EU are continuing and, as a result, the process may be adjusted as necessary. While Rivers and Cayman Islands Governor Anwar Choudhury have both said recently that officials here understand what is expected from Cayman by the EU to ensure it is not placed on a blacklist, the minister has failed to explain what the EU wants.

Last December Cayman did not appear on Europe’s blacklist of jurisdictions it says are non-cooperative in tax matters with EU Member States. But Cayman appeared on what was described as a grey list of 47 jurisdictions asked to enhance their regimes to prevent tax misuse. In the documentation the EU said Cayman was one of five countries that “facilitate offshore structures which attract profits without real economic activity”.

Cayman has made commitments to the EU to review their regimes in the area of fair taxation before the end of this year but it has never been made clear to the public what that means and what the financial sector or government must do to avoid being blacklisted.

“Cayman made our commitments following discussions with industry in November 2017, prior to agreeing them with the EU,” Rivers said ahead of her trip this week. “They are a continuation of our longstanding engagement on international tax matters.”

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Category: Business, Financial Services

Comments (19)

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  1. Anonymous says:

    Our out-classed leadership doesn’t know how to negotiate. Instead of squirming and flailing like an obstinate adolescent, 180 degrees opposite the global Zeitgeist backed by a decade of equally failed Cabinet PR, we ignore the extraordinary opportunity to remodel our already-announced beneficial ownership regime. We should have professionals in high-level talks collaborating to redefine the definitions of “In-scope Persons/Entities”, UBO percentages, and “lawful disclosure” to satisfy all stakeholders. We could actually set the disclosure standard for the planet – repelling any bad actors, and satisfying MP voters, while protecting healthy business from curious monkeys. Let’s get some adults working on an acceptable solution please. What we CANNOT BE DOING, is looking like we are changing our constitution to shield a deliberately criminal industry, which WE know doesn’t exist. The rest of the planet, sadly, remains misinformed and unconvinced by anything less than full disclosure. That’s our fault, not theirs.

  2. Anonymous says:

    I bet bahamas wont be doing any of this BS! Oh, thats right they actually govern themselves. Cayman government under Alden has failed misserably. They are guppies wimming amonst sharks!

    • Anonymous says:

      Yep…maybe we could join Bahamas with their Baa3 credit rating. Or maybe we’d prefer Jamaica’s Caa2? The Cayman Islands on its own is not an investment-grade bet. We owe a tremendous amount that we already can’t afford. Almost half a Billion due next November – half of that due to be rolled because we can’t pay it off, even with our “record” revenue and belt-tightening. We also have over a Billion in unfunded healthcare and pension liabilities that start to come payable in the next 10 years. We are on a collision course already even with our Aa3 credit line. The CIG struggles to comply with PMFL, with public service payroll teetering on shutdown. If our credit gets pulled, we default, and plunge into a deep and protracted economic recession. This is our current trajectory under this leadership.

  3. Anonymous says:

    Deer in the headlights! These guys have no clue.

    I’m in the industry and you wouldn’t believe the damage this has already caused existing and future business. When one yells “fire!” in a theatre, you can’t really take that back. Just the talk of public registry by 2020 has been enough to have clients change their mind and establish themselves in…..Delaware.

    • Anonymous says:

      Ok indistry guru…no one cares we all have choices to make. Your prob not even from here so factually it wont benefit you or local folks…just your pockets benefitting fam. Stop the greediness!

  4. Anonymous says:

    The problem with the approach is that Cayman thinks it has some input in what happens next. It doesn’t.

  5. Anonymous says:

    There isn’t a single politician in Cayman who has anywhere near the expertise and sheer intellectual clout needed to deal with this problem. They’re all minnows in a sea full of sharks.

    • Anonymous says:

      Disagree. Hon Wayne Panton is very capable.

      • Anonymous says:

        Nope, him neither.

      • Anonymous says:

        sadly he’s no longer an elected offical

        • Anonymous says:

          Gladly he is no longer an elected politician. He could not even produce a fit for purpose legal practitioners bill!, imagine two of the most powerful law firms that this bill would regulate were involved in the drafting. Who do you think it would benefit. Sounds like putting a fox to guard the hen house.

  6. Think before you speak says:

    Talking and talking yet getting NOTHING accomplished.

  7. Say it like it is says:

    “Industry input remains critical”, that’s obvious but why were no industry representatives included in the meetings, they have far more experience in these matters than our late Minister of Education.

  8. Anonymous says:

    International Tax Matters?
    Who knows where this will lead?
    Perhaps all these financial institutions here need to start paying tax instead of avoiding it.
    Caymanians paid no direct tax before the money people showed up and we will pay no direct tax when they leave.
    Tara Rivers will soon be found out.

  9. Anonymous says:

    Our wonderful Unity Team government along with our great Premier will get this all settled out. They are smart people and know how to get things done.

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