Minister exchanges views with EU tax committee
(CNS): Financial Services Minister André Ebanks sat down face to face with members of the European Parliament last week to address the allegations that Cayman is a secretive tax haven. Answering questions from the EU Parliament’s Subcommittee on Tax Matters (FISC) in an exchange of views session, Ebanks explained how this jurisdiction works and the commitment it has made to ensure that everyone pays tax where it is due and that Cayman does not provide a haven for criminality or tax dodging.
Ebanks was invited to speak with the committee to provide a better understanding of the Cayman Islands’ partnership with jurisdictions to prevent and detect international tax crimes, in accordance with OECD standards. In his opening comments, Ebanks pointed out that the Cayman Islands’ system of indirect taxation was the result of the country’s unique circumstances and “not contrived with global tax competition in mind”.
He explained that historically, taxes have always been consumption-based in Cayman, levied from duty on imports and fees for services, creating an environment where it is impossible to avoid paying taxes. He explained in detail Cayman’s role in the international financial system and the model that it has adopted over the years, providing a specific type of service that can best be described as an investment hub and not a tax haven.
“Like EU Member States and other countries around the world, the Cayman Islands endeavours to offer the best possible opportunities for our people to thrive and grow. Similarly, we are concerned about global issues, including climate change and economic stability,” he told the committee before answering their questions. “We also recognise that every government must collect sufficient tax revenues to deliver public services, such as healthcare, financial assistance, infrastructure and education.
“The Cayman Islands’ firm position is that, as a global partner in fighting financial crime, we share tax information with relevant law and tax officials. This helps to ensure that taxes are paid where profits are made; and that governments are able to fund the projects and programmes that support their respective citizens,” he added.
To address misunderstandings or information gaps that some MEPs might have, Ebanks shared details of the Cayman Islands’ progress in improving its regulatory regime since the 1960s. He answered all their questions in a direct and forthright way, including why Cayman’s tax system is not harmful to other jurisdictions that levy a direct tax.
FISC was established by the EU Parliament to assist in the fight against tax fraud, tax evasion and tax avoidance, as well as for tax transparency purposes. While they did not necessarily appear convinced by everything Ebanks said, they all welcomed the fact that he had attended as the committee and made an effort to explain.
FISC Chair Paul Tang pointed out that ministers in similar positions to his in other jurisdictions, even in Europe, were often ‘very busy’ when the committee called on them. Although Ebanks is the first financial services minister to meet with this committee, in 2017 Premier Wayne Panton, the Cayman Islands financial services minister at the time, addressed TAXE2, the committee that predated FISC.
After the exchange, Ebanks invited Tang and the other members to visit the Cayman Islands and learn more about the country’s role in facilitating tax-neutral investments. “We have done much to establish ourselves as a global partner,” Ebanks said. “But, to dispel the legacy misperceptions, we must be willing to engage in respectful, open and frank discussions.”
See more information on the Department for International Tax Cooperation website.
See Ebanks appearing before the committee on the EU streaming service here:
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Category: Business, Financial Services, Politics
well Aldumb on trillion pound island was an easy act to follow.
Thank God we have ONE competent Minister to represent us on a platform like this. Andre for Premier?
I just love it when we have to explain ourselves to the Euro and US elites. Maybe Andre should suggest removing the log from their eye first.
Well if the EU wants to know anything about ways to abuse Cayman immigration policies and help destroy the futures for Caymanians children we can send Cayman Finance.
Sadly, as long as it’s not cost prohibitive to hire foreign nationals in the industry and government continues to rely on the fees then it will continue to be done to the full extent it is allowed to be done. Government in this case draws their own supply and demand curve (must be nice) unfortunately not really helping Caymanians.
Remember in most cases the individuals that approve the hiring of a foreign national (work permit) are on a permit themselves….kinda like job security. Why would any rational person hire someone and train them so that they could eventually take their job from them and their friends??!! Its human nature.
Rant away but prove me wrong…..line up the staff of all the law firms and accountancy firms here and tell us the percentage that are on permits versus costs to the firm.
There is an office next to me in which there are about 6 staff, no one knows what they do but they are all from the UK…and I’m talking like right off the BA flight UK…..no one vested here.
The problem is systemic, and it is the government’s sole responsibility to correct these in-balances over time, but alas $ always rules. ALWAYS
You have no idea what they do yet you assume a Caymanian able, qualified and is entitled to do it?
It’s a lame claim. Work permits and PR fees make up less than 10% of CIG revenue. CIG isn’t at all dependent on WP fees but they are very much dependent on the money those people bring to island in FS fees.
Have another look at your post, you are in fact contradicting yourself.
no it isn’t… read it again
Thank God Wayne didn’t give this ministry to any of the other idiots he traded a vote for a ministry with. Thank God too that elections come around every 4 years. Hopefully we will survive this mess of a government.
After listening to Hon. Minister Ebanks’ exchange with the European Parliament’s subcommittee (FISC), I am proud of him for representing the Cayman Islands competently and admirably. Kudos on a job well done, Andre.
Excellent work Minister Ebanks. Important to dispel legacy perceptions as you say. And said with impressive eloquence. Andre Ebanks for Premier!
I am so happy it was Andre – none of the other members could have done this. Ugh could you imagine CS up there talking about testicular fortitude….
Thank God Saunders wasn’t our rep.
andre always the smartest person in the room.
good job. just remember the above is not true and you will be fine.
No … Duhwayne Seymour is the smartest person in the room.
He has talent and experience is what he tells us.
depending on the room
And if the walls are padded.
Who Dwayne “The Brain”?
After this failure the islands will be blacklisted now for sure.
André did very well and hope you are not comparing his performance to that sorry one on BBC Hardtalk some years ago where our representative at the time, had to gulp down a liter of water before every answer.
Thank god one MP has a brain. Excellent work Andre, thank you!
Who is the man not wearing a tie?
What about the woman or are you sexist?
Someone who has the guts and intelligence to face this committee is someone we should all support for premier at the next election.
Andre has integrity, tact, the right education and knowledge to be an excellent ambassador for Cayman. Breath of fresh air. Totally support your comment. But can he stand up against dinosaurs and peer pressure among his political colleagues, not to mention conflict and corruption?
What makes you think having discourse with intelligent people is a skillset appropriate for managing a dozen catatonic MPs?
I do believe Wayne had a successful career when interacting with people of similar or superior intellect. However, he has been an abysmal failure at herding cats.
Of course, the fault really lies with us the voters who sent these deranged individuals to Parliament.
Also whilst he might deserve a shot at the top job, I’d be worried that there are only a bunch of complete simpletons to replace him in finance, arguably the most important job for the long term survival of these islands.
Well done Andre!
Good job, and good luck.
Great job Minister Andre Ebanks in presenting the facts.
It was a professional and candid exchange between the Minister of Financial Services and the members of the EU Parliament. Long overdue but very welcomed.
This should greatly help the jurisdiction as it was very well presented. However, will likely not stop the arbitrary gray or black listings from EU members that must first address the deficiencies in their tax codes and internal rules.
The EU states need the Caymans as a scapegoat. Brexit did not help the geopolitical games that are played and the postering to teach the UK a lesson.
The Caymans? Where are they?
It’s the “Cayman ISLANDS”
THANK YOU …
Thumbs down for “the Caymans”.
Last I checked nobody calls them “the Virgins”.
Yes, but loads of blokes on the lookout for “the Virgins”
Andre is probably our only present MP who can speak at a forum like this. Sorry for us.
All of our Ministers should engage in ‘exchanges of views’ with overseas entities. It’s a good way for us to get something for nothing.
“Something for nothing?” Don’t be silly!
Fair enough. But if you say “penny for your thoughts” to most of our Ministers you are overpaying.
Unlike Andre, I am not sure they have a good level of commercial awareness, or equipped with the right leadership skills for this. It could all end up being very embarrassing! 😳
While Bernie was sauntering around the streets of London rather than attending his own precious Pirates Quarter.
We’re not a secretive tax haven, where would anyone get such an idea from?
We have a population of around 70-75,000 people. That’s why we have over 100,000 non-resident companies registered here. Or maybe they’re resident. It doesn’t matter, we can define what domicile means later. You won’t actually see anyone who really works for any of these 100,000+ companies in Cayman, our population of 75,000 does all the work – we run Facebook, we build all the Apple phones, we fly all the airplanes, we write all the articles in the Daily Mail and Guardian, and run the global hotels of many world wide chains.
All 75,000 of us do this. We’re very busy. The reason we have 100,000 companies and 11,000+ Hedge/Mutual Funds is because we – the residents, all 75,000 of us – are incredibly busy and talented and able to do all that work. And we are so well rewarded there is no poverty here and everyone can afford to shop at Kirks and Fosters no problem. We love helping everyone else make a fortune. Oh no, we make it, I forgot.
And we keep all our profits here and never, ever, ever disperse them back to our huge homes in the Hamptons or Davos or Aspen or anywhere. We don’t even buy planes for ourselves with these profits we dont keep offshore. We declare everything and do not use Trust shelters to hide our wealth at all. I do no live more than 184 days anywhere else. Not really.
No sir. Everything here is completely above board and normal, just like the City of London allows us to.
until they don’t, and that day is coming much faster than anyone recognizes
You really have no idea, do you?
American “liberal” (anything but), I’m guessing.
You should see how many companies are registered Delaware, Luxembourg, etc. for actual tax reasons. If you want to really get to the root of the issues it is not with the laws of the Cayman Islands, its with the laws of the other countries.
Don’t forget City of London.
Dummy.
Red herrings and logical fallacies. Educate yourself before you speak. I don’t think it will make a difference as it seems you have made up your mind.
You’re all over the map, son.
Well, i think i see your point(s) but Cayman is not alone at this and frankly there’s little alternative for many legit financiers etc that seek privacy legally. You may be a true socialist and fair play to you, many of us are not. I have no idea which is right but you be you. I’ll stay in my Vista Del Mar mansion and stroke my cat until London calls…
I think it’s important to remember the meeting was with the EU Tax Committee.
The comments weren’t necessarily about what’s right and what’s wrong it’s about taxes.
The almost sole purpose of our legitimacy as a financial centre is due our ability to help onshore entities realize tax efficiencies that cannot be found onshore.
For this we charge enormous fees and premiums in both the private and public sector.
With that said and has been said somewhere on here that it is mainly due to onshore tax loopholes that allow for us even to exist.
If the EU and other similar jurisdictions really want more tax revenue then they have to police their own companies and people not us.
Follow the money and eventually you will find out who is taking advantage of your own laws and remove the option.
The problem with this is that the net effect would be negative.
The EU Tax Committees like many others is to appease those not making the money to keep them voting…..just like anywhere else.
Happy fee reminders to all!
You are spot on!
this must have been an enlightening exchange
Finally a Minister that can politely and succinctly explain that we didn’t author foreign regime’s tax code issues, and shouldn’t be scapegoated for those domestic taxation gaps. Will they listen, or continue to play to their pop-media-fueled base?
why do they care how cayman is run.
Maybe create a fair tax schema and people would not try to remove their money out of their jurisdictions.
Funny how these countries, tax the business profit. Which that profit given to the owner, the owner is taxed again, and the business money that was already taxed is paid to the worker and that workers profit is taxed.
Then…all 3 entities. Business/owner/workers. Pay taxes on anything they buy outside of work. Including materials for the business.
And those materials are taxed in a similar fashion. How much tax does a crooked government need?
cayman does it right. And the rest of the world is jelly.
I say give those countries the middle finger and say “we in cayman simply treat our people better, they are not ATM tax machines”