6 December 2017Accounting & tax analysis

IMAC welcomes EU decision to not include Cayman on tax haven 'blacklist'

The European Union yesterday released its results of a 10-month investigation into countries that it claims are not doing enough to crack down on tax offshore avoidance schemes.

From the results, the Cayman Islands has been confirmed as a co-operative jurisdiction, excluded from the EU's so called 'blacklist' of non-cooperative jurisdictions.

This decision has been welcomed by the Insurance Managers Association of Cayman (IMAC), who said the Cayman Islands are committed to supporting global efforts to tackle corruption, tax evasion and money laundering.

Examples of this include Cayman's membership within the Global Forum on Transparency and Exchange of Information for Tax Purposes, where it maintains a ‘largely compliant’ rating in this year’s Global Forum Peer Review.

IMAC said that the Cayman captive insurance industry will continue its mission to educate and inform the general public on the benefits of Cayman as a domicile, citing the strict regulatory framework, transparency and expertise in place.

Cayman's insurance industry employs over 300 staff, contributed over $85 million per year to the local economy, and contributes 28 percent of the gross domestic product.

“This announcement of the EU’s decision is a welcomed message and another opportunity for the Cayman insurance industry to raise awareness and understanding of the benefits of Cayman as a jurisdiction,” said Erin Brosnihan, chair of IMAC.

The outcome of this decision further promotes our message that Cayman is one of the best jurisdictions for insurance company formation and management in the world. We will continue our mission to be at the forefront of innovation and expertise to implement a strong, transparent and trustworthy framework for people to do business”.