The Tax Information Authority (Amendment) Bill, 2020 was gazetted on Friday, 29 May and will be presented by the Minister of Financial Services at the next meeting of the Legislative Assembly.
The Tax Information Authority bill seeks to strengthen compliance, enforcement and cooperation functions of the competent authority (i.e. the Tax Information Authority). The provisions in the Bill will, among other things, allow for enhanced collaboration between the competent authority and other Government authorities under appropriate legal channels, and further demonstrate Cayman’s compliance with international standards regarding the exchange of information for tax purposes.
Cayman continues to retain a Largely Compliant rating by the OECD’s Global Forum on exchange of information on request and, after economic substance legislation came into effect last January, was found to be in good standing with the OECD’s Forum on Harmful Tax Practices (FHTP). In June 2019, the FHTP deemed the Cayman Islands “not harmful”– their highest ranking in that particular area.
International peer reviews and assessments are ongoing, including the Global Forum’s peer review of effectiveness in automatic exchange of information, the follow up reviews of exchange of information on request, and FHTP monitoring of economic substance implementation.
In preparation for the next LA meeting, the Ministry of Financial Services is inviting public comments on the Bill. Persons can submit their feedback to email@example.com.
For more information on the Ministry’s current initiatives, please visit www.mfs.ky.