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mARCH 2012 www.lawyer-monthly.com Legal Expert Board 45
• have a dual foreign name not utilizing the Roman Alphabet;
• may purchase its own shares and hold them as treasury shares;
• keep its register of members or branch registers in any country or territory;
• be set up as a member managed limited duration company;
• be a “segregated portfolio” company to shield the assets of each portfolio from general or the liabilities of another portfolio
• merge or consolidate including with an overseas company by way of continuation; and
• have a capital expressed in any currency and divided into shares without nominal or par value.
Every company is required to keep proper books of account and underlying documentation for at least 5 years to be able to comply swiftly with information requests from the competent authorities.
Objectives
The objectives of government, CIMA and the private sector8
are to ensure:
• high-quality services and physical infrastructure;
• a skilled labour force within an open and flexible labour market;
• a high standard of education;
• fair, transparent, efficient and reasonable legislation and regulations for sound development are in place;
• a high standard of living to attract and retain a highly qualified workforce;
• economic and political stability recognising that only stability can create lasting prosperity;
8
• compliance with international standards in regulatory supervision including the monitoring financial transactions in full compliance with international standards;
• the jurisdiction remains “tax neutral” while adhering to international standards for effective internationally mandated exchange of information in tax matters9
financial center that is committed to upholding international standards.”
Special Economic Zone in
recognition of the interests of foreign countries in implementing their tax legislation.
Tax Information Authority
The Tax Information Authority was established by the Tax Information Authority Law as the Cayman Islands competent authority for the purposes of international assistance in tax matters (TIEA are in place for 27 countries10
). The Law was originally
enacted to give effect to the agreement with the US Government for the exchange of information relating to both criminal and civil tax matters. At the signing ceremony of the Exchange of Information in the agreement with the US on 27 November 2001, Treasury Secretary Paul O'Neill said:
The Cayman Islands has a long-standing
relationship with the United States, including partnering with the United States in a mutual legal assistance treaty effective since 1990 under which we've already been cooperating in the hunt for terrorist assets. Since September 11th, cooperation between jurisdictions is more important than ever before, as we work to disrupt terrorist financing. . . ..We commend the Cayman Islands for emphatically demonstrating that those who seek to engage in tax evasion or other financial crimes are not welcome within its jurisdiction. It is my sincere hope that, with the signing of this agreement, the Cayman Islands will be recognized as a leading
Early in 2012, to attract leading corporations to establish a substantial business presence in the Islands the Special Economic Zone Authority was created to generate employment opportunities,
increase
technology transfer and attract investment flows11
. In keeping with OECD
recommendations government offers a range of incentives from fiscal, regulatory and administrative controls and procedures and income tax incentives12
. Conclusion
As the first Chairman of the Cayman Islands’ Monetary Authority, the late Sir Vassel Johnson, Kt., C.B.E., J.P. said:
The value to the Cayman Islands of the
financial industry is far more than the sum total of its institutions, the services offered and the income to the country. The most valuable asset is the confidence of the international financial community. We must therefore do everything to protect our good name and build on it13
. LM
Other useful websites are: Cayman Islands Government http://www.gov.ky; Cayman Islands Financial Services http://www.caymanfinance.gov.ky; Cayman Islands Civil Aviation Authority: http://www.caacayman.com/2005; Cayman Islands Shipping Registry http://www.cishipping.com; Cayman Islands Monetary Authority http://www.cimoney.com.ky; Cayman Islands Gazettes (Laws and Regulations) http://www.gazettes.gov.ky; The Cayman Islands Financial Services Association http://www.caymanfinances.com; www.caymanfinance.ky; Cayman Islands Stock Exchange http://www.csx.com.ky; Cayman Islands Department of Tourism http://www.caymanislands.ky
9 10 11 12 13 see http://www.tia.gov.ky/
http://www.tia.gov.ky/pdf/BilateralAgreementsArrangements.pdf http://www.caymanenterprisecity.com/
Towards Best Practice Guidelines for the Development of Economic Zones (A Contribution to the Ministerial Conference by Working Group 1 Marrakech, 23 November 2009) http://www.oecd.org/dataoecd/48/1/44866585.pdf
Sir Vassel Johnson, Kt., C.B.E., J.P., Financial Secretary, Cayman Islands, 1965 -1982. Budget address to Legislative Assembly 1981.