Background of Cayman Island
During the dark and moonless night of the 8th of February 1794, an navigational error have resulted ten of the British ships, including a Royal Navy vessel (HMS Convert), being wrecked on the treacherous coral reefs off East End, Grand Cayman. The local people saved everyone aboard the ships, including, so the story goes, a royal prince. When Britain's King George III heard of this act of gallantry, he is said to have decreed that the people of the Cayman Islands should forever be free from taxes and war conscription (Roger C. Smith, 2016). There is no doubt that the Wreck of the Ten Sails actually took place but there is no documented evidence of the royal decree, however, this has not stopped the story becoming …show more content…
But in 1952, an aircraft runway was constructed and the following year Barclays Bank opened a branch on Grand Cayman. In fact, Cayman's status as an international financial centre derives from the foresight of some early legal practitioners and a receptive Government who, in the mid 1960s, together drafted and enacted legislation to build on this modest beginning and take advantage of the absence of any form of direct taxation on individuals and corporations based on income or …show more content…
(Cindy Scotland, Feb 2016)
FATCA applies to reporting by US taxpayers about certain foreign financial accounts and offshore assets; and by foreign financial institutions about financial accounts held by US taxpayers, or foreign entities in which US taxpayers hold a substantial ownership interest.
In this regard, the Cayman Islands Government has signed a Model 1B inter-governmental agreement with the US. Foreign financial institutions in the Cayman Islands will now be required to report tax information about US account holders directly to the Cayman Islands Tax Information Authority, the only channel in the Cayman Islands for the provision of tax-related information to other governments.
A similar agreement for tax- information exchange has been signed between the governments of the Cayman Islands and the United
During the dark and moonless night of the 8th of February 1794, an navigational error have resulted ten of the British ships, including a Royal Navy vessel (HMS Convert), being wrecked on the treacherous coral reefs off East End, Grand Cayman. The local people saved everyone aboard the ships, including, so the story goes, a royal prince. When Britain's King George III heard of this act of gallantry, he is said to have decreed that the people of the Cayman Islands should forever be free from taxes and war conscription (Roger C. Smith, 2016). There is no doubt that the Wreck of the Ten Sails actually took place but there is no documented evidence of the royal decree, however, this has not stopped the story becoming …show more content…
But in 1952, an aircraft runway was constructed and the following year Barclays Bank opened a branch on Grand Cayman. In fact, Cayman's status as an international financial centre derives from the foresight of some early legal practitioners and a receptive Government who, in the mid 1960s, together drafted and enacted legislation to build on this modest beginning and take advantage of the absence of any form of direct taxation on individuals and corporations based on income or …show more content…
(Cindy Scotland, Feb 2016)
FATCA applies to reporting by US taxpayers about certain foreign financial accounts and offshore assets; and by foreign financial institutions about financial accounts held by US taxpayers, or foreign entities in which US taxpayers hold a substantial ownership interest.
In this regard, the Cayman Islands Government has signed a Model 1B inter-governmental agreement with the US. Foreign financial institutions in the Cayman Islands will now be required to report tax information about US account holders directly to the Cayman Islands Tax Information Authority, the only channel in the Cayman Islands for the provision of tax-related information to other governments.
A similar agreement for tax- information exchange has been signed between the governments of the Cayman Islands and the United