No change to Cayman Islands tax regime
The Cayman Islands has won a stay of execution on the thorny issue of direct taxation following the visit to London by a delegation from the islands
The delegation, led by Premier McKeeva Bush, discussed the findings of the Miller Report written by a three-person independent commission that analysed the fiscal problems facing the Cayman Islands Government.
The premier said the UK's Foreign and Commonwealth Office continues to suggest that the Cayman Islands' international reputation would be improved if it were to introduce some form of direct tax in the country as it would be less likely to be viewed as a "tax haven".
“The Cayman Islands reiterated the risks associated with taking this course and after discussions, the Government agreed to continue to examine ways to broaden the revenue base but that were suitable to the Cayman Islands consistent with the country's economic model. The FCO did express some disappointment that the Miller Report did not address the question of what revenue measures could be pursued,” Premier Bush said.
He added that there were open and frank discussions on the state of the country's fiscal affairs and the various recommendations of the Miller Commission Report. “It was generally agreed that the country needed to implement both short and medium-term plans to regain fiscal and economic sustainability.”