In the letter, the Cayman premier said she wanted a "fair share of recognition" from the UK Government that it was tackling tax evasion and promoting transparency in line with the agenda of the G5 pilot project countries: France, Germany, Italy, Spain and the UK.
She added: “I have asked my officials to work rapidly with your Treasury officials and press officers to construct the best possible public position which will show that both our governments are at the forefront of tackling tax evasion and implementing transparency.”
Both the British Virgin Islands and Cayman Islands Governments announced on 15 March that they will pursue the finalisation of a Model I intergovernmental agreement with the United States in response to FATCA.
The Cayman Islands is also negotiating to the same timetable a parallel agreement with the UK on the automatic exchange of tax information.
“We are all well advanced in our discussions with both the United States and the UK and expect to conclude the relevant agreements quickly,” the letter stated.
In a separate development, the Financial Times has reported that one of the biggest hedge fund service businesses on the Cayman Islands has tried to block sweeping reforms to make the tax haven, the world’s main centre for hedge funds, more transparent.
A company linked to DMS Management, the largest provider of hedge fund “fiduciary services” – the hiring of independent directors to sit on fund boards – has filed a suit against the Cayman Islands Monetary Authority, seeking to stop the regulator from “taking any decision” on a range of transparency and corporate governance reforms proposed earlier this year, the FT stated.
To read the Cayman Island premier’s letter in full, click here.
