Cayman Island’s Financiers Reject Tax Evasion Claims
September 6, 2010 by Special To Personal Liberty
Wealthy individuals and corporations seeking to protect their assets have long sought offshore opportunities to ensure that their money can be invested with maximum profit. This has often put them in conflict with United States authorities, who accuse them of tax evasion.
One of the most popular places for those seeking offshore opportunities is Cayman Islands, which has been accused by American politicians such as Senator Carl Levin (D-Mich.) and then-Senator Barack Obama (D-Ill.), co-authors of the "Stop Tax Haven Abuse" bill, of facilitating such practices.
Recently, the island nation’s financial services industry set out to reject what it called "false claims" by Business and Investors against Tax Haven Abuse, an American business group, which said that low or no-tax jurisdictions hurt the American economy.
Cayman Finance specifically emphasized the country’s compliance with international regulation and transparency legislation and its income tax transparency agreement with the U.S. It also referenced The International Monetary Fund and the Financial Action Task Force reports, which testify that Cayman Island’s anti-money laundering regime is among the most robust in the world. Moreover, the nation’s International Organization of Securities Commission (IOSCO) membership guarantees regulator-to-regulator disclosure.
It concluded that far from harming the U.S. economy, the environment offered by Cayman Islands facilitates cross-border business and provides liquidity to global markets, fuelling job creation and poverty reduction.
IOSCO Chairman Anthony Travers called the allegations a "deliberate misrepresentation of lawful tax structuring," and stated that it "should be a source of real concern to the U.S. Congress and the public it represents."