A Double Taxation Arrangement (DTA) between the United Kingdom and the Cayman Islands was signed in London on 15 June by Stephen Timms MP, Financial, Secretary to the UK Treasury and McKeeva Bush, Leader of Government Business of the Cayman Islands.
In addition to providing for the comprehensive exchange of information between the Cayman Islands and the UK to the OECD and international tax standard in respect of direct taxes and VAT, the new arrangement includes key provisions on shipping and air transport, business profits and pensions as well as those in relation to Government service and students.
Welcoming the arrangement, the Financial Secretary said, 'Information exchange is a vital tool in ensuring that governments receive the revenues they need to resource the essential public services on which we all depend.'
HMRC Permanent Secretary for Tax, Dave Hartnett, added, 'Information exchange enables us to confront effectively tax avoidance and money laundering whilst ensuring that we all make the right contribution to our public services.'
The text of the new arrangement is available on HM Revenue & Customs' website, at: Tax Treaties - Signed/not in force Cayman Islands (PDF 50K) and will be published by the Stationery Office as soon as it is presented to Parliament for approval.
The arrangement will enter into force as soon as both governments have completed the legislative procedures needed to give it effect.
