The UK’s Tax Agreement With The Cayman Islands
The Cayman Islands have signed an agreement to automatically exchange taxation information with the UK. This has made them the first British overseas territory to sign up to such an arrangement, though similar agreements have previously been made closer to home with Jersey and Guernsey.
The signing of this agreement ends the use of the Cayman Islands as a tax haven – something for which it has become well-known in recent years. According to Chancellor George Osborn, this move along with wider government initiatives will help HMRC “clamp down” on those who seek offshore hiding places for taxable assets.
Osborne went on to say that “Our message is very clear: it is only fair that people pay the tax they owe. If you are trying to evade tax, we are coming after you.”
Those who currently have assets on the Cayman Islands have until September 2016 to declare them. They will then be required to pay any tax they owe, along with a fine of between 10 and 20%.