Lawmakers head back to the Legislative Assembly on Monday (17 December) to debate a key bill that could help keep Cayman off the European Union’s blacklist.
But one MLA is questioning, what he said is the eleventh-hour, timing of the Economic Substance Bill.
The bill will help Cayman meet the 1 January deadline for the implementation of the international Base Erosion and Profit Shifting or BEPS tax rules.
Those rules help close the gap on entities that dodge taxes.
Bodden Town West MLA Chris Saunders said this law will have far-reaching implications for the entire financial services industry and it should not have been rushed.
“The question is that many in the public should be asking is why wasn’t this issue raised before? And once again the Cayman Islands finds themselves in a position where we are more following as opposed to leading. I mean this is our bread and butter and you would think that more planning and more effort would have gone in to dealing with this issue,” he said.
Mr. Saunders said he is approaching the bill with an open mind at this point, but he has some concerns.
The Economic Substance Bill seeks to regulate companies in the financial services industry and if passed it will require entities to establish formal offices here complete with staff.