The Cayman Islands stays clear of the European Union’s tax blacklist.
But Bermuda and Aruba are among ten new additions on that list released on Tuesday (12 March.)
While Cayman was given a passing grade, the EU flagged this country’s economic substance requirements for local funds.
The Financial Services Ministry expressed satisfaction that Cayman was clear of the list.
As for the EU’s concern on investment funds, the ministry pointed out, in a statement, the global standard requiring economic substance does not include collective investment vehicles/funds.
Cayman has until the end of this year to make legislative changes as outlined by the EU.
The Ministry said it is committed to working with the EU to address their concerns.
The EU statement said, “based on the Commission’s screening, ministers blacklisted (on Tuesday) 15 countries.”
“Of those, 5 have taken no commitments since the first blacklist adopted in 2017: American Samoa, Guam, Samoa, Trinidad and Tobago, and US Virgin Islands. 3 others were on the 2017 list but were moved to the grey list following commitments they had taken but had to be blacklisted again for not having followed up: Barbados, Unites Arab Emirates and Marshall Islands. A further 7 countries were moved from the grey list to the blacklist for the same reason: Aruba, Belize, Bermuda, Fiji, Oman, Vanuatu and Dominica.”
Read the Ministry’s statement:
Read the EU tax blacklist statement: