Osborne cracks down on Caymans

GEORGE OSBORNE is finalising measures to clamp down on two of the world’s most notorious tax havens.

Under tough anti-evasion measures being drawn up by the Treasury, banks in the British Virgin Islands and the Cayman Islands will be forced to reveal details about customers suspected of hiding money offshore.

The Caribbean islands are among the world’s main offshore financial centres. More than 1m offshore companies are registered in the British Virgin Islands alone, even though the total population is just 30,000.

“The places you can hide are getting smaller and smaller,” Osborne said this weekend at the European finance ministers’ summit in Dublin.

“We are in advanced stages of discussion [with the two territories]. They are in no doubt about what we expect,” he added.

The Sunday Times, 14 April 2013

From Cayman Financ

15 April 2013

BY EMAIL [email protected]

The Sunday Times

1 Virginia Street

London

E98 1RL

Dear Editor:

We are surprised and dismayed by your recent article in The Sunday Times titled “Osborne cracks down on Caymans”.  Other than in the title, presumably to attract the readers’ attention, the entire article contains no facts or information about the Cayman Islands.

Cayman has over 30 tax information exchange agreements signed including one with the US signed over 20 years ago.  It is a full member of the European Savings Directive under which we report balances of all European accounts and has voluntarily agreed to sign an Intergovernmental Agreement Type One with the US, and a similar one with the UK, to automatically report all balances of US and UK beneficiaries.

Nobody has cracked down on us.  The Cayman Islands decided long ago to support all countries in enforcing their tax codes.  We do not help or support tax evaders — that is not our business.  We don’t need to and we don’t want to.

It is clear that whoever wrote the article has no understanding of what Cayman actually does.  We would be delighted to help your reporters be better informed and educated before crafting such misleading headlines and remain available to you in that regard.

Yours truly,

“original signed by G. Jalles”

Gonzalo Jalles

Chief Executive Officer