The financial services minister of the Cayman Islands is in Brussels this week as part of a wider effort to persuade the European Union not to follow through on its threat to blacklist the jurisdiction for “harmful tax practices.”
The Cayman Islands, alongside Bermuda, Jersey, Guernsey, the Isle of Man and Vanuatu, was listed as a jurisdiction that needed to “abolish harmful tax practices”. The EU has accused this so-called “grey list” as harbouring “tax regimes that facilitate offshore structures which attract profits without real economic activity”.
Tara Rivers, the Cayman Islands’ financial services minister, said: “This visit allows important face-to-face dialogue with EU officials about their concerns, and Cayman’s efforts to date to develop proposals and appropriate legislation.”
Rivers added: “The ministry has been working steadily with financial services industry representatives, international legal counsel, and government entities, including the Cayman Islands Monetary Authority and the Ministry of Commerce, in preparation for our legislative proposals.”
Rivers is accompanied by Michelle Bahadur, policy and legislation director Anna Goubault, special projects coordinator.
Brussels has given the Cayman Islands, along with its fellow greylisted jurisdictions, until December to implement the required reforms or risk blacklisting.
The minister’s visit coincides with deteriorating relations with Britain over the exchange of information regarding beneficial ownership, as reported by International Investment earlier this week.