The Cayman Islands Government(CIG) said the G7 announcement aligns its overall position that “taxes should be paid where they are rightfully owed.”
“While the Cayman Islands’ primary business is investment funds, which are tax neutral under international tax rules, we continue to support international tax compliance by adhering to international tax standards,” the government said in a statement.
Meanwhile, Cayman Finance, the body which represents the jurisdiction’s financial services sector, said the jurisdiction’s tax neutral regime recognises the importance of “taxing the right people, at the right place, at the right time”.
Indeed, it said, Cayman’s tax information-sharing commitments enable more effective tax collection by other jurisdictions,” Cayman Finance said.
Explaining the tax neutral system, Cayman Finance said: “Cayman achieves tax neutrality in the simplest and most cost-effective way possible: it does not add another layer of tax on top of that imposed by other jurisdictions.”
It said this enables the financial services industry here “to do what it does best” which it said is “facilitating investment throughout the world, thereby driving global economic growth and prosperity.”
The industry association said: “Our industry will continue to play this important role, much needed during this time of recovery from a global pandemic, following any implementation of a global minimum tax rate for multinational enterprises.”