Prior to the law, the Cayman Islands had already entered into a TIEA with the United States in 2001. This provided for an exchange of information on tax affairs from 2004 and civil affairs from 2006. There is no need for a double assessment of incrimination. The Cayman/US TIEA was updated in 2013 as a result of Cayman IN Thetergovernmental`s intergovernmental agreement on the U.S. Foreign Account Compliance Act (“FATCA”), which goes beyond the scope of this document and can be found as part of a separate client advice from Samson and McGrath. The Cayman Islands have also entered into a double taxation agreement with the United Kingdom. If CITIA or ITA considers a request for information to be legal, the information requested is predictable and the request is otherwise in accordance with the applicable TIEA, it will send a notification to the person being requested and will require that person to provide the information indicated in the notice. The duty of confidentiality or any other restriction on disclosure does not apply to a request for information. It`s a legal privilege. In that case, it was a challenge to the Authority`s decision to provide documents in response to the Australian tax authorities` request. The decision contains guidelines for the handling of requests for information, the application of the law (including their interaction with the Law on Confidential Relations (Conservation Act) and recalls that the decisions of the Authority may be subject to judicial review by the Grand Court of the Cayman Islands.
The information that may be provided includes all facts, statements, documents or other registrations, covers property, identity and accounting information, and includes information held by banks, other financial institutions, nominees, agents and administrators. TieAs between the Cayman Islands and foreign states are included in the latest revision of the law. These agreements are based on the format developed in collaboration with the OECD Global Forum on Taxation. A TIEA is a bilateral agreement between two countries to establish a formal tax information exchange regime.