US Lawmakers Now Agree with Cayman Approach to Tax Transparency

Wed Oct 28, 2009 2:21pm EDT

* Reuters is not responsible for the content in this press release.

GEORGE TOWN, Cayman Islands, Oct. 28 /PRNewswire-USNewswire/ -- Cayman
Finance, representing the financial industry based in the Cayman Islands,
today congratulated Chairman Max Baucus of the Senate Finance Committee and
Chairman Rangel of the House Ways and Means Committee on their plan to tackle
offshore tax abuse through increased transparency and enhanced reporting
requirements. The new comprehensive proposal does away with the damaging
features of Senator Levin's Stop Tax Haven Abuse Act, which would rely on
"lists" and other provisions that would discourage corporations and other
financial entities from conducting lawful business in Cayman and providing
funding into the United States. "Cayman Finance commends Chairman Baucus,
Chairman Rangel and their colleagues for their leadership on this important
issue," said Cayman Finance Chairman Anthony Travers.  "This proposal is
entirely consistent with the approach suggested by Cayman Finance in our many
meetings with these and other U.S. policymakers." 

The new Senate-House proposal sets in place practices that will clamp down on
jurisdictions which still practice tax evasion and improve taxpayer compliance
by giving the IRS new administrative tools. The "Foreign Account Tax
Compliance Act" aims to force foreign financial institutions, foreign trusts
and foreign corporations to provide information about their U.S.
accountholders, grantors and owners. The government and financial firms in the
Cayman Islands have supplied full financial information and tax information
for many years under the 1990 and 2001 treaties with the United States, and
take pride in the regulatory and fiscal transparency that is a requirement for
IOSCO (International Organization of Securities Commissions) membership.
Cayman has also signed tax transparency treaties with the European Union and
more than 12 other jurisdictions.

"Cayman Finance is confident that enactment of the U.S. legislation proposed
by the two Chairmen will contribute significantly to the certainty and
stability that the capital markets require, as well as the ability of the
Cayman Islands to continue to successfully fund United States institutions
from those markets," Travers said. 

Contact: Pat McMurray
202-489-6889
202-329-0720 (Cell)
pmcmurray@qga.com




SOURCE  Cayman Finance

Pat McMurray, +1-202-489-6889, +1-202-329-0720 (Cell), pmcmurray@qga.com, for
Cayman Finance
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