The Cayman Islands’ financial services association has responded to news of a global minimum corporate tax rate being agreed upon by G7 leaders, highlighting its international commitments to protecting against tax evasion.
An accord was reached on Saturday that backed the creation of a global minimum corporate tax rate of at least 15%, an agreement that could form the basis of a worldwide deal.
Cayman Finance CEO Jude Scott says that, taken as a whole, Cayman’s tax neutrality and commitments protect against aggressive tax avoidance, unfair tax competition and any tax harm to other jurisdictions.
“That’s a record we are proud of and will continue to advocate for in international standard-setting efforts,” Scott said.
Scott goes on to describe the Cayman Islands as a tax neutral jurisdiction and populated by the world’s leaders in international investment funds, which are internationally recognised as tax neutral.
“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 is imposed by other jurisdictions.
“This enables our financial services industry to do what it does best, facilitating investment throughout the world, thereby driving global economic growth and prosperity.”
Scott concluded by stating that the Cayman Islands 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.”
