Cayman Islands to Disclose Tax Shelter Companies
After decades of secrecy, the tax-haven country is considering a public database that will make the names of thousands of previously hidden companies and their directors, public.
CIMA, the three-islands’ monetary authority has outlined plans to create a public database of funds domiciled on the island for the first time, reports The Telegraph.
The island nation is a group of three islands; Grand Cayman, Little Cayman and Cayman Brac in the Western Caribbean Sea. The country is a British dependent territory and has gained popularity around the world for its offshore financial centre. The Cayman Islands is the world’s fifth (5th) largest financial off-shore centre for tax sheltering activities.
Tax shelters have been described as helping to reduce tax liabilities, tax planning and asset protection. Many USA companies, including Facebook, have been using tax-shelters to avoid paying more taxes.
Since the onset of the worldwide financial crisis, key financial regulatory institutions have been asking tax-haven countries to be more transparent in their operations.
According to RT News, EU Tax Commissioner Algirdas Semeta gave an ultimatum to Switzerland on Thursday, saying that “the country has six months to make its tax legislation more transparent in terms of disclosing data on companies and enterprises, and make it comply with EU laws”
Tax Justice Network USA reports that the world’s wealthy have between $21 trillion and $32 trillion stashed offshore which does not include real estate, yachts, thoroughbreds or gold bricks that could also increase the number.
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