Cayman And The OECD Tax Convention

Cayman has formally requested to be included in the OECD Model Convention — quite an old document that has regained momentum in recent months given the financial difficulties in which most countries find themselves.

From a Cayman perspective there would be little benefit to attempt to engage in a debate on the merits of this initiative.  The fact is over 50 countries, including most of the jurisdictions from where our business comes, have already subscribed to it.  Refusing to participate in globally-accepted standards can quickly isolate us, jeopardizing our ability to participate in the global capital markets in which we continue to facilitate international capital flows.  We have seen the consequences of falling behind and being included in certain lists, and for that fact alone, we support Government's decision.