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Economic substance in the Cayman Islands
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Economic substance in the Cayman Islands

The International Tax Co-operation (Economic Substance) Law (the ES Law) was introduced in the Cayman Islands on 1 January 2019 in response to OECD’s Base Erosion and Profit Shifting framework and related EU initiatives in relation to what are known as ‘Geographically Mobile Activities’. Under the ES Law any relevant entity which carries on a relevant activity and receives relevant income in a financial period must satisfy the economic substance test in relation to that activity (ES Test) and make an annual filing with the TIA. Aside from the basic filing requirements, a relevant entity which does not carry on any relevant activity is not required to satisfy the ES Test. Harneys has issued a guide to assist directors and operators of Cayman Islands companies and limited liability partnerships.

Cayman Islands: Update to Reportable Jurisdictions list announced
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Cayman Islands: Update to Reportable Jurisdictions list announced

The Cayman Tax Information Authority (TIA) issued an advisory confirming an update to the Reportable Jurisdictions list, dated 17 May 2019 and gazetted on 14 June 2019, which can be found here. This list, which contains two new Reportable Jurisdictions, applies to filings made for the calendar year 2018. We strongly recommend that clients review this list to ensure that all reportable accounts have been identified and filed accordingly.

Enhanced AML supervisory powers given to CIMA under money laundering legislation
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Enhanced AML supervisory powers given to CIMA under money laundering legislation

Under recent changes to the Cayman Islands Anti-Money Laundering Regulations, the powers of the Cayman Islands Monetary Authority (CIMA), as the supervisory authority for anti-money laundering in the Cayman Islands, have been enhanced to allow CIMA to obtain information in relation to any relevant financial business from a broader category of persons than was previously the case.

Cayman Islands: FATCA and CRS reporting deadline extended to 31 July 2019 and confirmation of CRS Reportable Jurisdiction list

Cayman Islands: FATCA and CRS reporting deadline extended to 31 July 2019 and confirmation of CRS Reportable Jurisdiction list

Cayman Islands reporting Financial Institutions have been given until 31 July 2019 to complete their FATCA and CRS reporting for the 2018 calendar year without the fear of further action by government authorities, the Cayman Islands government announced last week.

EU confirms BVI and Cayman Islands co-operation on tax
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EU confirms BVI and Cayman Islands co-operation on tax

The European Union has confirmed that the British Virgin Islands and Cayman Islands have not been included on the EU’s updated list of non-cooperative jurisdictions for tax purposes (known as the EU blacklist), which was published on 12 March 2019. The EU’s decision confirms that both jurisdictions have implemented tax good governance principles which address the EU’s earlier concerns on the economic substance of certain entities in low (or like the BVI and Cayman Islands no) tax jurisdictions.

Cayman’s laws well equipped for maturing digital asset market
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Cayman’s laws well equipped for maturing digital asset market

The cryptocurrency market is predicted to reach US$1 trillion according to Smartereum as the market capitalisation continues to grow. Currently, the estimated size of the crypto market is approximately US$417 billion, a very modest number and one that remains dwarfed by other traditional and alternative asset classes. To put things into context, global private equity alone raised more than US$453 billion in 2017.