Nordic and Cayman Islands agreement to stop tax evasion
After extensive negotiations it emerged Friday, March 13th, that the member countries of the Nordic Council of Ministers will sign an agreement on the exchange of information with the Cayman Islands. The agreement is part of a joint campaign by the parties to stop tax evasion.
The agreement gives the tax authorities access to information about tax dodgers’ investments and incomes and can help to disclose assets and income which have not been reported in their home country.
The agreement on the exchange of information will be signed on 1 April at a ceremony in Stockholm. There is, however, a political process to be finalised before the agreement can be signed.
The agreement is a continuation of a comprehensive project and the Nordic countries have already entered into similar agreements with the Isle of Man, Jersey and Guernsey. Advanced negotiations are currently underway with countries like Aruba, Bermuda, British Virgin Islands and the Netherlands Antilles.
By virtue of the agreement with the Nordic countries, the Cayman Islands will continue to implement OECD standards for transparency and the exchange of tax information. The Cayman Islands have already previously taken several steps in this direction and entered into an agreement on the exchange of information with the U.S. in 2001 and also automatically exchange bank information with the EU’s Savings Directive.