The first steps towards tax information exchange agreements (TIEAs) were taken in March 2009, when the Government of the Cayman Islands took steps to provide comprehensive tax information support to 20 countries, including the majority of the Cayman Islands` major trading partners. The purpose of this Agreement is to promote international cooperation in tax matters through the exchange of information. It was developed by the OECD Global Forum Working Group on Effective Exchange of Information. While a thorough review of the decision would be beyond the scope of this document, it should be noted that the applicants applied to the Grand Court for judicial review of the Authority`s actions and requested a statement that the Authority had failed to comply with the requirements of the Act and had acted unlawfully. In short, the court granted the applicant`s request, overturned the authority`s decision and ordered him to withdraw his consent to the Australian authority and ordered the return of the information provided unlawfully. The Authority shall have the power to refuse a request for information if the above criteria are not met. B, for example, if the requesting party is unable to obtain this information in its own country. In June 2009, Stephen Timms, then Secretary of the Treasury, and McKeeva Bush, Head of Government in the Cayman Islands, signed a double taxation agreement with the United Kingdom that facilitates the exchange of tax information according to OECD standards. Depending on the nature of the request, the Authority may issue an invitation to provide information or ask a judge to make an order to provide information. In cases where testimony is requested, the law requires the authority to contact a judge and ask the judge to take the witness` testimony. This agreement, published in April 2002, is not a binding instrument but contains two model bilateral agreements. Many bilateral agreements are based on this agreement (see below).
A model for AERF requests for information has been developed to assist the competent authorities of AERF partners in submitting requests for information. It is available in English and French as well as Spanish, German, Italian, Japanese, Korean and Turkish. Confidentiality obligations or other disclosure restrictions do not apply to a request for information. Legal privilege applies. TIEAs between the Cayman Islands and foreign states are provided for in the latest revision of the Act. These agreements are based on the format created in cooperation with the OECD Global Forum on Taxation. This case concerned a legal challenge to a decision by the authority to provide documents in response to requests from the Australian Revenue Board. The decision provides guidance on how the Authority should deal with requests for information, the application of the Act (including its interaction with the Confidential Relations (Preservation) Act) (“CRPL”)) and recalls that the Authority`s decisions may be subject to judicial review by the Grand Court of the Cayman Islands. The agreement was born out of the OECD`s work to combat harmful tax practices. The lack of an effective exchange of information is one of the key criteria for determining harmful tax practices. The agreement is the standard for an effective exchange of information in line with the OECD`s harmful tax practices initiative. The Cayman Islands Tax Information Authority (“the Authority”) is part of the Ministry of Financial Services, Trade and Environment.
It is designated by law as the competent authority for international cooperation in the provision of tax information. Confidentiality may not be invoked against the submission of information to the competent authority and the person providing the information shall not be liable under civil or criminal law for the submission of information to the competent authority. Where a judge has ordered the disclosure of information, the Authority has the power to apply for further orders to allow an officer access to premises where the information may be kept. Fishing expeditions are not allowed and information is only exchanged on specific requests that meet strict legal criteria. .