Removal of Cayman Islands from “blacklist”
On October 6, 2020, the European Union (the “EU”) removed the Cayman Islands from its list of non-cooperative jurisdictions for tax purposes, informally known as the “blacklist”. The aim of the EU’s list of non-cooperative jurisdictions is to promote ongoing efforts worldwide in relation to good governance in the field of tax. It lists non-EU jurisdictions that either have not engaged in a constructive dialogue with the EU on tax governance or have failed to deliver on their commitments to implement reforms to comply with a set of objective good governance criteria, concerning tax transparency, fair taxation and implementation of international standards against tax base erosion and profit shifting.
The Cayman Islands was added to this list on February 18, 2020 for not having appropriate measures in place relating to collective investment vehicles. With, inter alia, its recent legislative measures in relation to private funds and limited investor funds, which are required to be registered with the Cayman Islands Monetary Authority and which are thus in scope of regulatory oversight, the Cayman Islands has passed the necessary reforms. As such, the EU recognises the commitment of the Cayman Islands to be a fully cooperative jurisdiction and to implement relevant international standards.