In response to a short and peaceful “protest” by supporters of the US –based CodePink group who were visiting the Cayman Islands on a cruise ship today, Richard Coles, Chairman of Cayman Finance, stated: “We’re always happy to welcome visitors to Cayman, to enjoy the waves and sunshine, and to learn more about our island’s economy. But today’s protestors are in the wrong place. The United States defers taxes on the income US-based corporations earn abroad. If protestors think that’s wrong, they should go see the US Congress. The Cayman Islands Government and the financial professionals of Cayman can’t change that, only the US Congress can.
A few years ago the US Government’s Government Accountability Office (GAO)came to visit Ugland House, as well. They found compliance with international tax laws and compliance with Cayman’s robust ‘know your client’ laws and procedures. In Cayman, we require the beneficial owners of companies to be disclosed. That’s not required in Delaware or most other US states.
In their 2008 report the US GAO stated: “…the business reasons for conducting financial activity in the Cayman Islands include attracting foreign investors or taking advantage of the Cayman Islands insolvency laws, which provide specific protections for creditors and investors”
The US Presidential campaign is over, and people are tired of politics. It’s time to stop these silly antics pointing fingers abroad, and begin a serious discussion in Congress about the US tax system.”
Because most countries don’t tax their businesses on income earned beyond their borders, tax deferral was designed by the US Congress to allow US companies to compete abroad. Without deferral, their tax payments sent back to Washington would be higher, and thus their prices or bids for foreign business would be higher, too. Removing this disadvantage allows US companies to compete, and increases employment for US multinationals.
In Cayman, we help the capital of US businesses link up with capital from around the world, and guide its investment into enterprises globally. Some investments may go back to the US, while others may go to Asia or South America. The Cayman Islands Government doesn’t charge an additional layer of tax for the privilege of pooling funds here, but each investor is still fully responsible for their home country’s taxes. Protestors ought to learn these facts before imposing themselves on others’ property, time and patience.
For more information on the Cayman Islands Financial services industry and Cayman Finance, please visit www.caymanfinance.ky.
Cayman 27 – 14 December 2012
