The Cayman Islands does not pose harm for tax evasion, aggressive tax avoidance, unfair base-shifting, or unfair tax competition as it has in place legislation, regulations, and automatic tax information sharing arrangements that uphold the highest international standards for transparency, cross-border cooperation, and economic substance.

The OECD reviewed Cayman’s domestic legal framework that includes economic substance legislation and found that Cayman’s tax neutral regime is not harmful and meets all economic substance requirements.

Tax Neutral jurisdictions like Cayman support a level of transparency that arguably make them better at combatting tax evasion and aggressive tax avoidance than those jurisdictions that rely on the often-opaque system of Double Taxation Treaties. Double Taxation Treaties are by their nature complex and less transparent, and therefore sometimes pose a risk of abuse for tax evasion or aggressive tax avoidance. Cayman’s globally responsible Tax Neutral regime distinguishes it from the many other International Financial Centres (IFCs) which are tax treaty investment hubs that rely on extensive double tax treaty networks.