Panton battles latest blacklist

| 24/12/2015 | 5 Comments
CNS Business

Wayne Panton, Minister of Financial Services, Commerce and Environment

(CNS Business): Financial Services Minister Wayne Panton is still battling to get the Cayman Islands taken off the latest blacklist, maintaining that the inclusion of Cayman on the European blacklist of financial centres was completely inappropriate and misinformed. However, he said that stigma and the position taken by some nations on tax competition made the battle for removal challenging, even as Cayman continues in its efforts to meet the demands of increasing international regulation in the financial sector.

Panton said there were no real grounds for Cayman to be named in the latest list compiled by the European Union’s council and tax watchdog. The listing is based upon national blacklists from European countries that are not major economic trading partners of Cayman.

The jurisdiction already has many bilateral agreements with EU countries but not enough, Panton was informed, to keep Cayman off the list. A deal with Spain that has been on the table for years is being held up by the UK’s own diplomatic issues with that country over Gibraltar, If this was signed, it would mean that only seven EU countries would not have a direct tax exchange deal with Cayman.

With these seven still causing an issue for the jurisdiction, Panton has written to all those states because some do not understand that Cayman is already sharing information under the multilateral convention that this jurisdiction has also signed.

“Where we are today, we should not be on any pan-European list,” he said, as he stressed Cayman’s credentials on the global stage for compliance. He said he has reached out to all the countries involved as well as the European Council to explain Cayman’s position and to express concern over the inappropriate blacklisting. He said the OECD has also written to the countries involved, as officials there disagree with the list and have stated that Cayman is not an uncooperative jurisdiction as alleged by the blacklisting.

Addressing the misunderstandings about what information is shared is not as challenging as addressing attitudes and perceptions, Panton said. That, he warned, is where the battle becomes particularly difficult. The minister explained that some countries have blacklisted Cayman because of unfair tax competition because the jurisdiction does not have direct taxation.

“It is an argument we think is discredited,” Panton said, pointing out that countries are still trying to force Cayman and others jurisdictions using consumption rather than earnings as a basis for collecting taxes to change.

Noting that Cayman is a small country and does not have much leverage, he said these issues would always be difficult to address, however he would continue to defend the reputation of the jurisdiction regardless.

Tags: , , , ,

Category: Featured, Financial Services

Comments (5)

Trackback URL | Comments RSS Feed

  1. Anonymous says:

    Perhaps it is minister Panton that is mis-informed? We have a government that thinks it’s ok to spend public funds on gambling and personal gifts as long as it is paid back. Gasboy being used for personal transport in vehicles that are supposedly for official use, and statutory heads with an ‘entertainment’ budget supplying alcohol needs. Is it any wonder why we make these ‘blacklists’. Clean up government and then you might see a change.

    • Anonymous says:

      To the mis-informed and self-righteous writer – stick with the issues and stop trying to resolve your own personal grievances through this forum. You are completely misinformed to think that this Government is okay with using public funds for gambling and purchasing personal gifts. Get with the program and look at the big picture and think of how this Government has significantly cleaned up our image. We will always be fighting a losing battle with the rest of the world who are jealous of Cayman’s success and people like you that can only see inside your little box.

      • Anonymous says:

        Tell me how one voter being against corruption is self righteous? As to being mis-informed do you not read the press and all the reports about Gasboy, credit cards etc.? I say focus on the issues at home before we try and fix anything else. I think it is government that needs to ‘get with the program’ and come out of their ‘little box’

      • Anonymous says:

        Whilst I agree the two issues are completely separate the poster nevertheless makes a valid point to which your response is laughable.

  2. Anonymous says:

    Good work Mr Panton don’t stop the fight

Leave a Reply to Anonymous Cancel reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: