Friday, May 28, 2010
The governments of Japan and the Cayman Islands have initialled a comprehensive double tax agreement with provisions to allow for the exchange of tax information in civil and criminal tax matters, in line with the jurisdiction’s commitment to improve transparency with third nations.
“The government of Japan welcomes this agreement which enables both tax authorities to carry out the effective exchange of information regarding tax matters in accordance with the international standard, and demonstrates the Cayman Islands' commitments to combating international fiscal evasion and tax abuse, the importance of which has been reiterated in a series of international conferences,” a statement from the Japanese government said following the signing.
Elements in the agreement for the avoidance of double taxation will assign the taxing rights of the respective countries with regard to certain income of individuals such as pensions. It is expected that under the agreement economic ties between the two countries will be bolstered.
Welcoming the agreement on behalf of the Cayman Islands, Prime Minister, McKeeva Bush stated: “The Cayman Islands is pleased to have reached this agreement with our Japanese counterparts, particularly given the exceptional commercial relationships between our financial services sectors. The swift and efficient negotiation is a testament of both countries’ commitment to uphold and effectively implement international standards in the exchange of information on tax matters.”
The agreement, which still requires signing, will enter into force after the respective countries have undertaken their individual ratification processes.