Japan, Cayman Islands Initial Tax Agreement
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
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.