(September 23, 2015)
On September 22, 2015 the Governments of the Isle of Man and the Cayman Islands concluded an Agreement for the Exchange of Information relating to Tax Matters (Hereafter: the TIEA). Although signed, the TIEA has not yet entered into force. For the TIEA to enter into force, the respective ratification procedures have to have been finalized in both countries.
The TIEA arranges for the Exchange of Information upon Request, Automatic Exchange of Information and Spontaneous Exchange of Information. Furthermore in certain cases the TIEA will have retroactive force.
Article 3, Paragraph 1 of the TIEA arranges that the TIEA shall apply to the following taxes imposed
a) by the Isle of Man:
(i) the Income Tax; and
(ii) Value Added Tax
b) by the Cayman Islands, any tax imposed by the Cayman Islands which is substantially similar to existing taxes of the Isle of Man to which this Agreement applies.
Paragraph 2 of Article 3 of the TIEA subsequently arranges that the TIEA shall also apply to any identical or any substantially similar taxes imposed after the date of signature of the TIEA (ITP: September 22, 2015) in addition to or in place of the existing taxes.
Article 5 of the TIEA contains regulations regarding the Exchange of Information upon Request. Paragraph 5 of Article 5 of the TIEA contains regulations regarding the information to be included in the request for information.
Article 6 of the TIEA contains regulations regarding the Possibility of Conducting Tax Examinations Abroad.
Article 7 of the TIEA contains regulations regarding the Possibility of Declining a Request. Based on Paragraph 1 of Article 7 the competent authority of the requested Party may decline to assist:
a) where the request is not made in conformity with the TIEA;
b) where the requesting Party has not pursued all means available in its own territory to obtain the information, except where recourse to such means would give rise to disproportionate difficulty; or
c) where the disclosure of the information requested would be contrary to public policy.
In addition Paragraph 5 of Article 7 of the TIEA contains a non-discrimination clause.
Article 8 of the TIEA arranges for the possibility of Automatic Exchange of Information.
Article 9 of the TIEA arranges for the possibility of Spontaneous Exchange of Information.
Article 12 of the TIEA contains regulations regarding a Mutual Agreement Procedure.
In certain cases the TIEA will have retroactive force. In this respect Article 13, Paragraph 2, sub a of the TIEA arranges that upon the entering into force of the TIEA it shall have effect with respect to criminal matters for taxable periods beginning on or after September 1, 2005 or, where there is no taxable period, for all charges to tax arising on or after September 1, 2005.
Click here to be forwarded to the Agreement between the Government of the Isle of Man and the Government of the Cayman Islands for the Exchange of Information relating to Tax Matters as available on the website of the Government of the Isle of Man.
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