Chairman's Blog

I suppose the nature of this ongoing debate is that we at Cayman Finance keep restating the facts and those with alternative agendas keep ignoring them.

There are all types of unaccountable sensationalist blogs, publications and fringe socialist groups that like to appeal to the lowest common denominator in the name of ‘the common good’ and the Huffington Post is no exception.

Notwithstanding our recent advice to the editorial staff and indeed Ms. Huffington herself, the site loses all credibility when they continue to allege that the Cayman Islands are ‘secretive’.  For the record, one more time plain and simple, so everyone should  get it, in addition to the All Crimes Treaty which gives the Department of Justice full authority to obtain any Cayman Islands file, there is the Tax Treaty which extends the transparency to the IRS  for any tax matter and in addition, there is the IOSCO regulatory transparency.

Those who are able to read and understand these treaties, (not incidentally negotiated and signed by the US Government) will be trying to figure out what exactly the Huffington Post is talking about?  Perhaps what they mean is that they are upset that there are perfectly lawful provisions of US tax law which enable US corporations to avoid being taxed twice and which will allow those corporations to remain competitive in the global marketplace as against those corporations from jurisdictions that tax their corporates only once.  If that is the cause of the upset by all means change US law but the Cayman Islands has nothing to do with that discussion and making up fantastic numbers about “lost revenue” is going to lead to disappointment.

But do bear in mind also that there is an unintended consequence to rendering your global corporations less competitive (Levin/Dogget) and to rendering inward investment into the US so problematic that no one wants to bother any more (Hire Act ), particularly, one would have supposed, when you are the largest debtor nation in the world and survive only on inflows of borrowed money.

This entry was posted on Wednesday, July 21st, 2010 at 10:49 am and is filed under Fiction vs. Fact, USA, Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.