Cayman Island Banks
Will Cayman come clean?
The Cayman Islands is one of about nine offshore centres that
avoided being blacklisted by the OECD by committing to reform
its tax practices.
And yet, although the island has information on more than 100 accounts
that have been used to facilitate tax evasion, it is debating whether
to hand over details to Irish High Court investigators. The move
came after Ansbacher applied to the Cayman court asking to hand
over the information.
Cayman Island Banks & The Irish High Court Inspectors
The records form the core of the information the bank has suggested
it should give the Irish High Court inspectors investigating the deposits
used to facilitate major tax evasion. The records will not
be released, however, unless the Cayman courts rule that such a
move can be sanctioned under local secrecy laws. Some of the records
may contain details of the affairs of people not yet known by the
inspectors, and to the affairs of non-Irish people whose funds were
lodged in the Republic at some stage.
Cayman Island Banks Approach The Courts
The Cayman bank’s decision to approach the courts has angered
clients, or former clients, who believe information not already known
to the inspectors may be involved. If the Cayman courts decide in
favour of the bank these clients could appeal, which could take up
to two years and prove costly. The court hearing of the application
from Ansbacher to release the account details continued as we went
to press. If the ruling is in favour of Ansbacher, any of
the three objectors before the courts could appeal to the three-judge
Court of Appeal on the Cayman Islands and could be further appealed
to the Privy Council in London.
Cayman Island Banks - Revenue Commissioners
If the information is handed over, it will eventually come into the
hands of the Revenue Commissioners, which may be involved in settlement
negotiations with some of those affected. The decision of the Cayman
bank to change its policy in relation to inquiries concerning the
Ansbacher deposits is believed to follow pressure from its London
headquarters, as well as from its South African parent, Firstrand.
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