Cayman Islands Passes Law Requiring Sharing of Information on Savings Income With European Union
GEORGE TOWN, Cayman Islands (AP) -- The Cayman Islands passed a law Thursday requiring banks and other agencies to share information on savings income with the European Union, an official said.
The law requires banks, mutual fund administrators and individuals who offer interest on investments to report savings income to the home country of the recipient, said Cayman Islands Financial Secretary Kenneth Jefferson. Interests on savings would then be taxable in the recipient's home country, he said.
Paying agents will report savings income to the Cayman Islands financial secretary, which will pass the information to EU tax authorities, he said.
Last year, after much resistance, the British Caribbean territory signed on to an EU directive agreeing to exchange information on interest made by EU country citizens with offshore bank accounts.
The agreement came after the directive was broadened to apply to all tax havens, including other dependent British territories such as the Channel islands and non-EU countries such as Switzerland.
Source: Yahoo Finance
