The BVI’s and the Cayman Islands have just been added to the ‘White List’ of countries which are fully compliant with and have achieved the ‘Internationally-agreed Tax Standard.’ For some time the Tax Police of the world’s more developed countries (read high tax jurisdictions) have been bullying the off-shore jurisdictions with indirect taxation to change their method of taxation.
That hasn’t worked, but they have required that all countries reach an arbitrary standard of cooperation with other countries on tax information. Cayman, among others, has bent over backwards to try to satisfy these requirements within the framework of our own system, and has apparently now satisfied the powers that be.
This effectively avoids any potential financial sanctions and will further bolster the reputation of Cayman and the British Virgin Islands as primary hubs for international transactions and investment funds. This is a major coup for both island groups as International Financial Centers, and ensures their competitive edge relative to the rest of the world’s off-shore centers.