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Regulatory

Contributors

Aki Corsoni-Husain
Aki Corsoni-Husain
  • Aki Corsoni-Husain

  • Partner
  • Cyprus
George Apostolou
George Apostolou
  • George Apostolou

  • Partner
  • Cyprus
Chiara Deceglie
Chiara Deceglie
  • Chiara Deceglie

  • Partner
  • Luxembourg
Massimiliano della Zonca
Massimiliano della Zonca
  • Massimiliano della Zonca

  • Senior Associate
  • Luxembourg
Philip Graham
Philip Graham
  • Philip Graham

  • Partner
  • British Virgin Islands
Ayana Hull
Ayana Hull
  • Ayana Hull

  • Counsel
  • British Virgin Islands
Katerina Katsiami
Katerina Katsiami
  • Katerina Katsiami

  • Associate
  • Cyprus
Petros Kiteos
Petros Kiteos
  • Petros Kiteos

  • Associate
  • Cyprus
Andrew Knight
Andrew Knight
  • Andrew Knight

  • Partner
  • Luxembourg
Joshua Mangeot
Joshua Mangeot
  • Joshua Mangeot

  • Counsel
  • British Virgin Islands
Mirza Manraj
Mirza Manraj
  • Mirza Manraj

  • Counsel
  • Hong Kong
Elina Mantrali
Mirza Manraj
  • Elina Mantrali

  • Associate
  • Cyprus
Vanessa Molloy
Vanessa Molloy
  • Vanessa Molloy

  • Partner
  • Luxembourg
Andrea Moundi Savvides
Andrea Moundi Savvides
  • Andrea Moundi Savvides

  • Consultant
  • Cyprus
Marina Stavrou
Marina Stavrou
  • Marina Stavrou

  • Associate
  • Cyprus
Matt Taber
Matt Taber
  • Matt Taber

  • Partner
  • Cayman Islands
Carolynn Vivian
Carolynn Vivian
  • Carolynn Vivian

  • Senior Associate
  • Cayman Islands

Amendments to the Cayman Islands economic substance law

The Cayman Islands government recently passed an amendment to supplement its economic substance law. The amendments reflect feedback received from the EU Commission and the FHTP Secretariat.

As most Cayman Islands entities will now be aware, all must file a notification with the Registrar of Companies prior to filing their annual return, even if the entity is not a “relevant entity”.

Where an entity claims tax residence outside of the Cayman Islands information on the immediate parent, ultimate parent and ultimate beneficial owner of the entity must be provided to the Tax Information Authority (TIA). Under the new provisions the TIA is required to exchange that information with the relevant competent authorities.

The amendment also introduced appropriate functions and powers for the TIA to monitor and verify outsourcing of core income generating activities as well as impose a fine where a relevant entity that is required to satisfy the economic substance test fails to prepare and submit to the TIA its annual report within the specified time. The penalty is CI$5,000 with an additional penalty of CI$500 for each day the breach continues.