Economic substance – director meetings

The Cayman Islands government has advised that they are aware that some entities may not be able to hold their board of directors meetings in Cayman during the year due to the many travel restrictions in place.

The Department of International Tax Cooperation will take this into consideration on a case-by-case basis when determining whether an entity has passed or failed the “directed and managed” component of the economic substance test in its reporting, which is due in 2021.

Current travel restrictions do not affect the reporting requirements which are due this year, 2020, in respect of 2019 year-end.