Cayman Finance Announces Statement

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Jan 20, 2012, 09:58 ET

GRAND CAYMAN, Jan. 20, 2012 /PRNewswire/ -- Cayman Finance Chairman Mr. Richard Coles today responded to a report on US network television station ABC which focused on Presidential candidate Mr. Mitt Romney's financial affairs linked to the Cayman Islands.

"The report displays a total misunderstanding of the role of the Cayman Islands' tax neutral framework. All international investors are ultimately responsible for paying their taxes in their home country under their respective laws and there is nothing in the Cayman Islands laws that interferes with that," said Mr. Coles.

Mr. Coles explained that not only does the Cayman Islands laws not prevent investors from complying with their tax obligations but that in fact the Cayman Islands are involved in a number of initiatives that encourage full cooperation with US authorities on numerous levels in the area of international cooperation on tax matters. Some of these include; a bilateral agreement which has been in place since 2006, a mutual legal assistance treaty and the Cayman Islands involvement with, and recognition by, the OECD Global Forum which focuses on tax information exchange.

We do understand that this is election season in the US and typically these types of reports surface as part of that process but it is unfortunate that despite significant evidence to the contrary, journalists would continue to suggest that the laws of the Cayman Islands encourage avoidance of tax.

In fact, our tax neutral framework has played an important role in enabling ordinary Americans to efficiently invest via their pension funds and many US corporations have been able to maintain their international competitiveness through the use of Cayman Islands structures.

"We are always happy to explain the nature of our regime to journalists and we continue to welcome their queries on how we conduct financial services business in the Cayman Islands," said Mr. Coles.

About Cayman Finance:

Cayman Finance is a private-sector membership-based organisation that has been established to promote Cayman's financial services industry through public relations, public affairs and marketing initiatives.

www.caymanfinance.ky

SOURCE Cayman Finance