Cayman signs tax deal with China
Tuesday September 27 2011 | 02:55 AM

Cayman has signed a tax deal with the People’s Republic of China. The country’s 26th tax information exchange agreement (TIEA) was signed by the premier, Monday, on behalf of the Cayman Islands and by Madame Song Lan, the State Administration of Taxation (SAT) Deputy Commissioner and Vice Minister, on behalf of the Chinese government. Aside from adding to Cayman’s tally in the OECD’s yardstick on transparency the deal was described by McKeeva Bush as a “significant step in enhancing” Cayman’s relationship” with China. The TIEA comes at a time when the premier is in the middle of talks with the Chinese to build cruise berthing facilities in George Town.

“This is the 26th signed agreement for exchange of information for tax purposes and the People’s Republic of China has become another member of the G20 group of countries to have a TIEA with the Cayman Islands,” said McKeeva Bush. “Signing this TIEA is a significant step in enhancing the relationship between the Cayman Islands and China. With China being one of the fastest growing economies in the world, we are confident that this TIEA will contribute positively to economic activity between the two countries."

China Harbour Engineering Company signed a Ministerial MOU with the premier in June for a five month ‘exclusive’ period to thrash out a deal that if successful will see the Bejing based firm finance, build and operate two cruise piers in George Town harbour to provide docking facilities for the next generation of cruise ships. The proposed project also includes discussions about a pier in West Bay, near the Turtle Farm and the renovation of the Spotts Jetty.

Governor  Duncan Taylor as well as Members of the Legislative Assembly; Cayman Islands International Tax Cooperation Team members; senior officials from the Ministry of Finance; and representatives from the Bank of China were all in attendance at the ceremony held in George Town. Attending for the Chinese delegation were the Director General of SAT Tax Administration Department, Mr. LI Linjun; Director General of SAT Electronic Tax Service Centre, Madame YAO Qin; Director of Global Cooperation and Compliance, SAT International Taxation Department, Mr. HUANG Suhua; Principal Staff Member of SAT General Office, Ms. LU Shan; and Staff Member of SAT International Taxation Department, Mr. LI Qiaolang.