The transfer of the tax base to avoid or evade tax requires a legal mechanism, usually in the form of a double taxation convention. The Cayman Islands has a neutral tax system and no double taxation treaties; Therefore, it has no legal mechanism to allow the base to be moved. The seven tax information agreements were signed in Stockholm in April 2009, after all countries had completed their individual administrative protocols. OSFI is responsible for the regulation and supervision of all government-chartered, licensed or registered banks and insurance companies, trust and credit companies, as well as cooperative credit unions and fraternal corporations in Canada. On 21 a Memorandum of Understanding on the exchange of information and assistance to the investigation between CIMA and the FSA, the United Kingdom`s national financial services and markets regulatory authority, was signed on 22 February 2008. The agreement provides a formal basis for cooperation between the two authorities. 1 Two countries „considering entering into a tax treaty should assess the real risk of double taxation in cross-border situations“. The OECD Model Convention also points out that if one country does not collect income taxes or low taxes and the other country is satisfied, there is no risk of double taxation, a tax treaty would not be necessary. `In the absence of a real risk of double taxation, those administrative provisions would not in themselves constitute a sufficient tax basis for the existence of a tax agreement, as such assistance could be provided by more targeted alternative agreements, such as the conclusion of an agreement on the exchange of tax information [TIEA] or participation in the Multilateral Convention on Mutual Assistance in Tax Matters`; [OECD Model Agreement on income and capital taxation, 2017] Cayman`s tax-neutral regime, which is globally responsible, is a distinguishing feature of international financial centres (IFCs), many of which are investment centres for tax treaties with extensive networks of double taxation treaties. While the OECD Model Convention contains guidelines for the application of double taxation treaties to address double taxation of cross-border economic activities, it also recognises other tax policy models to combat double taxation, mediation of tax disputes and exchange of tax information to protect against tax evasion and aggressive tax evasion. The neutral Cayman tax regime meets the criteria of an alternative tax model. 3 There is no tax conflict or risk of double taxation with regard to cross-border economic transactions concerning the tax-neutral jurisdiction of the Cayman Islands. Therefore, the removal of barriers to double taxation, as in the case of TTTs, leads to an increase in foreign investment in developed and developing countries, better access to foreign technologies and capacities, and thinking capabilities for the local economy of these countries from the increase in foreign investment.

(Technically, Cayman signed a double taxation agreement with the UK, but this is only the form in which the UK preferred to execute its tax information exchange agreement with Cayman. The agreement does not offer any tax advantage to Cayman, as Cayman has no taxes covered by the agreement.) Double taxation treaties (or double taxation treaties) and tax neutrality are important tax models for effectively combating double taxation. . . .

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