The Cayman Islands Government signed its 31st Tax Information Exchange Agreement (TIEA) with the Republic of Brazil on 19 March.
The treaty is expected to build on business relationships that are already in place, and provide a springboard for future collaboration on areas of mutual interest that can facilitate economic growth and development in both countries.
“It sends another strong signal to the global community that the Cayman Islands is serious about building solid partnerships, and adhering to the international standards set by OECD’s Global Forum on Transparency and Exchange of Information for Tax Purposes,” says Cayman’s signatory Rolston Anglin, the Minister for Financial Services.
The TIEA is the latest agreement between Cayman and Brazil. In 2006 Cayman’s financial services regulator, the Cayman Islands Monetary Authority, entered into a memorandum of understanding with Brazil’s central bank, Banco Central de Brazil. In 2009, it signed a MoU with Brazil’s securities and exchange commission, the Comissão de Valores Mobiliários.
Anglin says that the TIEA with Brazil will pave the way for future cooperative efforts with Brazil, and that it has the potential to increase commercial activity with the largest economy in South America – a G20 country that is recognised as a rapidly emerging global player.
Data from the International Monetary Fund indicates that the Cayman Islands already ranks in the top five for portfolio investment assets in and out of Brazil. In 2011, flows from global investors channelled through Cayman investment funds into Brazil totalled some USD17bn. These flows are used for projects like major infrastructure and asset financing.