Cayman Islands Included on EU List of Non-Cooperative Tax Jurisdictions

The European Union (EU) has, for the first time, included the Cayman Islands on its list of non-cooperative jurisdictions for tax purposes, concluding that the UK overseas territory “does not have appropriate measures in place relating to economic substance in the area of collective investment vehicles.”

This update considers the nature and importance of the EU list. It discusses the possible consequences of the listing and the implications for collective investment funds in the Cayman Islands.