Cayman and Canada agree to share tax info

Published on Friday, June 25, 2010

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Premier McKeeva Bush (centre) signs a tax information exchange agreement with Canada, represented by Canada’s High Commissioner to Jamaica, Stephen Hallihan (left). Governor Duncan Taylor is on right. Canada and the Cayman Islands signed a tax information exchange agreement (TIEA) in a formal ceremony on Thursday, 14 June, at the Government Information Services Conference Room. Premier McKeeva Bush signed the agreement on behalf of the Cayman Islands, and Canada’s High Commissioner to Jamaica, Stephen Hallihan, signed the agreement on behalf of the government of Canada. “It is well known that Canada’s top financial institutions have had retail and institutional operations in the Cayman Islands for more than 45 years,” said the Premier, “but the ties our two countries share go far deeper. They extend to educational opportunities for Caymanian youth, professional experience for Canadian practitioners and a mutual admiration that has brought together many Canadian and Caymanian families.” The Premier also outlined future opportunities for mutual growth and development between the Cayman Islands and Canada associated with the agreement, specifically mentioning that the TIEA will result in favourable tax treatment for active business income earned by Cayman subsidiaries of Canadian companies. “Many Canadian firms rely on the Cayman Islands’ stable, globally connected, tax-neutral platform to help reach their business goals,” said the Premier. “We look forward to more successful Cayman-Canada business for years to come.” The Premier pointed to several large Canadian banks, including CIBC, Royal Bank of Canada and Scotiabank, which have provided retail financial services local families, but have also offered excellent employment opportunities, including the Premier, a former employee of CIBC. “The point is that Canadian institutions have not only established businesses here,” said Mr Bush, “they have become part of the community through their extensive corporate citizenship and sponsorship activities and, as a result, are part of our daily lives. “We would be fortunate to welcome to the Cayman Islands other partners of the caliber and commitment of our Canadian friends,” he said. “Their continued presence here is ample testimony of the confidence they continue to have in our investor-friendly and internationally recognised financial services industry.” A characteristic both countries share in relation to their financial services industry is stability, added the Premier, neither of which had a single bank fail during the recent global economic crisis. “In both cases, this stability was and is tied to effective oversight and supervision of domestic financial entities,” said Mr Bush, “and for this reason, we hope that through agreements like this one, we can increase and broaden the scope of our business relationships.”

Creditors seek Madoff's Cayman registered yacht

Bernard Madoff Disgraced US businessman

By Kevin Shereves

The liquidators of financial swindler Bernard Madoff’s securities company are seeking title of a Cayman-registered yacht claimed as a company asset.

The luxury vessel – with the registered name of ‘Bull’ - is currently located in the South of France and is the subject of a lawsuit filed by the liquidators of Madoff Securities International against Yacht Bull Corporation.

The suit is currently before the Grand Court of the Cayman Islands.

Nigel Meeson QC is Head of Litigation & Restructuring in the Cayman Islands office of Conyers Dill & Pearman and is acting in the matter on behalf of the liquidator.

Mr Meeson said, “I act for Grant Thornton, the liquidator of Madoff Securities International Limited. It is my understanding that the yacht named ‘Bull’ is registered here in the Cayman Islands but is docked in France.”

He added, “There is some litigation in France as to the ownership of the yacht and what should be done with it.”

Mr Meeson continued, “We are acting on behalf of the liquidators who are based in the UK and we have brought an action here in the Cayman Islands for the title of the vessel in question to be brought into our name, to be brought into the name of the liquidators, and I believe the action was filed in the Cayman Islands sometime in May.”

He added, “We are simply trying to recover assets, namely the vessel in question so that the yacht can then be sold and creditors of Madoff Securities International Limited can then be paid.”

Mr Meeson said the liquidators’ primary goal in the litigation was to compensate creditors.

“I was retained to act on behalf of the liquidators three months ago and my understanding is that various matters are also being considered. There are various negotiations going on and there are other people involved,” Mr Meeson said. “However, this is the only matter that I have been involved with.”

He added, “This matter is currently before the courts and the matter has been adjourned and I am not aware that a date has yet been set.”

Mr Meeson described the yacht as a Leopard 27 built in 2006 that is 89 feet (23 metres) long.

Although he could not confirm the exact value of the yacht, Mr Meeson estimated a value of approximately $7 million dollars.

He said, “It is a very expensive luxury yacht, we are talking millions of dollars.”