Via Compass Cayman, a clear example of how the courts in secrecy jurisdictions can block tax information exchange agreements:
“The Cayman Islands Grand Court quashed a decision by the Tax Information Authority to provide information to the Australian Taxation Office in response to four requests made under a tax information exchange agreement between Cayman and Australia.”
“Given that it was the first case concerning the operation of the TIA Law, Solomon Harris noted, the decision gives “welcome guidance” to the Tax Information Authority, foreign tax authorities and the subjects of information requests on how information should be provided under law.” Solomon Harris is the law firm representing the Cayman companies that had filed for judicial review.
“Tony Travers, partner at Travers Thorp Alberga, concluded that “without the benefit of an enabling provision under the tax information exchange agreement,” the provisions of the Confidential Relationships (Preservation) Law continue to apply to protect the information from improper disclosure.”
Or in other words, in Cayman bank secrecy still rules. hattip: IFCReview via twitter.