TREATIES AND OTHER INTERNATIONAL ACTS SERIES 14-414

________________________________________________________________________

TAXATION

Information Exchange

Agreement Between

the UNITED STATES OF AMERICA

and the CAYMAN ISLANDS

Signed at London November 29, 2013
 NOTE BY THE DEPARTMENT OF STATE

 Pursuant to Public Law 89—497, approved July 8, 1966

(80 Stat. 271; 1 U.S.C. 113)—

“. . .the Treaties and Other International Acts Series issued

under the authority of the Secretary of State shall be competent

evidence . . . of the treaties, international agreements other than

treaties, and proclamations by the President of such treaties and

international agreements other than treaties, as the case may be, 

therein contained, in all the courts of law and equity and of maritime

jurisdiction, and in all the tribunals and public offices of the

United States, and of the several States, without any further proof

or authentication thereof.”
CAYMAN ISLANDS

Taxation: Information Exchange

 Agreement signed at London November 29, 2013;

 Entered into force April 14, 2014.

 
AGREEMENT BETWEEN THE GOVERNMENT OF THE UNITED STATES OF

AMERICA AND THE GOVERNMENT OF THE CAYMAN ISLANDS FOR THE

EXCHANGE OF INFORMATION RELATING TO TAXES

The Government of the United States of America (the "United States") and the

Government of the Cayman Islands (the "Cayman Islands"),

desiring to facilitate the exchange of information with respect to taxes,

noting that the. Government of the United Kingdom of Great Britain and Northern

Ireland (the "United Kingdom") provided a copy of a Letter of Entrustment, via

diplomatic note number 16/10/13 of October 20, 2013, to the United States in which

the United Kingdom has entrusted the Cayman Islands to negotiate and conclude a

tax information exchange agreement with the United States,

have agreed as follows:
ARTICLE 1 

Obiect and Scope of this Agreement

The competent authorities of the Contracting Parties shall provide assistance to each

other through exchange of information that is foreseeably relevant to the

administration and enforcement of the domestic laws of the Contracting Parties

concerning taxes covered by this Agreement. Such information shall include

information that is foreseeably relevant to the determination, assessment and

collection of such taxes, the recovery and enforcement of tax claims, or the

investigation or prosecution of tax matters. Information shall be exchanged in

accordance with the provisions of this Agreement and shall be treated as confidential

in the manner provided in Article 10 (Confidentiality).

ARTICLE 2

Jurisdiction

A requested Party shall not be obligated to provide information that is neither held by

its authorities nor in the possession or control of persons who are within its territorial

jurisdiction. With respect to information held by its authorities or in the possession or

control of persons who are within its territorial jurisdiction, however, the requested

Party shall provide information in accordance with this Agreement regardless of the

residence or nationality of the person holding the information or to whom the

information relates.

ARTICLE 3

Taxes Covered

1. This Agreement shall apply to the following taxes imposed by the Contracting

Parties:

(a) in the case of the United States, all federal taxes; and

(b) in the case of the Cayman Islands, any tax imposed by the Cayman

Islands which is substantially similar to the taxes described in subparagraph (a)

of this paragraph.

2. This Agreement shall also apply to any identical taxes imposed after the date of

signature of this Agreement in addition to or in place of the existing taxes. This

Agreement shall also apply to any substantially similar taxes imposed after the date of

signature of the Agreement in addition to or in place of the existing taxes if the

competent authorities of the Contracting Parties so agree in writing. The competent

authorities of the Contracting Parties shall notify each other of any substantial changes

to the taxation and related information gathering measures covered by this Agreement.

ARTICLE 4

Definitions 

1. For the purposes of this Agreement, unless otherwise defined:

(a) the term "Contracting Party" means the United States or the Cayman Islands

as the context requires;

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(b) the term "competent authority" means:

(i) in the case of the United States, the Secretary of the Treasury or his

delegate, and

(ii) in the case of the Cayman Islands, the Tax Information Authority or its

delegate;

(c) the term "person" includes an individual, a company and any other body of

persons;

(d) the term "company" means any body corporate or any entity that is treated

as a body corporate for tax purposes;

(e) the term "publicly traded company" means any company whose principal

Gass of shares is listed on a recognized stock exchange if the purchase or sale

of its listed shares is not implicitly or explicitly restricted to a limited group of

investors;

(f) the term "principal class of shares" means the class or classes of shares

representing a majority of the voting power and value of the company;

(g) the term "recognized stock exchange" means any stock exchange agreed

upon by the competent authorities of the Contracting Parties;

(h) the term "public collective investment fund or scheme" means any pooled

investment vehicle, irrespective of legal form, if the purchase, sale or

redemption of the units, shares or other interests in the investment vehicle is

not implicitly or explicitly restricted to a limited group of investors;

(i) the term "tax" means any tax to which this Agreement applies and does not

include customs duties;

(j)the term "applicant Party" means the Contracting Party requesting

information;

(k) the term "requested Party" means the Contracting Party requested to

provide information;

(I) the term "information gathering measures" means laws and administrative or

judicial procedures that enable a Contracting Party to obtain and provide the

requested information; and

(m) the term "information" means any fact, statement or record in any form

whatever.

2. For purposes of determining the geographic area within which jurisdiction to compel

production of information may be exercised:

(a) the term "United States" means the territory of the United States of America,

induding American Samoa, Guam, the Northern Mariana Islands, Puerto Rico,

the U.S. Virgin Islands and any other U.S. possession or territory; and

(b) the term "Cayman Islands" means the Islands of Grand Cayman, Cayman

Brac and Little Cayman.

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3. As regards the application of this Agreement at any time by a Contracting Party,

any term not defined therein shall, unless the context otherwise requires or the

competent authorities agree to a common meaning pursuant to the provisions of

Article 12 (Mutual Agreement Procedure), have the meaning that it has at that time

under the law of that Party, any meaning under the applicable tax laws of that Party

prevailing over a meaning given to the term under other laws of that Party.

ARTICLE 5

Exchange of Information Upon Request

1. The competent authority of the requested Party shall provide information for the

purposes referred to in Article 1 (Object and Scope of this Agreement) upon request

by the competent authority of the applicant Party. Such information shall be

exchanged without regard to whether the requested Party needs such information for

its own tax purposes or whether the conduct being investigated would constitute a

crime under the laws of the requested Party if such conduct occurred in the requested

Party.

2. If the information in the possession of the competent authority of the requested

Party is not sufficient to enable it to comply with the request for information, the

requested Party shall use all relevant information gathering measures to provide the

applicant Party with the information requested, notwithstanding that the requested

Party may not need such information for its own tax purposes. Privileges under the

laws and practices of the applicant Party shall not apply in the execution of a request

by the requested Party and the resolution of such matters shall be solely the

responsibility of the applicant Party.

3. If specifically requested by the competent authority of the applicant Party, the

competent authority of the requested Party shall, to the extent allowable under its

domestic laws:

(a) specify the time and place for the taking of testimony or the production of

books, papers, records and other data;

(b) place the individual giving testimony or producing books, papers, records or

other data under oath;

(c) permit the presence of individuals designated by the competent authority of

the applicant Party as being involved in or affected by execution of the request,

including an accused, counsel for the accused, individuals charged with the

administration or enforcement of the domestic laws of the applicant Party

covered by this Agreement or a commissioner or magistrate for the purpose of

rendering evidentiary rulings or determining issues of privilege under the laws of

the applicant Party;

(d) provide individuals permitted to be present with an opportunity to question,

directly or through the executing authority, the individual giving testimony or

producing books, papers, records and other data;

(e) secure original and unedited books, papers, records and other data;

(f) secure or produce true and correct copies of original and unedited books,

papers, records and other data;

(g) determine the authenticity of books, papers, records and other data

produced, and provide authenticated copies of original books, papers, records

and other data;

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(h) examine the individual producing books, papers, records and other data

regarding the purpose for which and the manner in which the item produced is

or was maintained;

(i) permit the competent authority of the applicant Party to provide written

questions to which the individual producing books, papers, records and other

data is to respond regarding the items produced;

(j) perform any other act not in violation of the laws or at variance with the

administrative practice of the requested Party; and

(k) certify either that procedures requested by the competent authority of the

applicant Party were followed or that the procedures requested could not be

followed, with an explanation of the deviation and the reason therefor.

4. Each Contracting Party shall ensure that its competent authority, for the purposes

specified in Article 1 (Object and Scope of this Agreement) of this Agreement, has the

authority to obtain and provide upon request:

(a) information held by banks, other financial institutions, and any person acting

in an agency or fiduciary capacity including nominees and trustees; and

(b) information regarding the ownership of companies, partnerships, trusts,

foundations, "Anstalten" and other persons, including, within the constraints of

Article 2 (Jurisdiction), ownership information on all such persons in an

ownership chain; in the case of trusts, information on settlors, trustees and

beneficiaries; and in the case of foundations, information on founders, members

of the foundation council and beneficiaries.

Notwithstanding subparagraph 4(b), this Agreement does not create an obligation on

the Contracting Parties to obtain or provide ownership information with respect to

publicly traded companies or public collective investment funds or schemes unless

such information can be obtained without giving rise to disproportionate difficulties to

the requested Party.

5. The competent authority of the applicant Party shall provide the following

information to the competent authority of the requested Party when making a request

for information under this Agreement, with the greatest degree of specificity possible:

(a) the identity of the person or ascertainable group or category of persons

under examination or investigation;

(b) a statement of the information sought, including its nature and the form in

which the applicant Party wishes to receive the information from the requested

Party;

(c) the period of time with respect to which the information is requested;

(d) the matter under the applicant Party's tax law with respect to which the

information is sought;

(e) grounds for believing that the information requested is foreseeably relevant

to tax administration or enforcement of the applicant Party with respect to the

person or group or category of persons identified in subparagraph 5(a);

(f) grounds for believing that the information requested is held in the requested

Party or is in the possession or control of a person within the jurisdiction of the

requested Party;

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(g)to the extent known, the name and address of any person believed to be in

possession or control of the requested information;

(h)a statement that the request is in conformity with the law and administrative

practices of the applicant Party, that if the requested information was within the

jurisdiction of the applicant Party then the competent authority of the applicant

Party would be able to obtain the information under the laws of the applicant

Party or in the normal course of administrative practice and that it is in

conformity with this Agreement; and

(i) a statement that the applicant Party has pursued all means available in its

own territory to obtain the information, except those that would give rise to

disproportionate difficulties.

ARTICLE 6

Automatic Exchange of Information 

The competent authorities may automatically transmit information to each other for the

purposes referred to in Article 1 (Object and Scope of this Agreement). The

competent authorities shall determine the items of information to be exchanged

pursuant to this Article and the procedures to be used to exchange such items of

information.

ARTICLE 7

Spontaneous Exchange of Information 

The competent authority of a Contracting Party may spontaneously transmit to the

competent authority of the other Contracting Party information that has come to the

attention of the first-mentioned competent authority and that the first-mentioned

competent authority supposes to be foreseeably relevant to the accomplishment of the

purposes referred to in Article 1 (Object and Scope of this Agreement). The

competent authorities shall determine the procedures to be used to exchange such

information.

ARTICLE 8

Tax Examinations Abroad

1. A Contracting Party may allow representatives of the other Contracting Party to

enter the territory of the first-mentioned Party to interview individuals and examine

records with the written consent of the persons concerned. The competent authority of

the second-mentioned Party shall notify the competent authority of the first-mentioned

Party of the time and place of the meeting with the individuals concerned.

2. At the request of the competent authority of one Contracting Party, the competent

authority of the other Contracting Party may allow representatives of the competent

authority of the first-mentioned Party to be present at the appropriate part of a tax

examination in the second-mentioned Party.

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3. If the request referred to in paragraph 2 of this Article is acceded to, the competent

authority of the Contracting Party conducting the examination shall, as soon as

possible, notify the competent authority of the other Party about the time and place of

the examination, the authority or official designated to carry out the examination and

the procedures and conditions required by the first-mentioned Party for the conduct of

the examination. All decisions with respect to the conduct of the tax examination shall

be made by the Party conducting the examination.

ARTICLE 9

Possibility of Declining a Request

1. The requested Party shall not be required to obtain or provide information that the

applicant Party would not be able to obtain under its own laws for purposes of the

administration or enforcement of its own tax laws. The competent authority of the

requested Party may decline to assist where the request is not made in conformity with

this Agreement. The competent authority of the requested Party may decline to assist

where the applicant Party has not pursued all means available in its own territory to

obtain the information, except those that would give rise to disproportionate difficulties.

2. The provisions of this Agreement shall not impose on a Contracting Party the

obligation to supply information that would disclose any trade, business, industrial,

commercial or professional secret or trade process. Notwithstanding the foregoing,

information of the type referred to in Article 5 (Exchange of Information upon Request),

paragraph 4 shall not be treated as such a secret or trade process merely because it

meets the criteria in that paragraph.

3. The provisions of this Agreement shall not impose on a Contracting Party the

obligation to obtain or provide information that would reveal confidential

communications between a client and an attorney, solicitor or other admitted legal

representative where such communications are:

(a) produced for the purposes of seeking or providing legal advice; or

(b) produced for the purposes of use in existing or contemplated legal

proceedings.

4. The requested Party may decline a request for information if the disclosure of the

information would be contrary to public policy (ordre public).

5. A request for information shall not be refused on the ground that the tax claim

giving rise to the request is disputed.

6. A request for information shall not be refused on the ground that the period of

limitations in the requested party has expired. Instead, the statute of limitations of the

applicant Party pertaining to the taxes to which the Agreement applies shall govern a

request for information.

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ARTICLE 10

Confidentiality

Any information received by a Contracting Party under this Agreement shall be treated

as confidential and may be disclosed only to persons or authorities (including courts

and administrative bodies) in the jurisdiction of the Contracting Party concerned with

the assessment or collection of, the enforcement or prosecution in respect of, or the

determination of appeals in relation to, the taxes covered by this Agreement, or the

oversight of such functions. Such persons or authorities shall use such information

only for such purposes. They may disclose the information in public court proceedings

or in judicial decisions. The information may not be disclosed to any other person,

entity, authority or jurisdiction. Notwithstanding the foregoing, where the requested

Party provides prior, written consent, the information may be used for purposes

permitted under the provisions of the Treaty between the United States of America and

the United Kingdom of Great Britain and Northern Ireland concerning the Cayman

Islands Relating to Mutual Legal Assistance in Criminal Matters, done on July 3, 1986

at Grand Cayman, as may be amended or any successor treaty.

ARTICLE 11 

Costs

Unless the competent authorities of the Contracting Parties otherwise agree, ordinary

costs incurred in providing assistance shall be borne by the requested Party and

extraordinary costs incurred in providing assistance shall be borne by the applicant

Party.

ARTICLE 12

Mutual Agreement Procedure

1. Where difficulties or doubts arise between the Contracting Parties regarding the

implementation or interpretation of this Agreement, the competent authorities shall

endeavor to resolve the matter by mutual agreement.

2. The competent authorities may adopt and implement procedures to facilitate the

implementation of this Agreement.

3. The competent authorities of the Contracting Parties may communicate with each

other directly for purposes of reaching a mutual agreement under this Article.

ARTICLE 13

Entry Into Force

1. This Agreement shall enter into force one month from the date of the Cayman

Islands' written notification to the United States that the Cayman Islands has

completed its necessary internal procedures for entry into force of this Agreement.

The provisions of this Agreement shall have effect for requests made on or after the

date of entry into force, without regard to the taxable period to which the request

relates.

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FOR THE GOVERNMENT OF THE FOR THE GOVERNMENT OF THE

UNITED STATES OF AMERICA: CAYMAN ISLANDS:

2. The Agreement between the Government of the United States of America and the

Government of the United Kingdom of Great Britain and Northern Ireland, including the

Government of the Cayman Islands, for the Exchange of Information Relating to

Taxes, done on November 27, 2001 at Washington (the "2001 Agreement"), shall

terminate on the date of entry into force of this Agreement. Notwithstanding such

termination, the terms of the 2001 Agreement shall continue to apply to requests for

information that have been accepted prior to such termination unless the competent

authorities of the Contracting Parties have mutually agreed otherwise and in writing

pursuant to Article 12 (Mutual Agreement Procedure) of this Agreement.

ARTICLE 14

Termination 

1. The Agreement shall remain in force until terminated by a Contracting Party.

2. Either Contracting Party may terminate the Agreement by giving notice of

termination in writing to the other Contracting Party. Such termination shall become

effective on the first day of the month following the expiration of a period of six months

after the date of the notice of termination.

3. If the Agreement is terminated, both Contracting Parties shall remain bound by the

provisions of Article 10 (Confidentiality) with respect to any information obtained under

the Agreement.

In witness whereof, the undersigned, being duly authorized thereto by their respective

Governments, have signed this Agreement.

Done at London, United Kingdom in duplicate, in the English language, this 29th day

of November, 2013.

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