News about the Cayman Islands in the Foreign Press

Thursday, September 2, 2004

Cayman inversion transactions ‘immoral’

BARSTOW, USA – According to a guest editorial in the Desert Dispatch, the corporate tax loophole du jour is the "inversion transaction." It transforms a U.S. company into a foreign corporation headquartered in a country such the Cayman Islands that has low (or no) corporate income taxes. U.S. Sen. Charles Grassley, R-Iowa, says of this particular corporate tax loophole: "Inversion transactions are not illegal, but they are immoral."

California again rejects tax on Cayman reincorporations

SACRAMENTO, USA According to the Sacramento Bee, for the second time in a week, the California State Assembly has rejected a bill that would have ended some tax breaks for expatriate companies and collected about $10 million in additional revenue.

The measure fell six votes short of receiving the necessary two-thirds vote for passage. State Treasurer Phil Angelides sponsored the bill, which would have made changes for public companies that set up so-called "paper headquarters" in tax havens, such as the Cayman Islands, but continue the bulk of their operations in the United States.

Cayman Airways received Fort Lauderdale flights incentive

FORT LAUDERDALE, USA – The Miami Herald reports that eligible carriers that have initiated nonstop jet passenger service to certain target areas, including the Caribbean, and thereby benefited from the airport's incentive program include Cayman Airways, which began service to the Cayman Islands. The incentives, which only apply if a city is not yet served, may include waiving one year of landing fees, remote parking use charges, county-operated gate use charges and security office charges for pre-board passenger screening.

Back...