New guidelines deliver partnerships into line with EU calls for

Cayman News Service

European Union Commission building in Brussels

(CNS): Government has published new regulations that come into force today requiring partnerships to notify with the Tax Information Authority (TIA) and where relevant file an economic substance return to ensure this jurisdiction can continue to do business in the European Union. Financial Services Minister André Ebanks said the rules address the EU’s Tax Good Governance initiative, which has assessed tax regimes in countries, including Cayman, Bermuda, Guernsey, Isle of Man and Jersey. Following the assessment, the EU requested these countries extend economic substance requirements to partnerships.

“These changes ensure that Cayman remains strong and cooperative with international tax compliance,” Ebanks said in a release about the new regulations, which cover general partnerships, limited partnerships, exempted limited partnerships and foreign limited partnerships.

Because investment funds, domestic companies…