New Research Demonstrates Tax Justice Network’s State of Tax Justice Report Based on Flawed Analysis for Cayman Islands
Cayman Finance today is releasing a critical analysis of a new report by the Tax Justice Network, the State of Tax Justice 2021. TJN’s use of extremely distorted estimates and its failure to acknowledge the Cayman Islands’ tax neutrality and significant safeguards against tax evasion and aggressive tax avoidance have resulted in a report that is highly unreliable in its conclusions about the Cayman Islands financial services industry. As Cayman Finance research continues to demonstrate, TJN reports consistently lack credibility because of significant problems with their choice of data and application of methodology.
Cayman Finance’s new analytical report -- “TJN’s State of Tax Justice: A Critical Review ” – evaluates TJN’s State of Tax Justice Report for 2021 as well as the version previously released for 2020. Cayman Finance’s assessment was produced by noted economist Julian Morris and addresses both highly inaccurate estimates of corporate tax data as well as substantial errors in TJN’s reporting on the legal and regulatory environment in the Cayman Islands. Some criticisms of the Cayman Islands in the State of Tax Justice are recycled from TJN’s Financial Secrecy Index, which Cayman Finance dismantled in a previous report .
“The State of Tax Justice report continues the Tax Justice Network’s record of using distorted estimates and inaccurate assessments to reach highly unreliable conclusions about the Cayman Islands,” said Jude Scott, the CEO of Cayman Finance . “Cayman Finance has once again produced a careful analysis that relies on credible research to document TJN’s efforts to manipulate data to produce pre-determined results. TJN’s reports like the State of Tax Justice and the Financial Secrecy Index cannot be taken seriously unless TJN begins to use more accurate data and reliable assumptions – and Cayman Finance will continue to shine a bright light on their work until they do.”
Cayman Finance’s research determined that TJN’s State of Tax Justice 2021 is based on:
“Extremely distorted estimates” – One of TJN’s own founders, Richard Murphy, concedes that: a) TJN uses BIS data that does not differentiate personal and corporate deposits; b) TJN fails to recognise ‘that there may be commercial reasons for some of these deposits despite this referring to the fact in the methodology note’ and c) Offshore holding is not necessarily for the purposes of tax abuse.
“Similarly shaky premises ” – TJN’s “own metrics for Banking secrecy show that Cayman is not a secrecy jurisdiction. Indeed, Cayman’s verified beneficial ownership registry combined with its tax information exchange agreements strongly disincentivizes individuals from attempting to use the jurisdiction to engage in tax evasion.”
Julian Morris, leading economist and author of the Cayman Finance report, explains further: “TJN uses erroneous methods to derive estimates of tax avoidance and evasion. As a result, it wildly exaggerates the extent of avoidance and evasion facilitated by Cayman. As long as TJN continues to use such erroneous methods, the State of Tax Justice cannot be relied upon as a credible assessment of the Cayman Islands.”
Cayman Finance’s “TJN’s State of Tax Justice: A Critical Review” by Julian Morris, as well as analyses of other TJN reports, can be found at www.caymanfinance.ky .
About Cayman Finance:
Cayman Finance is the association of the financial services industry of the Cayman Islands, a premier global tax neutral financial hub efficiently connecting law abiding users and providers of investment capital and financing around the world. Cayman Finance represents first rate service providers within investment funds and asset management, banking, insurance, reinsurance, capital markets, and trusts sectors and world class fiduciary, legal, and public accounting service providers. Additionally, Cayman Finance represents 15 industry associations. Learn more at: www.caymanfinance.ky
About Business Wire
101 California Street, 20th Floor
CA 94111 San Francisco
Subscribe to releases from Business Wire
Subscribe to all the latest releases from Business Wire by registering your e-mail address below. You can unsubscribe at any time.
Latest releases from Business Wire
CT-NEL-HYDROGEN/OVAKO26.11.2021 20:47:07 CET | Press release
Nel ASA: Receives Purchase Order for 20MW Alkaline Electrolyser From Ovako
CA-METAGOOD26.11.2021 18:18:04 CET | Press release
'Afghan Girl' Sharbat Gula Safely Evacuated to Italy Via Efforts of Photographer Steve McCurry, Metagood/OnChainMonkey Crypto Community & Future Brilliance Charity
SHENZHEN-WOODY-VAPES26.11.2021 16:47:04 CET | Press release
ZOVOO Held Distributor Conference, Creating a Splash of Colour in Atomization Industry
QUANDOO26.11.2021 15:23:06 CET | Press release
Indeed and Quandoo Announce Partnership to Support the Restaurant Industry Hiring Crisis
TRUSTECH26.11.2021 10:36:11 CET | Press release
The Leading Event for Payment, Identification and Security Professionals, TRUSTECH will present all the Latest trends in the sector
VIFOR-PHARMA26.11.2021 07:02:06 CET | Press release
Vifor Pharma supports Iron Deficiency Day 2021: Call to action for early iron deficiency diagnosis
LIGHTCON26.11.2021 03:02:09 CET | Press release
LightCON Unveils Global Teaser Site for New Mobile Game 'Rise of Stars (ROS)'
In our pressroom you can read all our latest releases, find our press contacts, images, documents and other relevant information about us.Visit our pressroom