Consider the following statements:

1.  Cayman Islands recent exit from the FATF grey list

2.  Cayman Islands is a French Overseas Territory located in the Western Caribbean Sea

3.  Cayman Islands considered a tax haven because the Caymans do not impose a corporate tax.

Which of the statements given above is/are correct?

Solution

Cayman Islands’ recent exit from the FATF grey list is expected to bolster global private equity funds looking to invest in non-banking financial companies (NBFCs) based in India. The Cayman Islands is a British Overseas Territory located in the Western Caribbean Sea They are considered a tax haven because the Caymans do not impose a corporate tax, making it an ideal place for multinational corporations to base subsidiary entities to shield some or all of their incomes from taxation.