Cayman Islands Under Scrutiny

Just south of Cuba lies three islands, named the Cayman Islands. This British territory consists of the three islands: Grand Cayman, Cayman Brac, and Little Cayman. Grand Cayman is the largest of the islands and the most populated. Grand Cayman also contains the capital, which is called George Town.

Located at South Church Street in George Town, is a building called the Ugland House. The famous Ugland House is reported to be the home, or mailbox if you prefer, of almost 19,000 international businesses, nearly half of them from the United States.

The Ugland House building is owned by Maples and Calder, which is sometimes called Maples. Maples happens to be the world’s largest offshore law firm.

So what is the purpose of U.S. corporations based at the Cayman Islands? The primary purpose is tax evasion, plain and simple. In the United States, the tax rate that companies must pay is 35%. In the Cayman Islands,  some of the world’s largest corporations channel trillions of dollars, making the area one of the world’s largest tax haven. Switzerland is said to be number one.

Raymond W. Baker, director of Global Financial Integrity, claims that there is no accountability in the Caymans, when it comes to taxes. This means no accounting requirements, no reporting requirements, and no regulatory oversight.

The United States loses approximately a billion dollars a year from offshore tax evasion. The number of top 100 U.S. corporations with subsidiaries in tax havens – 83.

Total global assets estimated to be sheltered in offshore tax havens is $11.5 trillion.

Anti-money Laundering Attorney Specialist Jack Blum estimates that 60-70% of offshore accounts are held by U.S. citizens.