Agreement Between the Government of Canada and the Government of the Cayman Islands Under Entrustment from the Government of the United Kingdom of Great Britain and Northern Ireland for the Exchange of Information on Tax Matters

This electronic version is provided for convenience of reference only and has no official sanction.

WHEREAS the Government of the United Kingdom has issued a letter of entrustment to
the Government of the Cayman Islands (hereinafter “Cayman Islands”) to negotiate, and
conclude an agreement for the exchange of information on tax matters with the
Government of Canada (hereinafter “Canada”):

THE GOVERNMENT OF CANADA and THE GOVERNMENT OF THE
CAYMAN ISLANDS
, desiring to facilitate the exchange of information with respect to
taxes, have agreed as follows:

Object and Scope of this Agreement

1. The competent authorities of the Parties shall provide assistance through exchange of information that is foreseeably relevant to the administration and enforcement of the domestic laws of the Parties concerning taxes covered by this Agreement. Such information shall include information that is foreseeably relevant to the determination, assessment and collection of such taxes, the recovery and enforcement of tax claims, or the investigation or prosecution of tax matters. Information shall be exchanged in accordance with the provisions of this Agreement and shall be treated as confidential in the manner provided in Article 8.

2. The rights and safeguards secured to persons by the laws or administrative practice of the requested Party remain applicable to the extent that they do not unduly prevent or delay effective exchange of information.

Jurisdiction

A requested Party is not obligated to provide information which is neither held by its authorities nor in the possession or control of persons who are within its territorial jurisdiction.

Taxes Covered

The taxes which are the subject of this Agreement are, in the case of Canada, all taxes on income and on capital imposed or administered by the Government of Canada, and in the case of the Cayman Islands, all taxes on income and on capital imposed or administered by the Cayman Islands, including any taxes on income and on capital imposed or administered after the date of signature of this Agreement.

Definitions

1. For the purposes of this Agreement, unless otherwise defined:

2. As regards the application of this Agreement at any time by a Party, any term not defined therein shall, unless the context otherwise requires, have the meaning that it has at that time under the law of that Party, any meaning under the applicable tax laws of that Party prevailing over a meaning given to the term under other laws of that Party.

Exchange of Information upon Request

1. The competent authority of the requested Party shall provide upon request information for the purposes referred to in Article 1. Such information shall be exchanged without regard to whether the conduct being investigated would constitute a crime under the laws of the requested Party if such conduct occurred in the territory of the requested Party.

2. If the information in the possession of the competent authority of the requested Party is not sufficient to enable it to comply with the request for information, that Party shall use all relevant information gathering measures to provide the applicant Party with the information requested, notwithstanding that the requested Party may not need such information for its own tax purposes.

3. If specifically requested by the competent authority of the applicant Party, the competent authority of the requested Party shall provide information under this Article, to the extent allowable under its domestic laws, in the form of depositions of witnesses and authenticated copies of original records.

4. Each Party shall ensure that its competent authority for the purposes specified in
Article 1 of this Agreement, has the authority to obtain and provide upon request:
5. The competent authority of the applicant Party shall provide the following information to the competent authority of the requested Party when making a request for information under this Agreement to demonstrate the foreseeable relevance of the information to the request:
6. The competent authority of the requested Party shall immediately confirm receipt of a request in writing to the competent authority of the applicant Party and shall:

Tax Examinations Abroad

1. A Party may allow representatives of the competent authority of the other Party to enter the territory of the first-mentioned Party to interview individuals and examine records with the written consent of the persons concerned. The competent authority of the second-mentioned Party shall notify the competent authority of the first-mentioned Party of the time and place of the meeting with the individuals concerned.

2. At the request of the competent authority of one Party, the competent authority of the other Party may allow representatives of the competent authority of the first-mentioned Party to be present at the appropriate part of a tax examination in the territory of the second-mentioned Party.

3. If the request referred to in paragraph 2 is acceded to, the competent authority of the Party conducting the examination shall, as soon as possible, notify the competent authority of the other Party about the time and place of the examination, the authority or official designated to carry out the examination and the procedures and conditions required by the first-mentioned Party for the conduct of the examination. All decisions with respect to the conduct of the tax examination shall be made by the Party conducting the examination.

Possibility of Declining a Request

1. The requested Party shall not be required to obtain or provide information that the applicant Party would not be able to obtain under its own laws for purposes of the administration or enforcement of its own tax laws. The competent authority of the requested Party may decline to assist where the request is not made in conformity with this Agreement.

2. The provisions of this Agreement shall not impose on a Party the obligation to supply information which would disclose any trade, business, industrial, commercial or professional secret or trade process. Notwithstanding the foregoing, information of the type referred to in Article 5, paragraph 4 shall not be treated as such a secret or trade process merely because it meets the criteria in that paragraph.

3. The provisions of this Agreement shall not impose on a Party the obligation to obtain or provide information, which would reveal confidential communications between a client and an attorney, solicitor or other admitted legal representative where such communications are produced for the purposes of:

4. The requested Party may decline a request for information if the disclosure of the information would be contrary to public policy (ordre public).

5. A request for information shall not be refused on the ground that the tax claim giving rise to the request is disputed.

6. The requested Party may decline a request for information if the information is requested by the applicant Party to administer or enforce a provision of the tax law of the applicant Party, or any requirement connected therewith, which discriminates against a national of the requested Party as compared with a national of the applicant Party in the same circumstances.

Confidentiality

Any information received by a Party under this Agreement shall be treated as confidential and may be disclosed only to persons or authorities (including courts and administrative bodies) in the jurisdiction of the Party concerned with the assessment or collection of, the enforcement or prosecution in respect of, or the determination of appeals in relation to, taxes in that jurisdiction. Such persons or authorities shall use such information only for such purposes. They may disclose the information in public court proceedings or in judicial decisions. The information may not otherwise be disclosed to any other person or entity or authority or any other jurisdiction without the express written consent of the competent authority of the requested Party.

Costs

Incidence of costs incurred in providing assistance shall be agreed by the competent authorities of the Parties.

Implementation Legislation

The Parties shall enact any legislation necessary to comply with, and give effect to, the terms of this Agreement.

Other International Agreements or Arrangements

The possibilities of assistance provided by this Agreement do not limit, nor are they limited by, those contained in existing international agreements or other arrangements between the Parties which relate to co-operation in tax matters.

Mutual Agreement Procedure

1. Where difficulties or doubts arise between the Parties regarding the implementation or interpretation of this Agreement, the competent authorities shall endeavour to resolve the matter by mutual agreement.

2. In addition to the agreements referred to in paragraph 1, the competent authorities of the Parties may mutually agree on the procedures to be used under Articles 5 and 6.

3. The competent authorities of the Parties may communicate with each other directly for purposes of reaching agreement under this Article.

4. The Parties may also agree on other forms of dispute resolution.

Entry into Force

1. This Agreement is subject to ratification, acceptance or approval by the Parties, in accordance with their respective laws. Notification in writing of the completion of each Party’s necessary internal procedures for entry into force shall be exchanged as soon as possible.

2. This Agreement shall enter into force on the date of the later of the notifications under paragraph 1. Upon entry into force, it shall have effect:

Termination

1. A Party may terminate this Agreement by serving a notice of termination through diplomatic channels to the other Party.

2. Such termination shall become effective on the first day of the month following the expiration of a period of six months after the date of the notice of termination.

3. Where a Party terminates this Agreement, both Parties shall remain bound by the provisions of Article 8 with respect to any information obtained under this Agreement.

IN WITNESS WHEREOF, the undersigned being duly authorised thereto, have signed this Agreement.

SIGNED in duplicate at George Town this 24th day of June 2010, in the English and French languages, each version being equally authentic.

Stephen Hallihan

FOR THE GOVERNMENT OF CANADA

William McKeeva Bush

FOR THE GOVERNMENT OF THE CAYMAN ISLANDS

At the time of signing of this Agreement between the Government of Canada and the Government of the Cayman Islands under Entrustment from the Government of the United Kingdom of Great Britain and Northern Ireland for the Exchange of Information on Tax Matters, the undersigned have agreed upon the following provisions which shall be an integral part of this Agreement.

1. With reference to paragraph 2(a) of Article 13, if at the time of the submission of a request by a Party, or at any time thereafter, the competent authority of the applicant Party is of the view that it is necessary to request supplemental information which predates January 1, 2004 which is related to its primary request and is relevant to a criminal tax matter to which this Agreement refers, the requested party shall grant such a request.

2. Before making a supplemental request for information referred to in paragraph 1 above the competent authority of the applicant Party shall consult with the competent authority of the requested Party on the likely availability of the supplemental information.

IN WITNESS WHEREOF, the undersigned being duly authorised thereto, have signed this Protocol.

SIGNED in duplicate at George Town this 24th day of June 2010, in the English and French languages, each version being equally authentic.

Stephen Hallihan

FOR THE GOVERNMENT OF CANADA

William McKeeva Bush

FOR THE GOVERNMENT OF THE CAYMAN ISLANDS

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