The Treasury has declined to confirm their tough line following the failure of talks earlier this week between representatives of the islands’ financial administration and paymaster general Dawn Primarolo.
They were described afterwards by both sides as ‘positive and constructive’ and British officials stressed that ‘discussions will continue’.
But the Caymans were reportedly defiant – fearing the withholding tax and disclosure provisions demanded by Brussels and London will wreck their economy.
A Treasury spokesman would only state: ‘We would prefer that an agreed settlement will result from these discussions.’
The UK does not regard Caymans non-compliance as an option. All four other dependant territories that act as tax havens have declared their intention to comply – allowing any one of them to opt out would wreck the EU anti-evasion initiative.
The Caymans have offered some limited concessions as a sweetener but have been holding out for easier access to the EU financial market.
HMRC has won its tenth successive case against tax avoidance schemes promoted by NT Advisors. The Court of Appeal has ruled that NT ... read more
HMRC is continuing to ramp up the number of raids on premises it carries out as part of criminal investigations, searching 761 properties in the last year
Five million taxpayers are ow using digital personal tax accounts (PTA) as part of the making tax digital strategy, HMRC said
Since the release of HMRC’s plans for digital tax reforms, many have agreed with the call for a delay