Economic Substance – Cayman Islands David Charles Lloyd The Cayman Islands have made a commitment to address the concerns of the EU Code of Conduct Group around economic substance and to introduce appropriate legislation addressing this issue before the end of 2018. What will the legislation look like? Whilst the Cayman Islands draft legislation is in an advanced state to implement new economic substance requirements and reporting and have been in close discussions with the EU working group, it is not yet publicly available. We do understand that the legislation will follow the approach which has been taken jointly by the Crown Dependencies of Jersey, Guernsey and the Isle of Man. The proposals will require companies tax resident in the Cayman Islands, and undertaking certain categories of geographically mobile financial and other service activities, to demonstrate that they have sufficient substance in the Cayman Islands. The substance requirements a...