Economic substance fines and penalty notices

The Cayman Islands Department for International Tax Cooperation has commenced the issuance of compliance letters and penalty notices to those entities that have failed to submit accurate economic substance notifications and returns.

Failing to submit accurate and complete economic substance notifications and returns can result in severe penalties, which is why we strongly recommend seeking advice before making the submissions.

For clients to whom we provide registered office services, we would like to remind you that when you submit your economic substance notifications and returns through Harneys Connect, the submission process does not include a review by one of our experts. It is, therefore, imperative that you carefully review and verify the accuracy of all information before submitting to avoid any penalties or compliance issues.

As your trusted advisers, we are committed to providing you with the highest level of service and support in navigating complex regulatory landscapes. Our legal team is ideally placed to help you perform a full review of your entities to assess and advise on all aspects of compliance with economic substance legislation and, where appropriate, what actions must be taken.

For assistance, please reach out to any of our key contacts.